Comments on: How Quickly Guidelines Change http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/ Seattle's Leading Resource for Real Estate Information Sat, 20 Mar 2010 16:58:13 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Another Lender Pulls Out of Fannie/Freddie 100 | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-284208 Another Lender Pulls Out of Fannie/Freddie 100 | Rain City Guide | A Seattle Real Estate Blog... Fri, 14 Mar 2008 04:08:06 +0000 http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-284208 [...] Another Lender Pulls Out of Fannie/Freddie 100 March 13, 2008 Lately I’ve felt like Debbie Downer with the information I’ve been sharing here. On a positive note, it’s great that we have blogs to get this information out to buyers, sellers and real estate professionals…especially since we, as Loan Originators, are given very little notice these days of significant changes. I gave you an example last week, here’s one from today. [...] [...] Another Lender Pulls Out of Fannie/Freddie 100 March 13, 2008 Lately I’ve felt like Debbie Downer with the information I’ve been sharing here. On a positive note, it’s great that we have blogs to get this information out to buyers, sellers and real estate professionals…especially since we, as Loan Originators, are given very little notice these days of significant changes. I gave you an example last week, here’s one from today. [...]

]]> By: Q-Diddy http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278718 Q-Diddy Thu, 06 Mar 2008 21:25:48 +0000 http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278718 Don- Or worse, what stuff from 1 and 2 is seeping into door #3 in this crazy market? Don-

Or worse, what stuff from 1 and 2 is seeping into door #3 in this crazy market?

]]> By: don greenup http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278703 don greenup Thu, 06 Mar 2008 21:00:32 +0000 http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278703 Greenspan had a huge part in this. Looking the other way..... suggesting arms ect. The cops, ( regulators ) were missing in action while all this crapola was going on. Rates should not be lowered and the banks should provide transparancy ASAP - credit markets will NOT improve until we know what is behind door number three. No pun intended on level 3 assets. Greenspan had a huge part in this. Looking the other way….. suggesting arms ect. The cops, ( regulators ) were missing in action while all this crapola was going on. Rates should not be lowered and the banks should provide transparancy ASAP – credit markets will NOT improve until we know what is behind door number three. No pun intended on level 3 assets.

]]> By: Q-Diddy http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278694 Q-Diddy Thu, 06 Mar 2008 20:49:28 +0000 http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278694 Don- What else can the Fed do? All they're trying to do is loosen up interbank lending, but even that might not be enough and could have inflation implications. The Fed can't set policy on underwriting and they can't make regulatory changes. The industry is already seeing changes, but is it enough? Until investors have faith in underwriting we'll continue to have disruption. I was on a conference call will Alan Greenspan yesterday and he voiced what I've said over and over again in this forum. This is classic herd mentality. Fear and panic has taken place of logic. You can see this phenomenon when you compare spread of corporate defaults vs. bond rates. While these have moved with each other since the 80s, as recently as Aug 2007 the spread has widen to about 600 bps. That means that even though defaults have remained stable, investors are demanding larger than normal compensation for buying bonds. Classic fear and panic! Don-

What else can the Fed do? All they’re trying to do is loosen up interbank lending, but even that might not be enough and could have inflation implications. The Fed can’t set policy on underwriting and they can’t make regulatory changes. The industry is already seeing changes, but is it enough? Until investors have faith in underwriting we’ll continue to have disruption.

I was on a conference call will Alan Greenspan yesterday and he voiced what I’ve said over and over again in this forum. This is classic herd mentality. Fear and panic has taken place of logic.

You can see this phenomenon when you compare spread of corporate defaults vs. bond rates. While these have moved with each other since the 80s, as recently as Aug 2007 the spread has widen to about 600 bps. That means that even though defaults have remained stable, investors are demanding larger than normal compensation for buying bonds. Classic fear and panic!

