Perspective said:Well, borrowers today must be qualified based upon their real provable income and the real fully-amortized payment. The Ability to Repay rule in Dodd-Frank requires such. Any lender who deviates from reasonable underwriting holds serious risk of the borrower suing if the borrower didn't have the ability to repay the loan at origination.
However, we have poorly educated and poorly informed voters, who chose Trump, who has vowed to repeal Dodd-Frank. Ain't it grand?
Soylent Green Is People said:D/F exempts FHA from ratio limits. Some lenders still go into the 50's on FHA DTI. Repeal or not, what The Tang Menace does to the D/F law won't really impact this product significantly.
No seller is going to accept a 60 - 90 day escrow when the price of their house is so attractive.These deals are notoriously complex and often fail under their own weight.
Yes, some SFR's in the state will meet the terms of this combo loan, but for the most part, this is a FTHB Condo focused loan product. Now your available FHA approved condo inventory has shrunk the possible pool of homes for buyers even further.
Finally, once the buyer gets a good, long whiff of how high that payment is going to be relative to a low down Conventional loan product, the smart ones won't bite.Game, Set, and Match.
Nothing but wishful, misplaced intentions here.
My .02c
eyephone said:Perspective said:Well, borrowers today must be qualified based upon their real provable income and the real fully-amortized payment. The Ability to Repay rule in Dodd-Frank requires such. Any lender who deviates from reasonable underwriting holds serious risk of the borrower suing if the borrower didn't have the ability to repay the loan at origination.
However, we have poorly educated and poorly informed voters, who chose Trump, who has vowed to repeal Dodd-Frank. Ain't it grand?
And what would Hilary have done? (More regulation)
Soylent Green Is People said:Both people in the State of California who can qualify for these loans, Mr. Slim and Ms. None, are moving to Texas.
It's a grand example of good intentions (helping buyers) without understanding the market as well as turning a blind eye towards the unintended consequences of no down financing.
My .02c
irvinetalker said:Soylent Green Is People said:Both people in the State of California who can qualify for these loans, Mr. Slim and Ms. None, are moving to Texas.
It's a grand example of good intentions (helping buyers) without understanding the market as well as turning a blind eye towards the unintended consequences of no down financing.
My .02c
I agree: you would have to somehow have high enough income to afford the monthly payment (principal, interest, taxes, insurance, association dues) but low enough income to fit under the program income caps. That's why there were only 139 of these in two years in Orange County.
Perspective said:Maybe securitization is returning too?
Remember those risky subprime mortgage wagers? Something similar may return to the markethttp://www.denverpost.com/2017/01/2...s-something-similar-may-return-to-the-market/
Of course, bundling and parsing mortgages into pieces to make purchasing/investing more palatable is only dangerous to the extent the underlying instruments are quality products. NINJA neg-am loans were never quality products, regardless of securitization.