Here is the great link: http://ml-implode.com/
31 Lender Under - How Many More Can We Lose?
Same story when I come in to work everyday. One lender calls to tell me of three others shutting down for business or being bought out. He wants my to pilfer my pipeline. I usually give the same canned answer. "all of my loans are conforming. Thanks anyways".
The interesting thing to me is the effect this has on all of the advertising we hear about - as a lender I constantly get emails and calls regarding the current boom of adjustable rate mortgages setting to expire. You've all heard the ads.
A large amount of these buyers are subprime (not all). So what happens when this subprime buyer doesn't make his payment on time? The statistics say 10.1% of these loans are participants in mortgage lates. This buyer can no longer refinance his loan in most cases (investors don't like late payments).
I have seem adjustments increase mortgage payments by over $400.00 on numerous occasions. It is very difficult for homeowners to adjust and in many cases this leads to foreclosure.
To make things even more difficult, the value of homes is dropping in many areas of the US, also making it difficult to refinance with timely payments. We should all be thankful we live where we do. #2 city in the nation in home value appreciation (haven't you read today's Wenatchee World?).
I must say thanks to Fannie Mae and Freddie Mac for making my job a little easier. They seem more than willing to adapt their loan programs and make it easier for both the lender and the consumer - adding 40 year terms, interest only loans, etc.
Now I just need to figure out how to replace the 4 subprime lenders I lost from this list...
Comments(4)