Is this the start of a trend?
My inbox is full today - mostly with subprime lending news. Do to market conditions, lenders are starting to drop their 2 year adjustable programs and extending them to at least three years.
I have heard many different reasons. Lack of profit, lack of time to build equity, etc. Really it's simple. Why would a lender want a loan that can't be sold on the secondary market?
Here is the article:
http://blownmortgage.com/2007/07/16/option-one-eliminates-the-228-subprime-arm-loan/
This just shows one lender. I have a short list I could add to it as well.
Take a quick look and leave some comments. I really don't see how this could be a bad thing. After all, it is the interest of our clients that we focus on. Sure it's nice getting a new loan every two years from another refinance, but what value does this offer to a homeowner? I don't see any.
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