Feb 8, 2010

Mortgage Market Question?

What are the current market conditions...? Is volume predicated by the Secondary Market, Int Rates, or Regulation?

My feeling is "Sh*t always rolls downhill" ... The Fed has slowed down purchase of MBS, hence, the secondary market has begun to tighten up. They see the exit strategy being not quite so easy come March. Investors (the BOA's and Wells of the world) are booking huge margins of profit on new loans. However, private money is who they will be answering to next. It's a good thing, but in the short term, it's gonna be rough. Watch the MBS ... everything else is truly "Secondary".

1 comment:

John Salerno said...

Guideline Changes - wholesaler's bumping up Ficos... Not us... Our business is not to ONLY lend to the top tier of borrowers and loans... We know you guys have qualified borrowers with a mid FICO score in the 620 to 660 range... Therefore, true to our FHA roots we are not abandoning this area of borrowers.

That being said... Fico's are still one of the prime indicators of loan performance. To protect our Portfolio from being targeted... Can only submit 620 to 660's as a certain percentage of you biz... It will be updated Feb 15th and again March 1st and April 1st... To pull in line with Industry standards...Check the website for details... www.polarishfc.com