@Osint613

·

2h

The Trump administration is exploring a plan to make mortgages transferable, letting homeowners keep their existing loan terms, rates, and lenders when buying a new house.

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49423756)

yeah, letting people transfer loans instead of having to (((refinance))) at higher rates is a win.

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49423825)

housing is way fucking overpriced cuz of handout shit like this

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424044)

i doubt this would materially raise the rate of new mortgages. mortgages are already originated anticipating the possibility of prepayment if a buyer refinances when rates go down. transferability would only hurt the banking system by not originating as many loans, but it wouldn't significantly change the calculus on individual originations. the banks themselves transfer loans frequently. why would a bank care if your loan was on house X instead of house Y so long as the collateral was still sufficient?

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49423902)

I am not saying this will make mortgage rates skyrocket, but the directional effect on rates is clear and it will help older, wealthier buyers while hurting newer, poorer homebuyers.

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49423975)

so for even the lucky youngs who bought starter houses on 2% mortgages and are trapped in their starter houses, they're fucked if they wanna upgrade.

this is really gonna favor boomers

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424017)

how would this favor boomers?

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424026)

they dont have to worry about getting a second mortgage at 6% rates.

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424030)

and more importantly keeping out

illegal aliens

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424078)

and these new buyers have money

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424073)

the influx of new sellers/buyers are all people with leverage--their 2.5 mortgages. this provides them with the flexibility not to be an average seller or buyer. these people will be able to hold out for higher prices and compete with advantages as buyers

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49425140)

the only reason this shit even works in the US is cause of mortgage interest deduction and then cap gains exemption upon sale

otherwise its not even clear it wld be financially better than renting, so its massively subsisdized thru the tax system

and this shit drives up prices, u shld actually get rid of these tax benefits if u want to reduce prices

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49423913)

Should we “wait two weeks”?

Are “many people saying this”?

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424237)

1. It's not that hard. Almost all this debt is securitized. Just write a rule that the servicers/trustees can substitute out collateral upon certain paramaters and payment of like a $5,000 fee. Commercial loans already often permit this occasionally.

2. It'd be much easier on a residential loan. People stomping their feet about "diligence" really are missing (i) the new property will be subject to the same federal underwriting standards and subject to teh same "diligence" and (ii) that "diligence" is really just looking at the number on the appraisal. If you made the borrower pay $5,000 if transfer fees, taht would more than cover everything.

3. This is a "give" to people with low mortgages, but you're getting a win here in that they're selling their house and providing liquidity into the market. It's important to remember that these people don't have to sell the starter homes they bought at 2.8% interest. They can either continue to live in them, or just keep them as rentals.

The Trump administration is looking into this because the housing market is broken after handing out 3% mortgages to everyone and then jacking it up to 8%. Some of that is mitigated by rates going down to 6% - but things aren't improving. This will be the slowest year in terms of housing in 30 years, and the median FIRST TIME buyer is literally 40.

It's not helping anyone that people are sitting in these homes where essentially they're payment would double if they moved into the exact same house next door.

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424239)

leave the market alone.

remove problematic regulations.

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49425307)

just off the top of my birdbrain head, wldnt the banks lose TONS of money giving out loans at below market rates which is what they are essentially doing by letting faggots transfer lower interest loans

how the furk does that work for the jew banks, they wld just be subsisidzing prior homeowners loans by charging moar for new homeowners

this is just a ponzi scheme like SS/medicare

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49425560)

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424877)

Lenders would be entitled to appraisals on the new collateral, and you could build in a margin of safety and charge a fee to port them. So if you borrow $1MM to buy a $1.2MM house and then buy a $2MM house after paying down $100K of principal, you could allow the borrower to port the $900K principal loan to the $2MM house, but require it go have a loan to value after any new money or second mortgage is applied that would make sure the $900K is by 10%.

This would be good for people like me who have 2.3% mortgages, but I’m not sure it’d lower home prices. It might increase liquidity by allowing people to sell their homes more easily.

But if you borrow $1MM secured by $1.2MM in real estate, you should be able to swap out the collateral if the LTV stays the same or is better, as long as you are willing to pay the transaction fees. The only issue I would foresee here is regional concentration risk. Like if everyone traded NY mortgages for Florida mortgages. RMBS deals are set up to have geographical diversity to protect against the risk of regional economic downturns, natural disasters, etc. But maybe you could require it to be within 100 miles of the original property or something.

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424923)

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424939)

illegals aren't buying homes where people like XO posters would live

how would you make life difficult for megacorps buying houses or make it too expensive to own 3rd houses etc

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49424953)

they may not be competing with deranged lawyers for houses, but they are certainly competing with young people buying a first home and trying to start a family.

there are endless ways the government could fuck with the real estate industry. tighten lending to residential investors by classifying it as higher risk or putting low concentration limits on it. exclude FM/FM purchase of mortgages originating from a non-natural person. i assume finance policy nerds could come up with hundreds of them using existing law.

(http://www.autoadmit.com/thread.php?thread_id=5796831&forum_id=2most#49425004)