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#11
08-06-2007, 03:06 AM
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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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#12
08-06-2007, 05:48 AM
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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 ] Spreads in credit have blown wide open. You can only sell on /secure the debt at the moment if it has a very high yield as the perception of the risk attached to nearly all debt has gone through the roof. This effectively means that credit has become much more expensive and it will be much harder for credit companies to offer "cheap" products. Coupled with rising base rate interest and you dont have a rosy picture for credit markets.
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#13
08-06-2007, 08:57 AM
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Re: PSA: All major mortgage lenders are freaking out today
The worst hasn't hit the fan yet.......
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#14
08-06-2007, 02:49 PM
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Re: PSA: All major mortgage lenders are freaking out today
[ QUOTE ]
[ 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. [/ QUOTE ] BB, It's exactly what it means. I price loans every single day, i know what 10pt cost means. I know you only have one rate sheet to work from, but I deal w/ several. They have effectively pulled out of the equity market. BTW, Wells no longer has Alt-A. WaMu will be announcing later today that they no longer will be offering Alt-A and Equity to all but their top tier brokers. I'm not sure if this will filter down to you retail guys or not. BofA has yet to change anything, but I'm sure it's coming soon.
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#15
08-06-2007, 04:02 PM
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Re: PSA: All major mortgage lenders are freaking out today
Soss et al,
National City Home Equity just announced it's suspending all new loan applications. [img]/images/graemlins/crazy.gif[/img] [img]/images/graemlins/blush.gif[/img]
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#16
08-06-2007, 04:29 PM
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Re: PSA: All major mortgage lenders are freaking out today
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Soss et al, National City Home Equity just announced it's suspending all new loan applications. [img]/images/graemlins/crazy.gif[/img] [img]/images/graemlins/blush.gif[/img] [/ QUOTE ] yup...just got the email.
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#17
08-06-2007, 06:28 PM
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Re: PSA: All major mortgage lenders are freaking out today
Ignorant real estate newb question:
What does all this mean to a professional poker player (with a an employed wife) who is currently house hunting? Should I be moving fast to secure a loan or waiting?
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#18
08-06-2007, 07:42 PM
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Re: PSA: All major mortgage lenders are freaking out today
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Ignorant real estate newb question: What does all this mean to a professional poker player (with a an employed wife) who is currently house hunting? Should I be moving fast to secure a loan or waiting? [/ QUOTE ] Money down? Credit? How long have you been a pro? Do you claim your winnings on your taxes?
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#19
08-06-2007, 08:08 PM
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Re: PSA: All major mortgage lenders are freaking out today
[ QUOTE ]
Money down? Credit? How long have you been a pro? Do you claim your winnings on your taxes? [/ QUOTE ] What about a more generic answer as well. 20% minimum Excellent credit Is the impact going to be real and immediate (to mortgage shoppers), or will someone who was going to get a decent loan / rates before, still likely to get a decent loan / rates?
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#20
08-06-2007, 08:34 PM
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Re: PSA: All major mortgage lenders are freaking out today
[ QUOTE ]
[ QUOTE ] Money down? Credit? How long have you been a pro? Do you claim your winnings on your taxes? [/ QUOTE ] What about a more generic answer as well. 20% minimum Excellent credit Is the impact going to be real and immediate (to mortgage shoppers), or will someone who was going to get a decent loan / rates before, still likely to get a decent loan / rates? [/ QUOTE ] it will be a lot harder to get close to the same terms as this time two weeks ago....if you can even still do it.
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