Hamp strikes again. Share this video.

Well said, Mary! Always follow the $$$.

The housing market should have already taken a substantial mark down. One point of highlighting the gse wholesale liquidation programs is that every borrower default provides a financial incentive for the investor class to further speculate in residential housing, propping up the markets, contributing to inflationary trends alongside permanently over valued rental and pricing structures. As first purchase opportunities go in bulk to corporations whom qualified for the wholesale programs with substantial minimum capital requirements, something small scale investors now have diminished access to.

Instead of real price discovery, even if people default, they can restructure through loan modification programs at 115% and are not subjected to current market rates or conditions, via the rate increase caps. Think of the ramifications of people paying over market value, defaulting, and getting loan mods at 115% with artificially low rate adjustments which in the end leave them paying less comparatively to good credit applicants whom never defaulted and entered the market at current market conditions. The article author mentions a clandestine federal welfare program. Indeed.

There will be no housing crash, the investors have found new ways to profit and hold those properties for themselves as rentals or loan servicing income streams after loan modification. In other words; the market value for housing will remain higher than it should otherwise be. Human appraisers are no longer necessary as the institutions would rather prefer to use centrally controlled automated black box avm systems to prescribe when the pricing rises or falls based on their investment class priorities first and foremost. The invisible hand is now tied.

https://www.fhfa.gov/Media/PublicAffairs/PublicAffairsDocuments/NPL-RPL-Fact-Sheet-June2023.pdf