More Mortgage Madness
First Magnus shut down yesterday. The 16th largest US home lender and 2nd largest private lender that provided money to quite a few mortgage brokers shut it’s doors. This company provides money to some mortgage brokers in Alaska but I’m not sure which ones. I wouldn’t be surprised if this affects Wasilla Real Estate.
All buyers who have prequalified with anyone but the most solid companies should check to ensure that they will still be funded when their transaction closes. I’m going to go through all our files today to make sure there are no problems.
With Countrywide maxing out it’s credit line to stay afloat it makes my wonder if I’ll be making my own mortgage payment to someone else soon. Apparently Countrywide provides a lot of the backing for Quicken Loans so this will be affecting internet lenders as well.
This isn’t all bad, the solid companies will continue to do business and their businesses will grow. Many of the most solid companies have good policies in place and are in the business for the long term.
Alice Roe at US Bank, (866–306–8666), confirmed that they are cooking along just as solid as ever. All their many loan programs are still on line. Alice has rescued quite a few transactions for me over the years when the buyer thought they had a loan lined up but suddenly found that that their lender couldn’t do the deal.