Marc's Mortgage Matter's

This week we ran into more lenders that discontinued more programs yet again like the popular Stated Doc (No Income Verification), very few if any are really doing them. Investors and Wall St are very leery of those loans and no one wants to buy them or invest in those securities. Some may still get an approval though so I guess it needs to be case by case at this stage.

Most lenders this week also instituted additional charges & penalties for credit scores under 720 for most loans ... ouch!    Most borrowers have scores under 700 so that really hurts - as the score gets lower the penalty becomes more severe. Try to keep up with what needs to be done to maintain excellent scores. Some links on this site help to address common issues in that area.

So many thought they would qualify for the new loan limits of $729,750. It is insane because no one is writing those loans. And if they are; no cash out, only 1 family (yup NO 2-4 family allowed, yet!), no investment properties, must have tax returns, pay stubs and w2's the whole 9 yards, aaaand credit has to be excellent!   Shees, 99.9% of the borrowers don't qualify lol - hello?

What is wrong with this picture? Simple, the banks just don't want to risk giving money to anyone period unless its a simple vanilla mortgage no if's or buts'!  Sounds like the mid 90's again.  I'm sure down the road things will open up again albeit slowly and cautiously, as this can't stay this way forever.