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02-11-2008, 11:47 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
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Lender Redlining
Whole ZIP codes defined as 'high risk' -- themorningcall.com
Critics call it the new redlining: Many of the country's largest mortgage lenders are imposing loan restrictions in entire counties or ZIP codes that they rank as risky or ''declining.''
Enter your zip code here:
ResCap Market Indicator Portal
My area is "low risk," but I hear WaMu just downgraded most of the Seattle area to "soft."
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Emancipated from wage-slavery since 2002
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02-12-2008, 08:23 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 1,543
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they aren't refusing to lend, they are just requiring higher downpayments
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02-12-2008, 08:51 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jan 2007
Location: Silicon Valley
Posts: 1,812
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Hmm my neighbourhood in San Diego scores a D which only surprises me because I thought it would be lower.
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I be a girl, he's a boy. Think I maybe FIRED since July 08. Mid 40s, no kidlets. Actually am totally clueless as to what is going on with DH.
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02-12-2008, 09:43 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 2,020
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Can anyone show some zip codes that aren't Ds?
We've tried several and they've all come back as grade D
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02-12-2008, 09:57 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 49,327
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Quote:
Originally Posted by Marquette
Can anyone show some zip codes that aren't Ds?
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67215
87115
78209
__________________
Numbers is hard
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02-12-2008, 10:02 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 2,020
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Thanks.
Oh, and 90210 is a D
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02-12-2008, 10:11 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Mine was a C.
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"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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02-12-2008, 10:28 AM
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#8
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Recycles dryer sheets
Join Date: Oct 2007
Location: Sugar Land
Posts: 265
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I didn't get a letter grade I got:
Grade for the property in ZIP Code xxxxx is Low Risk
(I guess they don't know about the chiggers, cockroaches, rattlesnakes, hurricanes, ...)
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Life is a Holiday!
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02-12-2008, 10:34 AM
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#9
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 46,622
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Oh, goodie.
My zip code (which is one of the more affluent and stable in the New Orleans metro area) ranks a "C", elevated risk.
Maybe it's a good thing that I owe nothing to anyone and never intend to borrow again! But I suppose it will still affect my insurance costs.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
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02-12-2008, 10:39 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Sep 2005
Posts: 1,677
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Mine was a C in northern MA
__________________
Dogs aren't our whole lives, but they make our lives whole. - Roger Caras
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02-12-2008, 10:53 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 1,543
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mine is a C, but here in NYC to buy a coop you need at least 10% to 20% down anyway so it's not that big a deal
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02-12-2008, 10:56 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Low risk here in the great void between Miami and Northern Virginia/DC.
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02-12-2008, 10:57 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
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KC Zips
Every zip code in KC is a C even if it is great or has a two by four across the door.
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02-12-2008, 11:10 AM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 12,623
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Looks like the lenders are between the proverbial rock and a hard place. By requiring higher down payments in some areas, they are referred to as "punishing" or "penalizing" home owners and prospective buyers. But if they continue to give loans with very low down payments they're considered capricious and not good fiduciaries of depositors' money.
I find it hard to consider the requirement for a 20% downpayment in an area considered ripe for huge drops in value to be "punishment." Sounds more like reasonable business sense.
BTW, I entered a few suburban Chicago zips and all came up C.
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"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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02-12-2008, 11:14 AM
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#15
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Thinks s/he gets paid by the post
Join Date: Mar 2007
Location: Nebraska
Posts: 1,541
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The Grade for the property in ZIP Code XXXXX is Low Risk
as of February 12, 2008 11:12:00 AM CST
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02-12-2008, 11:19 AM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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FWIW, a lot of this is being driven by Fannie, Freddie and the mortgage insurers. Most big lenders don't keep the loans they make, so they have to be able to sell them to someone. They used to do this via securitization, but until this market reopens Fannie and Freddie are pretty much the only game in town. So when Fannie & Freddie start pulling back on low downpayment loans, everyone else follows suit. And since the availability of high CLTV piggyback loans is pretty much gone, the only way to do a low downpayment loan is with mortgage insurance. The mortgage insurers are now in control much more than they were, so they are raising prices and becoming ore discriminating in their underwriting, because they can.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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02-12-2008, 11:20 AM
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#17
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Full time employment: Posting here.
Join Date: Sep 2006
Location: Pocono Mtns.
Posts: 899
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Low risk in my neighborhood too.
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02-12-2008, 11:26 AM
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#18
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Recycles dryer sheets
Join Date: Jan 2006
Posts: 362
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Low risk also.
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Fat, drunk, and stupid is no way to go through life, son.
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02-12-2008, 11:38 AM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by poboy
Low risk also.
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I put in the zip south of mine. It varies from expensive lakeside homes to beater bad dope dens closer to town.
Rated "low risk" anyway.
I believe these ratings must be backward looking. If prices start coming off, more of these areas likely will be higher risk.
Ha
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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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02-12-2008, 01:01 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Location: west bloomfield MI
Posts: 2,222
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Quote:
Originally Posted by Marquette
Can anyone show some zip codes that aren't Ds?
We've tried several and they've all come back as grade D
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45150 (C)
14450 (low risk)
45140 (C)
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Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
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