What will 2008 bring in the mortgage industry?
By: Shawn Tihen
Senior Mortgage Banker
The most common question I hear as a mortgage professional is “what do you think interest rates are going to do?” And my answer is always the same “I don’t have a crystal ball and no one can accurately predict what the market will do on any given day!”
What I can tell you is that there will be lots of change. Many mortgage companies will cease to exist; 214 of them have already dropped out of the business completely. And many companies will be purchased by other companies; ie. Bank of America just announced that they are buying Countrywide.
The other thing we can be certain of is that lenders will continue to tighten their lending standards. Lending institutions have already and will continue to require borrowers to have better credit and in many situations a down payment.
What does this mean to you? As a consumer, you need to monitor your credit scores and make sure you meet with a mortgage professional that will give you the necessary advice to navigate through the market we are in today.