Mortgage buyer Freddie Mac to apply stricter lending rules

I had worked for a mortgage lender as they went bankrupt in march of 2007, it wasn't pretty. it was a nightmare. The problem was the lender i worked for was targeting (high loan to value) and the Value of the homes had fallen by at least 20% of what the homeowner expected the value to be. The second problem is that in a very short amount of time, just a couple months we had 5 loans go into default. When this happens the lender has to buy the loans back from the investor...and most of the time as with us, the money to buyback the defaulted loans just isn't there, forcing the lender into BK.

My take on the situation is; as the housing prices continue to fall and more homeowners are struggling to pay their mortgage on time, and the subprime market introducing stricter rules...soon there wont be many people who will be qualified to purchase a home, and then less buyers will be in the market, and then the prices will collapse.

the summer is usually the buying season, because kids are out of school making it much easier to move....however come the fall thats when the collapse will happen. November 2007.

[edit on 26-5-2007 by Where2Hide2006]

Originally posted by hikix
being a mortgage broker i can assure you that its increasingly difficult to get a loan, and i am broke right now!

I've got a couple of questions, if you don't mind.

Demographically, what has changed most about the people who walk in to your office off the street?

Generically, what has changed most about how your owner or franchise operator deals with you?

California Foreclosure Sales Near $2B in March

This news brief shows that in March 2007, out of $2 Billion in foreclosure sales, a whopping $1.82 Billion (91%), received no bids at auction and went back to the banks. Just to underscore my previous post, these homes would then be officially recorded as existing home sales for the month of March in California.

It also says; "San Diego County ranked 15th highest with one foreclosure for every 5,668 residents in March 2007." If I understand correctly, the actual number of foreclosure 'fillings' would be higher. Some delinquency's get cured...loans renegotiated, or the property is redeemed in the post-auction grace period before transfer of deed.

Best of luck to both of the mortgage fellows in your future pursuits. It must be a tough game out there.

Peace &
Good Fortune
OBE1

Does anyone in the loan industry have new information for us?