Tuesday, December 18, 2007

GMAC Announces Layoffs and Other Mortgage News

On today's Inman Real Estate News, check out this article
on the GMAC layoffs.

It's a good article and it's important because the lenders are not lending to as many people. The no-doc loans or loans without income verification are over. People with a good income and most importantly a high FICO score (credit score) can obtain loans. But they are less abundant than prior mortgagors. Hence, less mortgages mean less employees for morgage companies and now layoffs.

And speaking of less mortgages, Money magazine reports that the feds are cracking down on lenders -- "The central bank is expected to propose regulations that would offer greater protections for home buyers and curtail abusive lending." Read the article here.

So what should you be doing? Make a resolution! It's the end of 2007. Your New Year's Resolution should be this (everybody repeat after me), "By January 15th, I will have a copy of my credit report! I will read it for errors and I will take it to a professional to fix and remove negative comments to maximize the score!"

Until next time,

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