Thursday, August 2, 2007

 

Times are a changing .........

Times are a changing in the mortgage biz.

Just this week, Bloomberg news reported that American Home Mortgage can no longer fund loans. In addition, Inman News reported that IndyMac Bank was forced to repurchase 443 million in loans and earnings plummeted 57%. These are two heavyweights! The ripple effect is being felt in the wholesale market this week with a bulls eye on the home equity market and limited documentation programs being hit the hardest.

Many very, very large investors have pulled out of the second mortgage / home equity market entirely. Other top ten wholesalers have stopped funding stated income, limited doc and especially no doc loans. Pay Option Arms could be the next to vanish. 100% financing guidelines have tightened like a snake. Certainly damaged credit loans have led this debacle but I feel we are simply at the top of a very steep hill and the train is gaining steam. Get prepared!!!

If at any time in the last few months you have been contemplating refinancing, getting cash, paying off bills or purchasing a home using any of the programs mentioned above - review your options now! Programs are changing daily. When pricing a loan these days, my focus on many scenarios is no longer just on locating my clients the best rate, it is simply to find my client a loan.

The best website available to view mortgage industry happenings is linked below - see for yourself and get prepared for some rough times ahead ----

http://www.mortgageimplode.com/

Call me with any home financing related questions. I am here to help.

Lewis Poretz lewis@openmortgage.com
President
Open Mortgage 877-345-OPEN

posted by Lewis Poretz  # 8/02/2007 07:57:00 AM

 

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