were you aware that Fannie has just (re) started subprime mortgage lending ? Probably not if you only rely on US financial news media, who for some strange reason have chosen not to report on this new development ...
(snip)"Zero Down Mortgages Restarted by the Biggest Subprime Lender in Town - Fannie
Good news folks... the "no skin in the game" mortgage is back. You know the game right? It's a one sided bet where the buyer can only win. If the house goes up, you pocket that and hopefully get that granite countertop you so deserve with the home equity. If it doesn't go up.... you walk - but only after living in the home rent free for at least 18-22 months as you strategically default your way to a mountain of savings while waiting for the sheriff to show up. If you are smart you can save at least $30K during this time. There are no losers here (except the U.S. taxpayer). "(snip)
(snip)"“This is subprime lending done right,” said John Taylor, president of the National Community Reinvestment Coalition, an umbrella group for 600 community organizations, and a staunch critic of the lending industry. “If they had done subprime this way in the first place, we wouldn’t have these problems.” (yeh! Wait, I thought people who could not even save 3% down used to be called renters? Nevermind - that's old school)
The loans are 30-year fixed mortgages, with mandatory homeownership counseling, available to people with credit scores of 680 and above (720 in Massachusetts). The buyers have to put in $1,000 and must live in the homes. After six months, there are no delinquencies so far, said Kate Venne, a spokeswoman for the agency. (whew, made it through 6 months.... coast is clear)
The agencies buy the loans from lenders, then sell them as securities to Fannie Mae. Because the government now owns 80 percent of Fannie Mae, taxpayers are on the hook if the loans go bad."(snip)
from
http://www.marketoracle.co.uk/Article22620.html
On the matter of Ally Bank, you can rest assured that the timing of the recent 'new' moratorium on delinquent mortgage foreclosures in 23 states, as well as a similar de-facto moratorium on repos of delinquent auto loans, has absolutely nothing whatsoever to do with the election being 6 weeks away !
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