Tell Us Something We Don't Know

Today's bit of good news comes from this article from CNBC. http://www.cnbc.com/id/23187555

The article explained on how it is getting more and more difficult for borrowers to get mortgages. The guidelines from lenders regarding qualifying is getting smaller and smaller. And we are not just talking subprime, we're also including people with good credit as well. And businesses which are trying to borrow are having a hard time too.

The reason is simple. Lenders and banks just can't afford to take on anymore risk. With $140 billion already written down and an billions more on the way, what lender can take the gamble?

Here's a quote from the article "Credit got terribly easy," said Ronald Hermance, chief executive of Hudson City Bancorp Inc, a $44.4 billion asset, Paramus, New Jersey-based lender that has avoided big losses despite specializing in residential mortgage lending."

Amen, Ron. Credit was easy, but not anymore. But there are programs out there that still work for people. And I believe lenders and banks will ease up down the road but how much easing depends on the beating they take in the coming year.

My drawer full of lenders has gotten smaller as a good portion of them dropped out of the business. And now the remaining lenders in the drawer are reducing their options to the borrower.

I have to get a differant drawer.

If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.

Thanks for reading!

Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com