http://nathanhjones.com/2008/01/12/bank-of-america-buys-countrywide/ Just thinking outloud Sun, 23 Nov 2008 18:52:14 +0000 http://wordpress.org/?v=2.6.2 http://nathanhjones.com/2008/01/12/bank-of-america-buys-countrywide/#comment-12 rena Sun, 27 Jan 2008 13:41:13 +0000 http://nathanhjones.com/2008/01/12/bank-of-america-buys-countrywide/#comment-12 so whats interesting about this one is that i know a lot of the larger banks acquired smaller banks in order to "work around" some of the current mortgage limitations that the banks would have independently. for example, if a buyer wanted to get mortgage exceeding 417,000 in price - they would supceptable to the "jumbo-loan" category; due to this they split up the mortgage in first and second mortgage categories, but even more interestingly they, in essence, "outsource" the second mortage to their smaller aquired banks in order to avoid having their customers get hit with a PMI.... at least thats the way i understand it. i'm curious to see what impact - if it goes through - the stimulus package will have on the way deals are currently laid out now. (the stimulus package being discussed in congress is recommended an increase of the jumbo loan from 417 to a much higher amount (600 to 700) through the end of the year).... so whats interesting about this one is that i know a lot of the larger banks acquired smaller banks in order to “work around” some of the current mortgage limitations that the banks would have independently. for example, if a buyer wanted to get mortgage exceeding 417,000 in price - they would supceptable to the “jumbo-loan” category; due to this they split up the mortgage in first and second mortgage categories, but even more interestingly they, in essence, “outsource” the second mortage to their smaller aquired banks in order to avoid having their customers get hit with a PMI…. at least thats the way i understand it. i’m curious to see what impact - if it goes through - the stimulus package will have on the way deals are currently laid out now. (the stimulus package being discussed in congress is recommended an increase of the jumbo loan from 417 to a much higher amount (600 to 700) through the end of the year)….

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