[Hydroshock]

Your thoughts?

[RockinRight]

Assuming liquidity is available, I think the point we’re at now is where we’ll stay for a while, doom and gloom aside.

There are even still decent jumbo loans around. The articles make it seem as if jumbo rates suddenly went to 10.875% or something. Realistically they’re still in the low to mid 7’s for a fixed rate loan, a bit lower for ARMs.

[digger48]

If you have poor credit, cannot document income, or looking for 100% financing -- it's tough sledding," says McBride

I can't imagine why lenders aren't tripping over themselves to loan money to folks with these credentials

[TopoGigio]

“Subprime loans for people with credit scores of 600 or less? Forget it.”

I was a top ranking Account Executive for New Century Mortgage, and my partner and I alone funded 100’s of loans a month for people with credit scores less than 600. Most of them at Higher LTV’s(loan to value). Most of those loans were 2 year or 3 year arms. Now thats was just us. There were a dozen other reps for New Century in my state, and thousands across the country. As a company we funded @ 60 billion last year. Now add up all of the other subprime companys, and you have trillions of dollars in loans where people are just gonna be told “forget it”.

They will be forced to let their houses go back to the bank. The people/banks holding these notes are pooping their pants....if not, they should be.

[Aquamarine]

Subprime loans for people with credit scores of 600 or less? Forget it. The standards have been tightened to the point that subprime mortgages, 20% of the mortgage market last year, are a thing of the past. Also gone are a variety of products ranging from "no-money-down loans" with low teaser rates to interest-only mortgages that increase the amount owed to the lender over time.

The banks are doing these people a favor, saving them from themselves.

[Virginia Ridgerunner]

Borrowers seeking non-"jumbo" mortgages of $417,000 or less and have good credit "will get the red carpet rolled out for them at the bank," McBride adds.

Not true! This summer, my wife and I did some extensive repairs and renovations to our home to fix some structural problems and modernize it. When we went to refinance with our mortgage company (for a relatively modest amount, BTW, no where near this "jumbo" figure, our company bailed on us at almost the last minute, after assuring us that all was in order up to that point.

We certainly qualify as "prime" borrowers since my wife and I both have good jobs with solid incomes, a great credit score, and no credit card debt. Plus, we were existing customers with this company (which is reputable), and had an excellent payment record. Still, the company pulled the rug out from under us, and suddenly came back with terms that were pretty onerous. We had to decline. Fortunately, we had a safety net set up and will lose nothing, but this was really annoying.

[Eagles Talon IV]

"If you have poor credit, cannot document income, or looking for 100% financing -- it's tough sledding," says McBride.

THIS IS GREAT NEWS SINCE IT WILL GO A LONG WAY TO RESTORING CONFIDENSE IN THE MORTGAGE PRODUCTS BEING BUNDLED AND SOLD IN THE MARKET PLACE.

Sub prime loans for people with credit scores of 600 or less? Forget it. The standards have been tightened to the point that sub prime mortgages, 20% of the mortgage market last year, are a thing of the past.

A great reason for people to clean up their credit and take advantage of the rewards of a 770-825 credit score.

Also gone are a variety of products ranging from "no-money-down loans" with low teaser rates to interest-only mortgages that increase the amount owed to the lender over time.

All in all really good news. As I said previously, this will go a long way to restoring the needed confidence in the markets.

[2ndDivisionVet]

What a load of crap! I can do Jumbo, Sub-prime, conventional, VA and FHA loans all day long! LOL