It looks like mortgage originators will be able to make FHA loans up to the new maximums starting as early as this week. The new maximum loan amounts have been posted on the HUD web site and GMNA has agreed to include them in their mortgage backed securities. The thing I am still interested in seeing is if somehow the rates on these loans will be higher. My bet is they will have a higher interest rate. Just a guess but no one gets any breaks these days for sure.
It may not be so bad as both Fannie Mae and Freddie Mac have defined their next level of price fixing, I mean price gouging, oh my gosh another slip of the tongue. You know I have an opinion about most things. Both Fannie and Freddie have started to increase what they will charge originating lenders based on a combination of down payment and credit scores. That simply stated translates into higher rates and fees for the consumer. Now keep in mind this does not mean you have credit problems, just lower credit scores. Some people with perfect credit have low credit scores that will certainly be in this group of price gouges. Oops said it again, sorry!! It does not mean that you will get to pay less for mortgage insurance, nor does it mean that the groups that have to pay more are among those that spin off more risk to Fannie and Freddie. In my opinion since they can get more they are going to take this opportunity to do so.
What Fannie and Freddie will have to ask themselves (when people like me start using FHA anytime I can rather than even selling conventional loans) is where did all our business go. I guess they think we are all stupid and will just give them their excess profits because we like them. Better guess again. I think the combination of the price gouging, (gosh there I go again) and the increased FHA loan limit is going to kick their collective behinds. I for one am going to send them as few loans as I can.
Oh Countrywide and Mr. Mozolio, their chairman (I think that is the way you spell it) (actually I don't) are in the news again. Something about the FBI opening an investigation into insider trading and securities fraud. Something about Mozolio selling his stock in anticipation of the loans they originated going into the tank. I wonder what they will find out that everyone does not already know. Not to worry Bank of America still is planning on buying Countrywide for 200% of their current stock value. I think B of A is just the group to pull it off too. I bet they won't charge them any closing costs at the closing. Countrywide better watch the rate they get that is all I can tell them.
Things continue to get more interesting and we will see a lot more before all this is finished.
More to come
Lonny
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment