Lending: the final frontier



Lending: the final frontier. These are the blog posts of a mortgage broker. My continuing mission: to explain strange new federal regulations, to seek out new loan programs and new lending sources, to boldly go where no mortgage broker has gone before.

It really does seem like science fiction with all the changes that have occurred over the past two to three years. Think about it: in 2006, if I said that 100% financing would be nonexistent, conventional loans would require at least 10% down (3.5% for FHA), and defaults on subprime loans would lead to a crippling of our financial system that would help usher in the worst recession since the Great Depression… would anyone have believed me?

These changes have been so unexpected and unbelievable, they border on fantasy. Sadly, it has been all to real for us!

The latest unforseen example: The federal raid and subsequent shutting down of Taylor, Bean & Whitaker shocked the mortgage world, leaving thousands of borrowers in a bind as they were in the process of buying or refinancing a home, but now facing the prospects of starting over.

These events only reinforce the importance of working for a mortgage broker with multiple lending sources. My clients never have to worry about being stuck without a source for their loan. If one lender decides to only offer loans to borrowers with 20% down, or like TB&W, shuts their doors, I’m able to offer additional options to ensure my clients close on their home.

It’s a scary universe out there. You never know when a Romulan warship will decloak, putting your life in danger (new Federal guidelines) OR when the Borg show up threatening to wipe out human civilization (TB&W’s sudden closing). It’s best to work with a professional who is up-to-date on guideline changes and has a plan for action if disaster strikes. I may just have a great referral for you as you look to buy or refinance a home.


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