Home Loan Expert Blog

You do not have to be a brain surgeon to originate a real estate loan but if you do not understand the loan industry you can get a big headache. The purpose of this blog is to inform and education. The current mortgage crisis is unprecedented.

Institutional funds typically available to buy loans from loan originators have stopped. Banks, Retirment Plans, Mutual Funds which buy mortgages domestically and internationally are no longer buying mortgages due to their perceived risk as a result of increasing levels of foreclosure. Mortgages greater than $417,000 known as jumbo loans are now 1-2% higher in rate than conforming loans. Mortgage for clients who cannot document income are in short supply. Many borrowers who wish to buy or must refinance cannot find financing. The Federal Reserve and its equivalent in Asia and Europe have flooded the world economies with more capital than after the 9/11 crisis. Hopefully this crises will end soon but it has not yet. Choose your lender carefully based upon referral or your own experience. Stay informed. Let us know what you think will happen next.

Michael Sedloff (mlsedloff@southlandequities.com)

You do not have to be a brain surgeon to originate a real estate loan but if you do not understand the loan industry you can get a big headache. The purpose of this blog is to inform and education. The current mortgage crisis is unprecedented.

Institutional funds typically available to buy loans from loan originators have stopped. Banks, Retirment Plans, Mutual Funds which buy mortgages domestically and internationally are no longer buying mortgages due to their perceived risk as a result of increasing levels of foreclosure. Mortgages greater than $417,000 known as jumbo loans are now 1-2% higher in rate than conforming loans. Mortgage for clients who cannot document income are in short supply. Many borrowers who wish to buy or must refinance cannot find financing. The Federal Reserve and its equivalent in Asia and Europe have flooded the world economies with more capital than after the 9/11 crisis. Hopefully this crises will end soon but it has not yet. Choose your lender carefully based upon referral or your own experience. Stay informed. Let us know what you think will happen next.

Michael Sedloff (mlsedloff@southlandequities.com)