Big Money For Countrywide Customers - 08.31.10 | Vincent K. Mohr : First Priority Financial, Inc. : Fairfield, CA

PlannerDavid: (September 02, 2010 11:40am)

When a homeowner vacates the home or when the homeowner dies, they notify the mortgage holder and the loan is immediately due. If the homeowner has no intention of paying off the loan, (the homeowner has no personal liability) or plans on "walking away from the home", even though the loan balance is due in full and no payment is ever made the loan is considered to be "in default" and the bank moves forward to foreclosure to recapture the home. Therefore, the high number of reverse mortgage homes in default is more than likely homes that people have moved out, or some stage of transition for the bank to re-claim the property. I find most loan originators do not understand the way a bank gets the house back in a reverse mortgage situation.

craveaction: (September 01, 2010 7:52pm)

The Feds gotta quit with the Tax Credit. The market is already becoming accustomed to it, looking for it and as soon as the Fed leaks an inkling it might bring it back it puts way to many potential buyers back into the wait and see pool. Let the markets fully correct. Lets find the bottoms and move forward from a more solid base at that point. The idea that buyers are going to buy regardless of a tax credit or not is contrary to all evidence. Think thats not true? Than why is another tax credit being considered?

5pence: (September 01, 2010 2:25pm)

Hi all you Sept 1st posters for the 8/31 blog. There's a new 9/1 video. Just an FYI

mtgbird: (September 01, 2010 1:00pm)

I think the tax payer credit is just another government give away. People either want to buy a home or not. If you really want to see a big government waste how about one where you need no money down and no money for closing cost and below market rates with a 500 score!Charge off's and repo's are welcome! Check it out www.naca.com

DFWRealtorCassie: (September 01, 2010 12:08pm)

NO MORE TAX CREDIT! Our federal deficit is already out of control. Taxpayers SHOULD NOT be forced to "share" the cost of purchasing a buyer's house. The deficit is already outrageous. These tax credits and government bail-outs are just making the deficit WORSE. The fed will eventually raise taxes because of the out-of-control deficit. Income taxes are already high enough! The Fed should consider seller-assisted buyer down payment programs, maintain debt ratios, and cash reserves requirements. It should never be cheaper to RENT a house than BUY a house! There's something wrong with that equation. With no skin in the game, there is high probability homeowners walk. In the interest of full disclosure, my business was booming when the tax credit was enacted and extended. I had a lot of sales, BUT the tax credit is a false fix and does not make the real estate economy recover to 'true' standards. It may be a temporary, instant spending "fix", but runs up our deficit and prolongs recovery.

Bryan/MortgageFinanceGroup: (September 01, 2010 10:35am)

I don't have my copy of the constitution handy, so could any of you point out the amendment that specifically talks about the govt. using federal funds to assist people to buy homes?

bendat: (September 01, 2010 9:25am)

I recently made an interesting observation that some Real Estate companys our there are taking their own pro-active approach. First Team Real Estate, the largest independent in Orange County, California has started its own Stimulus for first time buyers and existing buyers in the conforming range. If services are bundled they are either buying downs rates or allowing the buyer to use 1% of loan amount towards closing costs which they pay...Wow what an idea! There business is showing a remarkable surge. Why doesn't the Govt wake up?

KCase: (September 01, 2010 9:22am)

Hey bobmctague - I agree with you. I work 6 days a week and I WILL not answer my phone when I am with a client. How rude would that be!

KCase: (September 01, 2010 9:19am)

Joe and 5Spence - Enough already - take it outside boys!

nschlegel: (September 01, 2010 8:01am)

I believe we need to get back to "normal" real estate without the tax incentives. Someone has to pay for that and I am tired of everyone reaching in our pockets as if we had an endless supply!

mike: (September 01, 2010 7:08am)

The government needs to leave the market alone and let the market do what the market will do. It will get back to normal.

MAPRO: (August 31, 2010 11:14pm)

Thinkbigworksmall fantasy football! who's with me! email me at [email protected], for those of us that just dont want to think about this stuff for just 5 minutes a day and hours on sunday! Come on Frank and Brian you know you wanna!

DJOliver: (August 31, 2010 10:54pm)

No to any more government programs! Those just delay and increase the pain during our market adjustment.

joan of albuquerque: (August 31, 2010 8:29pm)

tax credit. give to the people who need (deserve) it. Sellers who have sold at a loss. (Paid out of their funds to sell a home.) Feds should give a 3 year tax credit to ease the pain. Help upside down sellers recoup some of their loss with a real incentive. It would keep the market moving, lessen short sale/foreclosue activity and help the entire industry keep moving forward.

5pence: (August 31, 2010 7:30pm)

We could go at this all night but I've got several things going on. Some other time, ok?

5pence: (August 31, 2010 7:27pm)

Vigorous exception hahahaahhahaah. You sound like an AMC. I think your facts are distorted and I'm not wrong. I really don't think you're right and the 20% unemployed out there don't think you're right either. How about looking at it this way, compared to the 20% unemployed out there struggling to get by, 92% of Obama's cabinet never had a real job. Better?

joe: (August 31, 2010 6:27pm)

@5pence: You *really* should work on facts. They are wonderful things. Geithner's history: 3 years at Kissinger Associates (private sector); 5 years as president of the New York Fed. I won't dispute Bill Bonner's intelligence. What I will dispute is his credibility as a source as you have cited him. Has Geithner ever had a "real job?" You tell me. If Bonner (and you) want to claim that being in the military doesn't rise to the level of a "real job," be my guest, but I think you'll find many present and ex-military (myself included) who would take vigorous exception. If you want to claim that being a tenured professor at a major university isn't a "real job," that is your prerogative--but that doesn't make the statement correct. Same with practicing law. You can be as adamant as you want in claiming that "92% of Obama's Cabinet have never held a real job," but the facts don't bear out your statement. No apology is necessary; just an acknowledgement that you're wrong. :)

5pence: (August 31, 2010 5:45pm)

I have no idea what you're getting at joe. If you want to prove Bill Bonner wrong, be my guest. I know Bill Bonner to be a very intelligent person that always backs up what he says with facts and I have no reason to doubt his conclusions. I still don't see any proof from you that the statement is false - none. So why are you still arguing? 92% of Obamas cabinet never had a real job. I don't call being a Judge, general or cia agent a real job. Sorry if you do. Maybe that's where we don't see eye to eye? You almost seem like you're expecting an apology - you're not going to get one until you make a valid point that disproves Bill Bonners claim. Maybe you can get one from him..

joe: (August 31, 2010 5:22pm)

@5pence: I have no doubt about your belief. And your asking me to prove otherwise is called "shifting the burden of proof." That burden remains with you, and rightly so. You have asserted that "Obama's cabinet is made up of 92% of people that have never had a real job in their entire lives." Citing someone's opinion on a web site does not substantiate your assertion. I even helped you out by giving your some examples that disproved your statement. I gave you an opportunity to amend your statement, to claim some wiggle room, but you haven't taken advantage of my largesse. Look. I'm not saying we are on the right course, or that the present administration is sufficiently clueful. All I am saying is that when you make a statement as you did, you should be in a position to substantiate it. You didn't do that, because the statement is simply and demonstrably untrue. That's the problem with making absolute statements; there's no wiggle room.

5pence: (August 31, 2010 4:55pm)

@joe : Here's some more facts to disprove. I'm just trying to help you find the truth joe. The top 10 percent of Americans now earn half of our national income, while the bottom 90% collectively own less than 2 percent of the nation's wealth. There is more income inequality in America than at any time since 1928, when this statistic was first kept. 61 percent of Americans "always or usually" live paycheck to paycheck, which is up from 49% in 2008 and 43 percent in 2007. Approximately 21 percent of all children in the United States are living below the poverty line, which is the highest rate in 20 years. Only the top 5 percent of U.S. households have earned enough additional income since 1975 to match the rise in housing costs. 83 percent of all U.S. stocks are in the hands of just the top 1% of Americans. And the top 1 percent of U.S. households own nearly twice as much of America's corporate wealth as they did just 15 years ago.

