Talking about Trump reversing the mortgage insurance premium cut, rising rents, Mnuchin and foreclosures at One West, Davos and the possibility of social unrest, firing CFPB head Cordray, credit scores and how long it takes to close a loan, and more
The cost of rent has been accelerating for years as supply dwindles and demand strengthens. Rent hit a new multiyear high in December as limited supply and “unprecedented” demand push costs higher.
Rents rose 4% compared to a year ago in December according to the Labor Department. That’s the strongest yearly gain since December 2007, the month the Great Recession began.
There are those that will point to this and say it means every renter should buy a home now.
Instead I strongly suggest you think about buying a home. Not to hastily make what could be the biggest financial decision in your life.
Like it was major “news,” all of a sudden, that OneWest Bank was failing to modify mortgages per the government program’s guidelines and therefore foreclosing on thousands of homes all over the country unnecessarily starting in 2009? It wasn’t even major “news” when it was happening.
All I kept thinking was how nice it would have been if the media and others would have cared about what OneWest was doing back in in 2009 or 2010 or 2011… you know, when perhaps it could have been stopped. Writing about it now feels kind of like closing the barn door after the horses have run out, and the re-opening it and shooting any horses left inside.
It is funny how NOW some people suddenly have an issue with some of the misdeeds of One West now. How One West operated was NOT a deeply hidden secret then or now. I would say this is simply because Mnuchin is who Trump picked to lead the Treasury. Not that I am a fan of Mnuchin…
For the past 8 years, it did not matter what Obama did or said, it was ALWAYS wrong. Simply because it was Obama.
And now the shoe is on the other foot and everything that Trump says or does will be called wrong. Not saying I am a fan of either Trump, Mnuchin or Obama…
Just pointing out the hypocrisy of those that have suddenly become aware of how One West operated.
The global elite has to comprehend just how much resentment working people feel over what’s happened to their lives.
One of the themes of this year’s World Economic Forum in Davos this year is “Preparing for the Fourth Industrial Revolution.” How will digital technology and the rise of robots affect job opportunities in the future? Also on the agenda are discussions about globalization — how it has altered the political and economic landscape, and fueled resentment among workers who feel overlooked and cast aside while those at the top get immensely rich.
I fear that we could see social unrest on a grand scale, both here and around the world, if things do not change…
Ahead of President Elect Donald Trump’s inauguration this Friday, there’s been much speculation that Consumer Financial Protection Bureau (CFPB) Director Richard Cordray will be fired, if he doesn’t resign first. The fate of Cordray’s job security is already causing a political skirmish. One of the roadblocks to removing Cordray is legal.
While I am not a fan of the CFPB, there is no doubt that based upon recent history, consumers need protection from the banks and financial firms. But has the CFPB been effective?
- Closing time for all loans increased slightly in December to 50 days
- Time to close refinances increased to 52 days
- Time to close a purchase increased to 48 days
- The average 30-year rate for all loans increased to 4.05% in December
- Closing rates for all loans increased to 73.2%
- Closing rates on refis increased to 69.6%
- Closing rates on purchases increased to 77%
- The average FICO score on all closed loans decreased to 726
- The average FHA purchase FICO score held steady at 686
Bonds backed by certain risky single-family mortgages topped $1 trillion for the first time in November, crossing that threshold amid rising warnings for one corner of the housing market. These mortgages are insured by the Federal Housing Administration and typically go to borrowers with small down payments and lower credit scores.
That is worrying the Government National Mortgage Association, or Ginnie Mae, the government-owned corporation that guarantees the bonds backed by FHA loans. Ginnie Mae head Ted Tozer, who is leaving his position Friday, has said nonbank lenders may lack the financial wherewithal to withstand future stress in housing. In the worst-case scenario, problems could saddle taxpayers with losses.
Oh great! The possibility of yet another tax payer bail out? Will Trump let something like that happen IF the shit hits the fan again?
Soon after Donald Trump was sworn in as president, his administration undid one of Barack Obama’s last-minute economic-policy actions: a mortgage-fee cut under a government program that’s popular with first-time home buyers and low-income borrowers. The new administration on Friday said it’s canceling a reduction in the Federal Housing Administration’s annual fee for most borrowers. The cut would have reduced the annual premium for someone borrowing $200,000 by $500 in the first year.
I warned you in yesterday’s post that this reduction was not guaranteed to stay in place. Like I said before, I am not sure if this cut was a good thing. So maybe one of Trump’s first decisions was a good one?