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Started By
Message
re: It's Official - The Federal Reserve Raises Rate 1/4 Point (Discussion Thread)
Posted on 12/17/15 at 10:59 am to I Love Bama
Posted on 12/17/15 at 10:59 am to I Love Bama
Don't yall think the rate of home ownership is majorly impacted by many variables today. It seems silly to argue one factor as the cause and ignore others.
Posted on 12/17/15 at 11:05 am to LSURussian
quote:
using the same underwriting standards
When did I ever say this?
Posted on 12/17/15 at 11:14 am to TigerDeBaiter
quote:'affect'
I understand that not all mortgages are prime +, but come on. It seems a little naive to believe rates of one don't effect the other.
Mortgage rates have been easing upwards for a while. As I wrote earlier in this thread, the Fed's rate increase yesterday has been anticipated for so long that most rates, other than the direct rate of fed funds and prime rates on loans, have adjusted higher long before yesterday's announcement.
Today's average 30-year mortgage rate is the same as it was yesterday and is actually slightly lower than it was two days ago. But the rate has increased .24% since this date last year. LINK
Posted on 12/17/15 at 11:20 am to wutangfinancial
quote:You have repeatedly disputed my statement that mortgage loans are generally more difficult to get now than they were before the financial crisis because lenders have tightened their lending criteria.
When did I ever say this?
You now say you work at a mortgage lender so putting your statements together I concluded your company has not changed its underwriting standards if it continues to make all of the same loans it made before the crisis.
If your company has made its underwriting standards more strict then you are reinforcing what I've been saying in this thread.
So, which is it?
Posted on 12/17/15 at 11:35 am to LSURussian
quote:
If your company has made its underwriting standards more strict then you are reinforcing what I've been saying in this thread.
Are the rules stricter? Obviously. Are there work arounds? Absolutely. I don't think we're on the same page here. I was just trying to say you can get a mortgage with bad credit and the u/w standards for income are still unacceptable
Posted on 12/17/15 at 12:19 pm to TigerDeBaiter
Not true. While the fed funds rate has been lifted, the 10 year rate could effectively now fall if it sees an influx of foreign sovereign debt inflows. Which would flatten the yield curve. Those rates don't always correlate.
Posted on 12/17/15 at 7:17 pm to Shepherd88
quote:This makes absolutely no sense.
the 10 year rate could effectively now fall if it sees an influx of foreign sovereign debt inflows.
Posted on 12/18/15 at 9:58 am to LSURussian
There is absolutely no doubt. There are TONS of regulations on mortgage lenders buried within the Dodd-Frank Act, which have been conveniently been put into the marketplace piece by piece and rule by rule.
A couple of good examples are the Qualified Mortgage provisions commonly referred to as 'Ability to Repay' rules by the CFPB which require strict underwriting standards on lenders who wish to sell their mortgages on the secondary market to Fannie or Freddie.
Then you combine that with the new settlement procedures held within TRID and the restrictions placed on both lenders and title companies who are all critical pieces in the mortgage lending process.
OH
and Dodd-Frank has also placed restrictions on the earnings and compensation of mortgage brokers which takes away the incentives of the mortgage broker to stick their neck out and offer riskier loans
AND FINALLY
the result is that the big banks are gaining more power every day and there are less and less options for the consumer to shop for a loan. therefore, the restriction in options (see: open markets) decreases competition and therefore mortgage applications are DOWN and mortgage rates will continue to trend UP
When there are less FDIC chartered banks now than in the late 1800s - that should really tell you something
The Fed Rates have a little to do with the overall rate structure, but the mortgage world has a ton of implicating factors these days which go far beyond the Central Bank and the Fed Funds Rate
Forward
A couple of good examples are the Qualified Mortgage provisions commonly referred to as 'Ability to Repay' rules by the CFPB which require strict underwriting standards on lenders who wish to sell their mortgages on the secondary market to Fannie or Freddie.
Then you combine that with the new settlement procedures held within TRID and the restrictions placed on both lenders and title companies who are all critical pieces in the mortgage lending process.
OH
and Dodd-Frank has also placed restrictions on the earnings and compensation of mortgage brokers which takes away the incentives of the mortgage broker to stick their neck out and offer riskier loans
AND FINALLY
the result is that the big banks are gaining more power every day and there are less and less options for the consumer to shop for a loan. therefore, the restriction in options (see: open markets) decreases competition and therefore mortgage applications are DOWN and mortgage rates will continue to trend UP
When there are less FDIC chartered banks now than in the late 1800s - that should really tell you something
The Fed Rates have a little to do with the overall rate structure, but the mortgage world has a ton of implicating factors these days which go far beyond the Central Bank and the Fed Funds Rate
Forward
Posted on 12/18/15 at 10:32 am to LSURussian
Lsurussian - have you looked at DWTI lately? I am curious what caused that jump from $80 a share to pushing $200 as of yesterday?
I didn't seem much info on it.
I didn't seem much info on it.