5pence: (August 31, 2010 4:51pm)

@joe : sorry joe - not playing your game. I stated what I believe to be facts, if you disagree the onus is on you to prove otherwise. So far you've done a very good job of proving my point that Obama does not have competent or experienced enough people around him to solve the unemployment problem. Thanks for backing me up. Did you know Geithner never had a job and he uses Turbo Tax for his personal taxes, I mean, when he bothers to file.

5pence: (August 31, 2010 4:45pm)

AP - President Barack Obama is declaring an end to the U.S. combat role in Iraq after more than seven years of war, saying the country's future now is up to its own people. The president, who opposed the war as a senator, says: "It is time to turn the page."

joe: (August 31, 2010 4:31pm)

@5pence: Here's what I'm saying: first, you cite Bill Bonner's website as though it were authoritative and supported your statement. It isn't and doesn't. Second, you seem to believe that working in public service (not just politicians, but also military personnel) does not constitute a "real job." Is private sector employment the only thing that counts? Is a Naval Aviator not a "real" pilot? Finally, the onus is on *you* to back up your statement that "Obama's cabinet is made up of 92% of people that have never had a real job in their entire lives." Does a job in academia count? That would cover at least three members. Does being a lawyer count? There are several more who have practiced in the private sector. Your math doesn't hold up any more than your logic does. Oh, and you do realize that Timothy Geitner is the Secretary of the Treasury, right?

teresatims: (August 31, 2010 4:27pm)

REO James WELL SAID - If you keep offering a discount/coupon then people will wait until the next "give away". Said it yesterday and i will say it againg STOP GIVING AWAY MONEY... Stop throwing money at our problems. Let our market correct itself. NO TO A NEW TAX CREDIT. GEEZE.

5pence: (August 31, 2010 4:04pm)

@joe : Your argument is full of holes and I think you know that - or you should by now. How are Obama's elite supposed to solve the 20% unemployment problem? They have no real world experience - real world being where the unemployed are.

5pence: (August 31, 2010 3:53pm)

@joe: There's actually 22 cabinet level members and appointees. But you're right, stating 8% doesn't add up as that would be 1.76 people. Could be Bill included other members not designated as cabinet level but doing cabinet level work anyway - like maybe Geithner and Summers. Whatever the actual number used is and the departments they head, the same figures were most likely included in the figures for all the other Presidents. Any way you slice it, Obama has the least amount of real world experienced cabinet members. Like I said, funny guy. I guess if the 20% unemployed in this nation was all CIA agents, Superior Court judges and 4 star generals then Obama is loaded with help to the gills and, well, gee, we're saved!! Hahahaa

JohnAppraiser: (August 31, 2010 3:42pm)

TO: Daggone... WTF? You would like to see the appraisers have to "grovel" again because "they" kill your deals? I think what you want to say is that you want the upper hand again to hold back work and illegally extort artificially high values out of the appraisers right? I actually LIKE the HVCC for the one fact that I can actually appraise houses for what they are worth without the fear of getting fired from clients every few months when I "kill too many deals". The reason that deals are falling through is either the banks are too scared to loan, or the house just aint worth what it was a few years ago. It is a reality that most mortgage brokers don't like to see. If you take a home and refi it while rolling in all the borrowers old credit card debt, points, yeild spread, and other closing costs onto that, essentially borrowing ALL of the value of the home. After that, you may NOT be able to refi them again in 3 years when the values have fallen 20%. This is not the appraisers fault.

5pence: (August 31, 2010 2:35pm)

THESE ARE THE SAME PEOPLE THAT WERE THERE FOR THE WRITING OF THE BILL AND ACTUALLY WROTE SOME OF THE LEGISLATION THAT PROTECTS APPRAISERS. THEY ARE DOING THIS ON THEIR OWN DIME FOR ALL OUR BENEFIT. PLEASE SUPPORT THEM IN ANY WAY YOU CAN AND SPREAD THE WORD TO THOSE YOU KNOW. THANKS; ED

5pence: (August 31, 2010 2:33pm)

Etc.. AMC crap contracts. Then.. Please remove all references to specific properties, FHA Case Numbers, or borrowers. We are printing and taking the information with us. Before printing it we will remove your email address. You will not be identified. We are providing this material purely as information to government officials, we are not arguing the validity of any of it, or whether USPAP demands you reject the order, or if you charged more money to complete the order, we don’t want to know if you completed the order, did not complete the order, nothing like that. This is purely to provide real world information that is not available any other way but through actual receipt of these communications by the boots on the ground. Please send all information to: [email protected] ... Please do not send anymore information after 5pm on Wed, 9/1/2010. (That’s tomorrow). I would like to Thank You in advance for all of your help! Thank you. GUYS-PLEASE DO THIS IF YOU CAN!

5pence: (August 31, 2010 2:30pm)

8. If the subject is tenant occupied, please provide an operating income. Please complete the cost approach section on ALL appraisal types. The completed report MUST ALWAYS include a copy of the appraiser's license, E&O insurance and resume. If the order is for a purchase, please include the vested owner's name as well as the borrower's name (no abbreviations allowed). On purchase orders, if the purchase contract is not provided for any reason, please complete the report subject to the contract. Per Certification #12, only accept this assignment if you have local MLS and any other public or private data sources needed to provide a credible result. Per Certification #11, only accept this assignment if you have experience appraising the subject's property type. Only accept this assignment if you are competent and knowledgeable in the subject's market area. (Continued)

joe: (August 31, 2010 2:30pm)

@5pence: It wasn't meant as humor. And while I think of it, given that there are 15 cabinet members, 8% who have had what Bill Bonner calls a "real job," (presumably meaning private sector), that would be 1.2 people. Who is the .2 person who's a cabinet member? Billy Barty? And I'm sure working for CIA for close to 3 decades--that doesn't count as a job at all. That would be Bush appointee Robert Gates. Or Being a Superior Court Judge (Holder). No, wait...that doesn't count, unless you consider that he was in private practice from 2001 on. Does THAT count? And I guess we'd have to disregard Gen. Eric Shinseki (VA). He was just a soldier (if you can call a Four Star General just a soldier). There's more to tell about the present Cabinet, but I think you get the point. What you posted was just...hogwash.

5pence: (August 31, 2010 2:28pm)

7. Lists of client requirements to complete assignments. These can be similar to this: Quote: We require copy of the appraiser's license and E&O Insurance. Appraiser must carry at least 500,000 each claim and 1,000,000 Aggregate Insurance. Any orders completed by appraiser who do not carry this minimum amount will not be paid for work completed. Always check to make sure all mechanical items are in working order. Interior photos required on all 1004 Full and 1025 orders. Please always complete the cost approach section for all orders. If the order is for a purchase, please include the vested owner's name as well as the borrower's name (no abbreviations allowed). On purchase orders, if the purchase contract is not provided for any reason, please complete the report subject to the contract. When the final value exceeds or is below the predominant value for the neighborhood please provide a comment to explain. (Continued)

5pence: (August 31, 2010 2:27pm)

Fellow Appraisers, We are going to Washington on Thursday, and need all of you to help us with providing information. We have requests for, and will be, presenting information to several different entities in the effort of making things right for our industry. Here is what we need: 1. Screen prints of the screen that says, “By accepting this assignment you agree that the fee you will be paid is customary and reasonable.” Or any similar language tied to accepting the assignment. 2. Stupid stipulations, especially those that appear to violate USPAP or GSE guidelines. 3. Pressure to direct your opinion, stipulations such as all comps must be within 90 days or 20% of GLA or whatever nonsense they use to determine what is a comparable. 4. Direct requests to change your value opinion. 5. Any absurd communication like the one that says you may not get paid for the assignment because we misappropriated some funds. 6. Screen prints of assignment blasts to accept or reject orders. (Continued)

5pence: (August 31, 2010 1:59pm)

@joe : funny guy

frankgaray: (August 31, 2010 1:58pm)

Mrs. Kelly - I messed up and forgot to put the countrywide story in the show in editing - sorry! I did remember to put it in the gold show though... www.GoldShow.tv

joe: (August 31, 2010 1:42pm)

@5pence: So working in public service isn't a "real job?" News to me.

