I am a mortgage broker and I'm seeing whats happening first hand. I have a borrower that cant refinance his home of 500K because he has a 626 FICO, the loan is full doc, 80LTV, has 100K in an Etrade account, and 150K in his checking account. This deal should be a slam dunk and yet no lender will touch it. His payment increased by $1000 dollars in February and cant do anything about it. Biggerpo I feel your frustration. I myself have told borrowers that everything looks fine, have been reassured by the lender, only to find out a week later that the lender has gone out of business, the account executive has left town, or that guidelines have changed overnight! Let me repeat myself, Guidelines are changing literally overnight! Its frustrating for me the mortgage broker to try and find a lender that A: knows what there talking about or B: will alert me at least a day before a guideline changes, all of this is on top of me trying to explain to the borrower why the terms of the loan have drastically changed. Its unfair for the people that are doing the right thing, ie paying there bills on time, have good jobs and saving money to be paying the price for greedy investors on wall street. Its beyond unfair and congress needs to step in and help in assisting qualified borrowers that should be able to obtain a loan but cant because of the mess that they didn't create.
