[Rushtalk] Stock market crash 2 on its way

Carl Spitzer lynux at keepandbeararms.com
Sun Feb 21 13:48:49 MST 2016




 
http://news.investors.com/ibd-editorials/010716-788747-government-wants-to-lend-more-to-high-risk-immigrants.htm#ixzz3wcjXWNbC
 
Fannie Mae Rolls Out Easy Mortgage, Catering To High-Risk Immigrants




Read More At Investor's Business Daily:
http://news.investors.com/ibd-editorials/010716-788747-government-wants-to-lend-more-to-high-risk-immigrants.htm#ixzz3wclAytck
 
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Signs of the times in 2007 may return along with easier Fannie Mae loans
to higher-risk immigrants.
Signs of the times in 2007 may return along with easier Fannie Mae loans
to higher-risk immigrants. View Enlarged Image

Subprime 2.0: The White House is rolling out a new low-income mortgage
program that for the first time lets lenders qualify borrowers by
counting income from nonborrowers living in the household. 


What could go wrong?


The HomeReady program is offered through Fannie Mae, which is now
controlled by Obama's old Congressional Black Caucus pal Mel Watt. It
replaces the bankrupted mortgage giant's notorious old subprime program,
MyCommunityMortgage.
In case renaming the subprime product fails to fool anybody, the
affordable-housing geniuses in the administration have re-termed
"subprime," a dirty word since the mortgage bust, "alternative."


So HomeReady isn't a subprime mortgage program, you see, it's an
"alternative" mortgage program.


But it might was well be called DefaultReady, because it is just as
risky as the subprime junk Fannie was peddling on the eve of the crisis.
At least before the crisis, your income had to be your own. But now, as
a renter, you can get a conventional home loan backed by Fannie by
claiming other people's income. That's right: You can use your apartment
roommate's paycheck to augment your qualifying income. Or your abuela.


You can even claim the earnings of people who are not occupants, such as
your parents, under this program.


You don't have to bring much financial wherewithal to the table. You can
even live in government-subsidized housing.
Just as long as you round up enough income-earners and pool finances to
help meet the debt-to-income ratio of 43%.
You don't need good credit either. You can qualify with a FICO credit
score as low as 620, which is subprime. And you can put as little as 3%
down.
It's available for first-time homebuyers and repeat deadbeats. It will
also expand to include refinancings.


It's all part of a government campaign to ease access to home loans for
Hispanic immigrants who tend to live in groups and pool finances.
Fannie says that 1 in 4 Hispanic households share dwellings — and
finances — with extended families. It says this is a large "underserved"
market.
The program actually targets properties "in high-minority census
tracts."


The National Association of Hispanic Real Estate Professionals, a
liberal trade group, is praising the move, arguing it will bring tens of
thousands of Hispanic families into the home market who have been
"skipped over" by stingy (meaning prudent and responsible) lenders.
"It's very encouraging," NAHREP Chief Executive Gary Acosta said. "It
demonstrates that Fannie has done a lot of work on the issue of
identifying ways to qualify more people."

 

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