The trickle up effect of the sub-prime mortgage meltdown.

Being in the Real Estate Industry, mortgage specifically, I have heard a plethora of theories on what is going to happen to the mortgage market this year.  If the subprime market fiasco is but merely a market correction as some of the mortgage industry experts are saying, I believe we have little to fear.  I am of the school that we have plenty of loan products in the market today to fill any void that may be created by the loss of "niche" sub-prime and Alt-A lenders.  FHA is in the process of deregulation.  Fannie Mae has the My Community program that has been modified by most of the "big" banks that will fill a lot of the voids created by the implosion of sub-prime lending.

The main cause of the problem in the sub-prime and Alt-A markets is the lack on interest by investors for "second" mortgages.  With the number of foreclosures rising throughout the US, the investors that had, in the past, purchased these risky loans and are not buying them anymore. They have been burned, and not received the reward on these loans the house sold for 30,000 less than the purchase price after a foreclosure.  The risk was there, they knew it when they bought the loan on the secondary market, I don't feel sorry for them, the investors made a killing on these types of loans for a couple of years, and now that the bottom fell out, I am pretty sure they ended up ahead for the most part. 

 More to come...

 
This post has been included in Utah Information Utah County, UT Information

1 Comments on The trickle up effect of the sub-prime mortgage meltdown.

I have a post about this on my blog I've been using, prior to this one. According the MSN Money, the sub-prime market is going to be almost non-existent, due to a major tightening of the reigns by the banks. I just started blogging here, so I'm not sure of the acceptable protocol, so let me know if you want to see my other blog article. It has a LOT of information on this topic!

04/11/2007 07:49 PM by Lisa Hill (Daytona Beach REALTORĀ®) (Adams Cameron and Company)


Leave a response…

Name:
Notify me of new comments:
Comment:
What does the graphic say?
 
Loan Officer: David Doerr (David Doerr)
David Doerr
Provo, UT
More about me…
David Doerr

Office Phone: (801) 373-4700 Ext.: 35
Cell Phone: (801) 362-2990
Email Me

Utah Mortgage, Utah Home Loans, Utah County Home Loans, Provo Home Loans, American Fork Home Loans, Cedar Hills Home Loans, Utah Home Loans, Saratoga Springs Home Loans, Orem Home Loans, Spanish Fork Home Loans, Payson Home Loans

Opinions expressed on this blog are those of the authors and do not necessarily reflect the positions of David Doerr. Links on this blog to articles do not necessarily imply agreement by David Doerr with the contents of the articles. Links and posts are provided to foster discussion of important issues. Readers should make their own evaluations.

National Association of Mortgage Brokers Photo Sharing and Video Hosting at Photobucket"

Map IP Address
Powered byIP2Location.com


Links

Tags (Tag Cloud)

Archives

RSS 2.0 Feed for this blog
ATOM 1.0 Feed for this blog

Find UT real estate agents and Provo real estate here on ActiveRain.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
© 2007 ActiveRain Corp. All Rights Reserved