Mortgage Blog

The bond yield is back down around 3.8, which has helped lower our rates to around 6.375-6.5% as opposed to the 6.75-6.875% we were at over the last several weeks. 

I have read and seen in the news that Freddie Mac and Fannie Mae, which are the two government sponsored lenders who buy most of the "conventional" loans, are in trouble financially.  I guess FHA may be the only one standing before too long.  Back over the last several years Fannie Mae and Freddie Mac were very loose on there requirements to become approved for a "Flex-100" or 100% Conventional loan.  It seemed like just about any borrower I sent into the system would get approved for a 100% loan at some level.  If they had really bad credit, Fannie/Freddie would just approve them at a level that had a higher interest rate and higher mortgage insurance and give them the money to buy the house.  I'm sure stuff like that is contributing significantly to their current problems.  I'm surprised I don't see more information about the Mortgage Insurance companies that were insureing these loans, like MGIC, going out of business.  Maybe they are in trouble but I just haven't paid that much attention to them.

One last thing....I've noticed that there are a lot of people that read this blog, but I have no idea who any of you are.  No one has ever left a comment.  If you feel like it, it would be good if you could just leave the city/town where you're from in the comment section.

Thanks,

Colby