Mar. 12, 2007 - Countrywide Stops No Money Down Financing

Game Over!

By all accounts, the market for "subprime" mortgages -- home loans made to people with poor or sketchy credit histories -- has unraveled with impressive speed and intensity.  

Countrywide Home Loans notified its loan consultants to stop 100% financing for home loans last Friday.  This is in addition to news that New Century Financial Corp., the nation's second-largest subprime mortgage lender, was forced to stop making new loans.

This latest news should come as no surprise. Last Wednesday, here at Somerset 08873, it was reported the tightening standards for credit impaired borrowers had begun (Prime Mortgage Melt Down).  According to the WSJ, Countywide holds 8% of the sub-prime mortgage market and $38.5 billion in loans. 

For home buyers and refinance borrowers with poor credit, the easy money gravey train is coming to a screeching halt.  Pull that seatbelt just a little tighter to prevent injury. 

If you are shopping for home financing, do your homework to ensure you go with a reputable and solid lender; preferably one who did not engage in the subprime market and who's balance sheets are in order.

You can read more on this story at CNN/Money