WHAT'S UP / WHAT HAPPENED

The title of today's Blog are the words that were sent to me, (well I changed just a little bit) from my friend Paul who is a reader of the Blog. I actually have two Paul's, not one, that read the Blog regularly. Actually 3 if you count my son who's middle name is Paul. I think the last Blog posting was on Feb. 18th or so. I must admit not much seems to be happening different in the things I tend to watch. I admire reporters who find a way to restate the same thing day in and day out and make it sound different.

Just a quick side bar, I was watching a Hillary ad this morning and I actually liked what it said. No worries, I have taped my mouth shut and my counselor has agreed to see me at 6 AM in the morning. She is concerned, very concerned!!!

Since the last posting rates started going up every day for what at least I think was no good reason and now they have started coming down again for the same no good reason they went up. Oh don't get me wrong there were plenty of reasons, I just don't understand what the relevance is in the reason as it relates to the real problem. Rates should be low in my opinion as oil prices and energy costs continue to gut the consumer from spending their money on things they would rather have. To me that creates inflation of the worst kind because the consumer can't make a choice not to buy. We may see that before long however. Rates today are just about where they were before the Fed. made the initial rate cut. All that flap hoop and holler so a lot of people could trade a lot of interest rate paper to make or lose a lot of money. Far be it from me to understand all that.

The stimulus bill made it possible to make a higher loan limit FHA loan which would help the ailing mortgage industry and a lot of want to be home buyers who have been underwritten out of the ability to own a home or who have been priced gouged because their good credit and average credit score have made it hard to make the inflated payment. But about the limit, mortgage loans are not available yet because of all the wrangling by all the politicians and greedy people trying to see how much profit can be made instead of just making the loans. Just my opinion of course.

I read where the FHA Reform bill was close to passage but a compromise by the Mortgage Bankers is to not challenge allowing Down Payment Assistance programs. That is fine but more buyers will lose the ability too buy a home. Why, 100% loans are becoming available for only the best credit buyers and FHA does not and if I can see the current trend will not allow for a 100% loan. 100% loans can be a reality if FHA would just be careful about it and offer an incentive not to get one. Fat chance if you ask me for that. If you don't think it will work just look at the VA model it has worked very well since day 1. Could FHA be the problem and not 100% loans. DUH!!!

Countrywide is being sued for loan fraud, I am sure the lawyers are licking their chops over that. Merrill Lynch finally dumped First Franklin which was their sub prime company nightmare. RIP sub prime loans, as least as we knew them. Lots of politicians trying to create lots of Predatory Lending laws to make people be ethical and responsible to the customer. Just as well go golfing boys, ain't gonna happen.

Well how bout that, everything is just about the same, or at least so it seems.

More to come

Lonny