So what's the real story?  Does a crisis really exist? 

Clearly there is a "cleansing" going on in the industry.  For many years now the lure of low interest rates brought in more people to the mortgage industry than it can sustain long term.  So is there a need to downsize the business and regain control of guidelines and quality standards? Absolutely.

But back to the question - is there a crisis?  We believe the the media and politicians have taken advantage of this situation for their own gain.  With the number of 24 hour news outlets needing stories and politicians needing a reason to look good to voters - the mortgage in ...

Our Take on the Mortgage and Financial Bailout

Most of the country woke up to headlines of outrage to the $700B rescue plan. After Bush went live last night, now after a year America was slapped in the face and the outrage based on most newspaper headlines is at extremes.

Once again the media played to the mass hysteria and bad news reporting. Can't say it enough, the media is not helping here. Most articles this morning brought in those that have other ideas and are not only opposed to the Treasury's plan but don't have their facts straight. Media has made this a taxpayer bailout of the banks, Wall Street and the rich and powerful at the expense of the little people.

Mortgage Takeover of Fannie/Freddie:  Good For Borrowers?

Government officials dropped a bombshell last week when they announced the seizure of mortgage giants Fannie Mae and Freddie Mac.  Wall Street rallied, interest rates dropped and the politicians and pundits are claiming this will mark the end of the suffering brought on by the mortgage mess.

This is good news, right?

In the short term yes but everyone should stop and consider what the long term implications are of the government running the mortgage industry. 

What’s Re ...

The age old problem of the "desperate originator" is reaching epic levels right now in the mortgage industry right.

Desperate Origniator; We're talking about the mortgage originator whose business has dwindled down to the level where they are considering getting out of the business.  And because their business is so bad they will do almost ANYTHING to get your loan done - or at worst case try to make some extra money by upselling rates or fees.

Given the circumstances in the industry right now it's easy to sympathize with them.  Guidelines are changing almost daily, pricing remains volatile, and business is slow overall.  However - you want to be ver ...

Practical Mortgage Advice for Borrowers Following Recent Events

After an extremely volatile week the financial markets are being capped with incredible events especially coming from government announcements and intervention.  With the news coming so quickly here is a recap of the recent events and how they impact mortgage borrowers:

1. Fear about the safety of money on deposit with banks folding or going on brink of collapse.  This loss of confidence has caused bonds to lose some or all of their value in certain cases.  This news has resulted in money quickly pouring out of stocks and bonds and into U S treasuries.