Dear readers - what a day. I wish I could recap everything that happened, and I might get to it this weekend; if I try now I will have been working or on the phone or responding to email or writing for the last 13 hours straight and my wife will kill me - literally. So here is a quick recap:
A commenter correctly said that NovaStar was not the only one that ceased funding today; many other lenders did as well. Here is a quick summary of those that I know who temporarily (unless otherwise noted) pulled the lending plug today:
- NovaStar temporarily suspends funding due to “severe secondary market disruptions”
- 1st National Lending Services suspends all of the following products: Jumbo, Alt A, Pay Option Arm’s, and Seconds indefinitely (email to brokers) and throws in a round of layoffs for good measure
- First Magnus suspends all jumbo ARMs and expanded and niche products (email to brokers)
- Credit Suisse Wholesale suspends Subprime, Second Lien, Choice Payment ARMs and all 2 and 3 year ARMs
- Wachovia pulls out of Alt-A temporarily
- Wells Fargo pulls out of Alt-A
- Aegis Wholesale suspends option ARMs, expanded Alt-A and second lien products (email)
- Homecomings eliminates rebate on all Option ARMs (email)
- Countrywide increases pricing and fees on the LTV/FICO/ Documentation type grids for all documentation types, adjustments for Subordinate Financing, Cash out transactions and larger loan balances (email)
- National City makes changes
- IndyMac increases pricing and spreads on Alt-A products
- American Home Mortgage workers pack it up
- Fieldstone stops funding
- Bear Stearns says its the worst they’ve seen it in 22 years
And to cap it all of Cramer melts down on air on CNBC; so much so that the network needs to throw up a disclaimer or as a new friend called it DisCramer.
Get that guy a single malt scotch ASAP!
What a Friday. So now the question becomes - Will the Fed cut rates on Tuesday to calm the credit market? What are your thoughts? I have my own but I’ll save them for later.
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[Source: Blown Mortgage]
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