If the Economy Is So Strong, Why Are Consumer Stocks Tanking?

Re:If the Economy Is So Strong, Why Are Consumer Stocks Tank... by Loughla on Monday October 16, 2023 @04:29PM (#37906094)

The section about housing being an investment in your comment can't be stressed enough.

We were turned down for a mortgage at the first bank we tried because we refused to finance enough to improve the landscaping. The bank wanted to see what the ROI on the home was. We were buying a forever home. Increase in value is someone else's problem after I'm dead.

It was. Well. Fascinating.

[ Parent | on HN ]

Re:If the Economy Is So Strong, Why Are Consumer Stocks Tank... by lotsofpulp on Monday October 16, 2023 @04:55PM (#37906505)

This is in the USA? I have never heard of anything like that.

The bank would just be tasked with handling the paperwork (underwriting) of ensuring it is a conforming loan by getting an appraisal done and verifying your income/assets so they can get paid by the US government (fannie mae/freddie mac/ginnie mae/etc).

Not to mention that a lender does not get a piece of the collateral's sale price, so why would they care what improved landscaping would do to the price of the home if and when a homeowner wants to sell it?

Your scenario only makes sense if the lender was also getting a piece of the equity.

[ Parent | on HN ]

Re:If the Economy Is So Strong, Why Are Consumer Stocks Tank... by userinanother on Tuesday October 17, 2023 @01:44PM (#37918720)

That’s wacky, I’ve never heard of that in the USA. You mortgage is a commodity that is packaged and sold off within a month or 2. It just need to meet the checklist of requirements and it gets sold off as a CDO or some other financial instrument. The mortgage writer just needs to make sure you meet the checklist and don’t default while they do the transfer.

[ Parent | on HN ]