Mr. Loanman Sez.....

Mortgage Market Commentary.....  (August 24, 2007) ....  As everyone knows, the mortgage industry has been undergoing a drastic change in recent months as dozens of wholesale lenders and money sources have folded and gone out of business due to the collapse of the subprime mortgage market brought on by liberal underwriting policies, the inability of borrowers to understand and manage their personal finances, and the unwillingness of secondary market money makers to accept or extend additional securitized credit packages. Over 40,000 mortgage employees have lost their jobs with additional layoffs coming.  Underwriting guidelines are changing daily as proactive companies adjust to maintain their positions in the lending community.  A loan that met guidelines yesterday may not today.

Every so often change needs to take place ... you need to trim the top of the tree so the roots can catch up and allow the tree to grow bigger and stronger.  For the mortgage industry, that time is now.  It is predicted there will be more bank and mortgage closures by the end of the year.  Foreclosures are already at a record pace and are expected to remain high through the first quarter of 2008.  Builders are reducing their current inventories and curtailing the start of new projects for the remainder of the calendar year.

Doalson Mortgage Services is still as strong as ever and has the ability and the commitment from their money sources to weather the storm.  DMS has been in business for over 23 years and shows no signs of slowing.  In fact, we are expanding our visions.  Just as the famous line in 'It's A Wonderful Life' during the run on the bank scene when Jimmy Stewart says, 'Mr. Potter isn't selling, he's buying!  Why?  Because we're panicking and he's not!'   This is as true today in the mortgage industry as it was in Bedford Falls.  Those of us in the mortgage industry who foresaw the current industry problems over a year ago are positioned to weather the storm and we will continue to provide the best service and pricing in the industry for residential and commercial loans.

Call me personally if you have any questions.

Doug 'Mr. Loanman' Williamson, President