Comments on: The Sacred Commission: 3 Reasons Why Commissions Will Come Down. http://www.doctorhousingbubble.com/the-sacred-commission-3-reasons-why-commissions-will-come-down/ How I Learned to Love Southern California and Forget the Housing Bubble Sat, 22 Nov 2008 11:27:35 +0000 http://wordpress.org/?v=2.2.2 By: Dr. Housing Bubble Blog » Blog Archive » Blame it on the Ritz: Market Psychology. Blame the Downturn on Homebuilders and Banks. http://www.doctorhousingbubble.com/the-sacred-commission-3-reasons-why-commissions-will-come-down/#comment-2387 Dr. Housing Bubble Blog » Blog Archive » Blame it on the Ritz: Market Psychology. Blame the Downturn on Homebuilders and Banks. Tue, 16 Oct 2007 15:29:13 +0000 http://www.doctorhousingbubble.com/the-sacred-commission-3-reasons-why-commissions-will-come-down/#comment-2387 [...] 2007 the number of members jumped to approximately 1.4 million. What this means aside from having a realtor bubble, is that nearly 600,000 NAR members have never witnessed a housing bear market while they were part [...] […] 2007 the number of members jumped to approximately 1.4 million. What this means aside from having a realtor bubble, is that nearly 600,000 NAR members have never witnessed a housing bear market while they were part […]

]]> By: Taylor http://www.doctorhousingbubble.com/the-sacred-commission-3-reasons-why-commissions-will-come-down/#comment-2176 Taylor Fri, 21 Sep 2007 21:16:00 +0000 http://www.doctorhousingbubble.com/the-sacred-commission-3-reasons-why-commissions-will-come-down/#comment-2176 Bah for typos. "stupid house purchase" is what that should read. Mice have little to do with it. Bah for typos. “stupid house purchase” is what that should read. Mice have little to do with it.

]]> By: Taylor http://www.doctorhousingbubble.com/the-sacred-commission-3-reasons-why-commissions-will-come-down/#comment-2175 Taylor Fri, 21 Sep 2007 21:10:00 +0000 http://www.doctorhousingbubble.com/the-sacred-commission-3-reasons-why-commissions-will-come-down/#comment-2175 Regarding this:<br/>"Do you want to know the previous sales price? This will be easy to find."<br/>How exactly does one do this? I may just be weak in my search-fu today, but I'm not finding anything but some site in the UK and a site that charges for the data, with no guarantee that's even what I'm looking for. Is there a free service for this? Maybe I should just check with my local tax office?<br/><br/>I'm trying to save a family member from a stupid mouse purchase, and I'd appreciate any leads you could offer. I've told them it's a bad time to buy, but I'd love to find some hard data to show them. Regarding this:
“Do you want to know the previous sales price? This will be easy to find.”
How exactly does one do this? I may just be weak in my search-fu today, but I’m not finding anything but some site in the UK and a site that charges for the data, with no guarantee that’s even what I’m looking for. Is there a free service for this? Maybe I should just check with my local tax office?

I’m trying to save a family member from a stupid mouse purchase, and I’d appreciate any leads you could offer. I’ve told them it’s a bad time to buy, but I’d love to find some hard data to show them.

]]> By: Crazed in Glendale http://www.doctorhousingbubble.com/the-sacred-commission-3-reasons-why-commissions-will-come-down/#comment-2155 Crazed in Glendale Fri, 21 Sep 2007 01:40:00 +0000 http://www.doctorhousingbubble.com/the-sacred-commission-3-reasons-why-commissions-will-come-down/#comment-2155 OOPS.<br/>Sorry. I mean whine not wine.<br/>crazed OOPS.
Sorry. I mean whine not wine.
crazed

]]> By: Exit http://www.doctorhousingbubble.com/the-sacred-commission-3-reasons-why-commissions-will-come-down/#comment-2136 Exit Thu, 20 Sep 2007 06:53:00 +0000 http://www.doctorhousingbubble.com/the-sacred-commission-3-reasons-why-commissions-will-come-down/#comment-2136 The point about not raising the conforming limit is not so much the qualification issue. It's that the quasi-governemental GSE's, FNMA and FHLMC ("Fannie Mae" and "Freddie Mac") now are on the hook for the loan. So if the borrower goes bad, the GSE has to back it up - which means the taxpayer. Whereas now, jumbo paper is packaged into a MBS that is the purview of private firms (typically Wall Street). If the loan goes bad, it hits the books of the private firm, not the taxpayer.<br/><br/>Why put the taxpayer on the hook?<br/><br/>Classic American free enterprise - if there's only profit, keep the government's mitts (ie taxes) off. But if Goldman or Countywide takes a loss - Uncle Ben, save us! Take the loans off our books! And onto the taxpayer!<br/><br/>Not that too many people will qualify. But one little trick of conforming loan approvals - if the automated underwriting system ("AUS") spits out an "approve/eligible" - it doesn't matter WHAT the debt ratio figures are. The loan is approved. So some borrowers who currently don't qualify for jumbo loan amounts due to debt ratio, may, once the limit is raised, because now they get to slide under the AUS approval, rather than the stricter jumbo full doc requirements that carry a stricter debt ratio requirement.<br/><br/>It's a valid point that a devalued dollar will ultimately cause rates to spike. <br/><br/>30/5 or 30/10 loans already exist in residential mortgages, and are prevalent in commercial loans, which typically have to be rolled every 5 to 10 years. That would be a curious development, if market forces trumped governmental intervention to keep a 30 year note. The point about not raising the conforming limit is not so much the qualification issue. It’s that the quasi-governemental GSE’s, FNMA and FHLMC (”Fannie Mae” and “Freddie Mac”) now are on the hook for the loan. So if the borrower goes bad, the GSE has to back it up - which means the taxpayer. Whereas now, jumbo paper is packaged into a MBS that is the purview of private firms (typically Wall Street). If the loan goes bad, it hits the books of the private firm, not the taxpayer.

Why put the taxpayer on the hook?

Classic American free enterprise - if there’s only profit, keep the government’s mitts (ie taxes) off. But if Goldman or Countywide takes a loss - Uncle Ben, save us! Take the loans off our books! And onto the taxpayer!

Not that too many people will qualify. But one little trick of conforming loan approvals - if the automated underwriting system (”AUS”) spits out an “approve/eligible” - it doesn’t matter WHAT the debt ratio figures are. The loan is approved. So some borrowers who currently don’t qualify for jumbo loan amounts due to debt ratio, may, once the limit is raised, because now they get to slide under the AUS approval, rather than the stricter jumbo full doc requirements that carry a stricter debt ratio requirement.

It’s a valid point that a devalued dollar will ultimately cause rates to spike.

30/5 or 30/10 loans already exist in residential mortgages, and are prevalent in commercial loans, which typically have to be rolled every 5 to 10 years. That would be a curious development, if market forces trumped governmental intervention to keep a 30 year note.

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