This is the latest casualty in the subprime and overall lending meltdown, and could be a precursor of more to come.  Not long ago, Bank of America stopped taking wholesale business from brokers as well, and there seems to be no real end in sight to the troubles in the mortgage lending world.

Looking to the future, there are still many wholesale lenders conducting business, and loan programs to fit the needs for various homeowners and potential buyers.  This new development, however, highlights the depth of the lending industries troubles.

The expanded FHA guidelines do give some hope to a liquid mortgage market.  With more expansion of FHA programs in the works, many in the industry anticipate FHA loans growing to a much larger percentage of overall loans funded in the coming months and years.

While conforming loans are now requiring 5-10% down in many markets, FHA programs are available allowing up to 97% financing options, including down payment assistance programs and gift programs that sellers can participate in.  If you are in the market for a home loan for a purchase or a refinance, you should definitely inquire about FHA programs and what they can offer to meet your needs.

With all of the troubles in the conventional lending world, we are seeing a lot more borrowers turning to hard money lenders for loans that are no longer available through institutions.  While the loan to value ratios typically need to be lower, the credit and income documentation is not as stringent, and many times this avenue can offer a solution.

For more information on FHA, conventional or hard money loans, please feel free to contact me directly.  Check back in often, I will be talking more about FHA programs and hard money options in the coming weeks.