MissMeghan702: (August 31, 2010 1:32pm)

I'd be lying if I said that I haven't noticed a dip in my business since the tax credit expired, but I still dont think they should bring it back. It makes me sick to think that my hard earned tax dollars are going towards this program. I felt the same about cash for clunkers. There is not one client I sold to that wouldn't have purchased without the tax credit, it just pushed them to move more quickly - which now makes our numbers appear awful. I think they should reinstate DPA and create an amnesty program for borrowers who participate in a short-sale (albeit with very strict underwriting guidelines and higher down payment requirements.)

ghawk: (August 31, 2010 1:23pm)

so why not termlimits for all house and senate!

5pence: (August 31, 2010 12:56pm)

You could be right Cory, politicians have no shame and will say anything to get your vote and then turn around and laugh about the "promises" they made. We are caught in a vicious cycle of electing the least worst because that's the only choices the system is set up for. That's why I've been saying vote for any 3rd party candidate you can find - even if you have to write them in. If the vote and politics don't change, we're going to need action. Marches, protests etc.. or else nothing will change and when people finally realize how screwed they are it'll be too late to do anything about it, and we'll all be captives and slaves to an indebted system of corruption. Shades of Big Brother. TBTF is the downfall of this Republic imho.

square one: (August 31, 2010 12:51pm)

This has nothing to do w/ the subject but i just wanted to get this out there...im doing a 2unit purchase through Wells Fargo for 60k and they use Rels valuation which is charging $820 for the appraisal. Thanks regulation for sticking it to the consumers, its a lil outrageous already!

5pence: (August 31, 2010 12:46pm)

LOL, no kidding Evil Genius, I'll be visiting your site more often

Cory: (August 31, 2010 12:43pm)

Here's my prediction: the Republicans will take control of the House and Senate and nothing will change.

5pence: (August 31, 2010 12:41pm)

For those curious if my last comment is accurate, here's a link.. http://dailyreckoning.com/us-jobs-data-one-reason-why-it-might-not-be-getting-better/

Evil Genius: (August 31, 2010 12:39pm)

5pence: I told you that "Vote the Bastards out" was a catchy tune.

5pence: (August 31, 2010 12:09pm)

Obama's cabinet is made up of 92% of people that have never had a real job in their entire lives. All Presidents in the 20th and 21st Century have had at least 30% of their cabinets made up of people that actually worked for a living. 8% of his cabinet had a real job at some point in their lives.... These are the people that are going to fix the unemployment problem?

KCase: (August 31, 2010 11:52am)

Thanks Ghawk - you might have something there.

ghawk: (August 31, 2010 11:51am)

the tax credit was a temporary fix. just like cash for clunkers it moved those who already planned on buying. we need to get new houeholds to buy up the lower priced inventory so we can start all price points moving. why not spend the money the credit would cost on quality first time programs that are not income limited to those hardest to get financed. How a bout a DPA grant program that uses conservitive ratios and payment shock to make sure the buyer can make the committment. then forgive the upfront grant with 5 years of residence in the subject. we move housing, we move employment and we move our economy. but hey, DC is smater that main street!

KCase: (August 31, 2010 11:51am)

We have seen a 50% drop in realtors in our area since early 2009. Many of those agents have lost their homes, gone through bankruptcy or foreclosure (due to impossible short sale situations)or are attempting loan modifications. How do the elitists in DC think this economy is going to improve with a buyer stimulus, when the jobless rate is off the charts?

Mrs. Kelly: (August 31, 2010 11:46am)

So, where was the story about "big money for countrywide customers"?

frankgaray: (August 31, 2010 11:45am)

Oh and when I say I dropped it... it was unintentional.. I messed up. Sorry.

frankgaray: (August 31, 2010 11:44am)

Lendershop - Countrywide Story - Sorry I dropped it in editing. We did however get it in the Gold Show. Just go to www.GoldShow.tv and you'll see it there.

lendershop: (August 31, 2010 11:22am)

"Big Money For Countrywide Customers" this was your headline bringing me to your video, but i didn't hear anything about Countrywide in this video.

TXrealtor: (August 31, 2010 11:18am)

CTCarole I agree with your comment on short sales. It's brutal here in TX. So many short sales & so many taking over 4 mos. to even get a response. It's ridiculous that banks think Buyers will wait months for a response to an offer! Short sales are not a new phenomena, banks have had plenty of time to move teams of people in to place to move these transactions along. The bigger guys are worse than the smaller mort.companies. It's lose lose for everyone when mortgage companies drag out the short sale process. Where's the sense in this?

frankgaray: (August 31, 2010 11:06am)

Countrywide Story - Sorry I dropped it in editing. We did however get it in the Gold Show. Just go to www.GoldShow.tv and you'll see it there.

TXrealtor: (August 31, 2010 10:57am)

W.R.Buchanan your 9:58 comment is right on. Corruption is rampant in DC; Dems & Repubs are two sides of the same coin. I'd like to think that this Novemember the libs / Dems will get their A$$s kicked & some real house cleaning will occur, but then I did not think the OPhoney would (ever) be POTUS. This is a country built on We the People, but if you've been paying attention, we have no "standing". Many here do not feel the R.E. market is going to "improve" until late 2012. As long as the job market declines, prices keep falling, cost of living increases we're in for a long haul. This mess has been going on since the birth of the FED in 1913, it's been smoke & mirrors for a long time. Kool Aid sippers & Sheeple turn off the dang TV, O'Phoney is not going to save this country, he is hell bent on taking it down. It won't be long before the US dollar is gone & we're like Europe, spending "Ameros". We're working rental mkt here! Sign of the times...

CTCarole: (August 31, 2010 10:47am)

Instead of getting giving more money away in the form of tax credits, we need to help the current buyers, buy these Short Sales. I've had three short sales fall apart after the Seller's lender came back with appraisals that made no sense at all. One of them the Buyers appraisal came in at $183K Seller's Lender FHA appraisal came to $195K. How many banks will lend a Buyer $8,000 more then they feel the house is worth?(this was a reverse mortgage shortsale) Oh by the way the Buyer lost $40,000 worth of grants to retro fit the house for her handicaped family member and is now not able to purchase for at least another 6 months.

5pence: (August 31, 2010 10:46am)

Exactly right Evil Genius. The Federal Reserve by pumping tons of money into the system and with the banksters help unleashed a demon on the people, the demon of speculative greed with money printed from thin air. Stimulus is giving the banks fiat currency at 0-.25% interest and the banks investing that in bonds that earn 3% and pocket the difference. This is just one of the more obvious ways of how money is being transferred from the taxpayers to the banksters. Stimulus? For who? From who?

5pence: (August 31, 2010 10:38am)

"We the people" are inviolate. That is the tenet of the founding of this country and the Constitution.

5pence: (August 31, 2010 10:36am)

Good or bad, sinners or saints, criminals or clergy - "we the people" are this country - deal with it administration and find out how "we the people" got taken down the wrong path (if that's what you believe) and attack the real problem. The rights and freedoms of "we the people" should not be infringed upon nor questioned. "We the people" are the foundation and backbone and absolute rulers of this great country - together, equally. All laws and rules are to be for the benefit of the people, those governed - Good or bad we are here to rise or fall depending on our choices. Now, because there are entities/non-humans that are too big to fail, that's the peoples fault??!! Very twisted.

REO_James: (August 31, 2010 10:35am)

The tax credit caused our current dip, since it ended on April 30th. At least that's the case in my area. As with any purchase, if you offer a coupon or discount...Then the consumer is expecting this all the time now. They will not make a purchase till there is another discount/coupon. Just like the $10 pizza deal, Pizza Hut stopped the $10 deal and their business died, now they are stuck with it till who knows when. Also we had bidding wars and buyers were over-paying just to get $8000. That was not smart. I try to get my buyers a good deal in a recession, not a bidding war! Just no place for over-paying in this economy!

