With all the negative press about the mortgage industry, it is hard to believe that some, if not most, of the available mortgage programs are experiencing a decline in rates. That is, a decline that is relative to where rates we 30,60, or even 90 days ago.
While some wholesale lenders are experiencing a liquidity issue, there is plenty of money that is available in general and this turmoil has created a "flight to quality" in terms of investors looking for a place to park funds. With that being said, those loans that have either the guarantee of the US government (in case of default) or have implied government backing have actually benefited from the mortgage mess. The beneficiaries of this mindset are those individuals that borrow using FHA or VA programs or who borrow within the FNMA or FHLMC conforming loan limit.
We, as an industry, will see many of the "easy money, nothing down" program simply disappear. The consumer and/or Realtor will be well served to keep up with or re-learn the FHA and VA programs. Familiarity with the "My Community Mortgage" program could help you with many first time borrowers that would have otherwise gone with a high LTV program.
Your local EXPERIENCED in state or local lender will be able to guide you through these turbulent times. If they can't be reached, contact me and I'll help. With many lenders joining the mortgage ranks since the boom of a few years ago, there are many that have never experienced an unstable market. Just be careful of who is supplying you the answers to the questions you may have. As we have seen in the mortgage business, the quality of product is equal to the quality of the vendor!
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