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View Full Version : The Gov't has my mortgage...



wayiwalk
08-12-09, 01:13 PM
A single point of data but unusual to me.

I recently refinanced, paying down principal and getting a lower rate. We already owned more than 1/2, even assuming an aggressive markdown of the house's "value", but I figure it wasn't a bad move.

I've had 2 different mortgages before this....they were held by the issuing bank as long as we held them.

This last one is with Wells Fargo, or should I say was. I couldn't believe the hoops we were jumping through to document everything imaginable to them. Everything had to be a clear and simple as possible. I work full time and also own a business on the side that adds about 10% additional on top of my salary.

The broker from Wells didn't want to know about that. They just wanted salary, all the financial info of what I owned, including money in 401(k), etc.

And it took forever - we had paid to lock in the rate (which was applied to the closing costs), and it took almost 3 months till it was all done.

Here's the kicker - we got a letter saying the mortgage is owned by Fannie now (okay, I didn't read it, but my wife said it was one of the gov't sponsored mortgage companies, I think she said Fannie).

How strange - here was a good mortgage, low risk as our neighborhood hasn't seen massive depreciation, and we have about 60% equity in the house - and it gets turned over to the Feds so soon???

Makes you wonder about what sort of goals the gov't was looking to achieve when the rates were down around the mid 4% range earlier this year?

Any thoughts?

cjppjc
08-12-09, 05:46 PM
I believe WF made money on the origination of the loan. Made money selling the load, and will make money servicing the loan.

metalman
08-12-09, 11:57 PM
A single point of data but unusual to me.

I recently refinanced, paying down principal and getting a lower rate. We already owned more than 1/2, even assuming an aggressive markdown of the house's "value", but I figure it wasn't a bad move.

I've had 2 different mortgages before this....they were held by the issuing bank as long as we held them.

This last one is with Wells Fargo, or should I say was. I couldn't believe the hoops we were jumping through to document everything imaginable to them. Everything had to be a clear and simple as possible. I work full time and also own a business on the side that adds about 10% additional on top of my salary.

The broker from Wells didn't want to know about that. They just wanted salary, all the financial info of what I owned, including money in 401(k), etc.

And it took forever - we had paid to lock in the rate (which was applied to the closing costs), and it took almost 3 months till it was all done.

Here's the kicker - we got a letter saying the mortgage is owned by Fannie now (okay, I didn't read it, but my wife said it was one of the gov't sponsored mortgage companies, I think she said Fannie).

How strange - here was a good mortgage, low risk as our neighborhood hasn't seen massive depreciation, and we have about 60% equity in the house - and it gets turned over to the Feds so soon???

Makes you wonder about what sort of goals the gov't was looking to achieve when the rates were down around the mid 4% range earlier this year?

Any thoughts?

ej talked about that in a recent article... there's no secondary market for mortgages in the usa... 95% immediately go to fannie or freddie.

swgprop
08-13-09, 12:46 AM
ej talked about that in a recent article... there's no secondary market for mortgages in the usa... 95% immediately go to fannie or freddie.

Well technically Freddie and Fannie are part of the secondary market - along with GNMA. Private (non GSE) securitization has ceased to exist.

wayiwalk: Your prior mortgages were in all likelihood sold on the secondary market too, but if the servicing stayed with the originating lender you wouldn't be aware of the true owner.

metalman
08-13-09, 11:18 AM
Well technically Freddie and Fannie are part of the secondary market - along with GNMA. Private (non GSE) securitization has ceased to exist.


to clarify, there's no private secondary market for mortgages in the usa... ie, no private market for housing in the usa.

jk
08-13-09, 08:44 PM
i also recently refi'd- for me a cash out as an inflation play. the mortgage was originated by century point, "a division of first century bank." at the closing we learned the loan had already been sold to suntrust. 2 weeks later, before the first payment was due, we got a letter it had been sold to freddie. suntrust is still the servicer. my wife asked why the banks did this, so i explained that every step of the chain got a little cut, and suntrust is paid to be the servicer. a conforming loan, obviously - i got 4.375%.

metalman
08-13-09, 09:37 PM
i also recently refi'd- for me a cash out as an inflation play. the mortgage was originated by century point, "a division of first century bank." at the closing we learned the loan had already been sold to suntrust. 2 weeks later, before the first payment was due, we got a letter it had been sold to freddie. suntrust is still the servicer. my wife asked why the banks did this, so i explained that every step of the chain got a little cut, and suntrust is paid to be the servicer. a conforming loan, obviously - i got 4.375%.

you are my hero... well done. 30 yrs, i hope. in 2020 your kids will brag... 'remember when daddy got a 4.375% mortgage?'

