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Do you think mortgage lenders go by your scores or your reports?
Posted on February 7th, 2012 No comments
Question by Judy: Do you think mortgage lenders go by your scores or your reports?
I know mortage lenders pay little attention to the scores.FHA does not flush get it.Don’t they look at your reports in detail and make their own decisions?They have your score – but do they use it at all?
Best answer:
Answer by MoneyMatters101.com
Lenders use your impute score to get a quick hint of your credit history, but the information on your actual credit report is what they ultimately use to make a determination as to whether or not you will get the loan that you are applying for and what your interest rate will be.A imputed score is founded on factors such as your history of paid your bills, such as loans, credit cards, and other credit obligations. Public records such as tax liens, bankruptcies, judgments, law suits and collection accounted are also factored into the score.
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What do think the Mortgage Lenders and the Government will do about the rising defaults and foreclosures?
Posted on January 20th, 2012 No comments
Question by ricknasty: What do think the Mortgage Lenders and the Government will do about the rising defaults and foreclosures?
They have to do something about this otherwise more defaults are going to happen. Do you think they are going to create some breaks on bonding financing, such as lowering rates and offering 50 year fixed loans, so many people are able to afford the payments. Or are they just going to let more borrowers go into foreclosure? If this continues to happen, we may see a depression coming in the near future.
Best answer:
Answer by bob
I dont think its as bad as the news makes it out to be.If everybody had to sell tommorrow, yes, but most people are not in that predicament…just beetle on and enjoy the house for a few years.I compared a 40 yr to my conventional 30 yr mortgage, and it only saved me 20 bucks a month, which was hardly worth the effort….i wouldnt consider any increased length mortgage unless the payment went down 100/150/200 buck.I did hear today that many of the reputable mortgage lenders are temporarily reducing their interest to %, if the buyer needs a little breathing room, rather than foreclosing.I don’t think the “goverment” needs to do anything, they will just mess things up…the market will correct itself….the period of 2001-2005 was not normal.
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Why did the investment bankers think it was profitable idea to securitize bundle bad mortgage loans?
Posted on November 27th, 2011 No comments
Question by Kuntree: Why did the investment bankers think it was profitable idea to securitize bundle bad mortgage loans?
First I don’t understand why banks would loan money to someone with bad credit or not having the means to repay. Second I don’t understand why investment companies like Bears Stearns would repurchase the loans from the banks. Securitize them and sell them as bonds. What are they learning at these prestigious business schools? How to be a licensed crook? The credit rating agencies are seem to be payed by not assigning the proper credit ratings. The country is falling apart because people don’t have the discipline to live within there intended. Greed is linear rampant.
Best answer:
Answer by Stu
The big problem comes in when the people originating the loans are not the people that end up holding the loans. They originator is getting paid to originate loans and frankly doesn’t care if the lent will get paid, because he isn’t travelling to be holding the loan – it will be sold to someone else. There is no incentive for the originator to do extensive checks to see if the person getting the lend can really pay it cancelled. All is good and ticketing if the housing offer continues to go up as populate can continuously refinance. However, that can’t continue forever and now someone must pay the price for this. That should be the loan originators and the people that applied for these loans.
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