Your Buyers Pay More – Starting NOW!
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Frank & Brian,
Just a quick correction on your Friday, Jan. 20th piece. You were referring to the HARP (Home Affordable REFINANCE Program) as HAMP, which of course is the Home Affordable Modification Program. Little thing, actually, but I thought I would “chime in”. God Bless you guys…
The numbers are all a joke fellows its election time Obama has his machine at work again, dont be fooled by the upside in the STATS.
I think the what makes this so special is Mr. Obama was originally going to pay for these extensions with increased taxes on the 1%(most of whom do not have mortgages). And then poof..we wake up Christmas week and the extension is passed and who pays….Homeowner’s, but not all homeowner’s… just those lucky enough to refi or purchase a new house in 2012 and beyond. I could swear that Mr. Obama said that the middle class was paying enough and he would not add any increased tax burdens on them, but here we go. I also love the fact that no one even saw it nor did the press even report it. You have to love how Washington works…
I understand the Fannie/Freddie increases have essentially taken effect, but forgive me for being Pollyanna, does not FHA still provide us peons with the courtesy of an FHA letter that says: “ye shall bend over and take it for all case numbers assigned after “?
What is wrong with you? It’s okay for illegal aliens to work, buy, and pay their taxes but the other responsibilities of citizenship are restricted. You should be asking yourself why is this person that is giving so much to this nation made to jump through so many hoops to become a citizen. These aren’t the illegals you need to be worried about. The pompous ideas on these sites that are full of like minded narrow thinking wind bags is ridiculous.
You don’t understand how critical this situation is. Come to San Diego and you’ll understand the toll this population is taking on our country. We have multiple families living in one house, bringing down values in the neighborhood, our hospital emergency rooms are filled with illegals who don’t pay for services. The problem with drunk drivers (most without licenses), drivers without insurance, petty crime like home breakins for small valuables is at a record high because of illegals. And this doesn’t even address what has happened to our school system when so many children can’t even speak english.
Go home illegal and stop complaining.
“…giving so much…” Like what? Illegal aliens overuse our social safety net and MOST of them DON’T pay taxes.
Great show today and I like the format. But guys…kill the 70s gameshow music!
still cannot open the program
Our secondary market guy just point something out that I wish I had thought of. See if you can follow me on this. Congress raises funds by raises the G-feee 10 bps. This in turn increases rates. The consumer then turns around and deducts the increased interest from his taxes on April 15th. So… just exactly how does this raise money? Can someone explain it to me?
To clearify, i like your new intro format, you are just missing the mark on the music. It just needs jazzing up like you had before.
What is the deal with FHA’s MI increase by 10bp? I heard about it…but have not seen it confirmed by any lenders or from any HUD mortgagee letters yet. Is the FHA premium increase a done deal?
Happy New Year TBWS family!
I just wanted to thank you guys for The Daily. I really appreciate what you do and I hope you know that you are not only helping lenders like myself keep informed and motivated…that trickles down to the realtors I work with, my clients and my community. So, thank you for being you
Risk based credit pricing models allowed lenders to expand the pool of borrowers by charging a higher rate to the highest risk borrowers to cover the projected losses. Mortgage Insurance issuers followed along using advanced credit models (for all loans). Obviously the models they used have been proven to be incorrect. So now high risk loans must have an even higher rate and MI premiums must be increased to cover the “new” projected losses. Sounds reasonable right? But they didn’t use the money to build loss reserves. They just spent it elsewhere.
Everyone avoids resumption of payroll tax till April. Home buyers pay increased rates for the entire term of their loans.
previous comment didn’t show up, ya’ll didn’t censure me did you?
New Platform to throw into the presidential race: Pay to Play
IRS issues voter registration cards, if you didn’t pay in to the system you don’t get to vote. This would fix a lot of craziness.
I love this idea. Also think it can incorporate a check for illegal aliens, regardless if they are paying taxes or not. Great idea.
Hell… If we are going to do that let’s just do what you would really like and make so that if you can’t read or pay the voting fees you can’t vote as well. There’s a reason laws have been passed allowing low income people to vote. You aren’t the only voting block in this nation.
