Had signing at lender's office yesterday for first-time buyers. While we were waiting for borrowers, LO and I had quite an interesting conversation.
She tells me they're getting many, many calls from people looking into refinancing. And, it seems most of those refinances are taking $50+K cashouts. This, even if it means a higher interest rate. She's wondering if people are anticipating another meltdown and getting what they can while they can. Whatever it is, she says they've gotten really busy this month and seems it'll be even busier in months to come. (looking back -- the refi's I've had this year all cashed out)
She also tells me they're loosening the purse strings. For example: for self-employed - they no longer require CPA sign off on P&L. Self-generated P&L and bank statements are sufficient. And, they are no longer requiring sourcing info on large deposits (cash or otherwise). She likened it to the "stated income" we saw pre-2007/8. I commented "oh, here we go again with creative financing" and she agreed.
Hang on folks. We're in for busy times!
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