Craig Torres' article on Bloomberg yesterday (and his update today) points out something Lenders and Real Estate Agents have been dealing with for the last six months.
Banks (who are Oh So Willing to take TARP funds from the coffers of the taxpayer) see themselves as being under siege, and they have tightened their lending standards to the point that many high FICO borrowers cannot borrow money to purchase a home, or qualify to refinance the one they're in. And it's not just the high end of the spectrum. FHA guidelines have been tightened, not by FHA, Fannie Mae or Freddy Mac, but by the banks who have gotten religion on the subject of risk.
Tucson Mortgage, for instance, can no longer accept applications from borrowers whose FICO score is lower than 600, because there's not a bank willing to fund the loan at any price. I take that back. American General Finance is still loaning purchase money at 13%, but they're real picky about the property.
As the debate opend today in the Senate on the 900 Billion bailout, you and I, and everyone you know in our industry needs to be on the horn with our respective Senate offices to say, loud and clear:
PUT THE MONEY INTO THE HOUSING INDUSTRY, NOT THE BANKING INDUSTRY!
I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Think of me as your Tucson mortgage expert.
Call me if I can help you with a mortgage to buy your next house or refinance the one you have:
(520) 349-9090
