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Ryan’s Mortgage Blog:
Another lender bites the dust…For the last couple weeks this has been the ongoing theme. Several lenders recently filed for bankruptcy or suspended new business. This doesn’t sound all so new, but there is a catch this time. We all know of the sub-prime melt down that has been going on and the companies that buried themselves a grave, but this time it is different. American Home Mortgage was the most recent big name to file for bankruptcy, but the catch is they were not a sub-prime lender. According to an article on MSNBC, “its 40 biggest creditors include virtually all the major names of Wall Street. At the top of the list are Deutsche Bank AG and JPMorgan Chase & Co… Last week, the company said many of its lenders wanted their money back and it was unable to deliver as much as $800 million in promised loans. It then laid off almost 90 percent of its 7,000 employees.”
Ok, now that I have your attention…do not panic! There is a weeding out process going on right now with lenders, but the large lenders (Wells Fargo, B of A, Citi, Countrywide) will survive and remain competitive, especially those with deep pockets. If it gets any worse the Fed, Wall Street, or the government will step in take action. Your current mortgages are fine, even if your lender has gone bankrupt. See the following article for Q’s and A’s about what happens if your lender goes under :,0,597115.story

Like I have stated before, guidelines (down-payment amount, documentation, etc..) are getting tighter and your credit score is more important than ever. We were spoiled with really low rates not too long ago, but the current rates are still historically low. I just refinanced a client last week with a 5 year ARM at 5.75%, which I think is pretty good. Now everyone wouldn’t qualify for that rate, but my point is good deals are still out there. Don’t let the media scare you.

In unrelated news…Barry Bonds broke arguably the most coveted record in all of sports by hitting his 756th homerun last night. Love him or hate him, steroids or no steroids, it is one heck of an accomplishment. It is just sad that this great feat has to be clouded… and now thanks to Jose Canseco, Alex Rodriguez who is the next great player of his generation who has the best chance to pass Barry Bonds, will be up in question for taking steroids as well.

For any mortgage (or sports) related questions or comments you can contact me at or 805-540-0866.

Written by Keith Byrd - Go to Keith's Website/Profile