Lenders are feeling the heat and retreating

Recently there has been a great deal of volatility in our industry. Over the last several months, we?ve seen a number of small to mid-size companies go out of business and a few taken over through acquisition.

As a result, many lenders are pulling back in their loan to value ratios further narrowing the field of 100% financing options. The foreclosure rate amongst these loans is very high when compared to lower ratios for obvious reasons. This makes it tough for investors who want to leverage assets to get the most for their money. I don’t expect this to change anytime soon.

The one positive note is that interest rates are again at a level that many homeowners will find suitable to reduce monthly debt loads through refinance. The 30 year fixed is around 5.75% today which is well below historical averages and only about 1% above the lowest of all time.

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