Fun With Downtime: Brokerback Mountain

Jeez, poor Casey just can't seem to avoid Nigel and his attempts to get a piece of the spotlight. Attention on the web is apparently really hard to quit.

Link First, Ask Questions Later

Someone at the Milk This Bubble As Long As We Can must have finally sent Nigel the latest Talking Points memo. In this latest post, Nigel dumbtificates about FHA loans and their "problems."

A couple of paraphrased gems from the Master of the Obvious. First we must wade through the typical Nigel fluff pulled directly from Boringapedia. So after the first few paragraphs where Nigel changes a few words of a generic description he goes into the "problems."

However, these liberal guidelines come with a price and with FHA, it's called mortgage insurance. MI protects the lender to 20% should a borrower default on their loan.

Yeah, heaven forbid there are things in place if a borrower isn't responsible enough to save a large downpayment or might be a credit risk.

The second problem with FHA loans involves the approval process and documentation. One qualifies for FHA mortgages much like a conventional loan which requires two years on the job (or in the same field), tax returns and financial reserves. There are no stated income FHA loans and no interest only either.

Yes, ALL THESE THINGS SOUND HORRIBLE. The last thing we need is more qualified borrowers in the housing market, these people might actually want to negotiate and junk like that. This statement reinforces my belief on the quality of mortgages the Swabtard might have been involved with.

FHA mortgage products are a welcome part of the home financing opportunity and should be looked at closely before entertaining other types of non-conventional financing.

Hmmmm... it almost sounds like we're now dismissing these FHA loans and still thinking about, you know, possibly pushing more junk 100% loans. All in all, it's a pretty typical bland post from Nigel... but I did recall a previous Nigel mention about FHA loans...

Was it this one? That bottle sure makes it look good...

This is great news for first time home buyers...

I'm not sure, let me Google this... HOLY CRAP! Nigel sure was busy linkwhoring CNN.com, Business Week about the FHA. Blah.

Fortunately, the FHA has an awesome ARM which goes both ways and it can only adjust once a year and has a reasonable cap rate.

I do get the sense that Nigel, in his own way, is trying to finally detach himself from the Casey drama, but in my mind he and Casey are still representative samples of what went wrong in Real Estate in the past 5 or so years.

Any bets on when Nigel's done with Real Estate and starts working on this winner he's been keeping in his back pocket?