Is Something Afoot With Lenders?

[WadeKoutnik]

Didnt rates just jump?

 

[Bama Bayou]

It's hard to do a deal in FL without a suitcase full of cash. They don't need an appraiser.

 

[Elliott]

It is that time of the month for mortgage processors, it always slows
down at the end of the month. But its dead, I'm actually doing narrative
work, which I don't like doing, but its work.

 

[WadeKoutnik]

Rates just jumped correct?

 

[Michigan CG]

Rates just jumped correct?

Yesterday's paper reported they are up to about 6.4% for a 30-year fixed.

 

[Lawrence R.]

Rates just jumped correct?

No, not really. Not based on what I see.

 

[Metamorphic]

Just yesterday I called a Realtor confirming a sale. Turns out he also does mortgage work. We had a long discussion about the what's going on in the market. Seems like he's a good kid, smart, and understands the importance of making solid loans.

He was telling me that for the last year or two the lenders have been demanding a 5% increase in the LTV to account for the declining market. He said in the last week or two they've been dropping this requirement. He wasn't sure if this was being done because they think we've reached the bottom and it isnt necessary, or if its just that with that 5% they cant make enough loans to feed their kids. But he definitely thought something was up. If they've done this in the last week, I'd imagine it will be a couple more weeks before you start to see more loan papers getting filed, and a couple more weeks after that before the appraisals hit.

 

[Ray Miller]

The gas can is about empty, work levels are returning to pre boom levels. About late 90's up to 2000.

Don't need all the AMC's, don’t need all the appraisers.

You best have other appraisal skills beside Residential cookie cutter.


The Recession is here and the depression is just about to start.

You best know how to roll with the flow so you don’t get caught in a pool where that too many fish are trying to swim in soon the 02 will be gone and you will be belly up.


How many of the AMC’s are on the brink of collapse now???

 

[Mike Phillips]

Mike:

I don't doubt this woman's account of things. I've worked with her for two years and she's always been straight with me. If she says they haven't seen any orders then I believe it.

Also, a good friend of mine has been working for HomeFocus (B of A) since the beginning ot the year. She says the same thing --- the bank has nearly nothing coming through at all. Lake County is doing more than Orange or Seminole --- and that's not saying much with Lake being reeeeeally slow.

Well...that's not good. Like I indicated, I'm out of touch with AMCs. If BOA has nothing in their pipeline that is a big problem. As I indicated, things are getting bad across the board - this mess is affecting all sectors of the FL economy.

Perhaps the word is out on FL and the lenders are not sure how much lower market values will fall. Being #1 in mortgage fraud doesn't speak well for the state as a whole. Maybe...just maybe...some of the lenders are concerned about lawsuits coming their way.

Other than FL filing against CW, I haven't heard much from the FL legislature. They appear to be intent on not taxing anything, apparently not even to raise money to investigate and/or prosecute the serious wrongdoing or even just raising some real hell. Not even some good, strong tough talk that everyone knows will never happen. The legislature will screw public education and childern's health care as much as they have to but they won't take any action that forces the blood-sucking retirees to contribute anything.

I guess it will work itself out.

 

[Mike Phillips]

How many of the AMC’s are on the brink of collapse now???

Good question. I haven't heard of one going under yet and it seems like a new one surfaces every day.

Aren't there dozens of AMCs? Why no headlines? They must have cash reserves to weather the storm.