On second thought, don't tell me - I'm having too much fun imagining loan officers in leather whipping me yelling "Take the option ARM! Take the option ARM!"
"Yeah... Hi... is Mr. Black or Mr. Scholes around? I have a quick question about modeling regulatory discontinuities in price movements."
"Oh, I see, they are on vacation in Switzerland. Well, can you put Mr. Bernanke on then? I need to talk to him about trading some loans for more of that green stuff."
Unfortunately, this comes at least five years too late. Now, with application volume down, the subprime lenders are in an unprecedented competitive frenzy to write new business.
Don't take my word for it. Read some of the loan officer boards, like the one on Broker Universe. Guidance? Yeah, right.
Lama, how about [RG] (or [ΡΓ], if that's the right Greek) for "regulatory gerund"? I'm thinking of those Nixon-era redacted transcripts where the presidential favorite "f***ing" was replaced with the wonderful locution [obscene gerund].
If you had a linguistics course in college in which you read Chomsky's Generative-Transformational Syntax and you're a couple of hours post-chemo and stoned on steroids and Benadryl, you'll find this incredibly witty. The rest of you might try, oh, Laphroaig. Or just move to the next coherent comment.
Oh, let's deal with reality, here. CA, FL & NV and their ilk can't possibly apply any meaningful underwriting controls.
The real issue is stated-income loans, because qualifying a borrower off a stated income (not backed by a 3-year average of tax returns, at least) on the fully amortized payments is a laughable exercise. If stated-income loans are curbed, you've just chopped out 30% of the demand in many of these states! That's why median income/median home price is such an important fundamental.
Get real, guys! There's no easy way out of this one. Ohio has tightened, and it looks to me that they've tightened so much that FNMA & FHA will be the worst subprime lenders in the state. I don't expect it to last long.
As for Tanta's remarks on FNMA, the brokers are happily discussing the 55 DTI loans they are shoving through DU. I believe them.
Lama, I am not only the proud alumna of two different state universities, I am the current guinea pig--I mean, patient--of a third. I got all this pretentious [obscene noun] beaten into me in childhood by various Brides of Christ. The [obscene adjective] theology didn't stick, but I've held onto the classical languages a lot longer than I have held onto what calculus I managed to absorb. Remember that I am a mere mortgage lender: an HP calculator with a "PI" button and a spreadsheet with a "sum" button is about all we need. People can and do make a fortune in this business with 4th-grade math: exhibit, mortgage brokers. In any case, between the childhood spent translating Virgil and the adulthood spent translating mortgage documents, there were a few episodes of nonprescription pharmaceuticals translating reality, so I wouldn't make a great presidential candidate even if I had my hair left. The voters might perhaps be getting ready to think seriously about a chick for president, but a bald chick for president is just too much. Assuming MaxedOutMama still has hair (hers might be on fire, you never know), I think we should put her on the ticket.
Mama, I've gotten 55% DTIs through DU myownself, but you know the thing about that is you get the "limited waiver of representations and warranties" when you get DU approval (plus the nice loan level pricing adjustment). It's these fools who get DU drawing the line at 55% who then turn around and sell the damn thing as "stated"--with no rep/warranty relief--who are going to take it back someday.
Moral of the story: not only does stated income make a mockery of tightening qualifying payment rules, it will also come back to bite you in ways a high (but fully documented) DTI won't. Hence all this buyback/EPD/warehouse lending crisis. We forget how unusual it is to see so many EPDs--and how unafraid of them so many lenders apparently were.
Tanta, if my hair ever were to catch on fire, it would be ignited from trying to figure out why none of the parties involved figured out that sooner or later there would be a reckoning. This confuses me. The appalled and abused complaints emanating from the Ownit principals confuse me. What happens in state capitals does not confuse me. Money talks.
I am fine with the bald-chick-who-can-add for president meme. A little bit of Latin just adds verve to the package.
