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PSA: All major mortgage lenders are freaking out today
Quick PSA:
If you are in the middle of any sort of refi or purchase, I suggest talking to your source to make sure they locked your rate/program. The secondary market has pretty much frozen up and the lenders are freaking out. -Andrew |
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Re: PSA: All major mortgage lenders are freaking out today
Do you have any more info? Where is this coming from?
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Re: PSA: All major mortgage lenders are freaking out today
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Re: PSA: All major mortgage lenders are freaking out today
woah
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Re: PSA: All major mortgage lenders are freaking out today
greenpoint changed their base pricing on their HELOC's today from par (0 pts) to a 10 pt buydown. That means if you want to get a 100k heloc, it would cost you 10k. haha, crazy.
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Re: PSA: All major mortgage lenders are freaking out today
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Re: PSA: All major mortgage lenders are freaking out today
[ QUOTE ]
greenpoint changed their base pricing on their HELOC's today from par (0 pts) to a 10 pt buydown. That means if you want to get a 100k heloc, it would cost you 10k. haha, crazy. [/ QUOTE ] that's not what it means... it means you'll have to pay 1% in fees or rate... not 10% in fees. Things are still OK with several lenders including Wells, Citi, WM, and B of A. The companies that are hurting are the ones that were doing a lot of speculative lending in the secondary market, sub-prime, and no money down low-doc transactions. |
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Re: PSA: All major mortgage lenders are freaking out today
So is this why the entire market is flipping out lately?
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Re: PSA: All major mortgage lenders are freaking out today
[ QUOTE ]
So is this why the entire market is flipping out lately? [/ QUOTE ] From what I understand the market is flipping out for two reasons. 1) Mortgage lenders are going to lose a lot of money if people can't pay their loans (seems easy enough to understand) 2) If these lenders lose too much on their mortgage issues, then they can't lend money to private equity firms buying stock with leverage. Though #1 really only hurts the banks (and those building new homes), #2 hurts the market as a whole. If banks stop issuing LBO firms loans, then deals such as the recent Chrysler purchase can't happen. I think there's also some concern that the whole sub-prime mess will spill over to the whole credit market, causing it to collapse. |
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