San Francisco-based Wells Fargo, the second-biggest U.S. home lender, has stopped issuing so-called Alt-A loans, made to people with near-prime credit ratings or to borrowers with the best credit who don't document their incomes. Memphis, Tennessee-based First Horizon has raised rates ``significantly'' on such loans in the past two weeks and is curtailing the number of loans it's making, said Pete Makowiecki, the head of its mortgage unit.
``The credit crunch is here,'' said Keith Shaughnessy, president of Foundation Mortgage Corp. in Littleton, Massachusetts.
This is just what the housing market -- and the economy as a whole -- need right now.....NOT.
3 comments:
It will take the real estate market about a month to take this in.
Then around September prices will plummet.
You're right on the credit crunch. Watch Jim Cramer's rant today - http://www.cnbc.com/id/15840232?video=452808336&play=1
But the most amazing proof of the credit crunch is how the "free-marketers" are now demanding that Bernanke rescue the markets.
Their double-talk is the proof of the fear.
Oh, and by the way, the huge bulge of 2/28 ARMs written in 2005 start resetting in October.
Enjoy trying to sell your house!
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