For immediate release August 20, 2007
Local expert available to comment on mortgage market crisis
Dear Editor,
You're faced with the challenge of informing your readers about how the national credit crisis is going to affect them locally. I'm here to help.
I've worked in the mortgage industry for 8 years, and I've funded over 478 loans in my career - and I've seen this market hit many highs and survive some tough lows. Let me be your resource as you cover this rapidly changing market.
Here are some of the questions I know readers are considering, and I would be happy to lend my experience and expertise to help answer them:
What is the "meltdown" that I'm reading about in the headlines?
•¨ Sample Quote: "This refers to a culmination of factors that has led to massive tightening in credit standards among lenders. This tightening is due to an excessive number of mortgages that are both delinquent and in default. As a result of tighter credit standards and the devaluation of mortgage-backed securities, global investors are shying away from purchasing additional pools of loans, causing over 100 lenders to close and leaving many homebuyers and homeowners unable to locate financing alternatives."
Why should a home SELLER be concerned about this?
•¨ Sample Quote: "The pool of potential buyers will shrink as many find it difficult, if not impossible, to obtain mortgage financing. Experts have speculated that the number of potential buyers will contract anywhere from 15% to 30%. Sellers should also be aware that increased foreclosures can depress community values and result in a glut of local inventories, which could further drive down home prices."
Why should a home BUYER be concerned about this?
•¨ Sample Quote: "Buyers need to get pre-approved before entering the market. While there are a lot of great deals out there, getting credit is becoming tougher and tougher, and it's taking longer and longer to complete a transaction. What you qualify for today could change tomorrow in this volatile market."
What types of loans have been most impacted by credit tightening?
•¨ Sample Quote: "Subprime and Alt-A have suffered the greatest setback because these borrowers are at greater risk for defaulting. Subprime loans are those loans which have typically been taken by borrowers with poor credit. Alt-A type loans are for borrowers that typically have good or excellent credit but are unable or unwilling to provide documentation for income and/or assets."
What is the impact on the real estate market?
•¨ Sample Quote: "The National Association of Realtors estimates that home sales nationally will decline by nearly 13% in 2007. Median home prices nationally are projected to fall by 1.2% in 2007. According to the PMI Group, Inc., however, many local markets are experiencing price declines well in excess of that."
I look forward to hearing from you. My contact information is listed below.
Kindest regards,
Jay Oku
Jay Oku is affiliated with MortgageSource LLC, a Licensed Broker, HI Department of Real Estate. For more information, please call 808-393-0707.
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