"Fremont won't fund home loans in process" & "Act fast if behind on mortgage"

[fed-up]

The shit is hitting the fan big time. F*cking crooks got away with these outrageous loans for far too long-just to make the economy look rosy. The admin did little to stop them. Thanks to warnings here on DU I sold my house last Nov, bought down and am now DEBT FREE.

edited to fix a typo and add one more story

I found the first story on Stock Market Watch-which I seldom read

http://www.reuters.com/article/bondsNews/idUSN0719961420070307
Fremont won't fund home loans in process
Wed Mar 7, 2007 9:05AM EST

NEW YORK, March 7 (Reuters) - Fremont General Corp. (FMT.N: Quote, Profile, Research), which stopped making new home loans after agreeing with a U.S. bank regulator to stop risky lending, said it will also not fund loans in process.

Tuesday's decision by the subprime lender will make it more difficult for people who have contracted to buy homes to close, because they will need to quickly find alternative financing, perhaps at less favorable terms.

"We will fund loans ONLY if the LOAN IS CLOSED (signed) prior to the close of business Monday 3/5/07 with all credit conditions satisfied," Fremont said on its Web site. "Loans in process in which documents have not been signed ... will be declined for the following reason 'Don't Grant Credit on these Terms and Conditions.'"

Santa Monica, California-based Fremont last week said it hired Credit Suisse to help sell its subprime unit. The Federal Deposit Insurance Corp. ordered the lender to stop making improper mortgages.

...snip

and one for those getting behind on payments
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/03/06/BUG9DOFRGV1.DTL

Act fast if behind on mortgage
Kathleen Pender
Tuesday, March 6, 2007

If you fall behind in your mortgage payments, it's important to take action. Talk to your lender and seek a good nonprofit credit counselor or bankruptcy attorney.

Your best course of action will depend on whether your financial difficulties are likely to be temporary or long term, and whether you have any equity in your house.

If your financial difficulties are likely to be long term and you have equity in your home, consider selling the house and preserving your stake, says Jack Guttentag, a former finance professor at the Wharton School of the University of Pennsylvania. If you have equity and think your financial difficulties will be short term, consider taking out a home equity loan and using it to pay your mortgage until you are back on your feet.

"You have to do this before you become delinquent. If you are 30 days late, you might be able to get a loan. If you are 60 days late, you are not going to get it," Guttentag says.

more at link



http://www.nytimes.com/2007/03/05/business/05lender.html?ei=5088&en=8b1c3efaa3457cbc&ex=1330
Mortgage Crisis Spirals, and Casualties Mount
Kal Elsayed, a former executive at New Century Financial, said subprime mortgage lending was easy money.


By JULIE CRESWELL and VIKAS BAJAJ
Published: March 5, 2007

Even in affluent Orange County, Calif., the growing wealth of executives and brokers in the booming mortgage industry was hard to miss.

For Kal Elsayed, a former executive at New Century Financial, a large lender based in Irvine, driving a red convertible Ferrari to work at a company that provided home loans to people with low incomes and weak credit might have appeared ostentatious, he now acknowledges. But, he says, that was nothing compared with the private jets that executives at other companies had.

“You just lost touch with reality after a while because that’s just how people were living,” said Mr. Elsayed, 42, who spent nine years at New Century before leaving to start his own mortgage firm in 2005. “We made so much money you couldn’t believe it. And you didn’t have to do anything. You just had to show up.”

Just as the technology boom of the late 1990s turned twenty-something programmers into dot-com billionaires, and leveraged buyouts a decade earlier turned Wall Street bankers into Masters of the Universe, the explosive growth in subprime lending turned mortgage bankers and brokers into multimillionaires seemingly overnight.

more at link

[demnan]

1. Goodbye easy home loans

hello tight money.

[madrchsod]

2. buy-the stock is going up!

just checked -yup shares are going up