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The Big Short II

The Big Short II

In the week that the movie, The Big Short comes out, a San Francisco Credit Union is doing exactly what partially caused the big short to happen. These geniuses are putting out a loan with No Money Down up to, get ready…….$2,000,000.  That’s two million dollars with no down payment.  Let me say that again.  Buy a $2,000,000 house in San Francisco and put nothing into it.  No skin in the game. Will the CFPB do anything about it?  Will anyone be up in arms (except me?).  No.  They’ll just say that it is a great business decision on their part for the non-profit credit union to attack a niche in the market. Bullshit. First, if you put no money down, you have costs to sell the place.  Between brokerage commission, transfer taxes, title insurance, possible closing cost credit to buyer for a defect in the house, etc., you could be looking at upwards of $200,000 or 10% as a fee to leave.  And if you don’t have that...

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The 2016 Presidential Election Began Today

The 2016 Presidential Election Began Today

http://thehill.com/policy/national-security/260655-white-house-threatens-to-veto-bill-to-halt-syrian-refugees If you are a Democrat or Republican election freak, I am sure you’ve been waiting for the new, most divisive issue that can shape the election. Your wait is over. Simply put, the most highly coveted voters: Suburban Moderates are now siding one way or the other on this issue.  This is the national issue that will last and last and last.  It’s what privacy laws were to the last 15 years, the new separator is religion. There is so much money around the world that controls religion. It’s sick.  Now, they are the organizations that will be spending money to sway the votes. It could get crazy.  We could have friends turn against friends, family could turn against family. Or, it could unite under one solution or the other (not likely). So, enjoy the comedy that will come off of it. Conan, John Oliver, Keith Olberman in addition to FoxNows and PMSNBC.   Share this:TwitterFacebookGoogleTumblrLinkedInEmailPrintPocketRedditPinterestLike this:Like...

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-$1,188,103.00 Last 30 Days

-$1,188,103.00 Last 30 Days

Yes.  I do think I am the Bernie Saunders of the real estate/mortgage industry. For those new to my prose, I like to tell what I think, feel and see in the market based on a combination of gut and numbers. Sometimes the numbers talk to me and sometimes the brain just feels that something is going to happen. I just let it come out and I enjoy doing it that way. And now to today…….. I’ve seen the basic plateau of the market for about 9 months and now I see my first real proof that people have said, ENOUGH and real estate prices will begin to drop. Here is how it starts. This chart on a home on the Upper East Side of New York’s value decline. The example is a premier townhome. Because of the events of the last year or so beginning with the collapse of oil prices and the Chinese economic slide, we have seen the lessening of spending by those that have had...

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San Francisco, Jobs, Google, Housing, YIKES~!!!!

San Francisco, Jobs, Google, Housing, YIKES~!!!!

In what could be one of the largest game changing real estate deals in business history in the Bay Area, Google has been talking about a gazillion square feet at Hunter’s Point Shipyard in San Francisco. Yes, Google needs space but are they just trying to leverage their deal in Mountain View or can they take all the space they can get? Hopefully, the latter for economic development but the question again comes, where are you going to put everybody? There are many ideas, more opinions and no ironclad solution. It’s time to regionalize housing solutions and mass transit. The Bay Area is about as progressive an area as there is, but it’s time to get a definitive plan for the region. http://m.sf.curbed.com/archives/2015/06/15/google_in_talks_for_space_at_the_sf_shipyard_in_hunters_point.php?utm_campaign=issue-37742&utm_medium=email&utm_source=Curbed+SF Fred Glick Share this:TwitterFacebookGoogleTumblrLinkedInEmailPrintPocketRedditPinterestLike this:Like...

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August 1, 2015…a Day You Will Hate Forever

8/1/15 may become the worst day in the history of residential real estate and mortgage banking.  That is the day the new CFPB inspired Dodd-Frank disclosure rules come into effect. Because of them, the days of the 30 day close are over.  One tiny little move in fees and you wait, one little change of a closing sheet could cause a 3 day delay, you will have to wait much longer to even order an appraisal. By my calculations, not many people were desperately ripped off or hurt by the current system, but the CFPB felt different.  Did they just need to do something? Well, whatever, it’s not going to be delayed and it’s going to stay around for awhile so get used to it. Want to know more details?  Contact me and/or listen to this video.   Share this:TwitterFacebookGoogleTumblrLinkedInEmailPrintPocketRedditPinterestLike this:Like...

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FHA Self Employed Guidelines Beg You to Commit Fraud

FHA Self Employed Guidelines Beg You to Commit Fraud

Yes, it’s 2015 and you read that correctly. FHA has instituted a guideline for self employed borrowers that require that they give the lender the two years tax returns AND a profit and loss statement that is for YTD (year to date). That YTD statement on needs to be produced by the borrower from their own records.  It does not have to be reviewed, compiled or audited by the CPA of the company. FHA also asks for no back up, no QC and the safeguard that this is the correct income.  So, the self employed borrower can go into their accounting software and make sure the numbers match. Loan officers around the country will be telling these borrowers that the FHA guideline is requiring that their P and L be in line with the previous income.  This is reminiscent of the times when they used to tell borrowers how much they needed to qualify for a stated income loan. And, what about the people in retail that make it...

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