Posted by David Kral on 2/8/07 8:59am
Msg #174660
Bombs away!
Perhaps the lenders should pay us a small fee not to stamp these loans.
Is it better to be a signing agent and collet a small fee or a lender and experience this.
sank 24% early Thursday after warning of an unexpected fourth-quarter loss.
New Century:
The Irvine, Calif., subprime lender cited "the increasing industry trend of early-payment defaults." New Century expects to post a fourth-quarter loss, where Wall Street analysts were looking for a profit of $1.08 a share.
Stock down 27%!
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Perhaps they will pay us to notarize "loan modification agreements".
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Reply by Becca_FL on 2/8/07 10:27am
Msg #174671
What's happening is...Sub prime lenders had lessened their requirements for lending while RE prices were on the rise. Now, the ARMs and interest first loans are adjusting and the sub-prime borrowers are seeing a substantial increase in their mortgage payments. The borrowers are unable to pay the higher payment and are also unable to qualify for another loan because the underwriters have beefed up requirements due to the slow in the RE market and the increased risk. The only way out for these borrowers is 1) sell 2) refi with a very high rate through a finance company specializing in foreclosure bail outs or 3) lose their house to the mortgage co due to foreclosure. Some borrowers may even find themselves upside down on their mortgages, due to the turn in the market and negative amortization loans. It's sad...very sad.
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