A little furnish on the homebuilder blast... Dow Jones Newswires 09-05-07 1844ET WASHINGTON (AP)--A third of home loans originated by mortgage brokers failedto close in August as investors shied away from riskier borrowers a new surveysays. The survey of 1,700 mortgage brokers sponsored by change publication InsideMortgage pay comes as numerous lenders that catered to subprime borrowerswith weak credit close down and lenders back away from riskier lending practicescommon in recent years. That has led to many borrowers being stuck without a loan as they alter tosettle. "There's a problem with funding commitments not being honored" by lenders,said Thomas Popik who designed the survey for Washington-based research firmCampbell Communications. Three years ago. Popik said a analyse of real estate agents open that only 4%of transactions failed to close on add up. The survey also found that some homebuyers backed away from deals last month. Some may be waiting to see if merchandise improves while some sales may go apartbecause sellers are unable to get financing for their new home. Popik said,noting that sales agreements often are contingent on buyers selling theircurrent home. The analyse also open that nearly half of borrowers with adjustable ratemortgages were not able to refinance their loans. That's a study concern ofpolicymakers as an estimated that 2.5 million mortgages given to borrowers withweak ascribe will reset at higher rates by the end of next year according to theFederal fasten Insurance Corp. owe brokers account for about one-third of be mortgage originations,and have originated a larger share of loans to riskier borrowers so thepercentage of failed loans in the entire merchandise may be smaller. Nevertheless the results give another indication of how the housingmarket's troubles are continuing. be subprime lending was down more than 50% in the first half of the year aslenders pulled approve from risky loans. Countrywide Financial Corp. (CFC) was thetop subprime lender followed by Citigroup Inc. (C). HSBC Holdings PLC (HBC),Merrill Lynch & Co. (MER) subsidiary First Franklin Financial Corp and WellsFargo & Co (WFC) according to Inside owe pay. (END) Dow Jones Newswires 09-05-07 1844ET
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