Tom,
Right now there are investors/lenders sitting with bundled loans ranging from 10 million to 1 billion and they can’t sell them for the price they thought they could sell them for. Pricing models based on 85 basis points wasn’t that good when they should have taken it, they still thought they’d get the 105 basis points. Wall Street is sitting there wanting to know “how low will they go” since loans they bought at 80 “bips” is now worth 60 “bips”. I gave up correspondence for this reason alone not wanting to be stuck with product that is now worthless.
Just like a snake eating a pig it will take a little time to digest this all and there’s a flight to good quality loans once again. Jumbo lending will also get better since the spread is right now is 7/8 over conforming vs. the usual .25%. The adjustables on jumbos will be a safe haven for now. And things will calm down.
(I just realized this isn’t a mortgage website, sorry!) 8)
Sorry to hear about your engine. I shut mine down in time so the damage shouldn’t be too bad. I really was looking forward to having you behind me… 8)
See you in a few weeks. I’ll be volunteering for the Grands so better be nice to me.
:cheers: