Those lenders still in business are changing products and borrower qualifications daily, sometimes hourly. Our goal is to ensure you have the latest information and tools available to make the best mortgage decision that further secures your financial lifestyle. We are here to assist you with all of your mortgage needs, regardless of market conditions.
So, what is wrong with the mortgage industry? Nothing, this seems to be the normal business cycle of any new investment vehicle introduced to the
U.S. markets over the past three decades. This has been the “doc.com” boom of the 90’s, or the “junk bond” boom of the 80’s. Before 1980, mortgages were held by Fannie Mae and Freddy Mac. Lenders and Wall Street then realized they could bundle mortgages into a profitable investment vehicle. Many of you own mortgages as part of a mutual funds and retirement accounts managed by these financial institutions. Mortgages, yours included, are subject to market forces such as supply and demand, and risk. Over the past five years there has been tremendous demand for mortgage-backed investments. Greed set in. Some lenders relaxed their guidelines and sold higher risk loans for a higher profit. Late last year the news media focused on a very small percentage of defaults in “subprime” loans because the possibility of someone losing their home sells newspapers. As the media focus intensified, fear set in. Everyone began selling mortgage-backed investments and good and bad lenders were unable to finance and sell new loans. This is what economists refer to as the “Credit Crunch”. Over the next twelve to twenty four months the risk of mortgage-backed investments will be reassessed, fear will subside and quality lenders will continue to underwrite and sell mortgage loans.
Those of you with 720 or greater credit scores will notice little difference in qualifying for a mortgage. Those of you with lower than a 720 credit score, we continue to advance our credit repair techniques and tools. Please contact The David M. Damaré Team at your earliest convenience to assist with effectively managing your finances to secure the highest possible credit score.
My goal is to gain your business for life. Customer service makes the difference in how we do business and secures my livelihood. Thank you for your time and consideration.