Well the mortgage market continues to melt down. Another Sub-Prime lender went belly up today (as in BK); another just closed their doors rather than take further risk.
So do you think the industry has learned any lessons? Not the one's we would hope they had learned. Are the "Stated Assets / Stated Income" loans gone? Well they are for residential customers and I believe that is a good thing.
But that doesn't mean they learned their lesson and went away ... Nooo!
Just last week I attended a seminar on the "New Frontier in Lending - Commercial Loans" And the lead topic was ... we still do "Stated Asset - Stated Income" loans. No need to prove anything. Same trick pony playing to a new crowd.
Now they are NOT doing 100% financing (and that is a BIG improvement that will protect investors) and they want a "Rent Analysis" to show income to support the loan. But they will do the loan as a SASI loan. Are we 5 years away from a commercial melt down to rival the current sub-prime fiasco??? Only time will tell.
In the meantime, those future clients who want 100% financing need to come to the table with at LEAST closing costs. And you will need a fantastic FICO (see prior articles on how to improve your FICO) to dazzle the lenders. But it can still be done.
Give me a call at 858-496-8899 with any mortgage questions. At Pink Flamingo Mortgage we will empower you with knowledge and then help find the perfect loan.
And please feel free to refer your friends and relatives that need a mortgage. Don't keep us a secret! Everyone knows at least one person that need some mortgage help from an honest professional. That's US!!
Bob Glaser
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