Weekend update readers: I've been busy crunching to get our annual data directory/analytical book out -- theMortgage Industry Directory. There will be no "regular" update this weekend. However, insteadI would like to share some market intelligence with you. This comes from a loan broker contact who plies his tradeon Long Island, east of New York City. I grew up in Nassau County in a little hamlet called Wantagh. I spent mysummers at Jones Beach on the south shore. Over the past five years the Long Island housing (and mortgage) markethas been red hot. But like many areas in the nation, it is now "adjusting."
I recently asked my broker contact how the Long Island market was holding up. This is what he wrote: "Notgood at all is the right answer. I still have business to work on, all referral leads, but it is best describedas working twice as hard for half the money. I am glad that I diversified into commercial lending to give myselfmore loan opportunities. I have been at this for 12 years so I feel confident the market will right itself overtime. At the same time, I can't wait for these mortgage companies that advertise 1% mortgages to disappear. Theads are clearly misleading and the reps never adequately describe the downside of neg-ams. If it sounds too goodto be true ... I actually take these phone solicitations on as an opportunity to know what they are pitching soI can warn my clients off. Option ARMs are appropriate for a small portion of the market and clearly inappropriatefor anyone looking for long-term predictability in their mortgage payments. The next time a bank blames the mortgagebroker for the foreclosure mess now looming let's remind them of the wholesaler ads touting 4.5% YSP. This flexpay-option program is right up there with reverse mortgage lenders in that pitch men tout "Government InsuredLoans" without telling clients that they are paying the insurance premiums that protect the bank not the borrowerthemselves. Anyway, I can go on and on..."
DATA NOTICE: The first-quarter edition of NMN's Quarterly Data Report has been delayedslightly because of the MID. It should be ready by the end of next week. Meanwhile: Need reliable researchon top funders and servicers dating back to 1999? NMN has available for purchase back issues of its popularQuarterly Data Report going back to the fourth quarter of 1999. (The QDR provides information on prime andsubprime.) If you want details on the top funders of alt-A, payment-option ARMs, jumbos and more, check out theAlternative Products Quarterly Data Report. For more information e-mail
