How many times can a security be repackaged?

https://www.philstockworld.com/2019/09/16/doj-accuses-jpmorgans-precious-metals-trading-desk-of-being-a-criminal-enterprise-1/

PTG guys talked about that story at length the other day. Sort of makes a boy wonder, what’s happening in their mortgage department?

https://www.allamericangold.com/

Those seem to be something else they are in favor of eliminating as well.

To also speak directly on your important point; If people want locally focused affordability indexes and such, they’re going to need to do something about a federally controlled lending rate issued by a consortium of international mega banks.

If you need to point a finger, point it at the FDIC program. It’s the same old story, when government is involved, often the opposite of what they hoped to promote occurs. You can’t regulate honesty and government housing insurance promotes mal investment in housing in areas which would otherwise bear such incredible insurance costs that far fewer people would focus there. Coastal areas are prime examples. We’re all paying because they built their houses on the sand. Certainly places like CA and FL are not going to argue against the fed or fdic, they’re getting a big share of those benefits. Why would they want to be self bonded through state rather than federally backed programs, they’re already insolvent and have been in the red for decades. This is why small town people despise the big cities, they’re keenly aware of the disparities.

Quite right. See my above response. Responsible people will be there to pick up the slack and zip up those investment housing opportunities. I’ve met enough realty people whom did that from 2008 circa periods whom released them recently. Boy, they have big old homes! Monkey see, money do. Pump and dump was so wildly successful last time around, it’s clearly on the dinner menu to be served again. The dumping frequency keeps getting closer and closer together. That’s the credit game, when people play the leasing game and subscribe to all the services, they’re not able to qualify in the dump phase. Debt is dangerous. Investment property however is a smart place to be. Who says that investment properties are only for the rich? Although these mega banks control policy, they’re unable to keep everyone out.

This is funny, someone updated the pump and dump graph. Genius.

Yes, correct. These actions are more about keeping the volume lending pipelines open, rather than expanding them. The lenders are simply adjusting policy to account for pending runaway inflation which all major lenders clearly understand is already on it’s way and can not be stopped. QE money from multiple rounds of such monetary easing is dumping back into the markets right now. The CPI is a poor indication of actual inflation. Triple the cpi number and the cost of goods and services will never again be constant as long as the fed continues to print fiat money. Most people in this country have not had housing value increase, despite yearly tables indicating so many percent price increase. What’s really happening is devaluation of currency and people are blissfully unaware as it simply takes a few years for the effects of devaluation to hit their actual products. In the first so many years of housing price increase, people think they’re in a winning position, but really they should just wait it out, then judge their personal affordability index at a later date. If people are not going to object to the fed and QE printing of trillions of fiat dollars, they should just learn to be more flexible and roll with it. This is why big cities and big industries are allured towards higher taxation, bigger government, and continuation of destructive systems, they get the bigger cut, other people far away whom are not on the inside track get to pay for it.

I like the idea of releasing qualifications. It’s about time I was able to claim some leverage to keep up with the big money investors. If this is true I’m going to pick up a rental property, probably several of them. There are enough people whom have cash, but can’t manage credit, if only the bar of qualification was not so stringent, more people could invest in investment housing. And no, I’m not going to be a nice guy and offer rent to own. I’m going to keep it. To me this story is exciting news.

But what happens when they can afford them (paying rent at or near typical mortgage amounts) on a local level, but based on the current mortgage standards nationally, they can’t qualify to purchase? In other words, when you have high income people living in high cost home areas, why require them to have 57% of their income go towards other expenses (Non-home related)? That 57% locally can mean $100,000+ which on a national level would be a joke for ALL other expenses not home related.

Nationally policies, often don’t work on a local level.

Seek the truth.

There is no protecting people foolish enough to take loans on homes they can not afford. Don’t feel sorry for them when they lose their home, they get exactly what they contracted to. Predatory lending will never go away, it just changes form and face every now and then. It’s always been that way. I did not see appraisers getting this concerned when lenders were borrowing at negative rates and pilfering the value of the dollar behind the scenes. Individual policy corrections are not going to accomplish anything in the end. What’s new?

Seek the truth.

Excludes too many equity rich self employed and senior borrowers.

Would rather lenders focus on debt to assets or debt to home equity
rather than debt to income.

Makes the appraisal a more relevant piece of the puzzle.

This didn’t go well for us last time we tried it…