When Lenders Stop Lending, Another Lender Lends.
By: Brian Brady,
San Diego Mortgage Broker,
Post Archive,
RSS FeedPosted: Tuesday, August 7th, 2007, 8:11 pm MST
Category: Lending
The title is a funny play on words from advice Jeff Brown and Ron Feinberg gave me last week. When I returned from Inman last week, the market started melting down. I pride myself on my cool head but some days the Awshits sneak up and dominate my mind; Friday was one of those days.
IndyMac- discontinued neg-am
Bear Stearns- repriced neg ams by adding 2.25 points to the fee (thievery)
American Brokers Conduit- I didn’t know they were owned by American Home Mortgage until it was too late.
World Savings- a workable solution but their margins are so expensive. Now, they’re cheaper than the rest.
Jeff Brown told me that some smart company would figure out the void in the market in less than one month. Ron Feinberg said six weeks. I called the 2-3 borrowers and explained that the repricing may have made the neg-am loans a poor recommendation; it just didn’t fit into the plan I had created for them.
Look who slipped in the back door with killer pricing and terms. I’ll be damned! It took less than a week!
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5 Comments so far
Kinda disappointed – off by three whole weeks.
That’s one in a row.
Those are some hefty fees and rate adjustments.
[...] – How Credit Got So Easy And Why It’s Tightening (and some excellent commentary on this subject) – in short, getting loans is getting harder. But … the free market is resilient and adaptable. [...]
[...] Some odds and ends here. (now isn’t that a compelling make-you-want-to-read-it opening?) I got a call today from my friend and fellow agent, JoAnn Calloway. She had been getting conflicting information regarding what is likely to happen with interest rates and the immediate possible changes to our marketplace. She was pretty sure I would know what was going to happen next. I don’t like to disappoint, so I want ahead and knew (no major changes to her market due to the sub-prime fallout). After I told her, she wanted to know how I knew. I told her I read BloodhoundBlog. That is how I knew. Yes, there are other posts on other blogs, but I find out about those posts and blogs by reading BloodhoundBlog. In this case, it was just a few posts, this one, this one and this one. Okay, it wasn’t just those posts – it was those posts, in combination with the comments to those posts. For example, when Greg showed the graph in this post and I saw Dan Green’s comments linking to this graph I was able to get a pretty good idea of what was going on as a result of what was being heralded by some as the end of the world as we know it. Long term (over the past five years) rates are slowly moving up. Short term, they are dropping a bit. Prediction: the world will not end right away. I have seen the future and it is a lot like the past, only longer._____ [...]
Hi Brian,
My husband and I hope to meet with you and Jeff next week. Have enjoyed reading your blog. Good news about Downey. They gave us one of our first loans when we first started buying property through Jeff.