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?

[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.

[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.

[Solon]

Originally Posted by BYU71

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

A-freakin'-men. They've made their bed; let them lie in it.

[BlueHair]

American Home Mortgage is going under too. They have hundreds of millions of loans they have promised to buy, but can't. This could just be the tip of the iceberg. If the housing market collapses the global economy could be in serious trouble.

I never understood why people were getting ARMS when rates were under 6 percent.

Katie Couric is doing a special tomorrow night. I think she is going to talk about how there may be no money to lend in the near future. It'll be interesting to see what she has to say in her report.

[cougjunkie]

Hyrum i see your point however most of the subprime lenders have been weeded out already. Or they have changed there guidelines drastically. Now we are seeing A paper lenders fold. You know the ones that lend money to borrowers with perfect credit.

The most defaulted loan last year was not the 580 credit score, 1 month out of a bk 100% loan. It was actually a 720 FICO self employed borrower.

How many on this board when they bought there first house or any house for that matter had 20% to put down?

[Mormon Red Death]

http://articles.moneycentral.msn.com...uidedPath.aspx

Although I don't really like Fleckenstein he does make some good points

Jim Jubak's analysis

http://articles.moneycentral.msn.com...nchSpread.aspx

[MikeWaters]

Originally Posted by cougjunkie

Hyrum i see your point however most of the subprime lenders have been weeded out already. Or they have changed there guidelines drastically. Now we are seeing A paper lenders fold. You know the ones that lend money to borrowers with perfect credit.

The most defaulted loan last year was not the 580 credit score, 1 month out of a bk 100% loan. It was actually a 720 FICO self employed borrower.

How many on this board when they bought there first house or any house for that matter had 20% to put down?

we put down less than 10%.