Pop goes the Mortgage Industry: Washington Mutual

WaMu just announced that they're tightening up the guidelines even more. As if it wasn't hard enough to do business today and get a loan, they've change the majority of their "stated" core products to require both 720 FICO score AND 50% Loan To Value max. That means: 50% DOWN PAYMENT. So, what WaMu is saying this week: We don't want any business. Any lender can cherry pick at Full Doc conforming loan....they're a dime a dozen. WaMu, like other lenders, is effectively pulling out of wholesale lending. That's one broker's opinion. I'm usually right. Where will you go for your next loan? How about http://www.ptre.net/, Pat Townsley, Broker.

Credit Debt: Out of Control

The credit markets are in difficult times. With online buying increasing in popularity and physical retail locations rarely seeing cash as a method of payment, the Credit Card is now the method of payment. Holidays often force people to purchase beyond their means out of guilt and obligation...and last minute deals. So, come 2008, there is going to be a LOT more credit debt on the average American. Give us enough rope and we'll hang ourselves with all this debt. If you have a home mortgage that allows you to pay off the debt, you might consider a refinance. It's not always the best bet or smartest play. I offer a confidential review of your financing opportunities. Leverage and position yourself sooner than later. Be PROACTIVE and not REACTIVE to the Credit Challenges ahead. Don't find yourself going over Niagra Falls in a boat with no oars. Mortgage lenders are TIGHTENING UP and you're not going to have many opportunities soon. Take Action! I'll guide you through the maze. Pat Townsley, Loan Consultants. 415-485-1776. http://www.ptre.net/

Sign Up for my newsletter

Happy Holidays to all. Trying to be as "Green" as possible moving forward into 2008, I am now offering my monthly newsletter in email format via my secure "no spam" website. I’m doing this to cut down on paper, postage and waste. Please take action to sign-up for my electronic newsletter at www.PTRE.net. You can do it in less than 15 seconds and I promise that this is my own private database; I will not "spam" or sell my information. Over the past decade, my printed personal newsletter has gone out to just over 1000 clients per month. Quick Sign up at http://www.ptre.net/. Thank you.

More Mortgage Troubles on Wall Street: Bear Stearns

"NEW YORK (CNNMoney.com) -- Bear Stearns swung to a quarterly loss Thursday and said it was taking a $1.9 billion writedown due to bad bets made on risky home loans, becoming the latest Wall Street firm to deliver disappointing quarterly results." Posted on CNN.com 12/20/2007.
Not good news. Merril Lynch has had an even tougher time. WaMu has closed its "subprime" division. Wells closed its Wholesale 2nd's division. Citi, Chase, Wachovia/World, ALS, IndyMac and Countrywide have all reigned in their underwriting criteria. It's going to be tough times to get your next home loan. Those who ARE able to get into the market will do very well. It's a case of "the rich getting richer." We are seeing the early, but bold, warning signs of economic Depression. Time to buckle down and tighten up. If you're in an adjustable loan now, it's time to take advantage of the current low rates and lock in a long-term loan before prices make underwriting impossible. Pat Townsley: Solution Guy. http://www.ptre.net/. 415-485-1776

Why Refinance Now

Lenders are tightening up guidelines daily, so by refinancing now, you’re securing your life and buying serious peace-of-mind. I’ve been through absolute hell this past month with some of the simplest of loans falling apart and subsequent-damage control due to constant market corrections and changing guidelines. The deals are getting done, but with many more hoops-a-fire to jump through. The financial and credit sectors are in a lock-down. Americans aren’t saving. Consumer debt is out of control. Holiday retail sales numbers will be disappointing, banks will be closing branches or closing entirely. We’ll see decreasing consumer confidence and the media eating it up and skewing data for any political positioning for either side. Everything will be increasing in price from food to fuel, raw materials to transportation. Money won’t come easy anymore. Rates are as good as we’ve seen in over a year. If you (or anyone you know) needs to refinance anytime between now and 2009 and you have any concern that your home may now (or in the future) slide in value, the "Loan To Value" should be of great concern to you...right now. Secure a long-term position now before things change for the worse. We’ve only just hit the iceberg, and I’m the guy with the lifeboats. Let’s Talk. Captain Pat Townsley, Mortgage Navigator. http://www.ptre.net/. 415-485-1776.

Action without Reaction

Last Tuesday the Fed took another step at "helping" the economy by lowering the Fund Rate by a quarter of a percent. There’s also continued talk of the government and banks agreeing to "freeze" certain existing adjustable home loans as well as a bill on the table to eliminate "yield spread premiums" to lenders (in an effort to "level the playing field"). None of these will really help. Foreclosures and bankruptcies will tear us up in 2008, decreasing values and tightening guidelines will make refinancing harder in the months to come. It will make Purchase prices much more attractive, but you’ll need more money down in most cases. Get pre-approved before you shop! Purchase Loans throughout the State of California: Broker, Pat Townsley. 415-485-1776. http://www.ptre.net/

New FLEXIBLE loan program

I’ve got new loan programs rolling out from over 70 of the top remaining banks plus I’d like to introduce you to the "Home Ownership Accelerator" loan program. Let’s get a head start on 2008. If your loan is poised to adjust in the next 24 months, we should talk and put a plan and timeline together. Start your 2008 personal, family and business goals now and let me help you secure your future; Financing with Planning and Purpose, Not Pressure. Ask me about the Home Ownership Accelerator loan.

Pat Townsley, http://www.ptre.net/ 415-485-1776.

Dead Cat Bounce

Dead Cat Bounce... A twisted definition of a visual occurance in a graph charting a time horizon. What we see is a rapidly declining market, then it appears to "hit" bottom, pop up a bit (maybe even a few times from "the bottom," then continue the decline. That's what we'll see in the real estate market ing 2008, probably a few times before we hit real bottom. There are many challenges facing homeowners, the US and the world. Our national economy has a huge effect on the global market. A rising tide lifts all ships, and the opposite as well. Who do you know who needs a solid mortgage solution? Please refer them to me. Pat Townsley, Mortgage Broker. http://www.ptre.net/. 415-485-1776.