Posted on 01/08/2016 10:17:01 PM PST by boycott
Subprime 2.0: The White House is rolling out a new low-income mortgage program that for the first time lets lenders qualify borrowers by counting income from nonborrowers living in the household. What could go wrong?
The HomeReady program is offered through Fannie Mae, which is now controlled by Obama's old Congressional Black Caucus pal Mel Watt. It replaces the bankrupted mortgage giant's notorious old subprime program, MyCommunityMortgage.
In case renaming the subprime product fails to fool anybody, the affordable-housing geniuses in the administration have re-termed "subprime," a dirty word since the mortgage bust, "alternative."
(Excerpt) Read more at news.investors.com ...
You have so well described NJ and the property tax situation there.
I saw this coming ten years ago, sold my house in NJ at the height of the market, and moved to southern DE.
Low property taxes, no sales tax, and close to the beach and the rural countryside.
NJ is a beautiful state—it is far more than what is seen along the NJ Turnpike—but it is becoming unliveable and unsustainable.
Whether it is run by the Dems or the GOP, it just gets worse.
Demographically, the folks with means are leaving in droves, only to be backfilled by those who live off of government assistance. That is a sure fire recipe for disaster.
AAAARRRGHHHHH!!!!!!!!!
It is a shame; it was a great state in which to grow up. So much variety in such a small area (all within a reasonable driving distance). Mountains, farms, beaches...all within a couple of hours from each other.
BTW, some of the replacements aren’t on government assistance; we’re importing a lot of Asians to replace white-collar Americans (so they are paying taxes). Whole rental developments are filling up with them (and as I understand it, the same thing is happening in SE Pennsylvania).
Obama ONLY cares about Blacks and Muslims and some Hispanics!! He doesn’t give a CRAP about white America! In fact, he doesn’t give a crap about America!!
He is trying to destroy the nation as we know it and he’s doing a good job of it.
Based of income from other residents? So if thirty muzzies buy a large house they can pool their money and build bigger bombs.
You”re absolutely correct about this strategy by Dem administrations. And I thought America woke up to this Fannie Mae crap./s
Dear God jn heaven has been sent packing by this country. Since He is a gentleman and will not force Himslf on a person or people, He has vacated.
‘Nature’ abhors a vacuum. Where God is not wanted, Satan WILL inhabit. We are seeing the fruits of pushing God away as a country.
Some excerpts:
Subprime 2.0:White House is rolling out a new low-income mortgage program that for the first time lets lenders qualify borrowers by counting income from nonborrowers living in the household.
The HomeReady program is offered through Fannie Mae, which is now controlled by Obama’s old Congressional Black Caucus pal Mel Watt. It replaces the bankrupted mortgage giant’s notorious old subprime program, MyCommunityMortgage....
But it might was well be called DefaultReady, because it is just as risky as the subprime junk Fannie was peddling on the eve of the crisis.
At least before the crisis, your income had to be your own. But now, as a renter, you can get a conventional home loan backed by Fannie by claiming other people’s income. That’s right: You can use your apartment roommate’s paycheck to augment your qualifying income. Or your abuela.
YOU CAN EVEN CLAIM THE EARNINGS OF PEOPLE WHO ARE NOT OCCUPANTS such as your parents...
You don’t have to bring much financial wherewithal to the table. You can even live in government-subsidized housing.
Just as long as you round up enough income-earners and pool finances to help meet the debt-to-income ratio of 43%.
You don’t need good credit either. You can qualify with a FICO CREDIT SCORE AS LOW AS 620, which is subprime. And you can put as LITTLE AS 3% DOWN.
It’s available for first-time homebuyers and repeat deadbeats. It will also expand to include refinancings.
...a campaign to ease access to home loans for Hispanic immigrants who tend to live in groups and pool finances.
Fannie says that 1 in 4 Hispanic households share dwellings — and finances — with extended families. It says this is a large “underserved” market.
The program actually targets properties “in high-minority census tracts.”
The National Association of Hispanic Real Estate Professionals, a liberal trade group, is praising the move, arguing it will bring tens of thousands of Hispanic families into the home market who have been “skipped over” by stingy (meaning prudent and responsible) lenders.
“It’s very encouraging,” NAHREP Chief Executive Gary Acosta said. “It demonstrates that Fannie has done a lot of work on the issue of identifying ways to qualify more people.”
Fannie and its regulators say, don’t worry — this new program won’t introduce any undue risk into the mortgage-finance system.
Gee, where have we heard that before?
Fact is, outside income is hard to verify and seldom stable. And low down payment and credit scores are the two most reliable indicators of default risk.
To assure such high-risk borrowers understand the importance of making their monthly mortgage payments, Fannie requires mortgage lenders to ask HomeReady applicants to take a four-hour online course on homeownership.
Wells Fargo and other big mortgage lenders have already signed on. More will soon follow as the program rolls out in a big way through Fannie’s automated underwriting system later this year.
What could go wrong?
What? Another chance at ruining the entire economy for the sake of people who should never get a mortgage in the first place? This must be another one of Odungo’s swipes at the U.S. before his reign of terror is finally over. Yes, folks, we NEED another horrific recession which will take years to recover from.
Yes, here we go again ;(
At least before the crisis, your income had to be your own. But now, as a renter, you can get a conventional home loan backed by Fannie by claiming other people’s income. That’s right: You can use your apartment roommate’s paycheck to augment your qualifying income. Or your abuela.
You can even claim the earnings of people who are not occupants, such as your parents, under this program.
You don’t have to bring much financial wherewithal to the table. You can even live in government-subsidized housing.
Just as long as you round up enough income-earners and pool finances to help meet the debt-to-income ratio of 43%.
You don’t need good credit either. You can qualify with a FICO credit score as low as 620, which is subprime. And you can put as little as 3% down.
It’s available for first-time homebuyers and repeat deadbeats. It will also expand to include refinancings.
It’s all part of a government campaign to ease access to home loans for Hispanic immigrants who tend to live in groups and pool finances.
Fannie and its regulators say, don’t worry — this new program won’t introduce any undue risk into the mortgage-finance system.
Fact is, outside income is hard to verify and seldom stable. And low down payment and credit scores are the two most reliable indicators of default risk.
To assure such high-risk borrowers understand the importance of making their monthly mortgage payments, Fannie requires mortgage lenders to ask HomeReady applicants to take a four-hour online course on homeownership.
Yeah right! A FOUR HOUR ONLINE COURSE in HOME OWNERSHIP will ensure no defaults?!?!
Most troubling, Wells Fargo and other big mortgage lenders have already signed on. More will soon follow as the program rolls out in a big way through Fannie’s automated underwriting system later this year.
We’ve seen this movie before, and it does not end well. Like MyCommunityMortgage, HomeReady will simply expand into lower and lower income markets while slashing requirements and burning lending standards even more.
Eventually it will become a no-income, no-job, nothing-down giveaway.
That is, NINJA loans (but with pro-forma official documentation to satisfy the bogus Qualified Mortgage rule).
Here we go again. Full circle back to mortgage hell.
Or would that help too many Republicans? :)
He’s gotta have somewhere to put all his beloved Islamic jihadists he’s bringing in!
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