'yeh, and bought a car for $20,000!'

2020...

car = $200,000

mortgage = 15%

jk
08-13-09, 09:46 PM
you are my hero... well done. 30 yrs, i hope. in 2020 your kids will brag... 'remember when daddy got a 4.375% mortgage?'

'yeh, and bought a car for $20,000!'

2020...

car = $200,000

mortgage = 15%
oh yes, 30 years. i'm using part of the proceeds to put in a geothermal heating/cooling system for my house [with a desuperheater circuit for hot water as well]. i'll get 30% of the installation cost back as a tax credit from the feds. oil for heat and hot water has been costing me about $5k/year. best guess is payback, after the tax credit, will be about 6 years if oil [and electricity] stays the same as it's been over the last 2 heating seasons. of course, if oil goes up then payback will be faster. another inflation play.

metalman
08-13-09, 11:43 PM
oh yes, 30 years. i'm using part of the proceeds to put in a geothermal heating/cooling system for my house [with a desuperheater circuit for hot water as well]. i'll get 30% of the installation cost back as a tax credit from the feds. oil for heat and hot water has been costing me about $5k/year. best guess is payback, after the tax credit, will be about 6 years if oil [and electricity] stays the same as it's been over the last 2 heating seasons. of course, if oil goes up then payback will be faster. another inflation play.

love it... taking action. that's the ticket!

ocelotl
08-25-09, 01:58 PM
We have an opposite condition here, federally financed mortgages that defaulted were being sold to transnationals...


Infonavit vende a extranjeros 55 mil créditos vencidos (http://revistafortuna.com.mx/contenido/index.php/2008/02/15/infonavit-vende-a-extranjeros-55-mil-creditos-vencidos/)

<table border="0" width="100%"> <tbody><tr> <td> Mauricio Laguna (http://revistafortuna.com.mx/contenido/index.php/author/mauricio/) </td> <td>
Sección: Instituciones Públicas (http://revistafortuna.com.mx/contenido/index.php/category/instituciones-publicas/)
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http://www.revistafortuna.com.mx/opciones/archivo/2008/febrero/fotos/vivienda.jpg (http://revistafortuna.com.mx/contenido/index.php/2008/02/15/infonavit-vende-a-extranjeros-55-mil-creditos-vencidos/)
Más de 50 mil familias están en peligro de perder su vivienda luego de que el Infonavit vendiera a dos empresas extranjeras –una de ellas ligada a Construcciones Prácticas, involucrada con los hijos de Marta Sahagún– 55 mil créditos que cayeron en cartera vencida. La operación, realizada sin acuerdo de<st1> la Asamblea General</st1> de la institución, fue avalada por el Consejo de Administración y, por lo tanto, violó las leyes en la materia

Continue... (http://revistafortuna.com.mx/contenido/index.php/2008/02/15/infonavit-vende-a-extranjeros-55-mil-creditos-vencidos/)

<table border="0" cellpadding="0" cellspacing="0" width="633"><tbody><tr><td> Corte revisa venta de créditos Infonavit a trasnacionales
Sergio Aguirre Anguiano propone avalar la venta de la cartera vencida; el tema genera división en la Suprema Corte de Justicia de la Nación
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</td></tr> </tbody></table> </td> </tr> </tbody></table> Carlos Avilés Allende
El Universal
Ciudad de México Miércoles 19 de agosto de 2009
15:09 La Suprema Corte de Justicia de la Nación inició la revisión y discusión del caso en el que determinará si el Infonavit puede o no vender los créditos vencidos de las casas de los trabajadores a empresas trasnacionales, para que éstas sean quienes se encarguen de seguir cobrándoles o de llevarlos a juicio para quitarles sus propiedades.
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