Just heard from a mortgage officer that American Home Mortgage just went belly up - and that they are laying off 7,000 people.


If you go to their website, it says they are no longer taking loan applications:
www. americanhm. com


Imagine that will shake things up a bit.

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Jennifer Karlen & Jon Karlen
Kentucky Horse Farms - Louisville Kentucky Real Estate - Lexington Kentucky Real Estate
Serving the Louisville KY metropolitan area including Jefferson County - Prospect Shelby County - Shelbyville Oldham County - Goshen, La Grange and the Lexington KY metropolitan area including Fayette County - Lexington Woodford County - Versailles Scott County - Georgetown Jessamine County - Nicholasville

Their stock went down 37% on monday. The market has already changed so much since August 1st.

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"Truth in Lending"
http://www.temeculafunding.com

http://www.teamlloyd.com

It already has! I feel bad for the folks who will lose their jobs, but it's about time our industry (mortgages) cleaned up its act. Everyday we get calls from people who took out options arms or other Alt products (American Homes Primary Focus) who are facing foreclosure because they can't make the payments on their loans. They were never qualified to get a loan in the first place and are now paying the price. And, it’s not just causing problems in the Alt arena. Look at Minnesota for instance. Their legislature passed a new predatory lending law effective Aug 1st and it has had the unintended consequence of affecting other loan programs. For instance, TB&W will no longer underwrite Streamlined FHA or VA loans in the state of Minnesota because of the new law.

Now, I'm not saying Alt programs don't have a place in the industry, they do. Just not like they have been for the last 2 to 3 years where the guidelines got so lax that some lenders gave them out like candy. Sure, it got people into homes, but at what price?

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Benjamin Dona, Broker/Owner
Gulf Coast Associates, Realtors
Metro Mortgage Company
Bonita Springs Real Estate | Florida Home Loans | Naples Real Estate

Agreed.

But the larger issue is that home prices are so out of hand here around Boston that people can't AFFORD to buy homes. The only place I can afford to buy a home myself is in Southern Indiana.

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Richard A. Jolitz
Looking for a new "home" to work out of.. open to suggestions

MASS Home Connection - Under Construction