In a nutshell this is because the rich will not give-up their temporary tax breaks but expect the middle class to give-up theirs, so Congress extends the middle class cut by dinging the middle class when buying homes. It’s a compromise to get the tax cuts extended for the middle class by continuing to coddle the rich and hoping the middle class won’t notice how they did it. All-in-all, we need to get rid of everyone’s temporary tax cuts, quit siphoning-off Social Security (which is where the payroll tax cut came from) and get back to the business of doing good business.
I agree 100%, but the fee to the banks is going up only 10 BP, yet they are going to be charging .375% to .5% for the new loans, can you say “new income stream for the big banks”! And when this payroll tax break goes away in a year or two, do we expect to see the banks lower the interest rate on these loans? I think not. Oh wait, tax breaks never go away!!!
Cory:
What temp. tax cut for the rich are you talking about?
Once again you guys are being disengenous by allowing your politics to color your commentary. This legislation allowed that EVERYONE did not have a tax increase and it was supported by both Republicans and Democrats. Also, you shot at the unemployed was uncalled for. Your implication was clearly that anyone who is unemployed is just mooching off the government. (By the way, there was not extension of the current benefit period in this legislation. It remains the same.)
Having said this, I am pissed that they are using our industry only to generate revenue to offset the continuation of the payroll tax reduction. I don’t like it anymore than you. But you shouldn’t insinuate that this was all the current administration’s doing.
Correct me if I am wrong, but the current benefit perod is @ 99 weeks? What should this be extended to??
First I heard Brian say a “permanent” hike in FHA monthly MIP and a 10bps hike “only for the month of April”. Which is it ? Permanent or one month?
Greg:
The increase on ALL new loans generated is for the life of the loan.
Here’s another thing to think about. The congressman that voted for this are going to be heading back to their districts to seek re-election soon. They’re all going to be spouting off about how they are supportive of a recovery in housing. I certainly hope that the folks back home learn about this and ask a few hard questions of their Senators and Representatives. This was basically snuck into the bill in the dark of the night and is essentially a tax increase in sheep’s clothing. I love how they call it a “fee.” Remember, this was a temporary bill that will have to be extended in February, so something can be done about it now. I’ll be firing off a few emails later to my guys in DC. I’d encourage everyone else to do the same.
I haven’t seen how much MI is going to increase on FHA loans. Has anyone else? Theyre pricing the first time buyer out of the market. We’ve already seen a 130% increase in monthly MI on FHA loans. Obama has said that they intend to increase the price of FHA as a means to decrease the reliance on FHA and encourage private lending. What private lending and even if there was an alternative, at what price? Does anyone realistically see something like My Community or Home Possible loans making a comeback as an alternative? Even if they did, would it make a difference when FNMA and FHLMC are basically just another government entity?
The annual mortgage insurance premium, which is currently at 1.15, will be increased to 1.25. Nice eh? What a joke.
Can you say “hidden tax”, boys and girls?
Great idea! Make the cost of being a home owner higher. Bring in more barriers to owning a home. Isn’t that how and why HUD was created? To make more renters? Renters fund HUD, right?
This government is RIDICULOUS and MUST BE STOPPED! Back in the day, 240some years ago, they had some where else to go to start a new system because the gov was taxing the crap out of the people. Anyone want to build an island?
Good coverage today on the Obama Care on Steroids.
BTW Brian…you can use the word increase or increased instead of Knocked Up…I think most of us already know we are getting screwed.
Our great Government at work again! We need this like a hole in head!
I agree with Jeff on the music………..
As a Realtor®, I have difficulty explaining what just happened. In my state, I’m not allowed to discuss mortgages or interest rates without a LONG disclosure. But, in this case, I think I will dust off the disclosure, and discuss this in my weekly newsletter!
Keep up the good work! You are usually the first ones to discuss new items that we need to know about!
Okay! How much of the other fees are tied into Government blockheads who pass on their fiscal follies to the real estate industry? Other industries, as well?
Thanks for the great holiday gift.
On another note- guys- the new open music to your show is pretty bad! I liked the 2011 version much better. Please consider another switch
As the costs of loans continue to rise we need to continually find new ways to explain it to the customer because nothing is going to change- every time there is a change for the worse we get a little more used to it. It sucks– trust me but i guess I have almost become immune to it. I cant believe I just said that!
Have a good day guys and keep doing what you do!