This has been a volitile weak in the mortgage business and for wall street bankers. This week we have witnessed a Paradym Shift that will affect the way we buy and sell houses for quite some time.  New rules regarding credit and loan to values are occuring as I write this blog. Stricter criteria in financing and what will no longer be acceptable have been put in place by the big boys FNMA and FHLMC.

We are going retro...back to the future. Liar loans, trust me financing, stated income stated assetts will be no more. We will need income verification, assett verification, Oh! Yes and good credit to buy a home. What a concept!

I have been in the Real Estate and Mortgage Lending for 30 Years. during this period  have been through several real estate slumps...the South West Plan of the 80's with the RTC was a Jewel! 

It would appear that those that do not study history are apt to repeat it. In this case that isn't good.

We have a National Hangover in Housing occuring as a result of the stupidity of Private Bankers, Hedge Funds and the overall greed of the participants on the local levels.

If you are looking to purchase a home in the near future or are currently under contract it would be to your benefit to validate with your lender that the program you chose is in fact still available. This is a nationwide issue.  

Make it a Good Day.

Drmoney