Evil Genius: (August 31, 2010 10:20am)

Finally, it's the quick buck mentality that has helped bury us all. That's why the banks aren't lending. They are out printing money by creating instruments of debt behind the already enormous amount of debt. The debt is like splitting organisms. (toxic organisms) Like a flesh eating virus! And it's growing our government out of control. BITE BACK! Vote the Bastards Out! see video http://realestatemarbles.com/newgeneration Frank Garay, you created a monster

5pence: (August 31, 2010 10:19am)

Evil Genius - I agree. Who do our elected leaders think they are in blaming "the people" for the meltdown?!! We the people ARE the government, we ARE this country. The nerve of these aholes in saying "we the people" are to blame!! Argg! That is a strike and direct hit at the heart of the Constitution IMFHO

jcollins: (August 31, 2010 10:15am)

Does anyone have any clue of where the rules are for figuring the APR. and the 5% high cost? Some Mortgage banks figure it with the adjusted orig. and others use the top number. this really is only a problem for the low loan amount loans.

5pence: (August 31, 2010 10:13am)

Oregonrealtor: I just put that forward as a possible solution, an off-hand comment. But I wouldn't totally disregard it as anything can work if we the people put our minds to it. As far as your appraisers being $50k apart. They are not appraisers, they are posers that see appraising as a way to game the system for quick cash rather than as the public trust it is. Theirs is not a concern or pursuit of perfection in their practice - their concern is only monetary. No experienced appraisers that care about the profession would be that far apart. While the valuation process may not be perfect, the important thing is that the appraiser strives for perfection. That noble cause has been taken away by the banksters that only see their bottom line.

Evil Genius: (August 31, 2010 10:13am)

Some great posts today! Many of you are talking about the market taking care of itself. And I am much more radical, I'm sure then most of you about this. But currently this is not a free market. When the Govie is involved in 96.5% of residential mortgages being done today, we have no free market. We need to entice some private money back to long term fixed rate low risk mortgages. This will automatically stabilize the entire industry. I'm sure pension money would appreciate this concept, rather then continuing to lose on Fannie/Freddie. Pension money is private. Cut the middle man. And honestly Fannie/Freddie are middle men. Conceptually, they dice up a whole mortgage note into smaller tranches that cannot pay back. Stabilization is a key. New homeowners is a key. Refi's cause us to chase our tails. Recast value now. Let the banks absorb their lumps or go away. They took the risk, they pay! Not us! It's f'ing wrong.BITE BACK! http://realestatemarbles.com/newgeneration

W.R.Buchanan: (August 31, 2010 10:08am)

As far as the upcomming election is concerned, I got an email picture sent to me the other day titled "prediction on the up coming election" It showed and Elephant mounted up on a Donkey! I'm sure hopin' Randy

W.R.Buchanan: (August 31, 2010 9:58am)

As soon as congress made themselves immune from repercussions of passing bad legislation, that's when the take over started.If you think they are going to give up that power and act right you are a fool. I personally would like to see an Augustus Caesar style house cleaning, maybe it would put the fear of god into the ruling class. This country has survived for @250 years so far, and we are not looking too good for much longer. Rome survived for 800 years, and the way they did it was with a kill'em and eat'em way of running things. Sure alot of good people didn't make the cut, but in the end, the Rome Show lasted longer than anyother model before or since. Our system is not perfect but it is close. If the corruption and relentless attemps to CHANGE us to some system that has been proven to NOT WORK were removed we'd have a good chance of making it. Ability to change has to be available to cope with the changes in the planet.Change for the sake of Change is Foolish. It must be stopped.

Oregonrealtor: (August 31, 2010 9:57am)

Yesterday and today I read several posts stating that the price should be pre-appraised and set by an appraiser prior to putting the home on the market. How does that work in a decending market when the price put on the house does not sell it immediately or the property is a short sale and the borrowers bank appraisal does not happen for months after the first appraisal. I had 3 appraisals done on the same property with a range of $50K. Nothing is an exact science and the reason that there are two different ways of pricing and then valueing the property is that we need checks and balances, so to say one is better than the other is not accurate. It depends on the realtor and the appraiser in question.

5pence: (August 31, 2010 9:57am)

JR Mckee: I've been saying it for a while- welcome to Japans lost decade that is now in it's 15th year. Bubble Ben and crew have no idea what they're doing IMO. They can't raise rates or it will kill jobs and jobs are not being created because the banks are too tight and the country is broke. America does not produce, it only issues debt. Inflation would be the only way out and that is what every stimulus is. We're heading down the path to hyper-inflation. Did you know that in Zimbabwe's era of hyper-inflation that the majority, huge amounts, of cash printed went to the armies to keep the people in line. "The Zimbabwean Dollar was once worth about 1.59 United States dollars. Since the introduction of land reforms in the early 1990s, hyperinflation and the collapse of the Zimbabwean economy have severely devalued the Zimbabwean Dollar. In April 2008 the Reserve Bank of Zimbabwe issued a ZWD 50,000,000 note, which was then worth approximately 1.20 US dollars.

Evil Genius: (August 31, 2010 9:52am)

Thanks 5pence. There is alot of room for your insights up there. That is a catchy tune. I find myself humming it all day loong. Need an American version!

bongosdad: (August 31, 2010 9:51am)

W.R. you started off well with the getting rid of the politicians in congress right now and the public referendum, but it's a little off the deep end to suggest assasination a.k.a. murder. hey, TBWS guys--thought y'all were monitoring this stuff

PBahrAZ: (August 31, 2010 9:50am)

Our entire population needs to be trained not to expect free stuff from the gov't. Protection-yes. Handouts-no. Charity-private. Congress-paid while serving-no pensions/life benefits. Tax credits-no. DPAs-private-yes.

jcollins: (August 31, 2010 9:47am)

bshep: Brian said it was his fault. The CW money story will be on tomorrows show

5pence: (August 31, 2010 9:44am)

Hey Randy, kind of makes you wonder why the 9/11 terrorists didn't want to cripple wall street along with the government. Yeeah, we've got a bad case of home grown financial terrorists that blew up the world but deserve less attention than dancing with the stars.

JR McKee: (August 31, 2010 9:41am)

The mere discussion by our elected officials, and speculation carried by the media of buyer credits or other buy incentives, only serves to postpone buyers who would have purchased now. When buyers wait and imbalances in supply vs demand grow larger, property values and our ultimate recovery get pushed out and the depth of our recession only deepens. The market needs to correct itself without artificial stimulation, finding it's own level and final landing. If interest rates aren't enough incentive at the current property values, no other buyer incentive program will have any lasting effect other than a higher tax bill for all in the future.

5pence: (August 31, 2010 9:40am)

Hey Evil Genius - cool site. Great videos too. The Australian Chorale lol realestatemarbles.com

Clulessdad: (August 31, 2010 9:39am)

A Streamline conventional loan is what we need, just like FHA. No appraisal, no income. Principal can't go up more than $2000. Pay all fees with premium pricing, and have the borrower come in with prepaids. Let all the good people who have paid the mortgages ontime get some benefit for the lower % rates. If they save every month $100-200, maybe they will use it to spend on other things.

W.R.Buchanan: (August 31, 2010 9:39am)

If you really want change we need a National Referendum. that way the people could change things that Congress just won't do. Lets start with taking away the House Ethics Commmittee, and making it an independent commission with no political affiliation, along with some tighter rules on politicians conduct. How about a Charge of Treason for anyone who causes, and profits from a financial bubble. Next, everyone needs to join the NRA! Because with so many idiots trying incessantly to take away guns and ammunition, there must be a good reason. OH, could it be without guns you can't shoot politicians that won't do what you want? Yes friends you need to underestand that EVENTUALLY Marksmanship will be called on to stop the insanity. Until someone promenant pays the ultimate price, our leaders will continue to give us the finger! Too Bad we have allowed them to cease some much power. It wasn't supposed to be like that. This is what happens when you elect lawyers instead of real people.

bshep: (August 31, 2010 9:37am)

Your big money for countrywide customers was not addressed on your 8-31 program. I looked at it twice and I don't think I missed. Can you address what that title is talking about please. Thanks

bshep: (August 31, 2010 9:35am)

I think the tax credit would be great to come back again. Still I can understand the opinion of it not coming in that it will cost us all in the long run, seemingly. If it didn't come back the upper echelon might use the other programs that don't cost the public.

mmt110: (August 31, 2010 9:32am)

DavidC - the YSP issue should not be an issue. The borrower pays box 1, the lender credits box 2, and the borrower net pays box A. Technically, there is no YSP paid to the broker any more, so all of our compensation is paid by the borrower. How that translates to a rate sheet in the coming months will be interesting and no one has a guess on how that will work going forward. Frank & Brian, what's your take on this? Any insider insight to share?

