Your Real Estate Questions Answered
August 23rd, 2008 By Peter G. Miller
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This site receives numerous real estate questions from visitors, so in an effort to answer some of the inquiries we receive we’re going to take selected questions and use them in columns and articles.
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Comment by Juan Melendez on 12 August 2009:
What can be done for the home owner who might be next to loose his or her home, before it happens? In the stumilus package there has to be some money to rescure them or us. the first time buyers will probably get about $8M. I suspect (strongely) that this money should also be available to the American Family just before they loose the place where they dwell. To relinquish their home to the bank does not do any good to anyone, esp. Americans and America. The banks or lenders will have properties that will ineviably will become waste; creating new problems that will grow and spread. It is our responsibility, and the governments, to make certain that the people who are the blood of the country function and have a healthy America so we can grow and live life to our fulliest. In my opinion most of the programs that are being developed as our crisis unfolds are only going to effect the symtons not the problem. More direction towards pre- foreclosures may lead us to some sort of remedy.We need jobs back in America and a plan to help American home owners fast. We can help each other like American help others. THANK YOU. Jobs brings money, money pays our mortages and bills; I think this is a simple formula. I am open to respond.
Comment by Matt Dean on 1 September 2009:
How is YSP a secret fee? Have you seen a good faith estimate? YSP has been disclosed on a good faith estimate for as long as we have had good faith estimates. The problem is that people do not read what they sign and then they cry foul if they think they can get some sort of entitlement.
The problem here is not YSP or even mortgage brokers at all. This whole credit and mortgage mess was caused by WALL STREET GREED! Wall street traders were the ones that packaged up subprime mortgage bonds and then sold them as A rated bonds for huge profits. I would love for anyone to explain to me how mortgage brokers had there hand in that?
I would also love for anyone that is in favor of this legislation to explain to me how outlawing YSP is going to be beneficial and to whom?
matt@usam.net
Comment by Peter G. Miller on 1 September 2009:
YSP are NOT banned under the new rule — they must simply be disclosed. If, as you say, disclosure has been routine, then the new requirement should not pose a problem.
Comment by David Reed on 29 September 2009:
I understand the proposed rules allow for YSP but the YSP must be applied to closing costs and not to the broker’s pocket.
Comment by Mike on 15 December 2009:
Do you do Wells Fargo mortgages for investors (with less than 10 mortgages)? If so, what credit score is required?
Comment by Peter G. Miller on 15 December 2009:
Mike –
No. I am just a reporter.
Some lenders are not aware of the Fannie Mae change. Just send them to the story link and it will take them directly to the Fannie Mae announcement. They can then check and see what’s required.
All the best,
Peter
Comment by Ellie on 22 January 2010:
Mr. Miller:
Read your post on AIG and credit default swaps. You explain that only the senior tranches of MBS trusts were insured. What happens to the junior tranches/mezzanine tranches after a default? Since an MBS security is derived from an asset, and if that asset is non-performing, it must removed from balance sheets to reflect the default. Thus, the MBS security/tranche is no longer in existence since the asset it was derived from is gone. There must be some swap contract traded on mezzanine tranches to remove the written-off loans from the ASSET-Backed trust.
Any information you might provide is greatly appreciated.
Comment by Peter G. Miller on 22 January 2010:
Ellie –
I’m not sure I agree with the premise. Given that there have always been foreclosures and defaults it follows that MBS holders must expect that some percentage of the underlying loans will be in default. I therefore would suspect that insurance kicks in only after a given percentage of loan go under.