What is going on in the mortgage market today?

The current mortgage crunch started with more lenient lending practices of getting borrowers into homes they couldn’t afford, and with combined declining home prices, this inevitably resulted in an increase on loan defaults. Investors on Wall Street who bought these loans were also highly leveraged and many were wiped out as the losses grew. As Wall Street suddenly quit buying the mortgage-backed securities that these loans were bundled in, the overall jumbo market collapsed. When Wall Street stopped buying these securities, investors were left with nowhere to sell them, forcing them out of business. Strong investors are able to portfolio these loans until the market turns around.

Where does all of this lead us?

Most of our investors feel in time things will settle down and everything will get back to lower rates and underwriting guidelines that make sense.  The subprime lending practices that got us into this mess are gone, for now. I am proud to say that The Private Capital Group did not participate in these types of loans. Unfortunately, these practices hurt the entire market and not just subprime investors, brokers and customers.

How can The Private Capital Group help you?

The Private Capital Group has always prided itself on having the strongest relationships with the healthiest investors in the industry.  As other mortgage bankers and brokers are closing, The Private Capital Group has met with each of our investors and our relationships are stronger than ever. We speak to people weekly whose mortgage companies can’t deliver what they promised because their investor is out of business. We are still lending money with very competitive rates and will continue to do so.

Contact Andrew Runnion at 404-504-8824 or email at andrew@theprivatecapitalgroup.com