KCase: (August 31, 2010 9:25am)

Sorry about the double response :) This is a great discussion guys - thanks!

W.R.Buchanan: (August 31, 2010 9:24am)

5pence: I think alot of things would be vastly different now if one of the 9/11 airliners' would have taken out Goldman Sachs instead. I know there would be no One West Bank, and Rolling Stones' article about G/S would have had a happy ending!

KCase: (August 31, 2010 9:21am)

There are so many ways that Congress is out spending - including the war. But if we think the Governement is there to give us FREE stuff we are exaserbating the ruin of our economic freedom in this world. Congress and Corporations have given away our jobs! If we don't work - how can we eat! Never mind buy a house! And 5Spence is right - the numbers reported are not reflecting the true condition of this economy.

KCase: (August 31, 2010 9:20am)

There are so many ways that Congress is out spending - including the war. But if we think the Governement is there to give us FREE stuff we are exaserbating the ruin of our economic freedom in this world. Congress and Corporations have given away our jobs! If we don't work - how can we eat! Never mind buy a house! And 5Spence is right - the numbers reported are not reflecting the true condition of this economy.

Scooter: (August 31, 2010 9:17am)

I say NO to the tax credit and yes to DAP's. From the research I've done the tax credit balance sheet doesn't pan out on paper, so why squeeze blood out of a turnip when we can bring DAP's back. It costs nothing and money is changing hands through a mutually acceptable agreement between a buyer and seller and spurs on the economy... makes sense to me...

Rotgirl: (August 31, 2010 9:12am)

On the Reverse Mortgage default concern - I'd like to see you guys do a little more research on the reason for defaults.....in Texas, we have an over-65 homestead exemption which basically freezes property taxes and payment of those taxes until death. Even then, the surviving spouse can apply to continue the exemption as long as s/he keeps the property as their "homestead". So the taxing entities can't "foreclose" on the property for non-payment of the taxes as long as the exempt person is alive. So that can't be the reason for the default on the Reverse Mortgage..... Would be interested in finding out the real reason.....non-payment of insurance? Non-payment by the estate after the death of the homeowner? What's the real reason? Ciao ya'll....rg

5pence: (August 31, 2010 9:11am)

Have the appraiser value the home for the consumer before the sale and DAP would not matter at all because the market value and sales price would not change no matter how much DAP is used. Let the banks measure their risk like they're supposed to.

Evil Genius: (August 31, 2010 9:10am)

BITE BACK 2010

5pence: (August 31, 2010 9:09am)

They figure the 2 wars in Iraq and Afghanistan have cost over 1.3 trillion $$$ in the last 8 years. Do you know what 1 trillion $$$ could do? Free health care for all and free college. Take care of Americans first. What right do we have to try to tell other countries how to run their affairs when our own country is lacking in so many essentials. Millions of empty houses and a million homeless. Can't we do something? The EMPIRE must keep the war machine going.

Evil Genius: (August 31, 2010 9:08am)

ENLIGHTENMENT http://realestatemarbles/newgeneration

sansonj: (August 31, 2010 9:07am)

I do not want tax credit back, because we need to just get on with getting on. If you tell a kid no, and then 3 minutes later say well ok then you taught them they can just sit on the fence and you will bring back the tax credit. How about bring back $0 Down and Ameridream with No Option ARMS.

5pence: (August 31, 2010 9:03am)

They figure the tax credit cost taxpayers $43,000 for every $8,000 credit. I just saw that home prices in Cali rose 4.4% in the last year. Think that states $10,000 tax credit had anything to do with it? Did anybody notice that the more the government spends the more expensive everything seems to get? Cash for clunkers cost us $23,000 for every car clunked (those "clunked" cars went to China - they needed the metal from the cars and it helped entice them to loan us billions so the banksters could keep feeding at the taxpayer trough). During the great depression the prices of everything fell 30-40%. That hasn't happened, yet. Anyone feel like we're still in a speculative bubble? That is thanks to the investment banks and their government control. I agree with most of you, let the markets work. It will cost less in the long run as the market will find cheaper and more inventive ways to right things. Fire Bubble Ben, Geithner & Summers, their plans don't work & are failing miserably. IMHO

tinna: (August 31, 2010 9:02am)

Thank you!! Tinna :-D

Sandie: (August 31, 2010 8:54am)

I see the lower interest rates as much more appealing than another tax credit. The tax credit had very little effect on our market but lower interest rates are bringing the buyers back in to the marketplace.

5pence: (August 31, 2010 8:53am)

The problem with representative democracy is 51% majority rule over 49% of the people which can turn tyranical. 51% can force laws & rules that 49% of the people are against. That 49% is not effectively represented. We have a system where only the rich or candidates contributed to by corporations or wealthy private interests can get elected. When only the rich or beholden to corporate interests are the choices we have-are they really any choices at all? Do they in truth represent the people? No. Despite the ridiculous facade of a 2 party system, the truth is the candidates are united by wealth, power, societal position and corporate interests much more so than any allegiances to the common man/woman & these allegiances mean that there really is only 1 party. 90% employed??? You're dreaming. Try closer to 20% or 1 in 5. That figure of 9.5% unemployed only counts those that can collect unemployment-it doesn't count those that have given up looking for work, it doesn't count the homeless.

CVBroker: (August 31, 2010 8:53am)

My friend bought a house a year ago (her new husband actually bought it) He was a first time buyer and claimed the credit on taxes but because they married and she had purchased a home prior, it triggered an audit, disallowed the credit because they filed a joint return the year before and got hit with a $9000 tax bill. I wonder how many times that happened?

DON M: (August 31, 2010 8:53am)

THE ONLY WAY THE U. S. IS GOING TO COMEBACK IN ANY MEANINGFUL WAY IS WE BUY ONLY AMERICAN MADE PRODUCTS, LET ALL OTHERS ROT ON THE SHELF. OUR GOVERNMENT AND MULTINATIONAL CORPORATIONS HAVE SUPPORTED THE EXODUS OF MANUFACTORING,AND THE ALLOWENCE OF ILLEGAL LABOR.WITHOUT STRONG MANUFACTORING BASE IN THIS COUNTRY WE WILL BE IN TROUBLE.OUR UNEDUCATED/UNSKILLED YOUTH HAVE NO VIABLE WAY TO SUPPORT THEMSELVES. WE HAVE TO REGAIN A GOVERNMENT THAT LISTENS TO ITS PEOPLE,AND PUT THEM FIRST.TODAY HILARY CLINTON HAS FILE A COMPLAINT TO THE U.N. AGAINST HUMAN RIGHTS ON ARIZONA WHAT COUNTRY DOES SHE REPRESENT,HELL WHAT KIND OF COUNTRY DO WE LIVE IN ANYMORE.WE HAVE TO STAND UP FOR OUR INDUSTRY AND OUR COUNTRY. I FEEL LIKE I HAVE BEEN IN A COMA FOR 4-5 YRS AWAKENED TO FIND MYSELF IN A STRANGE LAND."PASS THE BILL TO FIND OUT WHAT IS IN IT" NANCY PELOSI 2010. JUST APROVE THE LOAN, NO INSPECTIONS NEED,WE WOULD BE FINED, SUED AND LOSE OUR LICENCE.MAYBE WE JUST NEED ANOTHER COMMITTEE OR CZAR. GET ACTIVE

NewParadigm: (August 31, 2010 8:47am)

btw - this is a very thoughtful discussion.