I think the country is in the mood for a change, believe me. The prospect of Tanta in a presidential debate is the first thing that has brought a smile to my face this morning!! "To crush your enemy, to drive him before you...."
PS: I don't like FNMA's schtick about the non-DU underwriting on some of its new products. I have dark suspicions.
Well you two girls need somebody to drive you around Iowa - you know who to call. Plus, I know where a lot of the good eats* are so we won't be living on rubber chicken alone.
*For example... there is a truck stop in New Hampton that makes the biggest and best homemade caramel rolls - to die for. But if that isn't rich enough, they will slice them in half horizontally, spread real butter on the exposed surfaces and the grill them. Makes me want to take an extra Lipitor just thinking about the place.
Gawd, dryfly, you just made me nostalgic for The Machine Shed. Back in the day when Des Moines was the mortgage capitol of the U.S. I had quite a few of those 6:00 a.m. stops for the day-long breakfast (that's how long it takes to eat it, not how long they sell it).
Actually, though, I want to go back to the Essen House in Madison for pretzels with sour cream-and-sauerkraut dip. Washed down with a Spaaten Weiss with a wedge of lime in it. Listening to Talking Heads doing Burning Down the House. If you can put that road trip together, I'll blow off the doctors and pack my bag . . .
Oh yeah, there used to be a truck stop near Albert Lea that sold ojibwe-made duck and cherry sausages. Is that still there? I can't get my tired old brain to remember the name of it . . . damn good sausages, though, if you find them.
I'll join your political machine if I can sit around and drink the Laphroaig. Actually, I'll bring some Ardbeg.
How about creating the Free Lunch Party? We'll run with a platform of free sex, drugs, and money for everybody. We'll just sell bonds to the Chinese, sell legislation on eBay, and then let the next generation sort it out... oh wait...
Oh yeah, there used to be a truck stop near Albert Lea that sold ojibwe-made duck and cherry sausages. Is that still there?
I went to high school there - yes the truck stop is still there but not certain about the sausages - I'll be going that way again soon & check.
BTW there is small meat locker about 20 miles NW of there that makes the best garlicky beef summer sausage anywhere - I have to stop in occasionally & load up to ship to family all over the USA.
We can do LOTS better than Machine Shed - believe me. And if you don't believe me, ask my doctor - he says its more salad & tofu and a lot less Dutch dried beef from Pella IA, real homemade kielbasa from Chicago or Danish Kringle from Racine WI in my future - or so he says.
You guys missed it. I had a burger joint outside of Boston for a couple of years. Hand-cut fries and homemade relishes, etc. Critics loved it. Horrible location. Lost some money and learned two lessons:
1. "Accounting is easy"
2. "Stick with what you know"
There's an alarming element of food obsession popping up here. I just experienced cravings for sausage and caramel rolls at the same time! Just reading this thread made me decide to get my cholesterol checked again - it's been a few years.
Dr. Strangemoney, I suspect it is the taste of the lunch served by the current free lunch party that is stirring incipient rebellion. I've always found it best to pay for lunch, and then spend my money wisely.
MaxedOutMama: I guess the system eventually converges towards the steady-state of giving you what you pay (work) for -- genetically engineered protein marinated in chemicals. The eventual mad-cow-like prion disease due to a "bug" in the genetic programming of RealBeef(tm) brand meat patties is just the price to pay for progress. Better fire up good ole Grow More Inc.'s RNADebug (now with ProteinInspector!). Instead of getting 'core' files back from customers' crashed systems, I guess they will have to ship in the dead bodies. Gotta keep that CPI down...
Could someone tell me why the CSBS list has this:
"Texas - Dep't of S&M Lending"
On second thought, don't tell me - I'm having too much fun imagining loan officers in leather whipping me yelling "Take the option ARM! Take the option ARM!"
"I'm having too much fun imagining loan officers in leather whipping me yelling "Take the option ARM! Take the option ARM!"
LOL! I'm more a teaser rate kinda guy.
another nail in the housing bubble coffi
"Gudiance" only
Actually C&C, some of the states are making it a regulation instead of just guidance.
