Funny you should just mention sub-prime...
I just had an Indymac rep call me and tell me that they are pulling all their subprime products and that I need to "lock anything and everything I can." He was almost frantic. Wells Fargo already dropped them but now are going to drop their Alt-A programs too (Stated loans, Jumbo loans etc). I'm watching AE's for all of these lenders quit, change companies etc. Two weeks ago my Bear Stearns AE quit Bear, went to ABC, and the next week ABC stopped writing new business and she now she is out of a job. I might hire her in my office though just because she's a good tactician...
The market correction that is occuring now will be the push over the edge for many of the remaining sub-prime lenders. No one wants to invest in financials. No one will be there to buy their bonds. So they can write high risk loans but have no one to sell them to, which means they stop writing. None of the prime lenders want to hang their fanny out there since appreciation is stagnant in most of the major markets.
Weird thing about the current market...probably is one of the best buying opportunities to buy in ten years but it's much harder to get the financing to buy. I'll tell you this, folks with deep pockets are virtually stealing property right now...short sales, foreclosures, developer incentives...buying at the bottom is fun but I feel for the families that made the unwise decision to trust in appreciation, ARM's, and the ability to sell before their gamble caught up with them. Moral of the story, buy what you can afford to pay for at fixed rates.
Back to the grind...got to go "lock, lock, lock!"
Ren
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