Elizabeth Duke is on the Board of Governors for the Federal Reserve and I think she hit the nail on the head……
Fed’s Duke Outlines New Mortgage Market : HousingWire || financial news for the mortgage market
“Some would argue that most of the really risky behavior is now out of the market,” Duke said. “But, unfortunately, the backlash has restricted a lot of perfectly responsible lending as well. Banks are reluctant to put any but the lowest possible risk loans in their portfolios.”
Julia says:
Amen & glory hallelujah. Preach it, sister.
I had that conversation at a closing just a couple of hours ago.
December 11, 2009 — 2:38 pm
Thomas Johnson says:
Where are the portfolio loans, period? Every loan seems to be securitized, sliced diced and sold in pieces to Goldman Sachs who in turn insures against loss with AIG, who in turn gets a geithner/government guarantee. In the mortgage world: after FHA, Fannie, Freddie, and credit default swaps on the rest of the MBS’s generated, I would like to know if any bank is putting any mortgages at all in their portfolios. In other words. what the hell are bankers doing these days other than shoveling lobby money at the administration and Congress to keep the game going by killing all reform legislation?
December 11, 2009 — 9:30 pm
Missy Caulk says:
I have a home closing on Monday. It is being but in a portfolio at U of M. Credit Union.
Why?
Underwriting kicked out the appraisal, wanted 2 more comps, the appraiser was from out of area, told the credit union No, he stood by his appraisal. Never mind he had used 2 homes closed in 08.
Lender went higher up as this is a physician and his wife is in 3rd year residency. Not a big risk, right?
They said yes and we are going to closing but as of Tues. I was not sure.
December 12, 2009 — 5:12 am