Monday, August 6, 2007

The ever changing mortgage landscape

Some large lenders are rolling back their Alt-A products as liquidity remains an issue on the secondary market. In the short term borrowers are going to find themselves paying higher prices on sub-prime loans or simply out of the market if they can't qualify for that altruistic prime niche. Seeing that the sub-prime market has remained intact, be it is without the 100% financing down to a 540 credit score, I can only speculate that the sub-prime markets will see the need to become more competitive and will look to expand their portfolios to include these former alt-a borrowers. The result leaving only a shift in definitions rather than a cluster of home buyers high and dry. Half empty or half full?