stlhead...if they cant package and sell the loans they all go out of business, less than a handfull of lenders on this planet have the financial capacity to not only fund but retain and service loans...the lenders are on the hook for defaults in many cases even on loans that get sold to investors, that is why many small lenders have gone down lately, buyback requests from investors will bring you down faster than any other thing...anyway good times in the real estate world right now and an overdue but overreacted correction taking place...cheers

I know banks aren't going out of business. Worse case they downsize their mortgage division as usual. WAMU being a prime example. They have never sold their loans.

The skys not falling. I am just saying that a lot of folks about to lose their asses. However, the people who do have money will clean up on this mess. The whole housing things gonna pop on those poor SOB's that bought those track homes with zero down and intrest only payments. And the people who went out and borrowed money on the equity of homes that in real dollars they had none of.. watch.

The rich get richer, and the Middle Class.......wait, what Middle Class? I see dinosaur bones (American Middle Class) in a cemetery who's grounds keepers "The Mass Media" and Wall Streets "Flim-Flam Men", continue to make it appear peaceful and serene.

Better hold onto those straws (gold and precious metals), we are starting to take on water fast. I'm waiting for choice land to bottom out @ 3 pieces (gold) per acre. 3 bedroom houses @ 10 pieces.

Yeah--And the 300% increase in prices across the board isn't inflation. Heavens No. It's compensating for increased fuel costs...

Thank Hillary, Lieberman, and The GOP for the Bankruptcy Act that paved the way for this whole subprime disaster.

Yeah right If it looks like hyperinflation, and smells like hyper inflation...

Americans are so gullible...ferchristsake...30% still think Shrubs doing a fine job.

America did it to itself. And deserves every last bit.

I've been around the real estate market in various ways since '67. The biggest difference I see now days is the lack of equity that people have in their homes. A lot more homes were owned free and clear when I started. Now the pattern is run up the credit cards, refi, pay them off with a line of credit then go around again. To get the new refi, the house has to appraise high enough and if the appraiser can't bring it in where the lender wants it, then get another appraiser who will.
Way back when, 2nd mortgages were not readily available nor were loans on vacant land. Now days, these loans are easy to find.
A lot of sellers carried back loans either on a real estate contract or on a deed of trust secured by the property. Maybe we'll go back to some variation of that.
The real estate market here is adjusting but not to the extent that is happening in the midwest. One of my sons lives in Ohio and there are built-out plats back there with nobody home.
My Dad (rip) was in the real estate industry for 45 years and he got out 3 years ago because he said this day was coming.

This morning it was revealed on the News that Inflation reports dont take into account fuel or food.

List of closed, acquired and downsizing mortgage companies:

http://www.thetruthaboutmortgage.com/a-list-of-recent-mortgage-closures-mergers-and-layoffs/