Monday, February 27, 2012

Turning The Corner: Private Mortgage Lending Returns

 

An interesting article out of Housingwire reports good news from the mortgage market.  Here is an excerpt:

 
Wells Fargo finalized a new division built to originate mortgages outside of Fannie Mae and Freddie Mac guidelines.

-snip-

The bank promoted Brad Blackwell, formerly a sales manager in charge of West Coast operations, to lead the new business. He will work with Wells Fargo community banks, wealth brokerages and retirement groups, and the non-agency, jumbo and home equity loans will be kept on the Wells portfolio.

If this isn't a clear indicator that we have entered the bottom of the current market cycle, I don't know what is.  Banks don't like to lend on collateral that is falling in value.  It follows the maxim: Never Try To Catch a Falling Knife.  When house prices stop falling, lending becomes a much safer bet for banks.  This is just the latest evidence that we have entered a turning point in the market.

For those of you waiting to buy a home, I would highly recommend that you take a look around the market.  Bargains abound and interest rates are ridiculously low.  Let me show you where the bargains are.   

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