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The New Mortgage Landscape

Mortgage Lending and the ways a consumer finances their home has changed remarkably in the last 7 years. By now, we are all aware that Wallstreet, The Fed, Fannie Mae, Freddie Mac, and the major mortgage lenders have been irreversibly changed since the First Hints of trouble back in 2005. Are the changes all good changes, all bad changes or somewhere in the middle? Well as you might guess, there can usually be some good in all things. And There can usually be some bad in there as well.

Just like the Laws of Nature- Gravity, evolution, Climate change. There is the “law of unintended consequences”. When Congress set in motion a series of actions in 2009, mortgage lending was forever changed. Whether you like them or dislike them, the new “mortgage lending rules” have had a drastic impact on everyone.

The Dodd-Frank Financial reform Act of 2010 passed by the slimmest of margins back in July of 2010. The basic premise was that we desperately needed better checks and balances in the Bank and finance realm. And while you may agree with that, what followed was a hodgepodge of new laws that have in many cases, created a severe set of unintended consequences.

Mortgage Brokers held upwards of 70% of the entire Mortgage originations market in late 2003. Today that number lies in the low 20s. Why? That a great question that may not be easily answered. But suffice it to say that tighter regulations, a grand constriction of available Mortgage wholesalers, and a dwindling Housing market all played a part.

What does all this mean? Well with nearly 75% of the mortgage lenders from 2004 now out of Mortgage Lending, the options have shrunk. With the proliferation of online opportunities many people now go first to the World Wide Web to look for resources. And while some people continue on with that course once they actually are ready for action, most people still seem to enjoy and appreciate the personal touch of a living, breathing, present mortgage Advisor to help organize and choose the best financing alternatives out there. And that’s where Mortgage Choice Inc. becomes a valuable tool.

Just because you know the acronym H.A.R.P, or FHA, or QE 1,2,or 3: Doesn’t necessarily mean you are ready to GO IT ALONE. Lots of people have tried to use the Online resources to actually serve the purpose of mortgage counselor. But the trouble with that- if you have a problem, by the time you realize that having a trained professional right here in your community to help with the problem… its TOO LATE. So why take that chance. Especially when its so easy here at Mortgage Choice.

It would also seem that with so fewer lenders available to assist you that it may get easier. But today, is more important than ever to choose the most appropriate Lender as well as the most appropriate program.

Whether it be general information, specific loan questions, or a personalized “action plan” to get you ready to buy, Mortgage Choice is here to help. The Landscape has changed all around us, but Mortgage Choice Inc remains a constant. You know the name, you know the people. Email, call, or stop by. We’d love to help.

 

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Testimonials

David Tyndall at Mortgage Choice, Inc., in Cary, North Carolina, was an essential part of our relocation team. His knowledge about the current mortgage market helped us to make smart choices in preparation of applying for our mortgage. We were so blessed to have someone to offer us competitive rates and to ask the many questions that you have when making such a large purchase and life change. If you are even considering purchasing a home, we highly recommend calling David Tyndall at Mortgage Choice, so you too can be better prepared for the financial end of purchasing a home.


Mike and Becky