Home Mortgage Loans Still Available Despite Claims of Doom and Gloom

The mortgage industry continues to tumble and make waves. The news coming out of the industry is not very good. But I want to take this time to let you know that it’s not like we can’t write loans anymore. It’s just that banks are reeling from the “go-go” days of the past few years. Don’t believe the doom and gloom. Loans are still available, and with the shake up in the industry, you’ll most likely be dealing with better mortgage loan officers.

Having said that the industry is indeed trying to recover from the mess. This AP article summarizes a lot of the recent industry related news:

Bear Stearns Cos. and HSBC Holdings PLC were the latest to predict rising losses.

Bear Stearns Chief Financial Officer Samuel Molinaro Jr. said the investment bank will take a $1.2 billion writedown, leading the company to post an overall loss for its quarter ending Nov. 30. Much of that writedown is tied to the declining value of collateralized debt obligations, or CDOs.

Later in the article it says:

Britain’s HSBC said Wednesday it too would take a mortgage-related charge. HSBC will write down $3.4 billion for losses at its U.S. mortgage unit. It was HSBC’s third writedown tied to the market in a year. Unlike Bear Stearns though, the new charge would not lead to HSBC posting a quarterly loss.

And then as if the market correction wasn’t sending shock waves already, you have politicians trying to fix a market problem. That’s trouble. HR 3915 is now on the US House floor awaiting a vote. It passed through committee last week. This bill would:

— ban lenders from making loans that borrowers don’t have the ability to repay;
— prohibit lenders from steering homeowners into refinanced mortgages that don’t provide any benefit;
— make Wall Street banks that package mortgage securities into investments liable for violations of lending laws; and,
— create a nationwide licensing system for mortgage brokers and bank loan officers.

Not all of these features are bad. However, a detailed analysis reveals that this bill is a bonanza for lawyers wishing to go after lenders. Now, more rich lawyers, is that what we’re really after here?

With all this negative news coming out, I want again assure folks that if you’re a W2 employee with a steady job, with some money in the bank and decent credit, lenders are still tripping over each other to get you a mortgage. Don’t believe the doom and gloom. Take a deep breath. Talk to a mortgage pro (like me), and make plans for the American Dream.

This site is for informational purposes only. It is not sponsored or in any way affiliated with the government. If you are in need of a mortgage loan, consult with a licensed mortgage professional. All fair housing and equal housing opportunity laws apply when applying for a mortgage or buying a home. Copyright 2012.