fishweewee

Democrats pouring gas on the fire with the 40 year mortgage

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It wasn't enough that the dems had to dumb down lending standards with the federal reserve also inflating home prices with near-zero percent interest rates.

 

Now the dems are pushing 40 year mortgages.

 

That said, how else are millennials going to afford homes?

 

What's next?  40 year maturities as the new gov't long bond?

 

Debt like this is going to be the icing on the cake of our destruction.

 

https://www.housingwire.com/articles/ginnie-mae-unveils-40-year-mortgage-term-for-issuers/

 

Ginnie Mae unveils 40-year mortgage term for issuers


New pool type will allows borrowers to make lower monthly payments but can still be sold on the secondary market in a security

 

June 28, 2021, 1:04 pm By Tim Glaze

 

Ginnie Mae is set to introduce a new 40-year mortgage term for its issuers on the heels of administrative shake ups at the top of the housing industry.

 

Only modified loans with terms greater than 361 months and less than or equal to 480 months will be accepted, but there will be no loan amount restriction, Ginnie Mae said. The mortgage-bond giant said it expects the new pool to be available in October.

 

The pool must also be authorized by the Federal Housing Agency and other agencies whose programs are the basis for loans through Ginnie Mae, said Michael Drayne, Ginnie Mae acting executive vice president, in a press release.

 

“We have begun the work to make this security product available, because an extended term up to 40 years can be a powerful tool in reducing monthly payment obligations with the goal of home retention,” Drayne said. “It’s important that Ginnie Mae issuers have secondary market liquidity for options that our agency partners determine are appropriate for supporting homeowners in distress.”

 

John Getchis, Ginnie Mae’s senior vice president for capital markets, noted that the 40-year pool design gives issuers more control and the ability to maximize market pricing.

 

“We think the market will find value in securities backed by these loans, so we wanted to provide a pooling structure that would enable issuers to capture that value — thereby enhancing their ability to provide the strongest possible options to the homeowners while remaining respectful of investors’ capital,” he said.

 

The news comes on the heels of Julia Gordon’s nomination by President Joseph Biden as new commissioner of the FHA — an agency with loans backed by Ginnie Mae — and the Department of Housing and Urban Development, as well as Biden moving to remove former Federal Housing Finance Agency Director Mark Calabria. And David Uejio, acting director of the Consumer Finance Protection Bureau, was tapped as the new assistant secretary at HUD.

 

HUD Senior Advisor Alanna McCargo said finding solutions to help keep people in their homes has been a priority of HUD’s leadership team over the past 12 months.

 

“As interest rates rise, this 40-year feature will enable more payment reduction options to help homeowners,” McCargo said. “Ginnie Mae has been integral to the interagency actions to prevent foreclosure for homeowners experiencing financial hardship as a result of [the COVID-19 pandemic].”

 

Ginnie Mae announced its first guarantee of a mortgage-backed security backed by digital pools, or pools of loans that consist entirely of eNotes, in February.

 

 

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Bu bu butttt buttttt with all the job opportunity’s joe has why fo you need 40 years to pay off a house ...it get backs to the original point ....the wokkies ,cancelculture maggots can’t survive in a capitalistic society ....freee communist checks ,40 year mortgages, and I thought they were canceling culture ...these college edjumacated donkeys are useless as tits on a bull ....entitled little s o b s ...go to work rectums ,can’t make it find a job where you can ....still can’t , get a second or third job ...welcome to America ...the land of piece  ,justice and no mercy ....and that’s the old America ,the communist america is even worse ..your a slave ....LOL LOL LOL 

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49 mins ago, Surf bomber said:

Bu bu butttt buttttt with all the job opportunity’s joe has why fo you need 40 years to pay off a house ...it get backs to the original point ....the wokkies ,cancelculture maggots can’t survive in a capitalistic society ....freee communist checks ,40 year mortgages, and I thought they were canceling culture ...these college edjumacated donkeys are useless as tits on a bull ....entitled little s o b s ...go to work rectums ,can’t make it find a job where you can ....still can’t , get a second or third job ...welcome to America ...the land of piece  ,justice and no mercy ....and that’s the old America ,the communist america is even worse ..your a slave ....LOL LOL LOL 

Yeah, what he ^ said, ya bunch of college donkey rectums.

