Smart Borrower Blog

Archive for February, 2008

Subprime Myths Exposed

Feb 10th, 2008 @ 5:55 PM by Alden Smith

Because of the sub prime mortgage market, over 1 million homes will go into foreclosure over the next few years.  To put that in perspective, think of a town, like Dallas, Texas, as a virtual ghost town.  With a population of a little over 1 million souls, and if all foreclosures were focused there, the […]

more »

Piggy Back Loans

Feb 9th, 2008 @ 3:13 PM by Alden Smith

One of the things we don’t often hear about are piggyback loans – the loans people take out to make down payments on houses they are buying to avoid paying private mortgage insurance. It is just another sign of the stupidity in the market, when greed takes over and people put their heads where it […]

more »

The Problem With Fannie & Freddie’s New Cap

Feb 8th, 2008 @ 4:26 PM by Alden Smith

Recently I reported on the new guidelines to be put in place for Fannie Mae and Freddie Mac, effectively raising the cap on jumbo loans from their current level of $417,000 to a new cap of $729,750.  Typically, these loans are about 0.25 percentage points above smaller, so-called conforming mortgages.  You have to wonder who […]

more »

States Regulate Mortgage Lending

Feb 7th, 2008 @ 11:41 AM by MortgageMentor

While the discussion drones on in the U.S. Congress about the proposed economic stimulus bill, there are several states trying to regulate their own reform. Some of the changes in the reform bill proposals make you wonder why there is opposition. For example, in Oregon’s Senate Bill 1090, proposed by Sen. Ben Westlund (a Democrat), […]

more »

Government attempts to Regulate Lenders

Feb 6th, 2008 @ 11:40 AM by MortgageMentor

As I discussed yesterday, the economic stimulus bill that is being debated in the Senate includes some mortgage reform issues. But here is the trouble with adding more regulations to an already over-regulated market: Lenders already have a lot of incentive to assist the borrowers who have trouble meeting their payment schedules. After all, the […]

more »

Changes to FHA intended to Spur Borrowing

Feb 5th, 2008 @ 11:39 AM by MortgageMentor

The latest word on the pending legislation with the economic stimulus bill is that the Senate and House are still ironing out some issues. The FHA conforming loan limit increase, from $417,000 to $625,000 as proposed by the House will be for a limited period of time only– two years. The increase would be even […]

more »

Lawyers and Ruses, Oh My!

Feb 3rd, 2008 @ 4:49 PM by Alden Smith

I read with interest a commentary by a San Francisco lawyer who isn’t exactly thrilled by the new stimulus package that the Bush administration is touting as good for the economy.  Maybe it is, maybe it isn’t.  A few more bucks in your pocket is always a good thing, but at what price? According to […]

more »

The Case For Reverse Mortgages

Feb 2nd, 2008 @ 9:15 AM by Alden Smith

Reverse mortgages are nothing new. They’ve been around a long time, and it is now a reality that lenders are taking a closer look at this as profits fall from the sub prime market. Many older Americans aren’t aware of the cost of a reverse mortgage, and it appears the unethical lenders are taking advantage […]

more »

FBI To Investigate Sub-prime Lenders

Feb 1st, 2008 @ 5:24 PM by Alden Smith

It had to happen.  Following New York attorney general Andrew M. Cuomo’s investigations into Wall Street banks, the FBI is dropping their hat into the ring of investigations into the sub-prime market crisis.  We have seen the effects of this firestorm gaining momentum over the past year.  Today, the Tokyo stock exchange took a big […]

more »