Over the past few days I have received so many low FICO applications its a bit worrisome. I’m wondering if they are just going from lender to lender looking for something because I can’t find anything for them. With no money in the bannk, a recent bankruptcy and lots of bad accounts, none of the remaining subprime lenders are willing to entertain the scenario. With the recent implosion things are now really tight. I can’t find a 100% subprime loan anymore. Forget lower documentation now the only option is to go full doc. The maximum loan to value I’m able to find is 90% and the rates are pretty high.
I sat down with a seasoned representative from a very large bank yesterday. He said he’s only able to do Alt-A and subprime with 20% down. He basically said the pie has shrunk over night and things will get really nasty for him. I believe him becuase Wells Fargo shut down their subprime division last week.
Thank goodness for FHA and the MyCommunity loan program. Actually, I’m glad I kept up on these programs the past few years when everyone preferred the easy subprime route.
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on Aug 6th, 2007 at 5:14 pm
People who cannot get financing are always out looking. There is always the hope someone will get them bought. When markets go bad and there are few good buyers, it seems like the only ones left have bad credit profiles.
on Aug 7th, 2007 at 8:19 am
Steve,
That is a good point. There are lots of people out there who are looking for financing and the pool of lenders able and willing to provide a loan is shrinking.
Thanks for stopping by.
Shailesh
on Sep 19th, 2007 at 9:26 am
[...] mortgage market played a very important role in making the American dream more accessible. With the subprime mortgage market virtually wiped out, the government is setting up FHA to fill the [...]
on Sep 26th, 2007 at 9:09 am
[...] isn’t entirely true. Before the subprime mess 580 was the low point, furthermore, 680 is not the minimum today. You might think I’m [...]
on Oct 1st, 2007 at 9:57 am
[...] about bad timing. Since the collapse of the subprime market FHA has seen a resurgence in the past few months. This new ruling will essentially kill the FHA [...]
on Oct 13th, 2007 at 2:58 pm
[...] then FHA can be very advantages to you. The problem is most borrowers don’t know this. During the go-go days of the subprime phenom no one needed this kind of advantage. If you could fog a mirror you could get a loan, at least for [...]
on Nov 2nd, 2007 at 2:11 pm
[...] Could it be?…..The Actual Loan Itself? With the demise of the subprime market and the collapse of the securities market for exotic loans, the industry is left with [...]