Dollars and Jens
Wednesday, April 11, 2007
mortgage market problems contained
Alt-A mortgages are still in plentiful supply. There's no mention in the article of interest rate spreads, which I would imagine would have to widen a little bit eventually, but the recent problems with subprime mortgages and subsequent dramatic tightening in lending standards -- and 400 basis point widening on mortgage securities -- have been confined to the worst of the worst from an underwriting standpoint.
Jim Moore, a mortgage broker in Grand Rapids, Michigan who also writes about mortgages for Miamibeach411.com, said he recently completed a $3 million refinance on a second home for a borrower who was out of work. "This wasn't even a no-documentation loan," says Moore. "This was a no-income loan, and the lender knew it."If you need a mortgage that isn't purely speculative on the lender's part, you can still get it.
