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re: QE3

Posted on 9/13/12 at 12:42 pm to
Posted by Blakely Bimbo
Member since Dec 2010
1183 posts
Posted on 9/13/12 at 12:42 pm to
I have mixed feelings about this move. The price of energy, food and the essentials we all need are going through the roof. Cost of insurance is sky rocketing.

My question is will the MBS they purchase be based on FHA qualifications?

I know that locally in my area that KB Homes has been selling homes to buyers who would not normally qualify for more traditional financing. They are providing initial financing through a subsidiary in Dallas. Are some of these mortgages going to sold off to the FED?
Posted by Shankopotomus
Social Distanced
Member since Feb 2009
21057 posts
Posted on 9/13/12 at 12:50 pm to
I hope they buy a bunch of the bullshite awful MBS which are stacked with loans required under the CRA

buy your own bullshite government, let the private market keep the loans with actually qualified buyers
Posted by BennyAndTheInkJets
Middle of a layover
Member since Nov 2010
5606 posts
Posted on 9/13/12 at 12:53 pm to
quote:

The price of energy, food and the essentials we all need are going through the roof.
Not necessarily, but if I was positioning a portfolio I would put a higher probability that these prices go up rather than down. Transmission mechanisms from the Fed are dynamic as well, most of the material price run-up after QE2 was just market speculation.
quote:

My question is will the MBS they purchase be based on FHA qualifications?

Yep, only agency mortgages through originators. Don't know about the specfic homes you're talking about in Dallas.
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