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Thursday, January 04, 2007

Rates Up, Appraisals Down, Stated???

These are reality links:

1) Who has folded? (They missed HMIC, and yes, Secured Funding is shutting down their wholesale operation.)

2) What's with these high appraisals from two years ago?

3) Will 100% financing on stated income go the way of the T Rex? Will the brokers get the blame?
I agree with mf***** in principal that banks shouldn't offer stated loans to wage earners, but especially here in Cali, it's damn near impossible to qualify someone for a purchase or a refi if they're wage earners. It's kind of either that or no market for lenders.
I'm just saying out here in California. The home values are sky-high for any stated W-2's.
d1 please clarify.... how do home value and doc type correlate ? I am going to sell my house to you for more because you are going stated
no, he is saying what has already been echoed here, and is a legitimate problem

home prices in San Diego are out of whack compared to median income
so if all stated wage earners in San Diego have to go FULL DOC, there won't be enough apartments for all the new renters...
4) Mortgage rates are at a 7 week high, but maybe economic news for the rest of the week will interrupt this trend. Maybe not.

Over at Calculated Risk they place great reliance on the states implementing the lending guidelines, but heck, if you don't verify income anyone can qualify a borrower for anything. Until the payments come due, that is.

The last I heard, Fieldstone had renegotiated covenants and was on short-term financing. We'll see.

A bunch of economic news is due out today and tomorrow, but at this point, I don't know how much it matters. What matters is what occurs in the next couple of months. Ohio has tightened to the point that some FNMA qualifications wouldn't meet its standards, but CA, FL, AZ and other such offenders can't tighten much. If they do, they bring their lending to a screeching halt.

I think that reality has not showed its ugly face yet.

...home prices in San Diego are out of whack compared to median income...

Not just San Diego, it's all SoCal. Prices are at least twice what they should be (judging from Zillow history graphs and rents).

Most new jobs here in Da OC (aka "Behind the Orange Curtain") are minimum wage or less (illegal alien underground jobs with Mexican wages). Yet all the condo construction in downtown Anaheim is targeted to "Singles/DINKs stepping directly from college graduation into six-figure salaries". What's wrong with this picture?

The Headless Unicorn Guy
I'm telling you, when the new math took over, we didn't realize what we were dooming ourselves to.

I think OC looks terrible. I hate to think about the fallout.

CA mortgage products are jaw-dropping. The 1/4 % start rate option ARM is a real mortgage! Varies monthly, lifetime adjustment to 10%. Smirk.

Lord knows what's going to happen - but it won't be mild.
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