Mortgage Market Reopens to Risky Borrowers • Hacker News Board

Re: Mortgage Market Reopens to Risky Borrowers

#141

Post by helen___keller » Thu, Aug 22, 2019, 1:29 PM UTC

erikpukinskis wrote: post #129

opportune wrote: post #22

Is anybody else making the supposedly foolish decision to time the housing market? I am financially ready to purchase my first home, currently living in the bay area, but I think right now just looks like a bad time. - A lot of housing price growth is seemingly "priced in" since rents for condos/apartments significantly lower than total monthly ownerships costs (mortgage+hoa+insurance+taxes+etc.), even with 20% down.…

Also, consider the possibility that a company like Facebook moves its primary office to VR in ~10 years. Not putting a probability on that, but we’ve never seen a teleconferencing platform with eye contact and body language before. I have no idea if that’s the limiting factor, but it seems at least plausible. FB, Google, and Apple will almost certainly all be selling $500 devices that can do those two things inside o…

Seems a bit like wishful thinking. Atleast coming from someone who can't stand VR, gives me a headache

Personally I think it's more likely that some lawmakers eager to disrupt the status quo find a reason to break up big tech, and a bunch of the baby facebooks, baby googles, etc, relocate to cheaper cities when executives decide margins need to improve. Not sure if I see this happening by 2030 though, maybe by 2050.

Re: Mortgage Market Reopens to Risky Borrowers

#142

Post by 0x445442 » Thu, Aug 22, 2019, 2:04 PM UTC

opportune wrote: post #22

Is anybody else making the supposedly foolish decision to time the housing market? I am financially ready to purchase my first home, currently living in the bay area, but I think right now just looks like a bad time. - A lot of housing price growth is seemingly "priced in" since rents for condos/apartments significantly lower than total monthly ownerships costs (mortgage+hoa+insurance+taxes+etc.), even with 20% down.…

I wouldn't get caught up in predicting the market long term. Do you plan to be in your home for a good period of time, long enough to build equity? Is the (mortgage + HOA + insurance + property tax) going to be 1/4 or less of your take home pay? Do you foresee yourself having a stable income into the future?

If the answers are yes your probably in good shape. However, a lot of folks rationalize their way around the second condition; dragons be there.

Re: Mortgage Market Reopens to Risky Borrowers

#143

Post by SilasX » Thu, Aug 22, 2019, 3:48 PM UTC

sjg007 wrote: post #123

apo wrote: post #2

> Some $2.5 billion worth of subprime loans, those with FICO credit scores below 690, ended up in mortgage bonds in the first quarter of 2019. That is more than double a year earlier and the highest level since the end of 2007, according to Inside Mortgage Finance. There was $1.9 billion worth of subprime mortgage bonds in the second quarter. Statements like this are hard to evaluate without knowing the denominator:…

Less than 690 is subprime? I would’ve thought closer to 640...

740 can be subprime if you have a short credit history.

Source: me.

Re: Mortgage Market Reopens to Risky Borrowers

#144

Post by datavirtue » Thu, Aug 22, 2019, 4:40 PM UTC

Banks have worked with the credit reporting companies to factor out medical debt and medical debt default/collections from FICO scores. I recently did a refinance and not only did they not say anything about lingering medical collections they didn't mention about $10k in back taxes that were obviously on my tax returns. I remember getting raked over the coals on this stuff fifteen years ago. They always required me to pay off any outstanding taxes or past collections back then.

Re: Mortgage Market Reopens to Risky Borrowers

#145

Post by [deleted] » Thu, Aug 22, 2019, 8:00 PM UTC

rockinghigh wrote: post #91

dawsmik wrote: post #9

Earlier quoted context omitted.

The FICO score is only one consideration. The biggest problem with the loans in 2007 was lack of verification of income and buyers qualifying on a mortgage amount that would eventually go up. A 650 FICO borrower with a good job, downpayment and an affordable monthly payment is a pretty good risk.

My assumption is that someone with a score less than 700 probably had late payments on some of their debt.

[deleted]

Re: Mortgage Market Reopens to Risky Borrowers

#146

Post by chiefalchemist » Fri, Aug 23, 2019, 10:08 AM UTC

comex wrote: post #134

chiefalchemist wrote: post #104

Earlier quoted context omitted.

Metaphorically it's a verb. It is the things you do or not. For example, fact check. The problem is, the belief that it's a noun and a noun one can assign to themselves; that has no formal definition. If we want to user the word journalism / journalist properly and fairly then the easy way to do is to think of it as being a verb - like leadership. Leader isn't a title. It's actions you take. Just like journalism.

‘Leadership’ and ‘leader’ are also both nouns.

And metaphorical and abstract are what? Words you don't understand? Geez.

Re: Mortgage Market Reopens to Risky Borrowers

#147

Post by labawi » Fri, Aug 23, 2019, 11:07 AM UTC

yellowapple wrote: post #105

kurtisc wrote: post #55

Earlier quoted context omitted.

I've noticed a trend on BBC news. '[X market/stock] slumps as [thing related to X] [does something]' Yet when you go and look at the long-term graph, it's well within normal variance. There's no evidence they're connected at all. I'm sure it happens with other media providers too. Why? Because they didn't have the numbers right, or just didn't check at all. Well, if I'd written a statement like that in an essay durin…

I think you're conflating whether or not there's correlation/causation with whether or not the result is significant. If a stock appreciates or depreciates at the same time that something related to that stock happens, a relationship between the two is not an unreasonable hypothesis. Of course, there's still the matter of actually validating that hypothesis, and examining whether said hypothesis actually holds true o…

A nitpick: Markets are driven by beliefs and expectations not real-world events themselves. It may not be simple to follow the causation and timing.