You know it’s a tough market when Bernanke can’t refinance
October 3, 2014 Last updated: Friday, October 3, 2014, 11:31 AM
The Record
Bloomberg News
Ben S. Bernanke said the mortgage market is so tight that even he is having a hard time refinancing his own home loan.
The former Federal Reserve chairman, speaking at a conference in Chicago yesterday, told moderator Mark Zandi of Moody’s Analytics Inc. – “just between the two of us” – that “I recently tried to refinance my mortgage and I was unsuccessful in doing so.”
When the audience laughed, Bernanke said, “I’m not making that up.”
“I think it’s entirely possible” that lenders “may have gone a little bit too far on mortgage credit conditions,” he said.
Bernanke, addressing a conference of the National Investment Center for Seniors Housing and Care in Chicago yesterday, said that the first-time home buyer market is “not what it should be” as the economy in general strengthens.
“The housing area is one area where regulation has not yet got it right,” Bernanke said. “I think the tightness of mortgage credit, lending is still probably excessive.”
Bernanke already has refinanced twice. When the former Fed chair and his wife Anna bought their Capitol Hill rowhouse in May 2004, they took out two loans, according to Washington, D.C., land records.
– See more at: https://www.northjersey.com/news/business/you-know-it-s-a-tough-market-when-bernanke-can-t-refinance-1.1102102#sthash.A5iff3q8.dpuf
He should have applied for a taxpayer subsidized PFRS mortgage at 3.68% from the NJ pension plan… oh, wait…
No he can’t and you can’t either. To bad.
Taxpayers don’t subsidize those mortgages #1 try to get your facts correct before you make false and misleading statements.
You right #3 . He just a disgruntled tax pay who took a wrong job path. They are probably a little short in other areas also
And this guy was the head of the Fed? No wonder this country is in such bad shape.
My facts are straight #3. The NJ public workers pension plan is supposed to earn 7.95% a year. Taxpayers make up any difference between actual plan returns and the 7.95% if performance falls short in any given year. But the plan lends out over $880 million just to PFRS members at 30 year fixed mortgage rates well below the going bank rate for comparable mortgages, and at 3.68%, well below the pension plan’s 7.95% assumed rate of return. So yes, in actuality, taxpayers are subsidizing that giveaway to #3, #4 and all of their former colleagues. I may a disgruntled “tax pay”, but why aren’t you also a disgruntled “tax pay” about this taxpayer giveaway? And why is that you guys get so squirrelly about this when the light shines on your union efforts to bleed taxpayers even more ? Could it be that you both have taxpayer subsidized mortgages from the PFRS? Shouldn’t you be thanking us?
Ranting of a angry person. Seek some help for all the bottled up anger. Must nor be fun for your family and friends.
#6 Keep Clam and Love Thy Self. That would be a start for you.
WRONG again #6
Banks make the loans to the pension members, NOT the Pension system, just like the Veterans Administration the Police and Fire Pension system guarantees the loans and the failure rate has been less than 2% and has cost the taxpayer ZERO.
See the links below
https://www.state.nj.us/treasury/pensions/epbam/additional/pfrsmort.htm
Pay particular attention to the last point made at the first link which says “These mortgages are available through area lenders that participate in the program.”
https://www.state.nj.us/dca/hmfa/
Stop lying #6 this is the second lie you have been trying to pass off as the truth.
So NO, the fact is taxpayers are NOT subsidizing anything to #3, #4 or all of their former colleagues.
You clearly are a disgruntled “tax payer”, and we both know your lying about this fake taxpayer giveaway you have been complaining about. Have you no shame?
Here is another link for you to read and educate yourself #6
https://www.state.nj.us/dca/hmfa/media/download/buyer/hb_policefireretire_fs.pdf
The first paragraph says
“This program, which can be used for new mortgages or refinances, is administered through private lenders who have the necessary information to answer questions on the program.
PLEASE CONTACT LENDERS FOR PROGRAM INFORMATION.
I think an apology to all the Police and Firefighters is in order #6!!
Please #6, tell me again about how you have your facts straight……
you boys like your taxes ? wow.
The facts are facts, the current 3.53% rate is substantially lower at over a half a percent less than the current bankrate.com quote of 4.07% for Bergen County – even if it is offered through private lenders. Did you misunderstand the point about NJ Public Pension Plan assets having an assumed rate of return of 7.95%? How does $880mn to a select few at 3.53% help the state’s pension plan achieve that 7.95% rate of return ? Taxpayers make up the difference.
