Averting the Mortgage Crisis

January 19th, 2010

Millions of homeowners are seeking mortgage refinancing or loan modifications in an effort to save their house or make their monthly payments more affordable. Unfortunately for mortgage brokers and lenders, mortgage refinance closings have slowed to very uncomfortable rate.  According to CFB Branch loan manager, Jeff Moran, most home refinance loan programs insured by the FHA are taking seven to eight weeks. Imagine owning a home loan company that had to cover four or five staff payrolls to fund a loan. Imagine paying underwriters, processors and loan officers to work on home loans that likely would not actually close. The mortgage business has seen brighter days. The credit crunch has caused lending guidelines to get tighter to the point that very few borrowers qualify for a home loan. Moran continued, “FHA loans have been the only lending product we can count on and fortunately the government loans will consider the borrower’s compensating factors for approvals.”

On the other hand loss mitigation companies have never has more business. With millions of have homeowners on the brink of foreclosure, people are lining up to help people modify their loan terms. With the recent $850 billion dollars from the Financial Bail-Out package, you can bet that loan modifications will only increase in 2009. Once we get past the foreclosure crisis most financial critics agree that home refinancing will resume back on its normal course.

About the Author: In addition to being the founder of Lead Planet and Nationwide Marketing, Bryan Dornan is a respected copywriter and lending executive who has published real estate articles online. Mr. Dornan suggests visiting the following web-pages: Search Marketing Company and for quality Mortgage Leads visit the Lead Planet online. Bryan Dornan is an experienced real estate consultant who publishes many interesting foreclosure prevention articles for many real estate blogs.  Article Source: http://EzineArticles.com/?expert=Bryan_Dornan

Foreclosure News, Loan Modification News, Loss Mitigation Articles, Mortgage Industry, Mortgage News ,

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