NewParadigm: (August 31, 2010 8:45am)

Legislation is a shell game. It put us in the situation where unemployment is well beyond official rates. When you count the number of self-employed people who can't pay their bills, involuntary part-timers, those in the workforce who no longer gets compensation and those who are fruitlessly seeking to join the workforce, the real unemployment is closer to 25%. No wonder the economy is spiraling down the toilet. It would be nice for competition to actually work - where the people with better products/service as well has ethics and honesty actually prospered. Artificially propping up the economy through tax incentives in a fiat money system is a game of make-believe. We need to fix the underlying problem, not the symptoms.

Joebob: (August 31, 2010 8:44am)

1)Looking forward to Countrywide discussion tomorrow. 2) When did Govt intervention/program EVER solve ANYTHING?? Tax credit was temp boondoggle that soe of us benefited from TEMPORARILY!! Now we're paying. Bring back the phony DPA 6% FTH credit. A shell-game private boondoggle certainly, but with current closer scrutiny, allows a more permanent solution to the first time homebuyers. And THESE my dear friends are the backbone of our recovery.

KCase: (August 31, 2010 8:38am)

Tax credits MAY be a stimulus but there are long term negative effects on the market. Some of our associates say "bring it on" - immediate gratification! Some say "no more interference with the market, let the market fall completely so it can get back up on its own". Hmmmmm

KCase: (August 31, 2010 8:33am)

GCall - right on! As for tax credits, they wouldn't be necessary if the market were free to adjust! Congress does not live in the real world.

gcall: (August 31, 2010 8:21am)

Stats from last tax credit tell us what to expect from a future tax credit. Stimulates buying in the near term at a high cost to tax payers and takes buyers from future after stimulus ends. --messing with the market like that doesn't work and costs big money. Systemic to all Obama's attemps. Message to government--you could mess up a crow bar. Get out and leave the market alone so we can eventually recover from the mess you have made!!!

jcollins: (August 31, 2010 8:20am)

FHA LOANS: Just have them have an impound account ????? No tax credit: everytime the GOV. gets envloved it always has a change reaction. Free market with a little help.

ChrisSorensen: (August 31, 2010 8:13am)

Accountability and consistency in service were the reasons builders encouraged home buyers to utilize their loan originators prior to Directors Mortgage pushing ABA's. Once Norwest and then WF got into the game it was all over. CW took this practice to a whole new level by taking the model into the Brokers with “MMA's” & “rent”. Experts & competitive pricing gave way to an exchange of money. In a conversation with Jim Previti (Forecast Homes) in the mid 1990's he told me that he would love to use me but that his relationship with Norwest was netting him seven figures. I told him that was coming with at a minimum .25 to .5 in rate. Being excellent and caring about the borrower and ones reputation gave way to corporate relationships and a large exchange of money at the top. When builders used to offer a $1,500 incentive to use my services, it had everything to do with my level of service, the accountability I had to all parties and they checked each and every HUD-1 to make sure the borrowers were well cared for. This system worked. What is allowed today does not. However, it does allow for generous donations to elected leaders who tur

W0LV: (August 31, 2010 8:01am)

The Tax credit would NOT help the market, it would only steal from the next years purchases. We need a National Sales Tax, not The Gestopo (IRS) breathing down our necks. If we had a National Sales tax we would collect taxes on everyone that visited our country and we would collect taxes on the most wealthy as they spend more than we do. Oh, by the way we would also catch organized crime and drug dealers that do not pay taxes now. So now is the time to NOT do a tax credit for buying a home and give away more money that the government does not have. Of course I guess they could just print more???

W0LV: (August 31, 2010 8:00am)

The Tax credit would NOT help the market, it would only steal from the next years purchases. We need a National Sales Tax, not The Gestopo (IRS) breathing down our necks. If we had a National Sales tax we would collect taxes on everyone that visited our country and we would collect taxes on the most wealthy as they spend more than we do. Oh, by the way we would also catch organized crime and drug dealers that do not pay taxes now. So now is the time to NOT do a tax credit for buying a home and give away more money that the government does not have. Of course I guess they could just print more???

Mark Anderson: (August 31, 2010 7:59am)

The reason I voted against the tax incentive is because gov't support of real estate has caused a false "bubble" in the business. I beleive we will be better of with the gov't not messing with the real estate business. It seems everything the gov't tries to fix...they screw up.

Malabar Gal: (August 31, 2010 7:51am)

You got it wrong with the purple Barney, If I were casting the lead for Mr. Magoo the movie Barney Frank would be my top choice because he looks and talks just like Mr. Magoo and he doesn't see things clearly either.

CyndiRomano: (August 31, 2010 7:44am)

I voted not to bring the tax credit back for the same reason many did, no more government programs. Who is going to pay all this back? Oh yeah, that would be us. Robbing Peter to pay Paul never works out in the long run. Let's do something that makes sense, like seller funded down payment assistance. And yes, let's make it "make sense", require higher credit scores and lower DTI's. What a concept. And what happened to Big Money for Countrywide Consumers??? I was interested to hear what you had to say.....

Annette: (August 31, 2010 7:41am)

What a great idea - Let every homeowner refinance without an appraisal. This would allow homeowners who are current to take advantage of the lower mortgage rates. I think that is only fair. Why does the government continue to turn good money to bad. Downpayment programs, closing costs assistance and allowable refinancing would be excellent choices than more tax incentives that don't work! Let's reward the people who pay their mortgages on time and could use the lower rate.

frankgaray: (August 31, 2010 7:38am)

Ike: (August 31, 2010 7:12am) Did I miss something, but the "Big Money for Countrywide Customers" title had nothing to do with todays video... No Ike... I messed up and forgot to put the story in when I was editing! D'oh! Sorry, we'll put it in for tomorrows show. My bad.

rbsplace: (August 31, 2010 7:34am)

Well said Mike V. We need long term solutions that include less gov't intervention translating into lower costs for the consumer.

Daggone: (August 31, 2010 7:32am)

Excellent posts today! ChicagoLen, gsuarez1,patthompson - all right on! DO NOT BRING BACK THE TAX CREDIT. 1)We cannot afford it (2) It encourages those least ready and able to buy a home, increasing foreclosures down the road (3) It bottle necks the homes for sale - buyers wait till the last minute to choose a home, sellers grab their ankles on price because the credit "is going away" 4) if there is a rumor it is coming everyone waits for it. We tried it once, ok, tried it 2X, ok, It is the economy, stupid. LET EVERY HOME OWNER CURRENT ON THEIR MORTGAGE FOR 24 MONTHS REFI, NO QUESTIONS ASKED! Kill HVCC; it has killed too many refi deals. I want the loser appraisers back groveling for business the way they used to before HVCC.

JUSTFRANK101: (August 31, 2010 7:21am)

Depressing, everything is depressing. Our vote no longer has any value, we vote something in; some jerk off sues our vote is over turned. The Housing Market will never return to anything close to what this generation experienced. Our Government will continue to spend money we do not have until we have lost everything. Changing to the Republican Party now will do no good they are owned by China. Depressing, every TBWS Show reminds us how depressed our professions are. Watch, every response will be more depressing than this one.

Daggone: (August 31, 2010 7:20am)

Baucus needs to visit Boehner's tanning booth!

Mike V: (August 31, 2010 7:15am)

Why turn housing into the car business. Automakers made the mistake of offering incentives starting in 1979. (Chryco, "Buy a car, get a check")Wein people off this now and ride it out. They will buy anyway, just down the road a bit. When is the last time you saw cars offered without a rebate or incentive financing? Right.

Ike: (August 31, 2010 7:12am)

Did I miss something, but the "Big Money for Countrywide Customers" title had nothing to do with todays video...

GaryP: (August 31, 2010 7:04am)

I voted no on the survey yesterday for one reason: surveys have shown that the tax credit only served to "push forward" buyers that would have bought anyway. We're seeing that now in the absymally low purchase numbers from July. We just robbed Peter to pay Paul. I saw the same thing last December when the credit expired "last time." As someone said, this has just turned into a government charity program and I'd rather see sales smooth out. Besides, how many more qualified buyers can there be out there after 2 years of credits. Sure, it may motivate a few, but at what cost to the treasury and the industry? Home ownership, especially at the current prices and rates, should be motivation enough without government incentives. I think this is just another misguided attempt by politicians to "stimulate" the economy. I'd much rather see them focus their time and money on creating jobs, the best form of stimulus. Take the money and use it for tax breaks for small business.

