06-13-2008, 10:25 AM | #1 |
Junior Member
Join Date: Sep 2007
Location: Cancun, AZ, TX and CA.
Posts: 191
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new changes on mortgages for investors??
I posted this info on that "other " board yesterday with no real reply. I deal with a lot of investors. Several called me yesterday saying that investors got hammered with new laws that go into effect June 13 at 6 p.m. Can anyone on the board that is a mortgage broker confirm?
Investors may no longer finance a home with more than 85% financing. This includes 2nds etc at time of purchase. The second part was investor may not have more than 4 total real estate loans. It used to be 10. This applies to all freddie mac and fannie mae backed loans. These 2 changes will further reduce the pool of buyers out there, as investors will not be able to play the game. That will add more negative pressure to the re industry as investors have been a sizeable part of the buyers pool and now they are effectively locked out. Anyone in the business confirm? This will not help the re situation today. |
06-13-2008, 02:45 PM | #2 | |
Senior Member
Join Date: Jan 2006
Location: South Salt Lake, Utah
Posts: 1,742
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Quote:
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06-13-2008, 08:24 PM | #3 |
Senior Member
Join Date: Oct 2007
Location: The Bubble
Posts: 606
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I thought the same thing. Seems like they are trying to prevent these artificial run ups.
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06-13-2008, 08:26 PM | #4 |
Demiurge
Join Date: Aug 2005
Posts: 36,368
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We shouldn't use federal money to help investors jack up the market? What the hell?
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06-14-2008, 10:49 AM | #5 |
Junior Member
Join Date: Sep 2007
Location: Cancun, AZ, TX and CA.
Posts: 191
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Investors helped with causing the runup, but I'm not aware of any area where they amounted to more than 35% of the buyers. That is a minority in causing the problem. However, if you take 35% of the buyers out of the housing picture, houses will sit longer, prices will be forced down further, and the economy will suffer more and for a longer time. Simple law of supply and DEMAND. Take 35% of the buyers out of the picture for any commodity and prices fall. It is self-feeding. Those homeowners now holding on by a thread will fall and the abyss deepens as more properties enter foreclosure.That is good for me, but very bad for homeowner and the economy. I'm not condoning the investors' actions. I'm just saying this will keep the real estate mess going on. Someone posted on the cb yesterday that he thought Utah had hit the bottom of the cycle. imo, not even close, and these changes will hurt. This will help slow down inflation, but also further stagnate the economy. More money will sit on the sidelines since real estate is not a viable source for many and the stock market is getting more like a roulette wheel every day. I just turned 60, am well versed in the investment world, and I've never been as concerned about our economy as now. I really hope I'm wrong about this, but I think this will add several years to the real estate mess. Only time will tell if I'm wrong.
My prediction is 2-3 years till bottom in most states, including Utah. If there are more radical changes, like obama, it may be longer. |
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