I've been asked every day for the past couple of weeks if the fallout in the mortgage industry is effecting my business.  Here are some headlines from the different news agencies: 

From USA Today/Reuters, 8/6/07: “American Home Mortgage Investment (AHM), a large home lender catering to people considered good credit risks, completed its flameout Monday when it filed for Chapter 11 bankruptcy protection."   The REIT based in Melville, N.Y. is one of the largest independent U.S. home loan providers. It filed for protection from creditors in U.S. Bankruptcy Court in Delaware.  The filing came after American Home closed most operations Friday, laying off all but about 750 workers. The company said it started the year with more than 7,400 employees.”

From Forbes.com, 8/16/07: “This past week, 1,200 people lost their jobs after Lehman Brothers Holdings Inc. closed subprime-lending unit BNC Mortgage LLC, a company it fully acquired in 2004. Similar steps are expected as investment banks try to erase any connection with loans to borrowers with weak credit.”

From CNN Money, 8/20/07: “Capital One, best known as a credit card issuer, said it will cut 1,900 jobs and take $860 million in charges as it closes its GreenPoint Mortgage unit, which it acquired last December as part of a $13.2 billion deal for North Fork Bancorp Inc.”

From Associated Press/Forbes.com 8/24/07: “Most mortgage lenders are either bankrupt or trade near multiyear lows.”

Even Countrywide Mortgage, the nations largest lender has felt the squeeze.  They had to get a major cash investment of $2 Billion from Bank of America to keep their doors open.

Subprime lenders and smaller institutions will continue to close, larger lenders will consolidate or eliminate their Alt-A divisions, if any, and underwriting guidelines will continue to tighten, stabilize, then relax just enough to keep a steady stream of purchase loans and refis in the lending pipeline.

Fortunately my market has been strong and we have weathered the real estate storm experienced with the rest of the country.  However, I did notice a remarkable change in this area when the big lenders starting feeling the squeeze.  So ultimately it will have an impact on our market this fall but I feel the fallout will be over by spring.