subprime mortgages: What caused the subprime meltdown? - 10/20/07 03:00 PM
After creating a market that allowed almost anyone to qualify for a loan the secondary market (mortgage investors) suddenly stopped buying loan types that didn't perform as predicted.
Investors also exercised their contractual right to force originators to buy back defaulting loans resulting in many loan originators going out of business.
Investors also stopped buying mortgage bonds with any marginal loans and raised the guidelines for almost every mortgage backed securities they buy.
Unable to sell the loans they originate many lenders were trapped with no buyers for their "product" - subprime loans.
While your originator may retain servicing as a separate profit center, … (0 comments)
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subprime mortgages: Government approves Bail out for Subprime ARM morgage holders with FHA Secure - 09/21/07 09:57 PM
Looks like relief has arrived for many subprime ARM mortgage holders! Here are some details and remember FHA remains a full doc loan program. See my seperate blog on FHA lending guidelines.
Greg Zaccagni @ http://www.mortgageadvisor.info
September 5, 2007
SUBJECT: The FHASecure Initiative and Guidance on Appraisal Practices in Declining Markets
The Federal Housing Administration is pleased to announce an initiative that will enable homeowners to refinance various types of adjustable rate mortgages (ARMs) that have recently "reset." This mortgagee letter describes how lenders and homeowners may refinance mortgages that, due to the increased mortgage payment following the reset, … (3 comments)
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