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1   Bubbabeefcake   2013 Mar 30, 5:42am  

Mr.Logan Mohtashami
Ben keeps attempting to utilize that same old Keynes mentality and as you described in the recorded discussion the velocity just isn't there to move forward with a credit driven agenda. Thereby taking one step backward so there can be two steps forward which will eventually lead to a freemarket reign but trying to create more housing bribery will only prolong the pain..

So nothing has changed since your last article except for an artifial mispricing,
I'd posted it as a thread...funny thing is that the thread received a great deal of attention once a Phx. Shill started criticizing you for being a silver spoon feed know it all, so I suppose that lends meaning to the adage "the truth hurts"

http://loganmohtashatomi.com/2012/06/11/orange-county-ca-housing-inventory-ghost-town/

2   _   2013 Mar 30, 10:28am  

I still can't believe to this day .. Well, maybe I can.. that the FED members and Bernanke still cry about lending standards. Every single time I get into this debate on this with Bloomberg, CNBC and Wall Street Journal.. Nada as a response. Nothing worth while to even debate.

http://loganmohtashami.com/2012/09/26/stop-crying-about-lending-standards/

3   _   2013 Mar 30, 11:27pm  

I am trying to get a debate going on CNBC with anyone who wants to take the side that lending standards are too tight. Plenty of people come on that show and cry like a baby that people can't buy homes even though FHA all you need is a sub par fico score, 3.5% down and DTI up to 43%.

My counter to Diana Olick when she came out last year and said Lending standards are too tough and they NEED to ease...

http://loganmohtashami.com/2012/03/30/diana-olick-just-a-few-questions-maam/

4   _   2013 Mar 31, 1:41am  

What's your DTI with Taxes and insurances counted against you?

Self employed borrowers have to make a choice to either show more income ( pay more taxes) to buy a home.

There are a few lenders that will go stated with 30% down. However, for the most part after 2014 with CFPB, QRM and QM are all going to be on the same page.

That's the future, self employed borrowers show more income on your tax returns and you can get that house.

However, with standard guideline. Fannie Mae 3% down 680 fico and FHA 3.5% down and 640 fico that's not the problem. This is a income issue for majority of Americans.

You still got to 50 DTI on some products which I never agreed with. They should cap out everyone at 43% which they will in time.

However, years and years of weak income growth and this is what you get.

These big 4 are going to limit capacity growth here in the US for this century and thus limit income growth

-Globalization
-Debt
-Demographics
- Technology

5   _   2013 Mar 31, 2:06am  

Ok, you have 14 homes then. I assumed you had 8 free and clear.

You can make case to be made to expand the limit of properties an investor can buy. That isn't the argument being made by the FED, NAR and others. They are talking more in respect to primary resident buyers.

In regard to traditional lending standards for the first time home buyer and traditional home buyer... buying a primary resident property.

With FHA and Fannie Mae products you would agree that the core lending standards

- down payment
- DTI ratios
- Credit scores

that those metrics aren't tight at all. That if people had the right DTI they could get a home with such a low down payment and credit score option out there

That's my argument, that Bernanke and Fed Members are looking at this problem in the wrong way

6   _   2013 Mar 31, 2:21am  

Now there is something we can agree on

The process of getting a mortgage with all the paperwork is just insane. A lot of my clients are self employed so the Verification of Deposit LOE condition is simply madness

I have stories upon stories on that. Every time they did get the loan but the paper work is sick. I ran a joke on twitter than Fannie and Freddie are going to run DNA testing to verify people for patriot act reasons. People actually believed me

The put back wars has made loan paperwork really a loan ready to fight any defense against a future lawsuit. Audit sweeps that are happening with the banks just make it worse and worse.

This is a legal battle as Freddie, Fannie and FHA will sue everyone they can for money. So each loan is getting it's paperwork ready for a lawsuit.

That I can agree with the paperwork a lot times has nothing to do with the capacity of a borrower and the Anti- money laundry laws are making lenders way to conservative on LOE of deposits

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