Idahogirl: (August 31, 2010 6:49am)

And...for those that think the tax credit "rushed or pushed" people into making decisions- really? It was in place for 2 years!!!!

Idahogirl: (August 31, 2010 6:46am)

The tax credit for homebuyers was actually a stimulus package that helped everyday people. It wasn’t “bailing” people out. It was helping people yet at the same time, did it not move some of the bagillion bank owned properties so in return, it did somewhat help the banks without giving them more money? It needs to come back to help the everyday people. It’s not like we are giving away money on lending. We do have to qualify them- that is not easy.

DAVE: (August 31, 2010 6:44am)

The last thing this industry needs is another government program. What we need most is common sense underwriting. Every week I see a deal which makes sense but will not pass U/W for some reason.

GlennRoberts: (August 31, 2010 6:44am)

Let the market take care of itself. There are plenty of good reasons to buy a house. Else, let them rent and I'll buy.

Bobjr: (August 31, 2010 6:44am)

I agree with Donleon. I'm tired of seeing the government throw money away on useless programs that they "hope" will stimulate the economy. The market needs to stand on it's own feet. If left alone it will eventually correct itself. At least that's my observation over the last 33 years. I do however support the DAP especially in light of the reduction in seller contributions coming down the pike.

Lwood: (August 31, 2010 6:44am)

Hey Brian, you better lay off the food...didn't anyone ever tell you TV adds 10 pounds to your look?

Steve D: (August 31, 2010 6:40am)

all good things must come to an end. i think the tax credit helped push some buyers into purchasing now instead of in the future. our Government is spending way too much money and since we don't have it now it would be best to leave it alone. I'm in favor of DPA programs as long as they are tied to a higher credit score and lower DTI. DPA's were not the cause of the sub-prime blow up.

DavidC: (August 31, 2010 6:36am)

Why is no one talking about the "YSP bill" due to hit January? It is suppose to hit retail and wholesale the same from what I have read. Should this not be big news right now? I do not hear anyone talking about it. This will change the market completely, and in my opinion, create fewer qualified borrowers. Anything?

Gilbert: (August 31, 2010 6:35am)

One issue with the tax credit that is never addressed is the fact that borrowers who got the original $7500 have to start paying it back this year while everyone who got the credit under the extensions does not. I thought the Republicans wanted tax fairness yet I don't hear one of them wanting to fix this inequity. They're bigger crooks because they only try to help their rich buddies.

33 yearsinthebiz: (August 31, 2010 6:27am)

we the taxpayers are spending money like crazy "saving" people and countries all over the world. why not save ourselves ?

donleon: (August 31, 2010 6:26am)

The tax credit only served to mangle the market. It accelerated buyers into making the decisions early that would have been made in July and August. Just look at July 2010 numbers compared to July, 2009 nationwide...down 27% to levels not seen in 15 years. That is the headline you see and it creates the perception that things are really getting worse when the reality is the overall sales numbers for the year are comparable to 2009. The sales just got bunched up in the first quarter. Those numbers are mirrored here in Houston too where we showed a 25.1% loss in business year over year 2010 vs. 2009. Makes it look really bad. Tax credit did not bring in more business, it just shifted it. Try something else with the money that might stimulate rather than manipulate.

ehilliard: (August 31, 2010 6:25am)

I am not the smartest tool in the shed, but I don't like that WE THE TAX PAYERS foot the bill on the TAX CREDIT. Go back to DAP and Seller Assisted programs. If the Seller has the equity and they want to sell, let them help the buyer. I mean with HVCC and AMC, the Gov't has control of inflated sales prices to cover the darn thing. Let nature run its course...

33 yearsinthebiz: (August 31, 2010 6:22am)

emoney, you are so right on the number of loan limit per borrower issue. i am that guy, cant lower my rates, cant buy property. how many are there out there that do not deserve to be denied a loan ?

cjtaz: (August 31, 2010 6:15am)

What happend to the Countrywide story on the lead banner?

cjtaz: (August 31, 2010 6:15am)

What happend to the Countrywide story on the lead banner?

cjtaz: (August 31, 2010 6:14am)

What happend to the Countrywide story on the lead banner?

Annette: (August 31, 2010 6:14am)

I believe the tax credit did not increase business as it was originally intended. If buyers don't have the credit score or the money saved to buy a home, how will the tax credit help? I would rather see the monies develop a down payment assistance program instead which will allow people to get in a home with a decent credit score. The government is not really helping the housing market as they continue to find new ways to increase down payments, mortgage premiums, and next year sales tax on homes. Stop it!!!! Let's rebuild the real estate market, not kill it before it comes out of the gate. More down payment programs and even closing cost assistance will be more helpful.

eMoney: (August 31, 2010 6:12am)

Instead of spending money we dont have......whats wrong with that statement......... Lets try something creative like an INCENTIVE from the deal itself, Self Funding. Try this concept on for size, HUD allows DPA, Down Payment Assistance for Fannie and Freddie mortgages instead of the shell game from non profits. Have a Credit threashold so only RESPONSIBLE people get it. This would stabilize prices and get more renters off the couch.. Here is another idea, raise the threshold for investor held mortgages from 10 up to 20 or 30. As long as they are FULL DOC and the have Credit and Assets, whats wrong with having a responsible person buying inventory?? I'm sorry, I used a word HUD does not understand... Responsible. We might see inventory levels go down... Can you say E C O N O M I C Stability?

33 yearsinthebiz: (August 31, 2010 6:04am)

our industry needs help in any and every form. here is a real novel idea, as proposed by pimco founder, bill gross. reward the borrowers that are paying their mortgages on time, not the lying losers that borrowed money, promised to pay it back, did not, and then blamed everybody but themselves.

jaysandstrom: (August 31, 2010 5:59am)

mmt100 is exactly right! It is all about jobs. The finacial system is "stable" now so any incentives should be aimed at creating jobs. I say give any business a 30% tax credit for every employee they hire that is currently collecting unemployment benefits! The business would also have to have that employee as a net addition to payroll (so employers could not substitute existing employees for unemployed hires). With 10% of the population out of work is there any surprise that 10% ofhome owners with mortgages are deliquent???? I don't like Government involving itself in so many aspects of our lives but, if they are going to spend the money shouldn't we get the best value??? Think about it, instead of paying someone 2/3 of their previouus wage, the gov could give an employer a 1/3 subsidy to hire new people. Thus lowering the cost of unemployment benefits and increasing employment. People could pay their mtgs and income taxes!!!!

MtgDude: (August 31, 2010 5:57am)

I think we are finally getting it as an industry... Let's not sacrifice our future and our children's future for short term gain. Let the markets correct.

Appraiser Kat: (August 31, 2010 5:54am)

Credits, seller paid concessions are all a waste of time... Smoke and mirrors. Unless and until jobs come back it is all going to be a waste of taxpayers money. Jobs baby... JOBS! Don't beleive the unemployement rates... Look at the Employment rates. They tell the story.

jlaun: (August 31, 2010 5:39am)

Let's see we spent about $20 billion on the First-Time Homebuyer Tax Credit, however, we have not paid for it yet. Instead we sold that debt to China and others. Someday in the future we the taxpayer will have to pay it off, with interest, so the cost will be even higher. According to some surveys 70% of the buyers were going to buy anyway, but moved their buying into the present instead of into the future. Likely, a high percentage of these buyers will become our future foreclosures. Many received USDA loans with 100% financing or low down with FHA, the seller paid the closing costs and the buyer got a large gift from family which is really a loan to be paid back with the $8,000 tax credit. I had buyers who could not get a rental due to the fact they did not have enough saved for the first months rent and a months security, yet are living in a home they bought they can't afford. I bet at least half will become foreclosures & taxpayer will pay the $8K plus the foreclosure.

mmt110: (August 31, 2010 5:36am)

Tax credits are funded by the tax payers, and I'm tired of paying for someone else's mortgage. It's like the USDA guaranteed loan program now being fully borrower funded at 3.5% guarantee fee (guess none of us understood that tax payers funded the 1.5% NOT paid by the borrower) - I'm all for it! I do not want to pay someone else's payment when they have the clear ability to pay it themselves - no new tax credit. A novel idea would be to stimilate businesses to create permanent jobs so that folks get hired, earn a wage and regain the employment/financial stability comfort that was known in years past and kept the economy clipping along at a decent pace. As Barry Habib always has said --- housing goes the way of jobs --- no jobs, no housing market. The economy needs to create 125,000 jobs per month to keep up with population growth. The US economy is not even at that pace. A employed worker is a direct economic stimulus himself --- earning a wage and then spending some and saving some.

