Economic News

  • Thread starter Thread starter nycfan
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nycfan said:
Yeesh, that’s a crap deal for the buyer. They are only getting about 77% of the value of that $30,000. But it’s a nice deal for the lender which is getting a prepayment of a portion of the interest for the first three years plus a significant premium of the interest they would have been paid this three years on the fixed monthly payment.
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Yes

And for me a potential buyer for my house who is worried and wanting to reduce his monthly mortgage payment by a few bucks is not going to be in a financial position to buy my house.

That said I appreciate wmheel1287 reaching out to me and sharing his real estate expertise. Anything real estate related, I pay attention to his posts.
 
superrific said:
1. Only if you believe the Trump people. Why would you? Everything they say is a lie. Do we need to go through all the Biden Crime Family bullshit again.
2. This is not nearly the smoking gun you think it is. The principal residence issue can be complex when you are talking about people who are in the midst of moving or are splitting time between two locations.
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Recognizing that Pulte could be lying, he is claiming she bought one property on June 18, 2021 in Michigan and another property on July 2, 2021 in Atlanta -- claiming both would be principal residences. The closeness in time of the two purchases is an issue.

Now, using federal data to go after enemies is an issue. Also, it is dubious that pre-Fed conduct qualifies as "cause" to terminate a fed governor. But it is hard to see how to justify purchasing two primary residences within two weeks.
 
Calheel said:
Recognizing that Pulte could be lying, he is claiming she bought one property on June 18, 2021 in Michigan and another property on July 2, 2021 in Atlanta -- claiming both would be principal residences. The closeness in time of the two purchases is an issue.
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An issue, yes, but not a smoking gun. I admit to not knowing residential real estate financing inside and out, but some other considerations:

1. She was buying properties where she didn't live or work, but would have been obvious places for her to work. Ann Arbor in particular screams, "I am lateralling to U of M."

2. Interest rates were about to go up, so she wanted to buy right then. It's possible she didn't know which job she was going to take, and then a third job came up . . . .

3. It is implausible to me that the mortgage lenders didn't know about the other mortgage. If they were fine with "intent for primary residence" then presumably they had more information about the situation than we currently do.

4. She ostensibly tried to put the Atlanta property up for rent in September 2022. That strongly suggests that she had been trying to sell it but, in the poor home buying environment, was unable to. So, like heelinhell, she saw renting as the only option. That would be not in any way illegal, I don't think, because the form asks about intent to use as a primary residence.
 
superrific said:
3. It is implausible to me that the mortgage lenders didn't know about the other mortgage. If they were fine with "intent for primary residence" then presumably they had more information about the situation than we currently do.
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Re No. 3, the first wouldn't know about the second and the second likely only knew about the first if she disclosed it. The lenders typically just run the credit reports and mortgages in progress likely would not show up on the report (and hard credit inquiries would simply look like she was shopping lenders).

As for your last sentence, I assume you are happy with the NY appellate ruling on Trump -- if the lenders don't care, then neither do I?
 
Calheel said:
Re No. 3, the first wouldn't know about the second and the second likely only knew about the first if she disclosed it. The lenders typically just run the credit reports and mortgages in progress likely would not show up on the report (and hard credit inquiries would simply look like she was shopping lenders).

As for your last sentence, I assume you are happy with the NY appellate ruling on Trump -- if the lenders don't care, then neither do I?
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I thought mortgages in progress DO show up on credit reports. It really wouldn't make sense for them not to.

There is a huge difference between the Trump situation -- bespoke finance, complex individually negotiated deals, etc., big money -- and someone buying a small apartment through a standard process.

I would see this issue more like Mark Meadows voting in two different places. It looks particularly bad because of the hypocrisy, but ultimately I don't really care. It isn't remotely like the attempted coup.
 
altmin said:
It will be interesting to see what the Wegmans and the Harris Teeters of the world report in sales. Though i guess HT gets buried in Kroger's data now.
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Why would Wegman’s report? It’s privately own, right?

Based on traffic in the Chapel Hill store, they’re doing fine.
 
Healing said:
Market goes nuts on suggestion of a 0.25 rate cut but ignores the rising inflation and concerning job numbers. We’re in the upside down. Apparently, what’s bad for society is good for corporations. I’m sure this’ll end well.
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The market has been warped by buy-the-dip day trader/sports gambling mentality, I think. Almost every stock is just a meme stock to a growing number of stock gamblers.
 


“…Mr. Trump issued his latest threat, which would most likely face severe legal obstacles, two days after Bill Pulte, the federal housing director, accused Ms. Cook of falsifying records to obtain favorable loan terms. Mr. Pulte referred the matter to the Justice Department, a representative of which said the case “requires further examination.”

While the two men have criticized Ms. Cook for her actions, and Mr. Pulte has insisted his primary goal is to root out fraud, they have each done so in the context of an expanding campaign to oust officials on the Fed’s Board of Governors, including its chair, Jerome H. Powell….

Mr. Trump and his aides have raised similar investigations of mortgage fraud against his other political rivals, including Senator Adam B. Schiff of California, who led congressional inquiries into Mr. Trump during his first term, and Letitia James, the New York attorney general, who won a civil fraud trial against Mr. Trump before he returned to office.“
 
Healing said:
Market goes nuts on suggestion of a 0.25 rate cut but ignores the rising inflation and concerning job numbers. We’re in the upside down. Apparently, what’s bad for society is good for corporations. I’m sure this’ll end well.
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I'm guessing Alan Greenspan is smiling

Alan is thinking I'm so happy the Fed is moving now to my easy money policy ( which led to the tech bubble in 2001 and the great recession in 2008 )

So we are going to ride a short term market rocket. I just hope we don't crash and burn.
 
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