Wednesday, August 15, 2007

"Ailing Lenders"... What You Should Know

"Ailing Lenders"... Breakdown List of Mortgage Lenders Closing Their Doors or Drastic Streamlining

As the market continually goes through changes, many lenders are unable to stay afloat. As has been common knowledge and well documented the Sub Prime market as suffered greatly. They are although not the only ones... Alt-A products as well have suffered. The most recent and of common knowledge being Wells Fargo's Alternative Lending and American Brokers Conduit. I had personally spoken to my representative a few days prior to ABC closing their doors. My account representative did not give any mention or idea of internal turmoil that was going on. The reason? He probably had no idea. Changes in this industry are happening at such an accelerated rate that no one even knows if they will have a job by weeks end... As I spoke to a colleague of mine a few days ago, she mentioned that a certain lender had put a "hold" on the funding of one of her loans until further notice. Within the past few weeks, I personally had received several emails from this particular lender letting me know "they are going strong". Now, more likely than not, business will stabilize within the next few days... but, it definitely is cause for concern.

Below is a list of all ailing lenders who have closed their doors or streamlined drastically within the last couple months. Please note to contact your representative for further information! Some may still be operating in some capacity.

Pacific American Mortgage, Spectrum Financial Group, American Brokers Conduit, Transland Financial Services, Express Capital Lending, Deutsche Bank Correspondent Lending Group, MLSG, Trump Mortgage (yes Trump), Mylor Financial, Aegis, Alternative Financing Corp., Winstar Mortgage, Meridias Capital, Fieldstone Mortgage Co., Nations Home Lending, Wells Fargo Alternative Lending, Entrust Mortgage, Alliance Bancorp, Choice Capital Funding, Premiere Mortgage Funding, Stone Creek Funding, Flexpoint Funding, Starpointe Mortgage, Freestand Financial, etc.. etc... etc...

Although, there are several changes that have occurred and will continue to occur, there are still a handful of lenders operating under Sub Prime. The industry will normalize... It will just take some time. How much time? No one really knows. Agents and Officers in the business may have a guesstimate, but that is exactly what it is... a guesstimate. You can protect yourself! Here's how...

1. Credit Score- Please, monitor your credit report and score. You would be surprised how one number can be a determining factor on whether you can get a loan and/or save your house!

2. Be conservative- With property value continually dropping, be very cautious with your equity. Do not live beyond your means!

3. Keep your job- If you are employed, the longer you are at the company and assets you may acquire (401K) through this job are pertinent. (Lenders like to see this). If you are self-employed, try to have assets... liquid or in the form of stocks/bonds.

Please protect yourself and your future! If you have any questions or comments please feel free to contact me at any time.

Best Regards,

Swan Johnston
San Fernando Valley Loan Officer
(818) 694-9777 Mobile
(818) 557-8469 Facsimile
sjohnston7@gmail.com

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