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Over 105 national lenders including Nevada’s former largest, Silver State Mortgage have gone out of business in the last few months.
Subprime has officially imploded and you can read about it all over the net.
Wells Fargo & Co., the nation's second-largest home lender, said last Thursday that it will stop making subprime mortgages through brokers, in a move aimed at reducing late payments and defaults that have been plaguing them.
Program changes:
In the last 4 months we’ve seen 102% investor financing for well qualified buyers disappear and become 90%. For Condo-Hotel units, we could do 90% which has now become 70%! At the current rate 100% financing for borrowers may soon be a distant memory of the good old days.
Credit history:
A 620 FICO score used to get you 100% financing on a NO income mortgage program. Today the rule of thumb is 660. High Loan to value (LTV) programs require 720 FICOs. The pendulum is swinging towards conservative and it’s getting worse.
We are in the largest shakeout the mortgage industry has ever seen in over 20 years!
The weak, the unethical, unscrupulous, poorly managed companies will all go away during this time. Well run companies that survive will emerge as the new leader of mortgage banking. Luxury Mortgage Group is one of the very few mortgage banks that will survive this pandemic mortgage fall out.
If you are in need of a mortgage in the next 24 months you seriously need to receive the latest mortgage information so that you can make a well informed decision.
There is still time to position yourself properly.
Contact Luxury Mortgage Group today:
Jason Fox
Luxury Financier
(702) 290-8700 Direct
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Posts: 1
Reply #1 on : Tue July 31, 2007, 16:00:50