The crazy pension hogs are back
Private lenders are NOT using any assets from the Police and Fire Pension system, Period. The private Banks are lending their money not pension funds
STOP LYING!
Wow, what a sleight of hand again from the pensionistas ! The plan is “administered through private lenders”… but it’s $890 million in NJ Public Pension plan assets (as of June) that fund these mortgages ! It’s right here on page 7: https://www.nj.gov/treasury/doinvest/pdf/DirectorsReport/2014/June2014.pdf Notice the difference in returns for the “Total Pension Fund” and “Total Pension Fund ex Police and Fire Mortgages”… a 15bps difference alone FYTD and 10bps a year for the past three years. As you know from the power of compounding, that adds up over time to a very generous taxpayer subsidy ! But keep defending your greed.
#15, it says right on page 2 of this link (source: https://www.nj.gov/treasury/doinvest/pdf/DirectorsReport/2014/June2014.pdf) that the NJ Pension Plan has $890 million of assets in the Police and Fire Mortgage program, currently charging 3.53% vs 4.07% for the rest of us for an equivalent 30 year fixed mortgage. The Plan’s returns differ and are lower when you include the Police & Fire mortgage assets (see bottom of page 7). Who’s lying now ?
You are lying now. that amount is invested to guarantee the mortgage loans not actual mortgage loans dufus!
Looks to me like in the first chart the PFRS mortgage program is 1.10% of the total investments. Clearly not a significant amount in the entire picture.
So what explains the difference in returns then ? 10 bps of $80 billion is $80mn a year in investment opportunity loss for the state pension plan for each of the past three years because of this program. That’s $240 mn just in the past three years. That’s not a significant amount to you because it benefits you. But that’s municipal governments across the state cutting their annual budgets to the rest of us.
$890 million in loan guarantees ? Then how much is outstanding in PFRS mortgages “dufus” ? If you divide that amount by the max mortgage under the program, look how many mortgages you get from $890 mn and compare that to PFRS plan members. You might want to check your facts before shooting your mouth…
Interesting #19, so now that you’ve been caught lying, you have the chutzpah to say that $890 million is an “insignificant amount” ? That has cost taxpayers $80 million a year in lost potential returns on NJ ‘s public sector pension plan assets just the state struggles to close the pension funding gap. It’s only “insignificant” to you because you benefit from it. It disadvantages the rest of us who end up paying for this.
I’m a taxpayer, where can I apply for my 3.53% 30 year fixed PFRS mortgage that is half a percent better than any bank or mortgage lender is offering me ?
Get from one of your corporate friends #23
Lets do some math here, the DUFUS #22 claims that $890 million in NJ Public Pension plan assets. The median NJ home price is $281,400.00 (https://www.zillow.com/nj/home-values/) so if we take
$890,000,000.00 and divide that by the median house value, minus down payment of $40,000 for a mortgage of 241,000.00. we will see how many of these mortgages there supposedly are.
$890,000,000.00 divided by $241,000.00 = 3,692 mortgages
Now out of all of the active police and Firefighters, and there are currently 280,158,
see page 11 of this report -https://watchdog-newjersey.wpengine.netdna-cdn.com/files/2014/01/CSI-NJ-Pension-Study-2014.pdf
Your trying to tell me #13, 16 & 17 that only 3,692 of them took advantage of this so called great Pension deal? Not likely!
As I stated earlier that $890,000,000.00 is invested and used as a guarantee against the banks mortgages that are insured by the Police and Firefighters Pension System. GOT IT NOW DUFUS?
#22
FYI – I have only made two comments here, this comment and the following comment:
Looks to me like in the first chart the PFRS mortgage program is 1.10% of the total investments. Clearly not a significant amount in the entire picture.
So tell me where did I lie?
And while we are talking about lies you said
” It’s only “insignificant” to you because you benefit from it. It disadvantages the rest of us who end up paying for this.
Tell me how did or do I benefit from the PFRS Pension mortgage program? I have NEVER had a loan sponsored by the Pension System. Why do you make statements that are not true when you have no idea what or who your taking to?
I have to believe that at such a great % rate more than 3,692 members out of 280,158 eligible would have taken advantage of this deal. Sounds like what #25 is saying makes more sense than what #16 is saying.
The silence from our disgruntled taxpayer id deafening!
