Mortgage lenders are severely tightening their underwriting guidelines (as perhaps they should have done 3 or 4 years ago) but are they also tighening the noose on the housing recovery.
Interest only, 100% financing, no-doc loans/refinancing and other creative products are all but gone from the marketplace save those will all but the most stellar credit. But lenders are not only tightening up on requirements moving forwards but they are also scrutinizing borrows’ pasts more closely as well.
Whereas a late payment on a mortgage 3 years may have previous been seen as unremarkable, lenders now are looking as far back as 5 years for such delinquencies and penalizing borrowers for them.
In addition, they are tightening their methodologies and requirements for appraisals, providing very strict guidelines for comparable. In many coastal and beach areas where the market has been slow or dead for the past year or more homes not appraising the offer price could be a huge problem.
We have entered a VERY difficult time. Whereas before banks and lenders were competing for the business of the borrower they are now competing for the business of the secondary mortgage market; all clamoring now to orginiate and package mortgage that are more scrutinized and risk-mitigated than their competitors.
In our ever increasing effort to bring the diverse members of our network not only together with each other
but also with relevant and timely content we have now launched Beach Sales Business at BeachSales.biz.
As with all things in a community the success of this portal will be your quality contributions to the discussions and your sharing of relevant content with your Beach Sales neighbors.
As demand dictates we may very well create new sections and areas for specific regions or topics. That’s will all be up to the demands and needs of the community.
We will do out best to keep the site clean, organized and useful to everyone. You can help by not spamming with either posts or comments (i.e. no shameless and/or repetitive self-promotion, if you have something to say keep it on topic).
We are looking forward to growing with you all.
And please don’t forget that Beach Sales Business is part of the Beach Sales Network of sites which is committed to beach and ocean conservation, research and education. You use of the site helps!
