Tuesday, December 09, 2014

Spreading the Stupid #001

Don't be delinquent.
Given the amount of stupid Karma Police at Hoocoodanode is paid to promulgate I hope a three digit numbering scheme in the title is enough.

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Sebastian wrote:
This suggests that the best tool to increase home ownership, particularly among individuals and families who don't currently own a home, is to reduce the down payment requirements on mortgage loans...
Just a matter of time as the process continues.
I will respectfully disagree with you. Loan performance is at a historical high. Why? Because loan requirements are appropriate.
The US housing market has been in a bubble for 50 years...and it's coming to an end. 

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Well, what about the truth?  Unsurprisingly quite the opposite:

Federal Reserve Loan Performance most recent data (updates)

Residential delinquencies are higher than any time prior to Q4 2008.  Ever.  Since records began.  

As a side observation; there is probably an epic parabolic fail in there someplace. 

6 comments:

LBD said...

Mortgage ownership is not home ownership.

Rob Dawg said...

Not until the borrower stops paying. ;)

LBD said...

Point of view, if you lease a car do you own it? Any way a mortgage is a necessary evil in most lives and needs to be understood and respected.

Rob Dawg said...

I'm going to go with a middle stance.

    "Owners can decide the
     disposition of an asset."

If you can sell a house without asking the mortgagee then you own it. If they need to give permission, they own it.

Thomas Stone said...

LBD, it's always an "Estate Real", a bundle of rights in property granted by the King, or sovereign. And the rights conveyed can very widely depending on a number of factors. "In fee simple" is a very specific term. ALL Real Property is ultimately owned by and can escheat to the sovereign. As to "ownership" look at lien theory Vs Title theory states...

Stagflationary Mark said...

If we reduce the down payment from 3% to -10% then we should be able to really get things going again.

I think many would consider buying billion dollar homes for the $100 million kickback, especially if they are a bit behind on their car payments.

Just a thought!