March 2010 Real Estate Sales Summary for South Walton, Florida

[Lynnie]

The last figure I read indicated it was around 95%!

This is why FHA will implode. I didn't think it was that high, but anything is possible. In their defense, FHA has gradually tightened up their guidelines, but you can still qualify with less than six mos. reserves and a subpar credit score. With unemployment/underemployment as high as it is, reserves should cover a longer period.

They lived, but haven't learned?

 

[Tom Curlin]

The vast majority of conventional mortgages are underwritten by Fannie and Freddie, both of which are owned by the US government for the forseeable future. So I believe you could simply look at that percentage of conventional versus jumbo loans as a very close proxy for the percent that is underwritten by the US government.

 

[Tom Curlin]

Actually technically the term "underwritten" should be "guaranteed", as the underwriter may not be the federal government in name, but they are guaranteed that Fannie or Freddie will buy the loan if necessary, which is practically the same thing.

 

[Ari Silverstein]

It certainly appears and feels like we may be dragging the bottom, but there are some unknown factors out there. Interest rates, insurance, lending policies, end of Bush tax cuts, unemployment (affects people's spending, which affects business owners' income), etc.

None of which are the least bit comparable to the impending devastation of SoWal real estate values as the oil spill moves from catastrophic to ecologically irreversible.

Let's review the numbers for June, July, August, the prime buying months...after the oil hits the beaches here.

 

[Ari Silverstein]

This is why FHA will implode. I didn't think it was that high, but anything is possible. In their defense, FHA has gradually tightened up their guidelines, but you can still qualify with less than six mos. reserves and a subpar credit score. With unemployment/underemployment as high as it is, reserves should cover a longer period.

They lived, but haven't learned?

They are not their own masters. As long as the FedGov pursues a policy of attempting to create "home ownership" for those who have no business owning a home, expect to see more of the same.

 

[Ari Silverstein]

The vast majority of conventional mortgages are underwritten by Fannie and Freddie, both of which are owned by the US government for the forseeable future. So I believe you could simply look at that percentage of conventional versus jumbo loans as a very close proxy for the percent that is underwritten by the US government.
Actually technically the term "underwritten" should be "guaranteed", as the underwriter may not be the federal government in name, but they are guaranteed that Fannie or Freddie will buy the loan if necessary, which is practically the same thing.

+several

 

[Lynnie]

Actually technically the term "underwritten" should be "guaranteed", as the underwriter may not be the federal government in name, but they are guaranteed that Fannie or Freddie will buy the loan if necessary, which is practically the same thing.

Yeah, you're right....FHA is guaranteed and now we know that Fannie/Freddie are backed by the full faith and credit of the United States Taxpayer.

 

[Bob]

without fha, the market would be nil

 

[30ashopper]

without fha, the market would be nil

Interesting observation.. If the federal governmnt didn't co-sign for everyone, nobody would be able to get a loan. This country is so fubar'd!

 

[Tom Curlin]

Actually credit worthy borrowers would be able to get a loan but would have to pay a higher rate to do so. Practically every conforming loan in the country is subsidized by the federal government right now, and that includes refi's. And the feds through Fannie and Freddie own at least half of all home mortages, so Uncle Sam is now the largest landlord in the country. And he will be for a long time, because house prices and transaction volumes are about to enter a double dip phase following the expiration of the home buyer tax credit. This is clear from the new purchase mortgage applications metrics over the last four weeks.

http://calculatedriskimages.blogspot.com/2010/06/mba-purchase-index-june-2-2010.html