FHA Premium Reduction Halted By Trump Administration

Young Ranch Homes For Sale

Well that didn’t take long! The proposed FHA premium reduction has been halted by the Trump administration. Mortgageee Letter 2017-07 was issued within hours of Mr. Trump being sworn into office. The scheduled 25-basis point premium cut was slated to take effect January 27, a parting gift of the outgoing administration. The FHA premium reduction appeared ill-timed and more of … Read More

Grand Delusion Returns To The Housing Market With SoFi’s Interest-Only Mortgage

Oh what a tangled web we weave. It is blatantly apparent that the mortgage industry isn’t generating enough new business with responsible, conventional mortgage products in our new echo bubble for housing. The fact that lenders are creating more new schemes to lure buyers into overpriced homes just as they did prior to the last housing crash should give any … Read More

Taylor Morrison Sees Sluggish Home Sales In Q4 2015

Taylor Morrison Home Corp reported fourth quarter earnings today, and the numbers were tepid at best. The Arizona-based home builder reported home closing revenue that was 3 percent lower YoY. Profit and revenue were essentially supported by higher average sales prices and a much larger community count after Taylor Morrison’s absorption of Darling. Taylor Morrison’s average closed home price for … Read More

Warren: HUD Should Restrict Sale Of Loans To Private Equity And Hedge Funds

Senator Elizabeth Warren continues to be one of the few rational voices in Washington. Her latest call for HUD to clean up their act on the sale of soured loans is yet another example. The Department of Housing and Urban Development (HUD) has sold over $17 billion in troubled loans in the last 5 years, with roughly 95 percent of … Read More

The Ghost Of Liar Loans Past Comes Back To U.S. Housing Market

This weekend I was reading a fascinating account of Bank of Internet USA on the NY Times. It’s a great read about Gregory Garrabants and the impressive growth the company has been able to achieve issuing mortgages to high-income clients who may not meet traditional underwriting guidelines for a home loan. According to the NY Times piece, BofI’s loans have … Read More

Mortgage Credit Gimmicks Grow As Home Affordability Dwindles

“The whole art of government consists in the art of being honest.”  Thomas Jefferson There has been an increasing amount of talk about expanding credit standards in the mortgage space to help more borrowers qualify for expensive homes. Rarely, if ever, do you hear about the problem of inflated home prices being the real cause for concern. Realtors and mortgage lenders … Read More

The Dilemma Of The Residential Mortgage Borrower

“Oh, what a tangled web we weave when first we practice to deceive.” The US mortgage purchase application index remains stuck in the mud, roughly flat year-over-year. Record low rates have failed to stimulate a real breakout in home purchase activity in the US despite the Federal Reserve printing $4.5 trillion in new money to keep the party going for … Read More

FHA Wants To Boost Lending, Trash Underwriting Standards

“Our major export is fraud, and everything else is a function of the perception management service sector”. Jesse Just when you think the policymakers in DC can’t stoop any lower, they deliver gems like this. It appears the FHA wants to boost lending in the U.S. by trashing underwriting standards for loans. You know, because we didn’t do a good … Read More