Where the heck is most of the bubble states, Mass., D.C., and Arizona (new just this week) are there, but CA, FL, NV need to get steppin.
"Yeah... Hi... is Mr. Black or Mr. Scholes around? I have a quick question about modeling regulatory discontinuities in price movements."
"Oh, I see, they are on vacation in Switzerland. Well, can you put Mr. Bernanke on then? I need to talk to him about trading some loans for more of that green stuff."
Unfortunately, this comes at least five years too late. Now, with application volume down, the subprime lenders are in an unprecedented competitive frenzy to write new business.
Don't take my word for it. Read some of the loan officer boards, like the one on Broker Universe. Guidance? Yeah, right.
Dr. S,
We'll have to introduce an algebraic symbol for doddering.
Who put gasoline in that firetruck?
I thought they were here to help.
Lama, how about [RG] (or [ΡΓ], if that's the right Greek) for "regulatory gerund"? I'm thinking of those Nixon-era redacted transcripts where the presidential favorite "f***ing" was replaced with the wonderful locution [obscene gerund].
If you had a linguistics course in college in which you read Chomsky's Generative-Transformational Syntax and you're a couple of hours post-chemo and stoned on steroids and Benadryl, you'll find this incredibly witty. The rest of you might try, oh, Laphroaig. Or just move to the next coherent comment.
Tanta - you're always witty in our view.
Clip Syndicate
Bloomberg talking about subprimes going under
Tanta,
I went to a state university. The only thing I could think of was a backwards S (skata) with bull horns on top.
Hang in there. You're still running for Prez, correct?
Oh, let's deal with reality, here. CA, FL & NV and their ilk can't possibly apply any meaningful underwriting controls.
The real issue is stated-income loans, because qualifying a borrower off a stated income (not backed by a 3-year average of tax returns, at least) on the fully amortized payments is a laughable exercise. If stated-income loans are curbed, you've just chopped out 30% of the demand in many of these states! That's why median income/median home price is such an important fundamental.
Get real, guys! There's no easy way out of this one. Ohio has tightened, and it looks to me that they've tightened so much that FNMA & FHA will be the worst subprime lenders in the state. I don't expect it to last long.
As for Tanta's remarks on FNMA, the brokers are happily discussing the 55 DTI loans they are shoving through DU. I believe them.
Lama, I am not only the proud alumna of two different state universities, I am the current guinea pig--I mean, patient--of a third. I got all this pretentious [obscene noun] beaten into me in childhood by various Brides of Christ. The [obscene adjective] theology didn't stick, but I've held onto the classical languages a lot longer than I have held onto what calculus I managed to absorb. Remember that I am a mere mortgage lender: an HP calculator with a "PI" button and a spreadsheet with a "sum" button is about all we need. People can and do make a fortune in this business with 4th-grade math: exhibit, mortgage brokers. In any case, between the childhood spent translating Virgil and the adulthood spent translating mortgage documents, there were a few episodes of nonprescription pharmaceuticals translating reality, so I wouldn't make a great presidential candidate even if I had my hair left. The voters might perhaps be getting ready to think seriously about a chick for president, but a bald chick for president is just too much. Assuming MaxedOutMama still has hair (hers might be on fire, you never know), I think we should put her on the ticket.
Mama, I've gotten 55% DTIs through DU myownself, but you know the thing about that is you get the "limited waiver of representations and warranties" when you get DU approval (plus the nice loan level pricing adjustment). It's these fools who get DU drawing the line at 55% who then turn around and sell the damn thing as "stated"--with no rep/warranty relief--who are going to take it back someday.
Moral of the story: not only does stated income make a mockery of tightening qualifying payment rules, it will also come back to bite you in ways a high (but fully documented) DTI won't. Hence all this buyback/EPD/warehouse lending crisis. We forget how unusual it is to see so many EPDs--and how unafraid of them so many lenders apparently were.
