This entry was posted on Tuesday, September 4th, 2007 at 1:10 pm and is filed under Housing Bubble. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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September 4, 2007
In a hilarious message on their website, Community Lending, a lender, has announced:
It has been proven that in today’s very disruptive market, volume is equal to risk. And that risk continues to escalate through guideline tightening, aggressive collateral review and due diligence processes that border on full QA audits. ComUnity Lending has decided to mitigate the risk of the market by reducing our volume and moving to the sidelines while we wait for sanity to return to the market. We plan on a short period of rest and re-structuring, after which we will re-enter the business aggressively. We are committed to this business and look forward to seeing our way through this turbulent time.
We will be retaining two production offices in California and a core group of dedicated staff at our Central Support office in Morgan Hill. Effective September 1, 2007, ComUnity Lending, Inc. will move all loans to these two offices and we will lock only through these two offices. We will be working with friendly competitors to find homes for our Retail offices and other production units.
That about sums it up. Market is no longer sane, and lenders have decided that in order to mitigate risks blah blah blah they need to stop loaning altogether.
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