imploding mortgage industry: 50+ Wholesale Lenders Now Belly-up or Floundering - updated - list keeps on growing
- 03/05/07 06:33 PM
Realtors: be aware than pre-approval letters you may have received previously from mortgage brokers may not be worth the paper they're written on, as the wholesale lender who may have approved the scenario is likely no longer in business or tightening its guidelines. Prepare your buyers to have to come up with higher down payments, especially if their credit is shaky. The conventional wisdom is that the freefall we saw in wholesale mortgage stocks last week was isolated to subprime and would likely not reverberate throughout the capital markets. I think that assessment is wrong and this meltdown will have serious repercussions … (37 comments)
Realtors: be aware than pre-approval letters you may have received previously from mortgage brokers may not be worth the paper they're written on, as the wholesale lender who may have approved the scenario is likely no longer in business or tightening its guidelines. Prepare your buyers to have to come up with higher down payments, especially if their credit is shaky. The conventional wisdom is that the freefall we saw in wholesale mortgage stocks last week was isolated to subprime and would likely not reverberate throughout the capital markets. I think that assessment is wrong and this meltdown will have serious repercussions … (37 comments)
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