Ridiculous lender demands

Lender and Customer
Think its hard to get  a loan? You ain’t heard anything.The pendulum has swung so far to the other side- from granting a loan to anyone who breathes, to making it virtually impossible to most people. Forget even trying if you work for yourself.

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Lenders return to subprime market

lendersNo- its not like last time. Last time if you could breathe you got a loan. Today you have  it’s prove income, assets and have a healthy down payment. You will pay  a high interest rate and if your credit score is low, you might have to put down up to 40%.

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Wells Fargo indicted

Wells Fargo was sued by U.S. attorney’s office in Manhattan.

FHA is saying that wells approved thousands of fraudulent loans that FHA had to cover since they insure the loans. FHA is a quasi-government arm and they got hammered because they had to cough up billions in insurance when the loans went bad.

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You won’t believe this

Next mess:

Hedge fund are creating the first security that would be backed by home-rental payments.

The bonds would work similarly to mortgage-backed securities – only the flow of investor returns wouldn’t come from monthly mortgage payments, but rather income from rents of thousands of tenants living in formerly foreclosed properties. Sale of such bonds could help investors, such as Waypoint, repay their lenders and raise funds to buy up more foreclosed houses, helping the broader housing market absorb the inventory of vacant homes.

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Are we headed for another bubble?

Prices are really jumping because of the shortage of homes available and the big hedge fund dummies buying up everything. However, i am concerned. This is not a natural progression. Usually prices increase when income increases. This is not why prices are increasing. Income has not increased in Ca and the job market still stinks.

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