{"id":11728,"date":"2010-04-09T12:14:06","date_gmt":"2010-04-09T19:14:06","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=11728"},"modified":"2010-04-09T12:14:06","modified_gmt":"2010-04-09T19:14:06","slug":"how-to-salvage-the-mortgage-industry-in-six-months","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11728\/how-to-salvage-the-mortgage-industry-in-six-months\/","title":{"rendered":"How To Salvage The Mortgage Industry in Six Months"},"content":{"rendered":"

I’m going to say something very unpopular… again<\/a>:<\/p>\n

We gotta get the Government out of the mortgage business.<\/strong><\/p>\n

That’s not going to happen anytime soon but we, as responsible free market advocates of our respective industries, must never stop saying “I told you so<\/em>” when the whole thing implodes again.\u00a0 After repeated admonitions, they’ll start listening.\u00a0 When they start listening, we’ll experience a brutal but swift decline followed by a healthy and sustainable restoration of private mortgage banking.<\/p>\n

Everyone is worried about Wall Street securitizing the paper.\u00a0 The prevailing thought is that without a government guarantee, no clear-thinking investment banker will ever take a risk on the American homeowner again.\u00a0 I know how to solve that problem;<\/p>\n

Make ’em an offer they can’t refuse.<\/strong><\/p>\n

If a housing capital drought reduces housing prices to a stoopid low level, those investment bankers will be back.\u00a0 Investment bankers have the memory of a four-year old.\u00a0 We have to remove the current arbitrage game they’re playing<\/a> so that they can get back into the business of doing what they should be doing; analyzing and pricing risk.<\/p>\n

Right now, your mouth is probably shaped like an “O”.\u00a0 You’re most likely\u00a0 thinking “mortgage rates will skyrocket to 10% and NOBODY will buy a house! ”\u00a0 Your conclusion would be wrong and I’ll prove it to you:<\/p>\n

Today, a $300,000 30-year, fixed-rate loan, at 5% requires a monthly principal and interest payment of $1610.\u00a0 If mortgage rates skyrocketed to 10%, the loan amount, for the same payment, would drop to $183,500.<\/p><\/blockquote>\n

That’s an offer Wall Street can’t refuse.<\/strong><\/p>\n

PS:\u00a0 If I’m sounding like a broken record, it’s because I’m going to keep saying” I told you”, as my battle cry<\/a>, until they start listening.\u00a0 For those of you who believe in “spreading the wealth around”, believe me when I tell you that price deflation redistributes wealth to its proper stewards.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

I’m going to say something very unpopular… again: We gotta get the Government out of the mortgage business. That’s not going to happen anytime soon but we, as responsible free market advocates of our respective industries, must never stop saying “I told you so” when the whole thing implodes again.\u00a0 After repeated admonitions, they’ll start […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-11728","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4484,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4484\/bloodhound-blog-radio-hosts-matthew-padilla\/","url_meta":{"origin":11728,"position":0},"title":"Bloodhound Blog Radio Hosts Matthew Padilla","author":"Brian Brady","date":"September 17, 2008","format":false,"excerpt":"Have you been listening to Mortgage Mondays on Bloodhound Blog Radio?\u00a0 Each Monday afternoon, at 4PM, we invite\u00a0 REALTORs to listen to and participate in our 40-60 minute \"radio broadcast\". Our guest this Monday (September 22) is Matt Padilla.\u00a0 Matt is a regular business and finance columnist with OC Register.\u00a0\u2026","rel":"","context":"In "Interview"","block_context":{"text":"Interview","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/interview\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4855,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4855\/mortgage-market-week-in-review-on-a-wednesday\/","url_meta":{"origin":11728,"position":1},"title":"Mortgage Market Week in Review – on a Wednesday?","author":"Tom Vanderwell","date":"October 8, 2008","format":false,"excerpt":"Yeah, I know it\u2019s only Wednesday, but when I looked at my schedule for the rest of the week, I realized that I wasn\u2019t going to be in one place long enough or have the time to sit down and write this update, so I decided that I better do\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1423,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1423\/mortgage-brokers-how-everybody-can-win\/","url_meta":{"origin":11728,"position":2},"title":"Mortgage Brokers — How Everybody Can Win","author":"Jeff Brown","date":"May 14, 2007","format":false,"excerpt":"Almost three years ago we kinda sorta beta tested doing invitation only seminars for past clients of local mortgage brokers. It went like this. The mortgage guy went through his data base looking for clients who either fit the investor profile, (as defined arbitrarily by some bald dude) or folks\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13099,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13099\/its-not-my-fault\/","url_meta":{"origin":11728,"position":3},"title":"It’s Not My Fault","author":"Alex Cortez","date":"August 27, 2010","format":false,"excerpt":"I pride myself with being a fairly understanding person, yes, sometimes to a fault. But I just can't understand how so many sellers are unwilling or unable to accept any responsibility for their current situation. Sure, facing a short sale is not a position in which any one would want\u2026","rel":"","context":"In "Casual Friday"","block_context":{"text":"Casual Friday","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/casual-friday\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13753,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13753\/this-article-is-a-waste-of-your-time\/","url_meta":{"origin":11728,"position":4},"title":"This Article is a Waste of Your Time","author":"Sean Purcell","date":"December 3, 2010","format":false,"excerpt":"The NAR has come out against the Debt Reduction Commission's recommendation to eliminate (actually, not eliminate but rather greatly reduce and alter) the mortgage interest tax deduction (MID)...\u00a0 Isn't that a shock?\u00a0 No? You knew those dip-shits at NAR would knee-jerk react to their sacred cow?\u00a0 Hey, I warned you\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9794,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9794\/eliminate-the-government-option-for-a-healthy-mortgage-industry\/","url_meta":{"origin":11728,"position":5},"title":"Eliminate the Government Option For a Healthy Mortgage Industry","author":"Brian Brady","date":"September 19, 2009","format":false,"excerpt":"Most loan originators are grateful for the \"government option\" in the mortgage markets because of the liquidity crunch. I submit that the reason for the mortgage liquidity crunch was TOO much government involvement in housing and its increased involvement has ruined mortgage banking. That's going to be a hard concept\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=11728"}],"version-history":[{"count":5,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11728\/revisions"}],"predecessor-version":[{"id":11733,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11728\/revisions\/11733"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=11728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=11728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=11728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}