Comments on: Citi Home Equity Discontinues California Purchase Money 2nd Mortgages

By: Morgan Brown

Morgan Brown — Fri, 02 Nov 2007 03:42:55 +0000

Ravi – I expect the trend to follow to other frothy markets such as florida, las vegas and others. Areas where there wasn’t the huge spike in prices will probably be OK in terms of that financing; but as we can see brokers and correspondents are going to be locked out of that business based on quality concerns…

By: Paul Hiller

Paul Hiller — Thu, 01 Nov 2007 05:23:06 +0000

I’m tired of prolonging the pain. I expect others to be heading for the exit pretty soon.
Can we just take the hit and go back to sound lending fundaments? The sooner that prices drop enough, so that borrowers really qualify for the home they buy, the better. There will be agency loans for first time buyers, and the move-up market will be made up of people transferring the equity they built up over time.
What kind of lunacy made ?smart? companies like Bear offer 1.5 million 100% loans?

By: Russ

Russ — Thu, 01 Nov 2007 00:47:14 +0000

Citi just sent out an announcement that they are done with correspondent 2nds altogether…

By: Ravi

Ravi — Wed, 31 Oct 2007 21:04:16 +0000

Technically only California for the moment. Are you expecting the trend to make its way to other states? Or is that going to be a state-by-state issue depending on whether the loan is recourse or non-recourse?