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Wealthy mortgage borrowers face cold shoulder from lenders

bloomberg.com

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Re: Wealthy mortgage borrowers face cold shoulder from lenders

#141

Post by nsfyn55 »

yardie wrote: post #67
oldsklgdfth wrote: post #60

Earlier quoted context omitted.

> your mortgage isn't secured by the government. It's actually owned by the government, Fannie Mae. I'm confused what type of mortgages does this apply to? Is a conventional 20% down mortgages owned by the government somehow?

Conventional, FHA, and VA loans are owned by the government. This came about after 2009 financial crisis, once regulators realized the banks were playing fast and loose with mortgage lending. Unlike TARP, they inherited that debt and have held onto ever since.

I'm not familiar with what changes occurred during the financial crisis. Fannie Mae and Freddie Mac always enjoyed an implicit guarantee that their balance sheets were secured by the federal government. It was a big inside joke forever.

Re: Wealthy mortgage borrowers face cold shoulder from lenders

#142

Post by nabnob »

nsfyn55 wrote: post #135
nabnob wrote: post #63

Earlier quoted context omitted.

Denmark is also a capitalist country. Social democracy (having a free market while also having nationalized healthcare and a strong social safety net) isn't the same thing as socialism (where the state is run by the proletariat and exists to eradicate the bourgeoisie). Right now, there isn't a single socialist government in the world.

Right just like there are no capitalist nations in the world. Because no nation is a completely unregulated hellscape governed by pirate kings. Spare me the semantics.

It's not semantics. Capitalism doesn't mean an 'unregulated hellscape', capitalism requires a state to exist in order to defend the right to hold private property. In capitalist countries, the legal system functions mainly as a way to defend the rights of corporations, with occasional compromises to prevent an uprising (e.g., $1200 checks during the covid pandemic). If police didn't exist, corporations would have to hire private security to defend their property - and in fact, this is what they did during the 1800's.

For an example of what an "unregulated hellscape" looks like, take a look at the world of cryptocurrency and how common it is for people to get all of their property stolen.

Re: Wealthy mortgage borrowers face cold shoulder from lenders

#143

Post by anoraca »

borkt wrote: post #71
BoiledCabbage wrote: post #57

Earlier quoted context omitted.

> Otherwise you could say that just about any American middle class family is wealthy — just look at the entire world’s population Any middle class American is wealthy by the world's standard. The quality of life provided by middle class America is the life of the 1%. To not see this is to not understand how most of the world lives, and the challenges people face from being less lucky.

I’ve spent time a lot of people that live much better than me in what are considered third world countries, including overall quality of life, who make far less than I do. There are countries where money goes much further and family holds much greater value when compared to work than US culture (and laws) generally produces. They see friends and family for meals many times a week, their health care is affordable, and…

You're spending time with the wealthy people of those countries. Half of the world does not have a flush toilet at home.

Re: Wealthy mortgage borrowers face cold shoulder from lenders

#147

Post by CalRobert »

borkt wrote: post #71
BoiledCabbage wrote: post #57

Earlier quoted context omitted.

> Otherwise you could say that just about any American middle class family is wealthy — just look at the entire world’s population Any middle class American is wealthy by the world's standard. The quality of life provided by middle class America is the life of the 1%. To not see this is to not understand how most of the world lives, and the challenges people face from being less lucky.

I’ve spent time a lot of people that live much better than me in what are considered third world countries, including overall quality of life, who make far less than I do. There are countries where money goes much further and family holds much greater value when compared to work than US culture (and laws) generally produces. They see friends and family for meals many times a week, their health care is affordable, and…

Seriously. I sometimes cringe when I think what I could be making if I moved back to California (I'm even _from_ norcal...) but I just can't handle US workaholism (most of it performative) and the idea that even if I manage to pull off 5+ weeks of PTO a year, my spouse certainly won't, and I like living somewhere everyone gets a month off a year and even people under the median wage can afford a decent holiday.

Re: Wealthy mortgage borrowers face cold shoulder from lenders

#149

Post by nitrogen »

oldsklgdfth wrote: post #106
yardie wrote: post #98

Earlier quoted context omitted.

They don't own all of it, but they own the majority of what most people consider mortgages. The high-priced homes in NYC, LA, SF are more commonly jumbo loans. These are considered non-conforming and Fannie Mae can't touch 'em. The 3 you listed are conforming loans and will be absorbed by FannieMae/FreddieMac. In my case, 30 days after we closed on a conventional loan, the bank sent us a letter stating the loan was t…

> In my case, 30 days after we closed on a conventional loan, the bank sent us a letter stating the loan was transferred to Fannie Mae I don't think that happened to me, the bank kept taking my money so I assumed the owned the house that I was paying them back for. > The old days when you would closed the loan the bank would immediately package it and shop it around This is probably mortgages 101, but why was that th…

Your "servicing" and "note" on a mortgage are two different things. The servicing right is who gets to interact with you and charge you money, but the owner of the note actually gets the money in the end (minus servicing costs). Those can be transferred independently, so you may keep sending checks to one place, but the actual owner may change over time.

One reason to sell a mortgage is to get the money back. Instead of making money slowly over 30 years, you get some fraction of that as a lump sum plus your principal is returned. Some investors want the steady payout for more, others want fast turnover for less.

Re: Wealthy mortgage borrowers face cold shoulder from lenders

#150

Post by alasdair_ »

aantix wrote: post #114

Where’s the best place to shop for a mortgage? Bankrate, Rocket Mortgage all claim to have the lowest rates but there’s direct smaller lenders that definitely have them beat.

Shop around and play lenders against each other. I've found they absolutely WILL negotiate, even if they claim otherwise.

I ended up using Better for my last refinance FWIW.

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