Posted by Ed Garcia on March 19, 2006 at 17:36:52:
Robert,
You?re getting spamed from Mortgage Brokers.
Rates can go to 20% and 20 points just like in the 80?s and Mortgage Brokers will still spam you, it?s a new era and a cheap way of advertisement Robert, I?m sure you know that.
Yes, I?m seeing changes that I expected. Not in the underwriting but in business development which is where it first starts. Sales are not as lacerative ?meaning not as many new escrows are opening on purchases as in the past? and re-writes are down as well.
Underwriting criteria will not be effected until REO?s get out of hand to which I don?t expect for a while.
You want my opinion so here it is.
Mortgage Fraud is being committed on a daily basis and is at an all time high. I expect rates to be on the increase and Mortgage Brokers who are on every street corner will thin out and only the strong will survive.
I?m sorry to say that the mortgage business is being perpetuated by greed and will hang in there as long as it can however many professional Mortgage Brokers are getting tired of the new brokers who a year ago couldn?t spell LOANS and are now doing them.
Prices have not drop as much as I have anticipated however there is no question there is an inventory build-up, so it?s just a matter of time.
Enough said, as you know I?m not one for spreading gloom and doom and I don?t want to start now. I approach thing with a problem solver attitude and in my world the market is irrelevant.
If the stock market busts and Real-estate goes down the tubes on Monday morning March 20th. On Tuesday morning March 21st it will be business as usual. That?s just the way it is,
Posted by Dale-Ohio on March 18, 2006 at 15:44:12:
It seems To be Harder and harder to find Financing. I have to go Stated income. Credit scores are in the 700’s. But as soon as i say Stated income on a Non owner occupied. I am very limited on what i can Re-finance or Purchase. A lot of banks are changing there criteria. What is everyone else doing??? I can still find the Financing but its getting slim. The way its going, in a few years they wont touch anyone with stated income. Thanks
I think lenders are starting to realize that they need to go back to the basics and start using common sense.
We should start seeing the end of this 100% financing that is causing so many foreclosures. It’s too easy to get a loan.
Why would you loan money to someone at 100% of the appraised value on a non-owner occupied property? I know I wouldnt. And on top of that they are just stating their income? No real proof of income?
In my opinion the situation now is like the 80’s in the stock market. Corporate raiders taking advantage of a system with too many loopholes. Lots of investors are doing so well today because it so easy to sell! Buyers coming in with 100% financing all day is making it a bonanza.
100% financing is not a good idea. Stricter underwriting guidelines are required. 20% down used to be the standard. It needs to go back to that.
Foreclosures will go WAY down, along with mortgage fraud.
Same here. Seems like the lenders started tightening in Jan. Our no-title-seasoning straight refi (not even cash out) took more than a month to close. It would have closed in two weeks last year or just 4 months ago.
Other investors are experiencing the same. Their (homeowner) buyers are having the same problem so they are having a hard time to close their deals.
Our title company said that the lenders are scrutinizing esp. flip deals, requiring additional documents.
I guess more investors will have to turn to private money.
If there was no more 100% financing - and lenders required a 20% down payment - do you have any idea what this would do to aggregate demand for housing?
I’m in the middle of one as we speak. Selling to a first time home buyer. Home came in on appraisel at 117k selling for 75k… bank is asking for a circus act… (jump through the hoops)Had to go back in and replace ouitlet covers because of mismathed colors in the garage !! If we wasn’t so close to closing the deal I’d tell im to shove it !!
Hi Robert, in my experience and I have gotten many loans this past year of all kinds depending on the situation, is that HELOC’s have been changing. Wachovia for example changed the calculation on the DTI ratio and lowered the stated income amounts gradually down to $100K max loan regardless of the CLTV. It used to be $150K. The interest only payment is now calculated at 1.5% of the outstanding balance which increases the ratio. It has a stoploss effect. When asked, I was told that the Feds had something to do with tighter guidlines as well. The time involved has increased. I just got one from Citi and it took 2 months of underwriting as opposed to 2 weeks with a 90% CLTV. However, it was worth the wait. Overall, this may be a good thing. Back when money was almost free, if you could breath, you got a loan. Consequently, a lot of people are going to stop breathing as the cost of money increases. A good lesson in CPR will help the economic landing.
Re: Let’s hear from you mortgage brokers … - Posted by Rob Ricker
Posted by Rob Ricker on March 19, 2006 at 01:19:45:
I haven’t noticed a big change from 6 months ago myself. 100%, no doc, stated, etc. is just as easy to obtain now as ever. Loan guidelines are exactly the same in most cases. I think what many are seing is closer examining of flips & seasoning issues, which my lenders have been doing for quite a while anyway.