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Mon, December 31, 2012 12:00 pm CST

TECHNOLOGY PREDICTIONS FOR 2013: Progress In Lending’s BOD’s


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Here is my contribution to this week’s program.

(transcript from http://www.blogtalkradio.com/lykken-on-lending/2012/12/31/weekly-mortgage-housing-market-update )

Hi this is Bill Coppedge from MortgageNewsClips.com and Fay Financial. I want to share with the 4 most important mortgage news items I found in the past week. 

4. The primary secondary mortgage spread. I have an anonymous poster on my blog and he pointed this out. The Federal Reserve has been unhappy that mortgage bankers are making too much money by selling mortgage-backed securities at prices prices way over par. Guess who’s buying $40 billion a month of mortgage-backed securities at prices way over par? The fed. So the Fed is complaining about high prices yet they’re paying high prices driving the market. That makes no sense to me.    

3. Will the CFPB kill warehouse lending? The CFPB is proposing that lenders be held liable for the actions of their vendors and customers. A warehouse lender can be dealing with hundreds of mortgage brokers, correspondents, and servicers. Does this mean that they have to monitor these hundreds of counterparties of counterparties? We could see a lot of warehouse lenders exit the business over this. 

2. Repurchase demands by the FHA? Repurchase demands have been mortgage bankers worst nightmare. They have suffered huge losses with Fannie Mae and Freddie Mac over repurchases. So far FHA has been quiet about this but it seems like FHA might be waking up and the newest headache for mortgage bankers will be FHA repurchase demands.  

1. Financial Repression. I want to share with you the single most important thing that I learned in all of 2012. Financial Repression is being practiced by governments all around the world including the United States. It is a huge threat to your net worth and life savings. Financial Repression is the reason that mortgage rates are so low.

Financial repression is in effect an invisible tax that is sucking $500 billion a year of purchasing power and savings out of our economy, to the government’s benefit. People don’t even know this is happening to them.

I have a special post that I made about Financial Repression and you need to read it. The post has 6 articles that fully explain how Financial Repression works.


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