]]> By: Don Greenup http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278550 Don Greenup Thu, 06 Mar 2008 16:44:36 +0000 http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278550 The sad part is as Bernake continues his insane policy of lowering short rates long rates will start creeping up. Bond holders are in negative territory at this point. The ten year at 3.6% with 5% plus inflation plus is insane. If it was not for money flowing from the stock market and other bonds into the treasury market for safety the yield would be higher. This will happen soon enough. I think his policy of killing the dollar will negate any silly program coming out of Washington. The bandaid needs to be ripped off all at once. Death by a thousand cuts is nuts! This is starting to remind me of the Japan scenario and we dont want to go there. The sad part is as Bernake continues his insane policy of lowering short rates long rates will start creeping up. Bond holders are in negative territory at this point. The ten year at 3.6% with 5% plus inflation plus is insane. If it was not for money flowing from the stock market and other bonds into the treasury market for safety the yield would be higher. This will happen soon enough. I think his policy of killing the dollar will negate any silly program coming out of Washington. The bandaid needs to be ripped off all at once. Death by a thousand cuts is nuts! This is starting to remind me of the Japan scenario and we dont want to go there.

]]> By: Rhonda Porter http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278467 Rhonda Porter Thu, 06 Mar 2008 14:49:00 +0000 http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278467 It's chilly, Roger. The new conforming limits can't get here fast enough and when they do, I'm afraid for our area, the adjustment won't be very meaningful. It’s chilly, Roger. The new conforming limits can’t get here fast enough and when they do, I’m afraid for our area, the adjustment won’t be very meaningful.

]]> By: Roger Ingalls http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278203 Roger Ingalls Thu, 06 Mar 2008 06:40:34 +0000 http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278203 Has anyone been paying attention to the Thornburg story? This is a bank that specialized in super clean Jumbo deals, and now is considered a 25% chance of going BK, when they could not make a $28M margin call. Is it just me, or is there a bit of a chill in the room? For more details, go to calculated risk http://calculatedrisk.blogspot.com/ Has anyone been paying attention to the Thornburg story?

This is a bank that specialized in super clean Jumbo deals, and now is considered a 25% chance of going BK, when they could not make a $28M margin call.

Is it just me, or is there a bit of a chill in the room?

For more details, go to calculated risk

http://calculatedrisk.blogspot.com/

]]> By: Kary L. Krismer http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278095 Kary L. Krismer Thu, 06 Mar 2008 02:45:10 +0000 http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278095 I haven't looked at any reserve numbers, but I'd still guess that whatever they are Citibank's bigger exposure is really credit cards and other consumer debt. That's the stuff people used to roll over into their refinances, and credit on cards was granted accordingly. And it's also the stuff that when things get tough (bankruptcy), people don't pay. In contrast, people will go to great extremes to make their house payments if they can. I haven’t looked at any reserve numbers, but I’d still guess that whatever they are Citibank’s bigger exposure is really credit cards and other consumer debt. That’s the stuff people used to roll over into their refinances, and credit on cards was granted accordingly. And it’s also the stuff that when things get tough (bankruptcy), people don’t pay. In contrast, people will go to great extremes to make their house payments if they can.

]]> By: Don Greenup http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278051 Don Greenup Thu, 06 Mar 2008 01:26:45 +0000 http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278051 They are fighting for their financial survival - I mentioned several months ago on this blog that washington mutual would be low teens or below 10 dollars and citigroup is headed into the teens.... tough times right now and we are in the 4th inning. I am a real estate broker and was here when rates were 17 percent. So, am not a homer..... this is going to get very ugly. They are fighting for their financial survival – I mentioned several months ago on this blog that washington mutual would be low teens or below 10 dollars and citigroup is headed into the teens…. tough times right now and we are in the 4th inning. I am a real estate broker and was here when rates were 17 percent. So, am not a homer….. this is going to get very ugly.

]]> By: Don Greenup http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278047 Don Greenup Thu, 06 Mar 2008 01:19:34 +0000 http://raincityguide.com/2008/03/03/how-quickly-guidelines-change/#comment-278047 Guidlines will get tighter for the rest of the year. Especially if politicians continue to try to tinker..... idiots one and all Guidlines will get tighter for the rest of the year. Especially if politicians continue to try to tinker….. idiots one and all

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