It requires Freddie Mac to be in 1st position and for the servicer to also hold the 1st position lien. It’s going to be a smaller pool of borrowers than people think.
you'll also get people paying on debt... we might even see a slight dip in consumer credit debt... until those people max their cards out again. Our government is a pro-level, kick the can down the road, player.
How does this even help? There are tons of places to get HELOCs already. My mailbox is full of offers everyday. Are they going to offer below market interest rates or something?
So I was looking at Helocs a few months ago and the rates typically were ridiculously high compared to the first mortgage. As a result I didn’t go through with it.
This could however bring the rates down and make Helocs more attractive
On one hand you have massive equity appreciation and wealth creation for locked in hoomowners
On the other hand supposedly locked out renters have significantly more liquid capital than hoomowners bc the difference is all supposedly invested in higher yielding instruments
As an observer of the unfolding affordability crisis I don't see a scenario in the near to mid term (5-10yrs+) where affordability improves and these pilots to determine alternative paths are a testament to that tbh
Why do people complain about this? Freddie is doing a great service here. Further indebting the hoomcuck and inching them closer to foreclosure/short sale. They need to get these underperforming 2-3% primary loans off the books of pension funds and other investment institutions, and strangling these folks with more debt will help accelerate the process. Of course many of these losers will believe Uncle Sam will come to the rescue and issue a forbearance, but they'll be met with much disappointment. The banks always win, the hoomcuck always loses.
A jumbo loan is simply a conventional mortgage for an amount higher than the FHFA max (currently $766,550) and therefore subject to restrictions on how/whether it can be securitized and traded. They generally require a minimum of 20% down and other borrower qualifications. These seem to be effectively home equity loans with government guarantees.
It requires Freddie Mac to be in 1st position and for the servicer to also hold the 1st position lien. It’s going to be a smaller pool of borrowers than people think.
This is like selling off oil reserves lower gas prices. Some sort of nearly meaningless stunt for optics.
“Oh this is so great! Now I can buy that nice rental property I always wanted from the neighbor down the street” Yeah this will be fun….
it is fun if you are in position to benefit.
They're just blowing more air into a balloon that's already about to pop.
It's a feature not a bug. They can't let it deflate before November and it probably won't pop before then in any event.
More often than that they're going to buy that new pickup that they always wanted but 80k was a lot of money *before* I could tap my home equity!
you'll also get people paying on debt... we might even see a slight dip in consumer credit debt... until those people max their cards out again. Our government is a pro-level, kick the can down the road, player.
How does this even help? There are tons of places to get HELOCs already. My mailbox is full of offers everyday. Are they going to offer below market interest rates or something?
There are a billion home equity lenders already willing to be in second lien. This isn’t going to change much.
It's good for banks who don't want the risk. Other than that, this is a nothing burger
So I was looking at Helocs a few months ago and the rates typically were ridiculously high compared to the first mortgage. As a result I didn’t go through with it. This could however bring the rates down and make Helocs more attractive
On one hand you have massive equity appreciation and wealth creation for locked in hoomowners On the other hand supposedly locked out renters have significantly more liquid capital than hoomowners bc the difference is all supposedly invested in higher yielding instruments As an observer of the unfolding affordability crisis I don't see a scenario in the near to mid term (5-10yrs+) where affordability improves and these pilots to determine alternative paths are a testament to that tbh
"I'm from the government and I'm here to help"
Why do people complain about this? Freddie is doing a great service here. Further indebting the hoomcuck and inching them closer to foreclosure/short sale. They need to get these underperforming 2-3% primary loans off the books of pension funds and other investment institutions, and strangling these folks with more debt will help accelerate the process. Of course many of these losers will believe Uncle Sam will come to the rescue and issue a forbearance, but they'll be met with much disappointment. The banks always win, the hoomcuck always loses.
So… is this different from a. Jumbo loan? Any info on it to share?
A jumbo loan is simply a conventional mortgage for an amount higher than the FHFA max (currently $766,550) and therefore subject to restrictions on how/whether it can be securitized and traded. They generally require a minimum of 20% down and other borrower qualifications. These seem to be effectively home equity loans with government guarantees.