Thanks! Lots of good info. To us, this is the best part of a blog–an interactive community where expertise and information is shared and everyone’s voice can be heard.

You bring up one more thing to consider. Hopefully we’ll see DC paying attention to and doing something about this ongoing liquidity crisis, but a natural response to the subprime mess.

One more reason we keep saying nobody really knows what’s next. (Of course, that doesn’t keep us from guessing!)

You sound quite knowledgeable–do you work in the mortgage industry?

Thanks for your input.

Maybe you could put up a guest post for us sometime?

You have the new LLPA (Loan Level Pricing Adjustments) from Fannie/Freddie coming down the pike that will add significant fees to any new loans.

Private Mortgage Insurers tightening up significantly.

And lenders realizing that maybe.. just maybe.. they won’t be able to resell this FHA paper on the secondary if it’s the junky / suprime type of loan so they are adding new overlays and fees on top of the FHA guidelines to make for better performing mortgages.

All this points to less and more expensive credit in the near future. Most of the MI changes didn’t happen until March 31st and the LLPA’s aren’t required until June 1st (iirc) though some lenders are implementing them earlier.

It is becoming a FHA or nothing market and FHA isn’t a lender, it is insurance. You have to get someone willing to hold the paper and banks AND Fannie/Freddie are becoming more conservative about what paper they ultimately want to hold.