As usual you have nothing to add to the conversation other than your typical ‘cut and paste’ about ‘angry’ posters who do not agree with your twisted liberal union views.
Perhaps you should get off mommy’s couch and do something constructive…TROLL.
#21 said….
$890 million in loan guarantees ? Then how much is outstanding in PFRS mortgages “dufus” ? If you divide that amount by the max mortgage under the program, look how many mortgages you get from $890 mn and compare that to PFRS plan members. You might want to check your facts before shooting your mouth…
I did check my numbers #21, see post #25, now tell me who is shooting their mouth off again DUFUS?
#21 said……
$890 million in loan guarantees ? Then how much is outstanding in PFRS mortgages “dufus” ? If you divide that amount by the max mortgage under the program, look how many mortgages you get from $890 mn and compare that to PFRS plan members. You might want to check your facts before shooting your mouth…
Ok DUFUS I ran the numbers (check my post # 25) The numbers don’t lie and I provided documentation to support my numbers. So tell me now who is shooting their mouth off DUFUS?
Still angry I see. Try West Bergen Mental Health for your problem.I hear they have had great results with your type of anger.
The PFRS mortgage program was described in 2011 in a deposition to the Superior Court of NJ .
https://www.judiciary.state.nj.us/superior/nj_housing_mortg_finance_agency.pdf
“The PFRS statute permits PFRS pension funds to be invested in mortgage loans made to its active members”
The fact is that the NJ Pension plan has seen a 10 basis point PER YEAR cost here. The performance of the fund is 10bps better each of the past three years excluding the $890 million towards PFRS mortgages. That equates to $80 million a year, which is not an “insignificant amount”. That means the NJ Pension plan returns have been suboptimal, and when you are trying to close a pension underfunding gap of over $40 billion because of errant governors borrowing from the fund, you want the best performance possible to help close the gap. This mortgage program is costing the fund $80 million a year in potential returns. Given taxpayers make up the difference between plan returns and the 7.95% assumed rate of return, how do mortgages at 3.53% help meet those assumed returns ? They don’t. And as usual, the union thugs discredit (“ranting of an angry person”), twist facts (according to the PFRS’s own annual report, there were 40, 372 PFRS plan participants as of July 2013 (see page 15 here: https://dspace.njstatelib.org:8080/xmlui/bitstream/handle/10929/31458/2013pfrs.pdf?sequence=1&isAllowed=y ) which is nowhere near 280,158 eligible members (people die you know), and then try to change the subject.
Since you are well versed in the available programs its safe to assume you are a ‘regular’ there.
No #35 I was very concerned about your rants and anger and went on line to get you some help. They seem to fit the bill for you. Just try to help my fellow neighbor. Frankly If you don’t get some help you may start acting out.,or run for Village Council.
They weren’t my posts, I’m just observing you making your same foolish dumb-ass cut/paste comments whenever someone makes a post you don’t agree with, rather than making a counter-point.
Get it now douchbag?
There goes that anger. You must take deep breaths it helps. With all this anger you should watch you heart. Please calm down and reframe from using derogatory remarks it only shows you ignorance.
Peace and Love to my brother #37
May the Blessing of Rev.Al be with you.
Haha you really are clueless. (and can’t spell either) hahah troll!
Posts 33 and 34 prove that the dufus in post 31 was lying… the PFRS mortgage program is a special benefit for the few that leads to opportunity losses – currently running at $80 million per year – for the NJ public pension fund. Why don’t teachers get the same mortgage deal at 3.53% ? Or judges ? Or municipal employees ? Or all taxpayers ? Would be great to take a “special retirement” after 25 years with a full risk-free pension for life and subsidized healthcare, too. Sounds like #38 and #39 have done just, that and now lay around on their momma’s couch all day reliving the hippie days of their youth.
#37 need a few hugs.
I will pray for you and your family #37& 43.
Try this.
PRAYER for
ANGER
Praying is simply talking to God. He knows you. What matters is the atti
tude of your heart,
your honest, and your genuine approach to God.
Lord,
I know I get angry sometimes, sometimes very angry,
some people say that’s O.K. and some wi
ll say it is not. I
know that at times you became angry, but it seems your
anger was out of zeal for your Father and it was with
compassion. Lord teach us the difference between
righteous anger and selfish anger, which only serves
me. Teach me to use one w
isely and to control the other.
AMEN
So sayeth Rev. Al, praise the Lord
Can I get a witness!