It's no secret: The 'credit crunch' is not contained to the subprime sector. Subprime, depending on who you listen to, was about 10-15% of the overall mortgage market up until the point when things started to crumble in January of 2007, and then really fell apart in August of 2007. For a while, the Fed, other economists, and certainly the mortgage industry was defiant about the idea that this little fire would be put out before catching the whole forest ablaze.
If 15% of the market is in peril, why are 75% of the banks "tightening" their guidelines, or in other words, making it harder to qualify for borrowing?
See evidence of this in the chart below.
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About Me
- john
- As a Certified Mortgage Planning Specialist (CMPS) with extensive experience in the mortgage industry, I specialize in helping my clients find, structure and manage mortgage debt as one piece of a larger financial strategy. I provide my clients with detailed home loan and debt structuring guidance that compliments their long term financial objectives, including college savings, retirement planning and other investment goals. With an understanding of financial planning concepts that relate to taxation, investment strategy, and estate planning, I work to create a personal strategic mortgage solution for my clients’ diverse financial needs. I collaborate with advisors in other financial fields, and introduce other specialists for guidance as needed. The ability to assess and advise on all aspects of a client’s financial situation can minimize financing costs and tax exposure while building net worth – a benefit often missed when focusing on home loans exclusively.