What are these guys at Barclays thinking?
by Tom on December 31, 2009
in Market Musings, Mortgage Rates
Okay, you recall the chart I put up the other day about increasing delinquencies in Fannie’s portfolio?
And you recall the fact that Fannie Mae recently rolled out new guidelines that tightened down their underwriting guidelines (the memo took 20 pages).
And you know that FHA recently announced that they intend to go to Congress by the end of January with rules and changes to bring them back within compliance (that’s a fancy way of saying that they need a LOT more cash).
Oh and on Christmas Eve, the Treasury pulls the Thursday night massacre and essentially hands their checkbook to Fannie and Freddie and said, “Here, take how much you need so that you can stay above water.”
And now Barclays says that in the 2nd quarter of 2010 we’re going to see credit restrictions easing on mortgages? How is that going to happen?
Oh, it does mention that there is a substantial portion of the population with low loan to value and good credit scores who aren’t being taken care of. A couple of responses to that:
- In certain areas of the country, prices have fallen up to 50%. So, it takes a LOT of equity for someone to still have a LOT of equity in their house.
- If you know someone who has a good chunk of equity in their house and needs a mortgage but isn’t getting taken care of, I’ve got two items of information I’d like you to pass on to them. My phone number is (616) 292-7559 and my e-mail address is tvanderwell@straighttalkaboutmortgages.com. I’d love to talk to them about how I can help them out.
Have a good day!
Tom Vanderwell
Origination Funding May Increase as Credit Restrictions Ease in 2Q10, Analysts Predict : HousingWire
A recent set of research focusing on 2010 strategies for investors of agency mortgage-backed securities (MBS) by analysts at Barclays Capital finds that credit availability for mortgage originations may increase in the next six to 12 months.However, the situation will remain tight in the next three to six months, they add, as the market grapples with ongoing risk aversion sentiments, loan repurchases stabilization and new regulatory procedures that will need this time to take hold.
“In particular, in H210, there could be a meaningful extension of conventional credit to currently under-served segments,” write the analysts in their Agency MBS Outlook 2010, such as “the substantial population of borrowers with low LTV but only mid-range FICOs (700-740).”
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