A lot of water has gone over the dam since last I posted information here. Since last winter several large mortgage lenders have either gone out of business entirely or have "right sized" their operations by eliminating one or more lending platforms that they were supporting.
GMAC Mortgage LLC happens to be one of the more significant lenders to make drastic changes to their way of doing business. On September 5, 2008 GMAC eliminated over 200 retail offices and all retail lending operations. In addition they ended all wholesale lending activity. This left only their internet and phone call-in origination platforms.
Unfortunately, it also left the servicing operations as well, so if you were thinking perhaps there was no place to send your monthly payments and your mortgage was somehow cancelled, not so fast!
On a more significant note, there will be huge changes in the way mortgages are originated and underwritten in the coming few years as a result of the federal government bail-out of Fannie Mae and Freddie Mac. The changes have not been mentioned in any publications as yet. Our best guess is that conventional conforming mortgages will look more like the FHA versions of mortgages as a result of this bailout. We will keep yo apprised of this as details emerge. In any event, as the saying goes, mortgages in the near future "will not be your father's Oldsmobile"!
Stay tuned, and don't give up looking at great deals on real estate or mortgages. Opportunity is right in front of you.
Wednesday, September 24, 2008
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