Why Ben Bernanke Couldn’t Refinance His Mortgage - News and Current Events | futures io social day trading
futures io futures trading


Why Ben Bernanke Couldn’t Refinance His Mortgage
Updated: Views / Replies:249 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Why Ben Bernanke Couldn’t Refinance His Mortgage

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

Why Ben Bernanke Couldn’t Refinance His Mortgage

Just how inflexible are lending standards these days? Ben Bernanke said at a conference Thursday that he’d been unable recently to refinance his mortgage.

“It’s entirely possible” that lenders “may have gone a little bit too far on mortgage credit conditions,” he said at a conference in Chicago, according to Bloomberg News.

But wait. Surely a man with high income, lots of equity in his home, good credit and a solid net worth must be able to get a mortgage. Mr. Bernanke stepped down as the chairman of the Federal Reserve in January and joined the Brookings Institution as a “distinguished fellow in residence.” He’s also writing a memoir and giving speeches (reportedly for hefty speaking fees).

The broader point Mr. Bernanke was making isn’t that credit standards on their own are unnecessarily restrictive. Borrowers who can make a 3.5% down payment with a 650-ish credit score and two years of stable income can qualify for a loan backed by the Federal Housing Administration.

Instead, the issue is one of nuance—or the lack thereof. Lenders have grown to rely heavily on automated underwriting systems and the requisite documentation of borrower incomes, the sources of their down-payment funds and anything else that’s fed into those computers to determine whether a borrower qualifies for a loan.

This can result in the odd situation in which a perfectly qualified borrower might find a loan officer who’s unwilling to process a loan.

Lenders have blamed their defensive underwriting postures on new regulations and on the billions of dollars in loans they’ve been forced to buy back from mortgage-finance giants Fannie Mae and Freddie Mac for violations of underwriting protocols—some are legitimate frauds, while others are the underwriting equivalent, lenders say, of foot faults.

As for Mr. Bernanke, he’s refinanced the mortgage on his Capitol Hill house since he and his wife bought it in 2004 for $839,000, once in 2009 and again in 2011. Credit is no tighter now than it was then and home prices have gone up.

One thing that may have changed for Mr. Bernanke besides his employment situation: His loan might be too big to qualify for government backing. The Journal reported in 2011 that he owed $672,000 on his mortgage after refinancing it that September. The refinance closed days before the conforming loan limit—the maximum amount that qualifies for backing from Fannie and Freddie—in the Washington, D.C., area dropped to $625,500, from the previous limit of $729,750.

While jumbo mortgages have in some cases actually carried slightly lower interest rates over the past year than conforming loans have, they typically require more equity. If Mr. Bernanke hasn’t substantially paid down the principal on that loan, then he’d need to pay down the balance to qualify for the conforming loan.

And while interest rates on 30-year, fixed-rate mortgages were lower in early 2013, in recent months they’ve been about the same as where they were the last time Mr. Bernanke refinanced. Back then, in 2011, he got a 4.25% fixed-rate mortgage.

Tight Credit? Why Ben Bernanke Couldn?t Refinance His Mortgage - Real Time Economics - WSJ

Reply With Quote

Reply



futures io > > > > Why Ben Bernanke Couldn’t Refinance His Mortgage

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Ben Bernanke gets $250k for his first post-Fed speech kbit News and Current Events 0 March 5th, 2014 08:46 PM
Bitcoin assassination bounty for Ben Bernanke Big Mike Cryptocurrency Trading 9 November 18th, 2013 04:14 PM
Is Ben Bernanke Right About the US 'Fiscal Cliff'? Quick Summary News and Current Events 0 November 21st, 2012 12:40 AM
Mortgage Refinance Demand Jumped Last Week: MBA Quick Summary News and Current Events 0 December 14th, 2011 08:50 AM
Ben Bernanke caused the recession we're in..... RM99 News and Current Events 3 July 21st, 2011 02:58 PM


All times are GMT -4. The time now is 06:32 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-14 in 0.07 seconds with 19 queries on phoenix via your IP 54.226.227.175