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.
