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mortgage321321
754 Posts |
 Posted - 06/24/2007 : 11:48:34 AM
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The Bear Sterns Hedge Fund that nearly collapsed last week was obviously backed by sub-prime loan defaults.
I know there is plenty of money out their aching to get a good rate of return, however, I have a feeling that real estate prices are going to have to come down by at least 30% for people to start affording a 10% down payment-let a lone 20% to go stated income.
What do you all good people think? |
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peter
7512 Posts |
Posted - 06/27/2007 : 11:05:32 PM
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Talking about commercial loans, anybody here has ever worked with Wells Fargo
Commercial, Met-West, and Interbay Funding. I am getting e-mails and flyers
from these 3 commercial lenders all the time and wonder if they are the
appropriate lenders to work with or if I should stick to the thrift and loan
guys who do small commercial loans as well.
Yes, I think stated income commercial property loans may have a niche
among mixed used properties. I used to do them more than a decade ago during
the slow years of 1990 thru 1996, but when residential took off I stopped
doing commercial loans as they were really time-consuming and there aren't
many ways to "skin the cat" like our residential loans with No Doc, NINANE,
Sisa, and Siva, etc. and the broker's rebates are immortalized in the daily
rate sheets. For commercial lenders, no such rebate like 2 or 3 pts back,
and it takes much longer to close with all the procedures and costly appraisals.
Any comment on my observation?
Peter |
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mortgage321321
754 Posts |
Posted - 06/27/2007 : 11:46:17 PM
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My understanding from a friend of is that commercial seems to be getting more tough as federal regulators are asking banks to clamp down on the underwriting.
The main reason is that they do not want to have a repeat of the S&L problems.
Also, a lot of the banks' deposits are F.D.I.C. insured and the governement is not exactly thrilled at the idea of paying other banks to take insolvent banks or paying depositors with the banks fail. |
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peter
7512 Posts |
Posted - 06/28/2007 : 11:36:14 AM
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Ivan, I tend to concur with your friend's observation and that's why I would
rather find new niches within the residential loan business with which I am
already familiar with.
Things are real tough these days for the reasons beyond our control, as we
all know, and we must pick and choose our loans very carefull as otherwise
many of our borrowers are just a waste of time!
Peter |
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gopackers
454 Posts |
Posted - 06/28/2007 : 11:40:31 AM
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| Home values need to come down more to get new buyers to afford their first home, but then appraisal values come down and it affects refinancing at lower LTV's and rates. either way the markets are crap. the main way to boost it is if rates fall again. that is it. |
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servicefirst
3421 Posts |
Posted - 06/28/2007 : 12:55:17 PM
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1. The working-wages need to go up.
2. This too shall pass.
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