Today, another major player announced it is leaving the wholesale mortgage market.

HSBC, a major player in the mortgage industry announced it is pulling out of wholesale lending as of November 18^th.  All loans in the wholesale division must close and fund by January 20^th.  To all consumers, if your loan is with HSBC through a mortgage banker make sure you lock your interest rate by December 2^nd and close it by January 20^th.  Also, make sure you have a backup plan.  Things turn on a dime!

This unfortunate news tells us that the industry continues to collapse under the direction of the current government.  Paulson and friends have been unable to stabilize the market to date.  As his clock ticks and he continues to sweat on Capitol Hill, capitalism crumbles before us.

I have appreciated the professionalism and great rates of HSBC for so long, it will surely be missed.  I thank my representative Ginny and her team for years of hard work. The best of luck to you all!

Dale Siegel

As the government hands out more dough, rates go up and guidelines tighten for mortgage loans.  Can anybody get a mortgage today?

A few tidbits from lenders today:

• Lenders now requires a 660 minimum credit score on a 95 LTV condo or a 90 LTV co-op purchase/rate term refi of a primary residence (formerly 620 FICO)
• 95 LTV second home purchase of a single family/detached PUD requires a 700 score (up from 680), and rate/term refis of second homes are now capped at 90 LTV (down from 95)
• In Florida, purchase/rate and term refinance transactions now require a 700 score at 90 LTV (formerly 660)
• Cash out refinances in Florida are capped at an 80 LTV with a 660 score (reduced from 90 LTV)

 Dale Siegel

As you know many of the banks discontinued the original economic stimulus plan.  There is now a new one with higher loan amounts.  The rules are not really in effect until December, but they might be honored at some institutions now.

Remember, even though the government says they banks should do this, it does not mean they have to.  Even if they choose to increase the loan amounts, the lenders may still impose very strict guidelines as well as price/rate increase.  I will have more information to follow as it comes in.

The loan amounts have been reported as follows:

# units     loan amount

1                   625,500

2                   800,775

3                   967,950

4                1,202,925