Mortgage industry is tanking

[cougjunkie]

if any of you are self employed or for whatever reason have to go stated on your loans, i would highly recommend that if you are not happy with your rate or if you have an adjustable rate, that you refinance as soon as possible. Stated income loans imo will be gone within the next 12 months, also two of the biggest lenders in the country went belly up today Novastar mortgage and Aegis mtg corp. These are not strictly sub prime lenders either, Aegis is actually an A paper lender. Things are getting really bad.

Wells Fargos mortgage rates went up 2% as well.

[MikeWaters]

so if I want to refinance, it's worse today than last week?

[Jeff Lebowski]

Interesting. There is a guy in the mortgage industry in our ward. I found out yesterday that his office is shutting down.

I am guessing that there will be a fire sale on McMansions here in Utah soon, eh?

[BYU71]

Originally Posted by cougjunkie

if any of you are self employed or for whatever reason have to go stated on your loans, i would highly recommend that if you are not happy with your rate or if you have an adjustable rate, that you refinance as soon as possible. Stated income loans imo will be gone within the next 12 months, also two of the biggest lenders in the country went belly up today Novastar mortgage and Aegis mtg corp. These are not strictly sub prime lenders either, Aegis is actually an A paper lender. Things are getting really bad.

Wells Fargos mortgage rates went up 2% as well.

I am in great hopes all these mortgage companies that should go under, do go under. No S&L bail outs.

[8ballrollin]

Originally Posted by cougjunkie

if any of you are self employed or for whatever reason have to go stated on your loans, i would highly recommend that if you are not happy with your rate or if you have an adjustable rate, that you refinance as soon as possible. Stated income loans imo will be gone within the next 12 months, also two of the biggest lenders in the country went belly up today Novastar mortgage and Aegis mtg corp. These are not strictly sub prime lenders either, Aegis is actually an A paper lender. Things are getting really bad.

Wells Fargos mortgage rates went up 2% as well.

If this continues won’t there be considerable pressure by the end of the year for the Fed to start lowering rates? Not just for consumers, but if liquidity dries up it can also start to hurt business investment (capital expenditures, MNA etc.)

[cougjunkie]

2 more companies just downsized, option one and First Horizon. They both let go about 75% of there sales force.

I think that this does force the feds hand but in reality its not really interest rates that are the big problem rates are not great right now but they have been worse. The problem is criteria has gotten so much tighter. We are back to the days where you need a 20% down payment on your house.

No more stated 100% loans, no more no-doc loans, it is getting very very hard to get anyone approved.

[8ballrollin]

Originally Posted by cougjunkie

2 more companies just downsized, option one and First Horizon. They both let go about 75% of there sales force.

I think that this does force the feds hand but in reality its not really interest rates that are the big problem rates are not great right now but they have been worse. The problem is criteria has gotten so much tighter. We are back to the days where you need a 20% down payment on your house.

No more stated 100% loans, no more no-doc loans, it is getting very very hard to get anyone approved.

And how will this affect the refinance market, if at all?

[MikeWaters]

btw, I wasn't being sarcastic. I am actually thinking of refinancing.

[cougjunkie]

Originally Posted by MikeWaters

so if I want to refinance, it's worse today than last week?

yes it is, depending on your situation.

[hyrum]

Originally Posted by cougjunkie

No more stated 100% loans, no more no-doc loans, it is getting very very hard to get anyone approved.

You mean the buyer will actually have to have some equity at closing and some verifiable income? How draconian!

You do know that the wave of creative financing, or more accurately, aggressive financing, is a large part of what was supporting speculation and driving pricing up sky high in most parts of the country? As usual the regulators and industry are doing the usual, closing the barn doors after the horses got out, which will make things get worse before they get better. As BYU71 said, I hope those who were loaning any amount to anyone with a pulse will go out of business rather than be rescued by Uncle Sam.