Hello Rainers...
I thought for all of you out there I would post this for your information.
For the REALTORS out there, I don't know how much you may be keeping up with all that is going on in not only the subprime mortgage industry but also with the conforming lenders... There is a huge shakeup going on across the board and it will not only affect us in the mortgage industry but it will also affect how REALTORS are able to business too.
Not wanting to be a pessimist, but rather a realist...It sounds like things are going to be shaky for awhile until all the dust settles...
From what I am hearing right now....many lenders have pulled their 100% financing programs, they have pulled their Stated income programs, they are limiting the Loan To Value to 90 - 95%, they are cutting back on the allowable Debt To Income Ratio, Interest rates for any type of "higher risk loan" are going to be way higher than they ever were before, basically, anyone with a credit score below the 600's are not going to be getting very good rates at all.......etc...etc... to top all of this off... again from what I am hearing...that home values are predicted to drop again... although I have no verifiable information on this yet..(maybe someone can pipe in on this) There will still be the 100% loans (with good rates) from Fannie Mae and FHA but the Debt To Income Ratio is capped at about 43%.
Anyway, there is a website that is tracking all the current lender closings and any other problems they are having...it is very interesting info and it is updated just about every day with anything that is currently happening. I highly suggest that REALTORS and other mortgage professionals alike read through it and update yourselves on these happenings... mortgage brokers, you may find of your favorite lenders on the "defunct" list soon..
link---> http://ml-implode.com/ (copy and paste this into your browser since I haven't figured out how to put in an active link yet)
Kevin
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It sounds like we are soon going to be back to the days where you had to have cash AND good credit to get a home. Good for the land-lords - tough on some of our lower credit scoring, pay-check to pay-check clients. The next few months should be very interesting. I attended a Countrywide seminar yesterday. By the end of the year they are forecasting that ten companies will hold 80% of the sub-prime market. I just hope those ten companies are able to continue serving the hard working borrowers who need them most.