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AirtimeLavey
09-29-2006, 08:34 AM
...maybe on the way. It would help those that get themselves into deals that they don't completely understand, and hurt those that do understand how the tools can be used, but will no longer have them available. Either way, the marketing should be more realistic and informative. Don't ever sign anything you don't completely understand.
Here's the article.
Daily Real Estate News | September 25, 2006
Tighter Standards Coming for Risky Mortgages
New guidelines for nontraditional mortgages will be released this fall, with the goal of clarifying loan terms and tightening standards.
Kathryn Dick, deputy comptroller of the Office of the Comptroller of the Currency, told the Senate Banking Committee earlier this week that the OCC reviewed marketing materials for interest-only and payment-option adjustable-rate mortgages and discovered that lenders were stressing the low initial payments.
Borrowers likely did not understand that their payments could rise dramatically down the road, she said.
"There should be no equivocation about the risks of negative amortization and payment shock, if that's what the product entails," Dick said.
The guidelines — which are opposed by the banking industry because they would apply just to federally insured banks, potentially giving others a competitive edge — would force lenders to tighten underwriting standards by avoiding low-documentation loans in most instances and ensuring that borrowers will be able to afford the payments when they rise in the future.
Source: Inman News, Matt Carter (09/22/06)

It's Only Money
09-29-2006, 10:31 AM
Mortgage lending reform.... = Oxymoron

AirtimeLavey
09-29-2006, 10:32 AM
Here's an article on Mortgage fraud...it comes from both sides. :220v:
Mort. fraud (http://www.latimes.com/business/la-fi-loanfraud29sep29,0,4385219.story?coll=la-home-headlines)

lewiville
09-29-2006, 12:18 PM
Here's an article on Mortgage fraud...it comes from both sides. :220v:
Mort. fraud (http://www.latimes.com/business/la-fi-loanfraud29sep29,0,4385219.story?coll=la-home-headlines)
that makes me think, " if I buy now, would I be buying at the wrong time"?

AirtimeLavey
09-29-2006, 12:42 PM
that makes me think, " if I buy now, would I be buying at the wrong time"?
Depends....buying for short term, long term, investment, primary res., vac. home, etc.? How would you be paying for it? That's too broad a question, for a simple answer. :)

lewiville
09-29-2006, 12:50 PM
Depends....buying for short term, long term, investment, primary res., vac. home, etc.? How would you be paying for it? That's too broad a question, for a simple answer. :)
short term, 2 yrs maybe. buying it with the owner carrying a second for me. I am trying to buy it right so if prices go down further, I can still be okay.

AirtimeLavey
09-29-2006, 12:55 PM
short term, 2 yrs maybe. buying it with the owner carrying a second for me. I am trying to buy it right so if prices go down further, I can still be okay.
I think anything short term is a gamble right now. There are some issues in your scenario, but only you know the details, and sounds like you're looking at the potential down side. Good luck. :)

lewiville
09-29-2006, 01:00 PM
I think anything short term is a gamble right now. There are some issues in your scenario, but only you know the details, and sounds like you're looking at the potential down side. Good luck. :)
are you saying the market is going to take onger than a year to correct itsef. I am guessing that it might be a year or 2 to correct itself. After that then I can sell or refi.

AirtimeLavey
09-29-2006, 02:18 PM
are you saying the market is going to take onger than a year to correct itsef. I am guessing that it might be a year or 2 to correct itself. After that then I can sell or refi.
Wish I knew, but wouldn't even venture a guess. There's some interesting dynamics and reactions going on. Location will be key, as always. I would plan very conservatively for the next couple of years, and have a plan b. Last thing you want is to be over-optimistic, and get into a sitch. like the article I linked described. You've got to have an out that's real, not hypothetical, and not subject to the market swings.

lewiville
09-29-2006, 02:21 PM
Wish I knew, but wouldn't even venture a guess. There's some interesting dynamics and reactions going on. Location will be key, as always. I would plan very conservatively for the next couple of years, and have a plan b. Last thing you want is to be over-optimistic, and get into a sitch. like the article I linked described. You've got to have an out that's real, not hypothetical, and not subject to the market swings.
True dat brotha.
Time to throw back so brews and plan on heading out to the lake tomorrow.
Thanks for your out look and article.

AirtimeLavey
09-29-2006, 02:28 PM
True dat brotha.
Time to throw back so brews and plan on heading out to the lake tomorrow.
Thanks for your out look and article.
Have a great w/e, watch that water level.... :cool: