Sunday, June 15, 2008

The Problem in Mortgage Lending

There seems to be a screeching halt in lending, as most lenders test the slippery economy with their wary hearts, before committing their funds to our customers. Over and over again, several of the investment and lending institutions such as Bank of America, Countrywide, Lehman Brothers, Wachovia, Washington Mutual and add your lenders to this list have complained of bleeding losses. The consequence of these problems is delayed lending or outright denial of funding of especially marginal borrowers.

Today’s best and unfortunately slowest chance is government-backed loans such as FHA and California’s HFA. While these funding sources are still going on strong there are quite a list of limitations in getting our customers through their pipeline, with most of them demanding exotic items that was hitherto unheard of. Customers are put through the paces with most of them crying foul, but the truth is that this is now the norm. We hope this “norm” will give way to better days ahead.

Here at Washington Financial, we give our customer’s the truth, but bitter pill, as we maintain our motto of HIGH (honesty, Integrity, grandeur and honor) in dealing with our customers. We recognize that through honesty, we can earn your respect and business. Our partners are doing their best to come through in their pipelines of funding, but with heavy losses, who will blame them to be careful this time around.

We still have partnerships with several big names in the industry, including IndyMAC, HSBC, Citi and more. As a brokerage firm we run your credit once and shop it to these lenders, so you don’t have to.

Give us a call at 916.675.1177 at extension 1000 or 916.494.2255.