I just read an overview on the Freddie Mac Relief Refinance Mortgage Program that will be offered by lenders next week. I am not sure if I read correctly, but some the things allowed are:

 

·          Investor loans

·          No mortgage insurance for loans over 80% required

·          105% loan to value- scary!

·          Unlimited combined loan to value –hugely scary!

·          No minimum credit score required in most cases

·          Debt to income ratio up to 50% allowed

·          STATED INCOME/STATED ASSET MAY BE ALLOWED. HELLO!!!!

 

Need I go on?  There is no way they could possibly be offering these loans again. It is almost like taking the same level of stupidity and increasing it to idiotic!  I am sorry to offend anybody, but I am sure that this is certainly throwing bad money after bad money. The only thing I can think of is they are offering these mortgages to appease people and shut them up when they find out that the dead beats, not only got their interest rates lowered, but the government also  lowered their loan amounts-which is even better than the deal offered to the good folk.

 

There is no way that the banks will allow these loans to be processed through their systems unless they are getting paid handsomely for them. No way. If the banks are not getting a side deal somewhere, then they are not letting these loans go through. No way.

 

The only thing I have not seen yet are the interest rates. So, I am assuming that that will be the curve ball thrown in- the rates suck. Otherwise, we might as well take what little cash we have left in our bank accounts and truly keep the money in a coffee can in the back yard!

 

Dale Siegel