Oregon Mortgages

Subprime Market

Wow…Lots of changes have gone on over the last couple of months. Be prepared for further changes to take place. Guidelines are getting tighter and in the near future we will most likely no longer be offering an “80/20″ to avoid mortgage insurance. I don’t believe any companies will offer that program in the next 3-6 months. I’ve heard of 3 more “subprime” lenders shutting there doors. Programs are getting harder for people to qualify for. People with not so good credit and no money in the bank are going to find it hard for themselves to get a mortgage. There are programs that they could qualify for at 100% one loan with Mortgage Insurance but most of those are offered by a Convential Lender and they WILL NOT allow for you to have any unpaid collections on your credit report unlike the subprime companies which usually allow you to have $5,000 of unpaid collections.

“Financial reporters, public officials, advocacy groups, even the mainstream news programs have been filled with news about the subprime mortgage market for several weeks but especially since the stock market began its precipitous decline last week; subprime news is all over the place. It is called a contributing factor to the rugged week on Wall Street; one subprime lender has been sold out of bankruptcy and another has put itself on the auction block; Congress is calling for new regulations, hearings are about to begin, and there are doubts that some of the principals in the subprime game will survive the current fallout.”

Credit: Mortgage News Daily 03/07/2007