[Rhodes22-list] Stinky Planes & Such (Political)

[TN Rhodey]

Herb, I agree ...I am also not a fan of the press and yes it does sound like
a lot of whining.  As for the side note...I just hope who ever gets elected
is up to the job. The deck is stacked against either candidate. I really
wish one of these guys would have voted against the bail out.

Now AIG wants more money.......oh yeah keep an eye on the Euro. It is hard
enough for a single country to figure out a monetary policy. I am not sure
if Europe is "united" enough to survive this with Euro intact. We may see
the Euro go bye bye.

There is talk about using $300 billion to help homeowners who are upside
down in their financing. New mortgages will be underwritten based on current
real estate values. This is most likely another bad idea. What if the value
continues to fall? What if it shoots back up again? This thing needs to
bottom!

There is an FHA program already in place called FHA Secure. This program
allows those that have fallen behind on mortgage payments due to ARM reset
to refinance into a fixed rate FHA loan. This program requires a new
appraisal. However this program doesn't help the "upside down" part of the
problem.

Speaking of FHA..... Those in mortgages know that FHA became the "new
sup-prime" when sub-prime tanked a year ago. FHA still lends down to a 580
FICO while conforming guidelines now require a 620. The busiest mortgage
lenders in the industry right now are those that know how to handle a
"manual FHA Underwrite". There are dozens of loop holes still in the system.
FHA loans are up over 200% (I have heard as high as 300%). Also FHA has
increased loan size lending limits. All eyes are focused on Fannie/Freddie
while FHA is doing booming sub-prime business right now.


Fair Winds,

Wally





On Wed, Oct 8, 2008 at 10:11 PM, Herb Parsons <hparsons at parsonsys.com>wrote:

> I'm no fan of the press, and this does sound a lot like whining, but I
> found the article interesting, especially the last line:
>
>
> http://www.cbsnews.com/blogs/2008/10/07/politics/fromtheroad/entry4507703.shtml
>
> Side note: It sounds like Barak's plan stinks with and without the "e"
> at the end.
>
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