The Home Loan Industry is ever changing. Every lender is seeing changes being made. Some more drastically than others. Just in: Bank of America suspends all expanded criteria products until further notice. These products include but not limited to Stated Income/Stated Assets, Stated Income/Verified Assets, No Income/No asset, and 80/20. Is this a smart move, maybe. A tremendous amount of Self-Employed should be concerned. There's n o doubt these changes are just getting started, we have made a few of our own. While there are no innocent parties in the cause of this trend it's a shame some parties such as self employed borrowers may suffer. For now I can still offer some assurance to the self employed. But for how long? There was a rumor about a year ago Countrywide offices would be in selected BofA branches. Kind of like Starbucks in your local supermarket. Unless BofA steps down from mortgage origination not sure that this breaks any Federal Regulations. Food for thought: How about A Starbucks inside a Countrywide inside a Bank of America, inside a supermarket. What's next?
Starbucks - the ever present starbucks. Brian Brady had a great webcast today and we discussed these exact issues. Just understand that the market will be changing daily and it may be another 90 days or so before we really know where the market will settle.
The market will correct itself from this contraction. It just means longer times on market, smarter planning and agents should expect 14 day or even 30 closings in this market.
This too shall pass.
OK, I think we should start placing wagers on how many days we can go WITHOUT a company going out of business or a major policy change. I still love what I do, but I'm exhausted at the end of the day now just from trying to figure out an easy deal because the borrower fails to provide what I request, and then "poof"...program is gone!
Can't say it doesn't make life exciting......
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