Posted on 12/18/15 at 10:39 am to Shankopotomus
quote:Oh, no, we are wrong. Wutang works for a mortgage lender and his company makes loans which the borrower has no chance of repaying.
There is absolutely no doubt. There are TONS of regulations on mortgage lenders buried within the Dodd-Frank Act, which have been conveniently been put into the marketplace piece by piece and rule by rule.
I wonder if his bosses know he is publicly admitting his company is willfully violating Dodd-Frank and its ensuing regulations??
Posted on 12/18/15 at 10:44 am to LSURussian
How does that not make sense??
Most of Europe is in negative rate territory, why would Germany or the likes invest its sovereign money in a negative yield where they could put it in a AAA rated us treasury with a positive yield? if we see that happening then basic economics tells you the yield will fall bc of demand, we saw this happen late last year when the 10 yr flirted going under 2%.
This will in turn strengthen the dollar even more so compared to the Euro. Yellen talked about this being a major concern the last few meetings.
Most of Europe is in negative rate territory, why would Germany or the likes invest its sovereign money in a negative yield where they could put it in a AAA rated us treasury with a positive yield? if we see that happening then basic economics tells you the yield will fall bc of demand, we saw this happen late last year when the 10 yr flirted going under 2%.
This will in turn strengthen the dollar even more so compared to the Euro. Yellen talked about this being a major concern the last few meetings.
Posted on 12/18/15 at 10:47 am to oR33Do
quote:I don't follow that ETF so I can't provide any insight.
Lsurussian - have you looked at DWTI lately? I am curious what caused that jump from $80 a share to pushing $200 as of yesterday?
However, a quick check of its most recent 90 day prices shows the low price over the last 90 days was $206.64 and the high was $221.94 so I'm not sure where you're getting the "$80 a share" price from.
Has there been a recent reverse split and the prices showing up are split adjusted?? If so, that would be odd since most reverse splits only happen when a security's price gets into penny stock territory.
Posted on 12/18/15 at 11:01 am to Shepherd88
quote:
How does that not make sense??
quote:That's how....
why would Germany or the likes invest its sovereign money in a negative yield where they could put it in a AAA rated us treasury with a positive yield?
Seriously, I have no idea what you're trying to say and I'm pretty sure you don't either.
Germany's government does not issue Bundesanleihen only to arbitrage the proceeds from them using another country's debt issues. ETA: Besides, Germany's sovereign debt issues, Bunds, are not denominated in U.S. dollars. They are denominated in euros.
If you're trying to say European banks might be buying U.S government bonds as an alternative to buying European issued securities, then okay, that's a possibility. But those are NOT sovereign entities buying U.S. bonds. Those entities are private, not sovereign.
What is your finance/economics background?
This post was edited on 12/18/15 at 11:08 am
Posted on 12/18/15 at 11:10 am to LSURussian
So you're saying that a foreign nation can not own US debt?
And I'm in the field but that's all I prefer to say.
And I'm in the field but that's all I prefer to say.
This post was edited on 12/18/15 at 11:12 am
Posted on 12/18/15 at 11:11 am to Shankopotomus
quote:
When there are less FDIC chartered banks now than in the late 1800s - that should really tell you something
Yet another field that I'm aware of that Federal "Consumer Protection" regulations have led to increased costs that have pushed out smaller operations and stymied competition.
Gotta love it.
Posted on 12/18/15 at 11:19 am to Teddy Ruxpin
yep. there are more 'Too Big to Fail' entities now than back during the crisis circa 2008
the big boys are the only ones who can afford to comply with this crap
the big boys are the only ones who can afford to comply with this crap
Posted on 12/18/15 at 11:34 am to Shankopotomus
quote:I'm pretty sure you mean "nationally chartered banks" not "FDIC chartered banks." The FDIC wasn't founded until 1933.
When there are less FDIC chartered banks now than in the late 1800s
Posted on 12/18/15 at 11:45 am to LSURussian
yep. thanks for the correction
I am a man, I am not editing that shite
I am a man, I am not editing that shite
Posted on 12/18/15 at 11:53 am to Shepherd88
quote:Of course foreign governments can buy U.S government securities. The Chinese government (through its central bank) is the largest holder of U.S. debt outside the United States.
So you're saying that a foreign nation can not own US debt?
And I'm in the field but that's all I prefer to say.
But that does not mean what you've been saying....that Germany will issue Bunds and use the proceeds to arbitrage into U.S. government debt.
The ECB would have strong objections against any of its members bypassing its issues thus short circuiting its monetary policy process. There may even be an ECB rule forebidding it.
Of course, since you're "in the field" I'm sure you already know that....
Posted on 12/18/15 at 1:41 pm to LSURussian
quote:
Dodd-Frank Act
Let me break this down for you. THIS IS THE PROBLEM. My company is law abiding. When you force people to lend money it will not end well.
quote:
I wonder if his bosses know he is publicly admitting his company is willfully violating Dodd-Frank and its ensuing regulations??
You just made that up
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