Navigating Through the Constant Changes in the Mortgage Industry

It's apparent that lending standards seem to be getting tighter not looser. I spend at least an hour a day research lender guidelines to ensure loan products are still available for my clients.

The main reason for the changes is the appetite for investors to purchase loans has severely been hampered by foreclosures. This can be deceiving because what investors thought to be a quality loan go into default.

This might not be the fault of the borrower because maybe they lost their job, had a tragic issue or just plain ran out of monies. No one ever thought that 30 year fixed mortgages would be forced into foreclosure.

But it’s a reality and will continue for at least another 24 months. It my opinion once the foreclosure rates decrease, we will see lending standards ease at bit. Credit score requirements and down payment standards are still on the rise. I am seeing lenders move to a middle credit score of 640. Six months ago the middle credit score requirement was 580. It takes a well qualified borrower to get a loan in today’s financial climate. I completely understand why lenders and investors are so skittish to lend. I believe our country is strong and will turn the corner late next year. Until then it will be tough for the entire real estate industry. If we all work together in a common goal to help homeownership, it will past faster and be much more rewarding to hand someone the keys to their new home. Good luck selling !!!!

Mortgage

Mortgage
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This article is about the legal mechanisms used to secure the performance of obligations, including the payment of debts, with property. For loans secured by mortgages, such as residential housing loans, and lending practices or requirements, see Mortgage loan.

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A mortgage is the transfer of an interest in property (or the equivalent in law - a charge) to a lender as a security for a debt - usually a loan of money. While a mortgage in itself is not a debt, it is the lender's security for a debt. It is a transfer of an interest in land (or the equivalent) from the owner to the mortgage lender, on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.
This comes from the Old French "dead pledge," apparently meaning that the pledge ends (dies) either when the obligation is fulfilled or the property is taken through foreclosure.[1]
In most jurisdictions mortgages are strongly associated with loans secured on real estate rather than on other property (such as ships) and in some jurisdictions only land may be mortgaged. A mortgage is the standard method by which individuals and businesses can purchase real estate without the need to pay the full value immediately from their own resources. See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property.
The cost to the borrower is measured by the annual percentage rate (APR), which is an effective annual rate of interest and fees paid by the borrower.
In many countries, though not all (Iran) or (Bali, Indonesia is one exception[2]), it is normal for home purchases to be funded by a mortgage. Few individuals have enough savings or liquid funds to enable them to purchase property outright. In countries where the demand for home ownership is highest, strong domestic markets have developed, notably in Ireland, Spain, the United Kingdom, Australia and t