NancyL: (August 31, 2010 5:35am)

I am in favor of the tax credit return. In my neighborhood it generated multiple offers and actually in some cases drove prices and sales up. You are right though about some people borrowing the down money and repaying it with the tax rebate money, but just as many told me of the new things they were going to buy or put into the house to make improvements/repairs.

Broker in RIC: (August 31, 2010 5:21am)

Here's revolutionary idea... how about a permanent tax credit. Here's how it's done: shrink the government, which requires less tax dollars to run, which keeps would allow us to lower taxes, which would keep more money in the taxpayers' wallets. Smaller government with less government intervention is the answer.

ChicagoLen: (August 31, 2010 5:15am)

As for the tax credit, I'm ambivalent. Home sales are at the lowest level since 1964. So it seems that the credit did some good. But when do those of us who did what we were supposed to for the last 3 years get some relief? Those of us who didn't borrow 150% of our home's value, didn't get balloon mortgages on houses we couldn't afford today, let alone tomorrow when the , didn't get HELOC to buy $100K sports cars, where is our relief? And why aren't the people (Quants, etc.) who got us into this mess in the first place being indicted?

Pat: (August 31, 2010 5:12am)

I would like to see the tax credit come back at least for 2 or 3 months. this will help move the inventory. There are buyers sitting on the fence and I feel this would make them move to purchase a home. Hey it helped before.

ChicagoLen: (August 31, 2010 5:06am)

I don't think you'll see a big shift in the party affiliation in either house of Congress, but a lot of incumbents (at least a higher number than the small percentage that typically gets voted out) will lose their seats. There's a lot of anger and dissatisfaction with Congress. Tea Partiers aren't the only ones unhappy with Congress. Many on the far left are also disappointed, and there will be a lot of new faces in government in January.

dcfinance1: (August 31, 2010 5:06am)

It borrows from future business only to see it crash and it will spoil the buyers. IE wait till the next Rebate. Look at new cars. Is there a year without them now? Economy Slow? Businesses all across this country are waiting this administration out. They do not know what the hell the future costs will be to operate. So why would they step out there?

pathompson: (August 31, 2010 5:02am)

These tax credits come from our tax dollars. How do people think they do these credits. If you polled the tax payers and asked us if we would contribute to a charity to prop up the housing industry...Do you think we would??? It's a terrible example that we have set for our children.

ABQRealtor: (August 31, 2010 5:00am)

No More Tax Credits! The market will resolve itself.

frankgaray: (August 31, 2010 4:56am)

Sorry about the missed Countrywide story guys! Damn! Must have missed it in editing or something! Oh well, we'll get it to you tomorrow - my bad! We've got a story for you, that's why it's in the subject line. Just missed it when putting together the show somehow. More coffee... need more coffee...

Bizz Money: (August 31, 2010 4:54am)

Listen, the tax credit is only a one time credit. It only helps the borrower to combat these ever growing government driven high cost to get the loan. In no way does the tax credit diminishes the consumer's ability to repay the money he's borrowing. Those folks that got a tax credit are now home owners. They are out there spending money on this new home, and by the way being TAXED on those items. Listen to this; I have a cousin that hasn't paid his $5,500 property taxes on his upside down investment property in 3 years..... You do the math!!

joef: (August 31, 2010 4:50am)

Working with firt time buyers and seeing some of the good as well as the abuses of the seller funded DPA - I dont feel this is in the best interest. Leave the 6% seller contribution. If some one lacks the resources and capacity to come up with 3.5% - what is going to happen if they have a finacial set back? For that matter I also think it would be prudent for first time buyers to have sort of rental history to diminsh the payment shock challenges. Sort of like the drivers ed of homebuying. Lastly not that this is topic for today but triggered by the Reverse mortgage default issue. The strategic defaults still have me puzzled as to the lack of commitment by those who took out loans that do not want to pay. This really needs to stop. Instead of 7 or 3 years why dont they just go ahead and make it 10 years accross the board(conv,fha,va). This may change some decisions of the matematics of why they do it.

njloanman: (August 31, 2010 4:49am)

Love the idea of Streamlined refis! remember those? Now that should help more current homeowners struggling. Forget the tax credit but let's get back to more common sense UW. Hasn't the government screwed up our industry ....and the consumer enough?! and yes, what about Countrywide?

panhandlenan: (August 31, 2010 4:47am)

The one thing that the tax credit did was push people able to buy over the wait and see line. After all its our money anyway not the governments. Yes the market usually works itself out and I am all for that but until people have jobs nothing will change. There are thousands of people out there that can buy NOW. Find them and stop worrying about it all because there is still 90% employed.

panhandlenan: (August 31, 2010 4:46am)

The one thing that the tax credit did was push people able to buy over the wait and see line. After all its our money anyway not the governments. Yes the market usually works itself out and I am all for that but until people have jobs nothing will change. There are thousands of people out there that can buy NOW. Find them and stop worrying about it all because there is still 90% employed.

Mortgage lady: (August 31, 2010 4:43am)

We do not need the tax credit... Just bring back the DPA...

Arthur: (August 31, 2010 4:32am)

I think the government should buy everyone a home. and be 100 trillion in debt. Print more money who cares. They screwed everything else up. At least we wont have a housing problem anymore and everyone will a roof over their head. That is until they find a way to mortgage it again. Why can't we learn from past mistakes. PLEASE, MR&MRS GOV'T STAY AWAY FROM OUR BUSINESS. GO FIND SOMEWHERE ELSE TO PLAY.

gsuarez1: (August 31, 2010 4:19am)

Enough government intervention- no more tax credits. Let the market work this out as best as possible. If we want to make it less painful allow streamlined refi's of all mortgages current for the last 24 months, regardless of LTV, credit or income (thru Fannie/Freddie) or just let things be and watch values fall some more before the market reaches equilibrium.

bradfey: (August 31, 2010 4:13am)

No more bailouts.. let the free market take it's course.. yes I agree don't let 6% seller credit go away.... The biggest stimulus and tax credit would be for government to stay out of the way.

imnosaj: (August 31, 2010 4:04am)

NO CASH FOR CLUNKERS I mean no housing tax credit....... Cant you see what the last credit did??? Bottle necked the middle upper end and business SHUT DOWN after the credit ended. Let the freee market work it out on its own. The tax credit is like shooting steroids, sure it pumps you up short term , but we all know you will pay for it later in life.

33 yearsinthebiz: (August 31, 2010 4:01am)

big money for countrywide customers? where is it in your video?

Realist 1: (August 31, 2010 2:52am)

It really doesn't matter if republicans gain control in November or not. Both parties are effectively the same party. They both sell out to special interests and that is why we have the problems that we have.

Bob_Taylor: (August 31, 2010 1:50am)

I would rather see the permanent reinstatement of seller concessions to 6% which is usable at closing instead of a tax credit that expires which is not usable at closing for the following reasons: 1. Coupled with intelligent underwriting guidelines, permanent seller concessions would make already affordable housing even more so. 2. An expiring tax credit only pulls sales forward ALWAYS resulting in sales falling off a cliff when they do, resulting in a call for an extension. 3. Seller concessions do not have any impact on the federal budget deficit. 4. A tax credit, even one that expires, will increase the budget deficit. 5. The "PayGo" concept on Capital Hill makes a new tax credit more likely to open up discussions of ways to off-set it from within the housing sector such as elimination of the Mortgage Tax Deduction.