Posted by Charles_Ca on 1/9/06 1:33pm
Msg #87075

Slowdown: So Many Lenders, So Few Takers

This came across my desk a few minutes ago and I thought I'd pass it on.

"(January 9, 2006) -- Look for an 18.6-percent decline in originations this year, says the Mortgage Bankers Association.

Countrywide Financial Corp., National City Corp., and Ameriquest Capital Corp. are among the lenders that have already begun to downsize in response to a drop in mortgage demand.

Large, diversified financial companies should fare well this year, while lenders that handle only mortgages or that financed scores of subprime borrowers and made numerous exotic loans in recent years face high default rates and funding shortages as well as the prospect of corporate takeovers. According to Bank of America securities analyst Robert Lacoursiere, "We expect the declines in mortgage volumes will be a key catalyst for consolidation."

Source: Business Week (01/09/06); Hibbard, Justin"

Reply by Charm_AL on 1/9/06 1:45pm
Msg #87083

And....the lenders that are left will be calling the 'El Cheapo' SS's to get er done!

Reply by Charles_Ca on 1/9/06 5:44pm
Msg #87172

Personally I doubt it will happen.

In nature when food becomes scarce so do the animals who depend on it so that there is usually enough to support the existing population. Through Natural Selection the less capable die off. Business is much the same way. There will be a lag time but eventually the quick buck bunch will realize that the NNA is not the path to riches and they will go elsewhere. Recent examples are multilevel sales, pyramid schemes, etc etc. Mention Amway these days. There was a time when Amway was considered to be the way to riches. So was Shaklee, Redwing Shoes, Electrolux.

Eventually this will all settle down. Transitions are always painful but the results for those who persevere are most beneficial.

Reply by Charles_Ca on 1/9/06 5:44pm
Msg #87173

Personally I doubt it will happen.

In nature when food becomes scarce so do the animals who depend on it so that there is usually enough to support the existing population. Through Natural Selection the less capable die off. Business is much the same way. There will be a lag time but eventually the quick buck bunch will realize that the NNA is not the path to riches and they will go elsewhere. Recent examples are multilevel sales, pyramid schemes, etc etc. Mention Amway these days. There was a time when Amway was considered to be the way to riches. So was Shaklee, Redwing Shoes, Electrolux.

Eventually this will all settle down. Transitions are always painful but the results for those who persevere are most beneficial.

Reply by Anonymous on 1/9/06 6:22pm
Msg #87189

Re: Personally I doubt it will happen.

Right Now it is Just Supply and Demand. Basic Economics