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Credit Crunch

By
Mortgage and Lending with Capstone Mortgage, Inc.

There is a lot of speculation that the credit crunch is going to tighten further.  I'm already seeing it in the mortgage industry.  Credit scores are dropping.

People with good credit are beginning to be affected.  The credit companies are tightening their requirements in general.  The biggest problems I am seeing is that available balances on credit lines and credit cards are being reduced.

As the gap between available credit and outstanding balances close, scores are being adversely affected.  It is making it appear that borrowers are maxed out on their credit cards and lines of credit. It is not just the lower credit score customers being affected.  In some cases, people that have never missed a payment on anything are having their available credit limits slashed.  With the current rating systems in place by the credit reporting agencies this causes scores to drop.

It seems that we hear about all of the large companies at least having some form of government sponsored (our tax dollars) relief.  Many small companies are not so fortunate.  The credit lines they have depended on to operate their businesses are also being cut.  It is going to make it tougher and tougher for the small business owner to survive.

As all of you, I am painfully aware of the housing difficulties.  Falling home prices, restrictions on available loan programs and insecurities in the economy are all difficult situations.  I can only hope that some of our leaders recognize the impact the credit crunch is going to have on an already faltering market and address it aggressively.

http://www.dreamcatcherathome.com

Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

It won't loosen up until the new regime in in office.  They must be sure that the sitting President doesn't get any credit at all for anything good.

Dec 03, 2008 03:24 AM
Associate Broker Falmouth MA Cape Cod Heath Coker
https://teamcoker.robertpaul.com - Falmouth, MA
Heath Coker Berkshire Hathaway HS Robert Paul Prop

I don't think that rates can go anywhere but up after the coronation inauguration.

Dec 03, 2008 03:42 AM
Dan Chambless
Capstone Mortgage, Inc. - Hoover, AL

I agree completely

Dec 03, 2008 03:47 AM