Real Estate in the D.C.-Baltimore-Annapolis triangle, by Margaret Woda

Saturday, March 17, 2007

Loan pre-approvals falling through!

The following information was contained in an email I received this week from Chris Washburn, a branch manager for FNMC Mortgage. He was kind enough to give me permission to share it with you:


I've received a bunch of calls recently from REALTORS who heard or read alarming news concerning the sub-prime mortgage market troubles and how that might affect their business.

The sub-prime mortgage market
generates approximately 15-20% of the real estate business done in the Washington Metropolitan Area. As you are probably aware, the sub-prime mortgage market has gone through drastic changes and overhauls over the past thirty days. How does this affect you?

Loans available 30 days ago for buyers may be gone now. Pre-approved customers who qualified for a sub-prime loan in December may not qualify today. Don't worry though, we have many in-house programs that can approve your buyers or bail you out of a bad situation. With our community reinvestment loans, FHA and other aggressive in-house underwritten mortgage programs, we are #1 in this area for a reason
.
Long term, the tightening of sub-prime mortgage rules is a good thing as some loans really put people in a bad situation. The future foreclosures
that will happen because of this may put a drain on the economy as evidenced by the recent stock market jitters. The silver lining may be lower rates if the economy does slip as some suggest. Lower rates typically boost home sales….

In this fast changing mortgage world, stick with a lender who has everything in-house. We process, underwrite and close the loans here in my office. Your business is too important to let a rule change or uneducated underwriter kill your borrowers dreams. We understand the importance of each customer and don't take your business for granted.

Chris Washburn, FNMC Mortgage
301-220-1000


Related articles:
Sub-prime Market's Sinking Fortunes
Sub-prime Market Gets the Squeeze from Freddie Mac
A Subprime Market for Subprime Securities
What is a Sub-Prime Mortgage?
FHA Comes to the Rescue
A Full-Court Press on Bad Loans, But Who Will Referee?

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Loan Pre-approvals Falling Through
Source: Chris Washburn

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Crofton, Maryland, United States
Helping home sellers, buyers and military personnel in the Annapolis/Baltimore/D.C. triangle is still my passion after thirty years in real estate. How can I help you?

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