The GSE declining markets policy will have the affect of tightening the supply of subprime mortgages. It will also probably lead to more foreclosures, though, as it will become harder to get out of your mortgage. Research indicates that foreclosures on subprime loans are most (more…)

Starting June 1st, the GSEs plan to begin redlining. Seriously. The way it works is that the GSEs will implement a sliding scale of maximum loan-to-value (LTV) ratios for loans that they buy. If your home is in a “declining market,” then the maximum LTV for your loan product, given other influencing factors (property type, loan type, et al) will be reduced by five percentage points.

It is called the “Maximum Financing in Declining Markets” policy.

Redlining is when lenders don’t make loans available to borrowers in certain neighborhoods. (more…)

In the past week, voters have had the opportunity to see the Democratic candidates for president pandering to the blue-collar vote. Hillary chased her shot of whiskey with a beer, and Obama threw a few frames.  Provided that you are satisfied with symbolism, then this establishes their bona fides.  But what if you want more?  What if you’d actually like to hear the voices of working class people, and not just the ones who still have $20 an hour jobs.

If one had gone further to seek out actual neighborhoods full of just such a group — working class voters? A mobile home park, perhaps in a county stricken by the migration of jobs to textile mills in other countries, would have been an excellent place to visit.

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As many as 35 families will be forced out of their homes in Ninth Street Trailer Park in Wenatchee, Washington on June 1st.

Without alternative sites to host their homes, the residents will most likely be forced to abandon their homes.

The park is located on the western banks of the Wenatchee River.   Chelan County is home to 170,000 acres of apple orchards.

The story is hardly novel.  Its details could be evoked in scores of communities across the (more…)

We have to admit that over here at MHR, we were scratching our heads when we first heard about the appointment of Steve Preston to lead HUD. Here we are, in the midst of a mortgage crisis. We have a new leader at HUD who has experience with Merry Maids and Chem-Lawn, right?

After some research, though, it turns out that maybe he is not such a bad choice after all.

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