Mortgage Market

The National Association of Realtors is protesting an increased fee being charged by Fannie Mae.  The fee, as much as 3.25% of the loan amount, is being charged to lenders who pass on to borrowers with credit scores as ‘low as 690.’  See article by James R. Hagerty in the Wall Street Journal.

Let’s do a quick analysis.  This really makes sense.  If you have a loan amount of $200,000, then the fee would be $6,500.  And, that doesn’t include any title company, broker fees, appraiser fees, etc.  Great way to jump start economy, Fannie.

Since the average credit score nationwide is around 690, this hurts the average borrower.

Good luck to the National Association of Realtors!

Roller Coaster – Definitely Not A Good Idea

Originally uploaded by 10:10 Photography (aka Coroner)

The market has been crazy in the last week. It’s scary. Downright frightening. My opinion is that Wall Street got us into this mess. They were the drug lords of the loan products.

Roller Coaster – Definitely Not A Good Idea

Originally uploaded by 10:10 Photography (aka Coroner)

The market has been crazy in the last week. It’s scary. Downright frightening. My opinion is that Wall Street got us into this mess. They were the drug lords of the loan products.