Thousands line up for zero-down-payment, subprime mortgages

DerekJohnson

https://cnbc.com/2018/10/12/thousands-line-up-for-zero-down-payment-subprime-mortgages.html

YellowSnow

Lending money to those w/o proven means to make the payment or credit worthiness is FS.

Gwad

I can't comment effectively until I'm informed by our local financial savants.

Gwad

"It's total upside," said AJ Barkley, senior vice president of consumer lending at BofA. "We have seen significant wins in this partnership. Just to be clear, when we get those loans with all the heavy lifting here, we're over a 90 percent approval, meaning 90 percent of the people who go through this program that we actually underwrite the loans."

Look everyone is getting approved!!!!! Its great!!!!

RaceBannon

Seems familiar

mobey

Too bad we can't look back to see how this turned out when they did it before...

greenblood

It looks like “The Big Short” is going to have a sequel. Can’t wait...

2001400ex

greenblood said:

It looks like “The Big Short” is going to have a sequel. Can’t wait...

While I get your point. At least these are fixed rate loans at 4.5% and 15-30 year. The shitty loans that took down the market were often interest only, and they all were variable rate. So when they reset, people couldn't afford the payments.

sarktastic

Another example of how Stalin lets the retard keep scoring

mobey

2001400ex said:

greenblood said:

It looks like “The Big Short” is going to have a sequel. Can’t wait...

While I get your point. At least these are fixed rate loans at 4.5% and 15-30 year. The shitty loans that took down the market were often interest only, and they all were variable rate. So when they reset, people couldn't afford the payments.

If you have to stand in line and take special classes to get a no down loan, you already can't afford it, especially when the job mkt turns

BennyBeaver

In this economy!?

sarktastic

Buy My House, Duck

2001400ex

mobey said:

2001400ex said:

greenblood said:

It looks like “The Big Short” is going to have a sequel. Can’t wait...

While I get your point. At least these are fixed rate loans at 4.5% and 15-30 year. The shitty loans that took down the market were often interest only, and they all were variable rate. So when they reset, people couldn't afford the payments.

If you have to stand in line and take special classes to get a no down loan, you already can't afford it, especially when the job mkt turns

I agree with that point. I'm not agreeing that these loans are a good idea. I'm just saying at least they aren't being reckless. And they are 15-30 year loans at below market rate.

Montana has a similar program. I was over income when I bought my first house. But my buddy bought one in 06 and still has the house with over $100k of equity. It's been successful there.

sarktastic

Fuck off. These buyers are fucking buried with NO way out other than Forclosure and/or bk

The only beneficiary here is the home seller

2001400ex

sarktastic said:

Fuck off. These buyers are fucking buried with NO way out other than Forclosure and/or bk

The only beneficiary here is the home seller

Nice rational well thought out point.

sarktastic

Direct, concise, accurate.

RaceBannon

sarktastic said:

Fuck off. These buyers are fucking buried with NO way out other than Forclosure and/or bk

The only beneficiary here is the home seller

Foreclosure auctions got to eat same as worms

Pitchfork51

Everyone in such a rush to buy a house

For younger people I think mobility is like the biggest asset you have

greenblood

2001400ex said:

greenblood said:

It looks like “The Big Short” is going to have a sequel. Can’t wait...

While I get your point. At least these are fixed rate loans at 4.5% and 15-30 year. The shitty loans that took down the market were often interest only, and they all were variable rate. So when they reset, people couldn't afford the payments.

I’m also not a fan of zero down. At least put 2-3% down. Especially when it looks like housing prices might have peaked. Not good to start day one of your new house underwater.

2001400ex

greenblood said:

2001400ex said:

greenblood said:

It looks like “The Big Short” is going to have a sequel. Can’t wait...

While I get your point. At least these are fixed rate loans at 4.5% and 15-30 year. The shitty loans that took down the market were often interest only, and they all were variable rate. So when they reset, people couldn't afford the payments.

I’m also not a fan of zero down. At least put 2-3% down. Especially when it looks like housing prices might have peaked. Not good to start day one of your new house underwater.

Right. And in Washington with excise tax, it's about 9% cost to sell your house. Other states it's 7% minimum.

Kaepsknee

Pitchfork51 said:

Everyone in such a rush to buy a house

For younger people I think mobility is like the biggest asset you have

False. You can buy a house and still be mobile. If you have to or want to move, you can have somebody else pay for your appreciating asset and have a couple hundred bucks left over when you rent it out.

I bought high 12 years ago. But even with the crash and the fact I bought high, the homes value has appreciated 50%.