Ed's Blog

Last week at the California Association of Mortgage Broker’s annual conference in Long Beach, we held a press conference to discuss some troubling news. At the time, it appeared that Countrywide, the nation’s largest mortgage lender was headed for serious trouble. This was sure to have a huge psychological impact on consumers, and I didn’t hesitate to say it:

"The consumer will feel that there is no loan availability if companies like Countrywide can't keep their doors open. This isn't some small company that decided to start up yesterday that had a risky business plan. This is America's leading lender.”

No sooner had those words come out than we received what appeared to be even worse news. Countrywide was forced to tap an equity line of $11.5 Billion to ensure the company’s continued viability.

For industry insiders and consumers alike, this packed one heck of a punch, nearly crushing whatever hope remained that the mortgage market would stabilize.

…Ahh, what a difference a week can make. Just today, Bank of America (the nation’s 2^nd largest bank) injected $2 Billion into Countrywide, thereby throwing their impressive weight behind “America’s Leading Lender.”

To some this won’t mean much. But to those who have followed the now infamous mortgage meltdown, B of A’s decision was pivotal. If nothing else this move boldly proclaims that B of A has substantial confidence in not only the viability of Countrywide, but they have confidence in the lending industry as a whole. But more importantly, B of A has faith in borrowers!!

That in and of itself, should certainly aid in restoring confidence. Even better, this may just mark the beginning of a calming mortgage market.

Wow! What a wild ride in the mortgage and real estate markets we're having these days! And the stock market too, for that matter.

Because of the continuing front page stories on all of this, I'm going to be making some posts that will help you (I hope) better understand what the heck is going on and what it means to you.

      He was looking to buy his first house and it seems that he couldn't get anybody to listen to him. He had spoken with a couple of lenders about his situation and was quite discouraged. One of them told him that they couldn't qualify him for a home purchase because of his income. He had recently changed jobs and was paid in a different manner. Turns out that even though his situation was unusual, we were able to fit him into lender guidelines with the proper documentation and explanation of how he was paid.

      The other lender was willing to qualify him for a stated income loan, but insisted that he get an adjustable rate loan. Our client didn't like this at all and was totally frustrated.

      Fortunately, one of his friends referred him to us. We reviewed his situation and gathered all the information that we knew lenders would want. We asked him lots of questions about his finances, his needs, his desires, his home buying goals and his life goals. We understood why he wanted a 30 year fixed rate loan. We understood what kind of house he wanted, how much he wanted to pay, and where he wanted to buy. Together with his real estate agent, we were able to get him into his perfect home. Life is beautiful, he loves his new home.

      It’s funny how often in life it's hard to get what we want because people aren't properly trained in their business or don't listen or both. It seems like good service has become a quaint relic of the past. Our goal here at Smith-Craine is to find out what you want, and then give you the best advice and service we can.

      So if you’re looking for a loan to buy or refinance your home give us a call or send us an email.