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Old 03-01-2007, 12:29 PM
smagss024 smagss024 is offline
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Top Lenders In trouble!!

As I was writing an offer with my investor today, we called his partner(also his lender) to get a Loan Status Report. He informed myself and his partner that they had an emergency meeting at work and that 3 of the nations top ten lenders were getting shut down!!! I have looked all over online for news about this but haven't heard anything. We wrote the contract but wont submit it until we see the effects of this. I currently have three other deals in escrow all with different companies and am extremely concerned with what this is all about. Anyone who could shed some light on this would be greatly appreciated.....if not I will wait for news to break!

Confused Realtor lol

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Old 03-03-2007, 01:23 AM
Huh-What? Huh-What? is offline
Join Date: Jun 2005
Location: Chicagoland
Posts: 25
Re: Top Lenders In trouble!!

Some subprime lenders have folded/BKed. Most are pulling back guidelines making it harder to get niche type loans (investors, 100%, poor credit loans...etc).

Who was the lender?

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Old 03-03-2007, 02:32 PM
cigs645 cigs645 is offline
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Join Date: Feb 2006
Posts: 232
Re: Top Lenders In trouble!!

SAN FRANCISCO (MarketWatch) -- New Century Financial Corp. said late Friday that it's facing a federal criminal probe and will likely breach a major lending covenant with its financial backers, bringing into question the survival of the second-largest U.S. subprime-mortgage lender.
The U.S. Attorney's Office for the Central District of California is conducting a federal criminal inquiry into trading in New Century securities as well as accounting errors, the company wrote in a regulatory filing late Friday.
The Securities and Exchange Commission also is looking into the company, as is the regulatory arm of the New York Stock Exchange, New Century disclosed. The company added that it is complying with all three inquiries. Shares were down almost 25% in after-hours trading Friday at about $11, after falling more than 7% in the regular session to $14.65. The mortgage lender said it expects that it won't report at least $1 of net income for the two quarters ended Dec. 31, as stipulated in covenants with its lenders.

Fremont General Corp. announced Friday that it intends to sell its subprime residential real-estate lending business.
In a statement late Friday, Fremont General said that the decision was "prompted by the company's receipt on Feb. 27 of a proposed cease and desist order ... from the Federal Deposit Insurance Corporation."

Federal bank regulators demanded tougher standards for subprime loans Friday, saying they're worried that borrowers who select adjustable-rate mortgages may not understand the risks associated with them. More than 12% of subprime mortgage loans were delinquent during the third quarter of 2006, according to Morgan Stanley research. That's up from less than 8% at the end of 2003.

the largest U.S. home-mortgage lender, Countrywide has seen sharp increases in late payments to 19% of subprime loans in 2006 from 15.2% at the end of 2005. Worries have also arisen concerning automobile maker General Motors Corp.'s exposure to th sub-prime market

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Old 03-03-2007, 02:42 PM
cigs645 cigs645 is offline
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Join Date: Feb 2006
Posts: 232
Re: Top Lenders In trouble!!

The CEO of Masco was on CNBC this morning. He was talking about the earnings for Lowe’s. Both Lowe’s and Home Depot have reported a decline in same store sales. In retail that’s bad. He believes the housing mess will take down the economy.He made the point that people are neither buying homes or remodeling now. The reason is simple. They pulled out all the equity and spent it already. They have nothing left. But he did say once the industry works off the excess inventory in a year or two it will be back to normal.

Earlier this week, Freddie Mac one of the largest mortgage lenders in the U.S., said it was tightening its lending standards.

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Old 03-21-2007, 10:16 AM
mclayton mclayton is offline
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Join Date: Nov 2006
Posts: 8
Re: Top Lenders In trouble!!

I wish all lenders had tightened their lending standards before I got roped into being a credit partner for not 1 house but 2. Both those houses ended up being foreclosed on because the people who assured me it was a win win deal and that they would make all payments until equity was built up and the houses would be sold for a profit. Didn't. They didn't make the payments as promised. At the time I qualified for the two homes at 100% financing on both the I was already paying a mortgage payment on my own home. Now 2 years later after selling my personal property to pay off loans I'm still saddled with the 2 foreclosures. The crash of the real estate market has been a disaster for many. Had lending standards been tighter at the time I shouldn't have qualified for the loans.

I learned my lesson the hard way.

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