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51 mins ago, Surf bomber said:

Bu bu butttt buttttt with all the job opportunity’s joe has why fo you need 40 years to pay off a house ...it get backs to the original point ....the wokkies ,cancelculture maggots can’t survive in a capitalistic society ....freee communist checks ,40 year mortgages, and I thought they were canceling culture ...these college edjumacated donkeys are useless as tits on a bull ....entitled little s o b s ...go to work rectums ,can’t make it find a job where you can ....still can’t , get a second or third job ...welcome to America ...the land of piece  ,justice and no mercy ....and that’s the old America ,the communist america is even worse ..your a slave ....LOL LOL LOL 

Bu butttt the worst are the douche bag donkey rectums in the financial business... effing paper pushing parasites sucking off the production of hard working Americans... let me trade your effing paper, they say... donkey rectum bull tit suckers for sure... bulls don't have tits you say??... well those ****s are sucking something under that bull...LOL LOL LOL

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Why this has to be said because I’m sure you’ve done the research. Well, maybe not.  The 40 year mortgage dates back to June of 2005. This just happens to be a company offering it currently. 

 

Do you have Any outrage about the 7 year vehicle loan?? Vent that too. 

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A band-aid on a balloon. It's still going to pop and putting it off will just make it more devastating. 

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5 mins ago, J said:

A band-aid on a balloon. It's still going to pop

Again...……..Pop again.

 

I don't know if it's sheer greed or utter stupidity.

 

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Ahhhh.....Venezuela is nice this time of year. I especially love the roasted zoo animal stew you get from the street meat vendors. 

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2 mins ago, Mokes said:

Ahhhh.....Venezuela is nice this time of year. I especially love the roasted zoo animal stew you get from the street meat vendors. 

55 gallon drum roasted pigeon with a touch of sewer salt, yummy

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I'm waiting for the negative interest loan where the taxpayers are forced to pay the homeowner to live in a free home... tic toc

 

Course anyone that's been watching knows we're headed for another banking crisis.

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3 hours ago, saltfisherman said:

Why this has to be said because I’m sure you’ve done the research. Well, maybe not.  The 40 year mortgage dates back to June of 2005. This just happens to be a company offering it currently. 

 

Do you have Any outrage about the 7 year vehicle loan?? Vent that too. 

actually, 40 and 50 year loans have been available through private lenders for some time now.

 

anybody can write a 40 to 50 year land contract.

 

why would you want to?

 

Of the three federal home loan agencies, FNMA (Fannie Mae) introduced the 40 year in 2005 ... as a pilot program.

 

And as far as I can read, the origination volumes haven't been that significant.

 

Now, GNMA (Ginnie Mae) is offering it as a full product.

 

FHLMC (Freddie Mac) hasn't offered it yet.

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Posted (edited) · Report post

7 hours ago, Slacker said:

Bu butttt the worst are the douche bag donkey rectums in the financial business... effing paper pushing parasites sucking off the production of hard working Americans... let me trade your effing paper, they say... donkey rectum bull tit suckers for sure... bulls don't have tits you say??... well those ****s are sucking something under that bull...LOL LOL LOL

without those douche bag donkey rectums, you wouldn't be able to get a mortage.

 

FNMA, GNMA, FHLMC are government sponsored enterprises that buy (conforming) loans from banks.

 

They in turn pool these loans into buckets and turn them into bonds (securitization).  The bonds get sold to investors (for the pitiful interest income they provide and if the underlying mortgages don't default on their payments, you might get your principal back too).

 

the douche bag donkey rectums are the sausage factory of mortgages and essentially provide liquidity to the market.

 

the problem has been - garbage in, garbage out.

 

sausage factory was fed pig $hit from 1997 to 2008 - fukkin people took out loans they had no business taking and couldn't pay them back.  thanks to the dems who were trying to make homes more affordable.

Edited by fishweewee

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point is...

 

while the 40 year mortgage can offer a lower monthly payment (longer amortization period)

 

it's riskier for the issuer than a 30, 20, 15, or 10 year loan.

 

30 year loans exist because interest rates had been going up

 

40 year mortgages exist because of near zero percent interest rates :freak:

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