PLACENTIA

Is Mark Zandi a good choice to run the GSEs?

 NEWS, PLACENTIA
Apr 182013
 
Is Mark Zandi a good choice to run the GSEs?

My hero, Ed DeMarco, is on his way out as head of the FHFA that runs Fannie Mae and Freddie Mac, the GSEs. Ed DeMarco is a tragic figure who showed how difficult it is in Washington to do the right thing (see: Head of GSEs Edward DeMarco faces replacement, unfortunately). His actions in looking out for the best interests of taxpayers put him in the firing line of pandering politicians on both sides of the aisle. The left assailed him for refusing to give free money to loan owners. His opposition to principal reduction prevented politicians from buying votes [Read More...]

Home mortgage interest deduction may fall off the fiscal cliff

 NEWS, PLACENTIA
Dec 132012
 
Home mortgage interest deduction may fall off the fiscal cliff

The home mortgage interest deduction serves to inflate house prices in high income areas without significantly promoting home ownership. Further, it costs the federal government $100,000,000,000 a year, which makes it a target of deficit hawks in Congress. The deduction has widespread support among taxpayers despite the fact only a select few gain any benefit from it. This support makes it a sacred cow in Washington, but it’s starting to look increasingly likely that some compromise in the fiscal cliff debate will curb this benefit. If it does, the so-called housing recovery in high income areas like Coastal California will [Read More...]

Mortgage interest rates setting record lows week after week

 NEWS, PLACENTIA
May 282012
 
Mortgage interest rates setting record lows week after week

Lenders are intent on maintaining inflated house prices to avoid write downs on their mortgage loans. Since prices are inflated, they only way they can sustain them is to make borrowing so inexpensive that the large sums required to buy a home are relatively affordable. Hence, we have lower and lower interest rates. US 30-year mortgage rate falls to record 3.79 pct. By MARCY GORDON — The Associated Press May 17, 2012, 10:17AM ET Average U.S. rates for 30-year and 15-year fixed mortgages fell to record lows for the third straight week. The steady decline has made home-buying and refinancing [Read More...]

Another ignorant and misguided appeal for principal reduction

 NEWS, PLACENTIA
Mar 232012
 
Another ignorant and misguided appeal for principal reduction

Principal reduction is on everyone’s mind these days. The political left embraces this method of looting the public coffers to buy votes. In their world view, principal reduction is a populist handout to noble loan owners who are victims of circumstance. In my opinion, that’s bullshit. Today’s featured article caught my attention because the headline speaks a basic truth: The housing crisis is crushing responsible homeowners. However, when I read the article, I was shocked to find the reporter cited all the wrong reasons and came to exactly the wrong conclusion. The reporter concludes falling prices hurts responsible homeowners, and [Read More...]