Lenders are continuously tightening guidelines and are restricting many loan programs available to borrowers. With major lenders and investment banking companies still having billions of dollars in bad mortgage debts to write off their books it will be some time before things loosen up. Also, major players such as Fannie Mae and Freddie Mac have implemented many changes to their loan programs which will result in an across the board tightening of guidelines which will result in fewer loans available to borrowers.
Forget Sub-prime, there are still sub-prime lenders out there in the marketplace but their interest rates are not what they used to be and the loan programs available to the sub-prime borrower will only meet a small select few borrowers. With all this said I believe 2008 will be a year of tighter guidelines, fewer loan programs and a tougher market for mortgage brokers, Realtors and other professionals related to the housing market in general to survive.
Don’t get me wrong, even in the harshest environments there will be those that flourish but the days of overwhelming prosperity for the broker with a loan application and the borrower with a pulse is such a thing of the past.