Lendisphere

……  it couldn’t last forever.

The January minutes of the Federal Open Market Committee’s meeting are out, and it looks pretty clear that the ultra-low interest rate party is going the way of a summer sunset.

According to the minutes, the Powers That Be are doing a little back-room brainstorming about how to unwind these pesky billions (wait, maybe it’s trillions by now — I lost count) of stimulus money.   One way to do that would be to put a big hunk of mortgage-backed securities up for sale — the very ones the Feds have been purchasing in droves to keep rates artificially low.

Like summer love, it was sooooo good while it lasted.

Vanilla.

Hope you like it.  Because it’s gonna be your only choice.

If the Administration gets its way, in the future when consumers go shopping for a home loan,  they will automatically get slotted into what is being called a “Plain Vanilla Home Loan.”  Or, as some people are calling them, “Government Approved Loans”.  Which sounds alot like “Government Approved School Lunches”.  And everybody knows not to eat the Salisbury Steak if it’s under a heat lamp and served by the ladies in clear plastic caps.

Bottom line: the government would give its seal of approval to certain specific types of mortgages, and if you happen to choose another type of loan product that  met your needs better,  you’d have to get a permission slip from your mother because it would be like walking across the street by yourself. 

And we don’t want that now, do we?

This is such an important video to watch from the boys at ThinkBigWorkSmall.  It’s about the slippery relationship between the FDIC and the banks – in this case specifically IndyMac.  Please watch it and forward it to everyone you know.  Now I understand why Americans, taking economic body blows right and left from this economy, can’t get a loan modification. 

To watch it,    CLICK HERE.

So now you know.   Confusion begone.