Everybody back in the Ocean?
Like the memorable scene from the film Jaws - borrowers, investors and homebuyers fled the mortgage oceans in 2007. Judging by the past week it seems the water looks safe again. We certainly hope it is. One thing the new year calendar year should bring is better loans in the mortgage market.
It is a somewhat safe assumption that loans originated beginning in calendar year January 2008 should be much more attractive loans for buyers of MBS packages.
Foreign investors may now recognize that the US economy is not roaring along by any means, the underlying foundations are more than just okay. Couple that with the new and improved* mortgage products, mortgage loans originated in 2008 should be a safer bet for those that were literally scared out of the water last year by the mere possibility that were buying MBS package tainted with some sub-prime payment traunches. How justified are/were those fears? We don’t yet know. Will 2008 and beyond be higher quality loans - almost assuredly.
*actually they are not really new, in fact they are quite old school - downpayment required, documented income, good credit
So Realtors dust off your cell phone, gas up the car, stop by the car wash for the executive wash and detail, then grab a handful of cards. Things are about to get busy again.
