{"id":1784,"date":"2007-08-10T08:52:25","date_gmt":"2007-08-10T15:52:25","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1784"},"modified":"2007-08-10T08:05:22","modified_gmt":"2007-08-10T15:05:22","slug":"mortgage-meltdown-the-end-of-the-world-has-been-delayed-again","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1784\/mortgage-meltdown-the-end-of-the-world-has-been-delayed-again\/","title":{"rendered":"Mortgage meltdown? The end of the world has been delayed again"},"content":{"rendered":"

This is me from the Arizona Republic<\/i> (permanent link<\/a>):<\/p>\n

 
Mortgage meltdown? The end of the world has been delayed again<\/b><\/p>\n

If you watch the TV news, you can’t miss the video clips of financial pundits screeching about the imminent collapse of the mortgage industry. In fact, the world probably cannot end more often than once or twice a day, but it’s worthwhile to remember that television is an entertainment medium. Financial news is inherently boring — unless it’s reported by a shrill demagogue.<\/p>\n

So what’s really going on?<\/p>\n

Investors are pulling the plug on the most liberal — or most willfully gullible — mortgage underwriting firms. Investment banks that bought or brokered portfolios of shaky loans are also suffering.<\/p>\n

Does this mean you can’t get a home loan? Not at all. You just need verifiable income, good credit and a down payment. That wouldn’t even sound odd if we had not lived through 2005, when all you needed was a reliable pulse.<\/p>\n

What really<\/i> happened in the home loan market? There was so much money available, and homes were appreciating so quickly, that some lenders stopped worrying about the financial qualifications of borrowers.<\/p>\n

Has there been a surge in foreclosures? Yes. Had there been a substantial number of loans made to high-risk borrowers? Yes. We’re paying the piper now, that’s all.<\/p>\n

There is still plenty of money in the mortgage market, but guidelines are stricter. Nothing-down loans are harder to obtain, as are stated-income loans. Some lenders are charging higher rates for jumbo loans — amounts over $417,000. But the rates for a 30-year conforming fixed-rate mortgage — the bread-and-butter home loan — are actually down. This fact will have been omitted by the demagogues on TV.<\/p>\n

While things shake out, sellers will want to stay on top of their buyers’ loans, and buyers might want to ask their lenders to submit their files to more than one underwriter. Some parts of the Valley are suffering more than others, but buyers are buying, sellers are selling and home values are holding up fairly well through the down-turn. It would seem that the end of the world, contrary to televised reports, Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is me from the Arizona Republic (permanent link):  Mortgage meltdown? The end of the world has been delayed again If you watch the TV news, you can’t miss the video clips of financial pundits screeching about the imminent collapse of the mortgage industry. In fact, the world probably cannot end more often than once […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,6,5],"tags":[],"class_list":{"0":"post-1784","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1667,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1667\/the-800-pound-gorilla-in-the-corner-the-meltdown-of-the-wall-street-mortgage-market\/","url_meta":{"origin":1784,"position":0},"title":"The 800 pound gorilla in the corner – the meltdown of the Wall Street mortgage market","author":"Morgan Brown","date":"July 16, 2007","format":false,"excerpt":"As we go about our daily lives in the mortgage and real estate world; dutifully performing our job functions and taking the high road of customer enlightenment via blogs such as Bloodhound; we are faced with a very large gorilla looming in the corner of our workplace. That gorilla is\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1355,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1355\/mortgage-minutes-with-the-fha-expert-old-skool-guvvies-may-solve-the-subprime-meldown\/","url_meta":{"origin":1784,"position":1},"title":"Mortgage Minutes with The FHA Expert: Old Skool Guvvies May Solve the Subprime Meltdown","author":"Brian Brady","date":"April 30, 2007","format":false,"excerpt":"I interviewed \"The FHA Expert\", Jeff Belonger of www.theFHAexpert.com in this 18 minute podcast. This is my first interview so you'll notice two things: 1- I sound like the used auto dealer in a small town that bought the town's only radio station; I'll work on the delivery. 2- Jeff,\u2026","rel":"","context":"In "Interview"","block_context":{"text":"Interview","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/interview\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1786,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1786\/how-big-is-the-sub-prime-mortgage-market-not-very-big-at-all\/","url_meta":{"origin":1784,"position":2},"title":"How Big Is the Sub-Prime Mortgage Market? Not very big at all","author":"Greg Swann","date":"August 10, 2007","format":false,"excerpt":"Cited by BusinessWeek Online, a very eye-opening analysis of the sub-prime mess from National Review Online:I\u2019ve thought a lot about Rain Man over the past few months as I\u2019ve been following the press coverage of the sub-prime mortgage crisis. The story\u2019s been on the front page of the Wall Street\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1250,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1250\/a-farewell-to-arms-one-less-option\/","url_meta":{"origin":1784,"position":3},"title":"A Farewell to ARMs: One Less Option","author":"Brian Brady","date":"April 1, 2007","format":false,"excerpt":"Are Option ARMs the next casualty in the non prime mortgage meltdown war? Wall Street fired the shot heard 'round the world in the mortgage default war by demanding repurchases from subprime lenders. Lenders either closed their doors or waved the white flag and allowed the conquering army to annex\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1959,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1959\/will-google-be-a-victim-of-the-sub-prime-mess-it-is-inconceivable-that-mortgage-related-advertising-revenue-isnt-shrinking\/","url_meta":{"origin":1784,"position":4},"title":"Will Google be a victim of the sub-prime mess? “It is inconceivable that mortgage-related advertising revenue isn’t shrinking”","author":"Greg Swann","date":"September 22, 2007","format":false,"excerpt":"Barrons:Ever since Google (ticker: GOOG) whiffed on its second-quarter earnings, fans and critics alike have been entertaining this critical question. 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