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More sub-prime woas...

By Chuck Christensen

Mortgage and Lending with Your Financial Coach

August 04, 2007 05:07 PM

On Friday, American Home Mortgage closed thier doors. The continued problems with sub-prime lenders continue. What does this men....

Some of you probable remember the S & L problems back in the late 80's. If your too young..ask someone who was their, and who saw their taxes raised to help bail out the S & Ls that over extended themselves in the hopes of great gains. Do we see the same trend coming again...let me know if you think home lending is going to get better or worse.

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Lynda Eisenmann

Preferred Home Brokers - Brea, CA

Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Hi Chuck,

IMHO, worse before it gets better, more loans to re-set in 2008. And yes, I was one of those around myself in the late 80's. I'm not one of doom and gloom, yet I think we're going to be in this for a while.

Aug 04, 2007 05:26 PM

DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Right now it looks pretty bad. Many sub-prime lenders went under and now some the Alt-A lenders are going under too. As you said, American Home Mortgage, an Alt-A, closed its doors. Other Alt-A's, like Indy Mac are tightening its underwriting criteria. Home lending probably will get even worse before it gets better. And I believe the slide will have an impact on the entire economy, which is not immune to the housing market.

Aug 04, 2007 05:33 PM

Brian Esquivel - AZ Home Mortgage

Arizona Home Mortgage - Scottsdale, AZ

I agree with Derrick and Lynda. I think we are in for a long haul on the lending side. Bear Sterns is another example of what's going on with AHM. I also heard the 100% loan might be history.

Aug 04, 2007 07:05 PM

James Gordon

Sibcy Cline Realtors® - Cincinnati, OH

REALTOR, PBD SFR SRS

I don't know if we will see a return of the Resolution Trust but it is getting scary with the projections.

Aug 04, 2007 10:22 PM

Jim Crawford

Long & Foster - Fredericksburg, VA

Jim Crawford Broker Associate Fredericksburg VA

It is going to get a lot worse. This current debacle is going to make the last crisis look like a picnic.

Aug 05, 2007 01:23 AM

Leo Namiot - LeoLends.com

Canopy Mortgage - Leo Namiot - Saint Augustine, FL

More than just great rates

AHM closed it's doors quickly.... The bad news started to leak and almost immediately the funding stopped. I worked for AHM for over 3 years and they were a great company, too bad to see them close shop.

Aug 05, 2007 02:20 AM