Thanks for the comment. You are right – conforming seems to be doing just fine for the time being. It will be interesting to see how far the GSEs will expand their definition of conforming to accommodate borrowers shut out of the conventional market.

I don’t think the fed funds rate being dropped is the right solution; we’re already seeing devaluation of the dollar and inflation is still an issue. Plus the problem isn’t the interest rate being too high, the problem is there aren’t enough buyers for our debt any more.

China wants out of mortgage backed securities and over the last several weeks anyone that values their job has stayed away from purchasing anything but conforming product. Until investors come back there is going to be a lack of liquidity on Wall Street.

I agree with you on finding people to help – it is critical that people with border line credit and in border line situations talk to mortgage professionals immediately to ascertain their situation and plan for the future.

See your saturday – looking forward to it!

The conforming market is still doing relatively well. The unfortunate thing is that not a lot of people fall into the conforming category; especially here in California!

So what do you think the solution is? Lower the Fed Funds Rate in September? Or raise the conforming loan limits?

Whatever the move, wholesale is going to narrow down to lesser funding institutions and it’ll take time for lenders to regroup their lending portfolios. In the meantime I’m sure we can all find people to help.

PS. See you this Saturday in Irvine.