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GOOD RIDDANCE TO 2007!
December 27th, 2007 4:40 PM

 

(The Number 8 Sign To Be Displayed New Years' in NYC)

 

Dear Friends,

Many of us in our profession are welcoming the end of 2007.

This year has created a chronic headache for everyone involved in the mortgage industry. The suffering and the loss of one's home created by recent events due to the mortgage mess, has devastated the trust and goodwill of many Americans. The consequences are now being felt by those seeking a loan.

Any person seeking a new mortgage for a purchase or refinance of a home has sustained an onslaught of further encroachment in one's ability to secure financing.

The sub prime mortgage mess has created an intense scrutiny of loan applications by underwriters.

This new reality has frustrated everyone from top to bottom by reenforcing measures which has brought about the 'credit crunch' where borrowers are obliged to go through a meat grinder in order to be approved for a loan.

As a mortgage broker, our company has been subjected to this recently as several borrowers with 800+ Fico scores were in essence 'approved' for a loan. Unfortunately, the 'approval' was meaningless as the loan conditions were substantial and unable to be provided under any rational circumstances.

On another occasion a few weeks ago, our office was compelled to submit a loan with excellent compensating factors to 5 seperate lenders in order to secure financing for a purchase. With 775 Fico scores & over $300k in reserves and 20% down, one of the lenders asked for over 19 loan conditions! This is the 'credit crunch' psyche that has permeated throughout. This behaviour must truly come to an end!

Nonetheless, this process will eventually cease once the outrage is demonstrated in the marketplace by no loan activity or when the 'scheduled' recession mentioned by many economists begins. We try not to be cynical, but in reality, it's all about money.

With that said, we still consider ourselves true optimists and hope 2008 will be a year of calm in the markets & of common sense decisions and actions in regards to mortgages.

We're glad to see 2007 go and let's ring in the New Year with our fingers crossed!

P.S. Our office will be closed on Monday, December 31st and Tuesday, January 1st, 2008. Our office will open promptly at 10AM on Wednesday, January 2nd.

Thanks Again

 


Posted in:General
Posted by Jesse Dorado on December 27th, 2007 4:40 PMPost a Comment

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