Tanta, if my hair ever were to catch on fire, it would be ignited from trying to figure out why none of the parties involved figured out that sooner or later there would be a reckoning. This confuses me. The appalled and abused complaints emanating from the Ownit principals confuse me. What happens in state capitals does not confuse me. Money talks.
I am fine with the bald-chick-who-can-add for president meme. A little bit of Latin just adds verve to the package.
I think the country is in the mood for a change, believe me. The prospect of Tanta in a presidential debate is the first thing that has brought a smile to my face this morning!! "To crush your enemy, to drive him before you...."
PS: I don't like FNMA's schtick about the non-DU underwriting on some of its new products. I have dark suspicions.
Well you two girls need somebody to drive you around Iowa - you know who to call. Plus, I know where a lot of the good eats* are so we won't be living on rubber chicken alone.
*For example... there is a truck stop in New Hampton that makes the biggest and best homemade caramel rolls - to die for. But if that isn't rich enough, they will slice them in half horizontally, spread real butter on the exposed surfaces and the grill them. Makes me want to take an extra Lipitor just thinking about the place.
Gawd, dryfly, you just made me nostalgic for The Machine Shed. Back in the day when Des Moines was the mortgage capitol of the U.S. I had quite a few of those 6:00 a.m. stops for the day-long breakfast (that's how long it takes to eat it, not how long they sell it).
Actually, though, I want to go back to the Essen House in Madison for pretzels with sour cream-and-sauerkraut dip. Washed down with a Spaaten Weiss with a wedge of lime in it. Listening to Talking Heads doing Burning Down the House. If you can put that road trip together, I'll blow off the doctors and pack my bag . . .
Oh yeah, there used to be a truck stop near Albert Lea that sold ojibwe-made duck and cherry sausages. Is that still there? I can't get my tired old brain to remember the name of it . . . damn good sausages, though, if you find them.
I'll join your political machine if I can sit around and drink the Laphroaig. Actually, I'll bring some Ardbeg.
How about creating the Free Lunch Party? We'll run with a platform of free sex, drugs, and money for everybody. We'll just sell bonds to the Chinese, sell legislation on eBay, and then let the next generation sort it out... oh wait...
Oh yeah, there used to be a truck stop near Albert Lea that sold ojibwe-made duck and cherry sausages. Is that still there?
I went to high school there - yes the truck stop is still there but not certain about the sausages - I'll be going that way again soon & check.
BTW there is small meat locker about 20 miles NW of there that makes the best garlicky beef summer sausage anywhere - I have to stop in occasionally & load up to ship to family all over the USA.
We can do LOTS better than Machine Shed - believe me. And if you don't believe me, ask my doctor - he says its more salad & tofu and a lot less Dutch dried beef from Pella IA, real homemade kielbasa from Chicago or Danish Kringle from Racine WI in my future - or so he says.
You guys missed it. I had a burger joint outside of Boston for a couple of years. Hand-cut fries and homemade relishes, etc. Critics loved it. Horrible location. Lost some money and learned two lessons:
1. "Accounting is easy"
2. "Stick with what you know"
There's an alarming element of food obsession popping up here. I just experienced cravings for sausage and caramel rolls at the same time! Just reading this thread made me decide to get my cholesterol checked again - it's been a few years.
Dr. Strangemoney, I suspect it is the taste of the lunch served by the current free lunch party that is stirring incipient rebellion. I've always found it best to pay for lunch, and then spend my money wisely.
MaxedOutMama: I guess the system eventually converges towards the steady-state of giving you what you pay (work) for -- genetically engineered protein marinated in chemicals. The eventual mad-cow-like prion disease due to a "bug" in the genetic programming of RealBeef(tm) brand meat patties is just the price to pay for progress. Better fire up good ole Grow More Inc.'s RNADebug (now with ProteinInspector!). Instead of getting 'core' files back from customers' crashed systems, I guess they will have to ship in the dead bodies. Gotta keep that CPI down...