"The market has turned"

NOT going to do it!

As many of you know, I have mentioned several times that things have gotten quite a bit slower. I think this story pretty much sums it up, especially this part:

“How would you characterize the housing market right now? MOZILO: The market has turned. The psychology of the buyers for single-family homes has clearly changed. We are seeing it from the flow of loan applications. If I had to pick a time, I would have to say it turned in January.”

There you have it, from the CEO of the largest mortgage origination company in the country. If the largest originator in the country is being hit by the slowdown, what do you think is happening to all of the other companies?

Look at the stock price of ECR (Encore Capital Corp). This chart does not surprise me in the least. That is what happens why you try and "buy the market" with crazy rates and guidelines that most other companies wouldn't touch. Encore is known for using the "high" FICO score, not the middle of 3 or lower of 2 like the rest of the industry. Some other companies would do it, but with an add-on to the rate. Encore did it with no add-on. They were also very liberal with pricing for several months there. Maybe that is why they are in the predicament they are in. I'm sure their customers and brokers love them...but at the end of the day, they are taking some large losses on their portfolios.



That said, I have seen the writing on the wall for quite a while now. As things have started slowing down even more, I have began working-on and looking-at other options in and out of the mortgage industry. Just bear with me as I'm working on my plans B, C and D at the moment. It takes quite a bit of time to write 5 completely new posts a week. I really enjoy doing the blog, replying to e-mails, and helping people out...but blogging doesn't exactly pay the bills at this time...I wish it did though!

The forums are becoming an excellent resource. There are over 200 topics, 1300 posts, and almost 250 members. If I don't have a post up, spend some time over on the forums. There are a lot of FB stories, as well as other posters that have a lot of good information to share.

Thank you for your understanding, patience, and support!

BTW...San Diego inventory is now sitting at 17,225 per ziprealty.com.

I look forward to your questions, comments, and feedback!
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I am going to keep making my posts over here, but most of the comments are happening at the new site. Go to...
www.housingbubblecasualty.com
or
www.anotherf@ckedborrower.com
...if you would like to see more comments and activity. Don't forgot to check out the activity in the FORUMS!

SoCalMtgGuy