Posted by PJM/MI on 3/10/07 1:10pm
Msg #179392

Subprime lenders

Before we all freak out and get scared about the future of our businesses, here's something I read today:
Subprime lenders only make up 10-15% of lenders.

Reply by Charles_Ca on 3/10/07 1:35pm
Msg #179397

Nothing to worry about at all!

When you read that subprime lenders make up only 10 to 15% of all lenders how is that statistic presented? How about as a percentage of all loans since there are many well-considered lenders who also have sub-prime products? I am not suggesting that the statistic is not true I only suggest that sometimes in the presentation of statistics important information is left out whether accidentally or on purpose. It only makes sense when the statistic is presented in a context of a scenario. I am sure that shortly there will be many fewer sub-prime lenders. I just suggest that one be a critical thinker when one reads the news

Reply by Stamper_WI on 3/10/07 3:34pm
Msg #179410

Re: Nothing to worry about at all!

And, believe it or not, statistics can be slanted...if you aske the right questions.

Reply by ewing2surf on 3/10/07 2:13pm
Msg #179404

The demise of the sub prime lenders will not affect the NSA as much as the dropping home values and the raising of the borrowers credit requirements. Ever here this on the radio? "Buried in credit card debt? Use the equity in your home to pay those nasty creditors".
Nasty creditors = low credit score. On the bright side there is a lot of opportunity in the loan consolidation market. Once again credit score plays a big role.

I just saw a local website that was a blatant ripoff of my site. He even uses the "you never know when you will need a notary" part except this guy says he will drive anywhere in San Diego, go to jails etc etc.. for free (no travel fee). I guess $10 buys a lot more now than it used to. I also remember filling up with $1 a gallon gas (San Diego) and heading out for a loan assignment.

Reply by Charles_Ca on 3/10/07 2:25pm
Msg #179406

" I guess $10 buys a lot more now than it used to,..." Looks

like that notary has an idea of their true worth! Must be a product of the NNA mill staking out their portion of the money promised.

Reply by ReneeK_MI on 3/11/07 3:34am
Msg #179439

and their share of the market ....

According to Dean Baker:

"With foreclosure rates soaring, the music is about to stop. The investors who bought up these mortgages in the secondary market are now refusing to lend more money. Credit is drying up for both the subprime and the Alt-A market, which is a notch above subprime in creditworthiness. These two segments of the housing market together accounted for 40 percent of the mortgages issued in the last two years."

Reply by Nicole Clement ClementClosingServices on 3/11/07 7:49am
Msg #179447

Remember in this recent news, people are always going into debt and borrowing money. With many subprime lenders closing shop, it will just force people to become more credit worthy because lending laws will tighten up. Loans will still be made, people will still be buying homes and refi's will still continue. It just means, there will not be as many options for folks with lower credit scores. I do closings for several large subprime lenders that are not being effected by the other's closings in fact, it will more then likely streamline more loans their way. No need to panic.