Are Atlanta Home Mortgage Lenders And Brokers Being Squeezed Out Of The Mortgage Market?

Mortgage guidelines and rules are changing daily because of the current mortgage crisis. Foreclosures are up, and the Atlanta market is eighth in over-all foreclosures nationwide. Larger investors are turning down four times as many loans and have dropped more than half of the programs as they less than a year ago. This isn’t a very optimistic picture for those smaller lenders and brokers that are trying to keep their heads above water.

Atlanta mortgage brokers operate as a virtual lending arm for larger banks like Countrywide, Chase and Bank of America. Basically they capture business that the larger banks retail divisions miss or can’t handle. Larger banks, by in large depend on loan originators with less experience to process loans. The loans are then processed through their financial assembly line to obtain a closed loan. Each person within the chain has a specific job but rarely has time to change programs, rates and terms in the middle of the process that would upset the assembly line.

For the most part, this is where smaller lenders and brokers carved out their living. These mortgage companies have the time, personnel and experience to “shift gears” on more difficult loans. Now that a large percentage of the “difficult” loans are non-existent in today’s market the rules are changing. Larger banks are beginning to give emphasis to their retail departments while tightening the rules for the broker relationships they have established. Many smaller broker shops are feeling that this is the larger investors’ way of closing down their wholesale divisions.

However, some Atlanta mortgage brokers are seeing the glass “half full” during this time of crisis for most people in the lending industry. Jeff Stephens, president of Global Lending in Atlanta Georgia sure seems to think so. “Before the mortgage boom brokers provided a real service for a certain segment of the market. Our services are needed now more than ever. There are a dozen different investors with a hundred different products each having 30 or more pages of guidelines. A professional broker will know which programs will save the borrowers the most time and money”.

He continued, “the very fact that banks are turning down 4 out of 15 loans makes our services almost indispensable. More than half of the loans that are turned down by one investor may very well work with another investor. Applying to the wrong lender, or having your application presented without all of the facts can cost you thousands in today’s changing market.”

-Hundreds of small brokers and lenders have thrown in the towel as a result of the looming mortgage crisis and many more are expected to follow. The number of smaller broker shops that are still in business are roughly the same amount there was before the refi-boom. Some are seeing this as a market correction, in effect the hangover after the party. Still others are taking a more legislative view point by asking elected officials to reenact GAFLA (Georgia Fair Lending Act) laws that were passed by Governor Roy Barnes during the middle of the boom.

The editors of Lendfast.com believe that this is a market correction and further legislation will only slow down or halt the recovery process. Historically, when law makers dismiss foreclosure remedies and raise lending liabilities lenders simply stop lending their money. During the “hey-day” of GAFLA we saw a mass exodus of lenders from the state of Georgia based on their inability to sell their loans with Georgia laws attached to them. Adding this stipulation to lenders in this market will be disastrous to our economy and bring lending to a screeching halt for lenders small and large. If we let the “wound” heal, the “band-aid” can be removed in a year or two and you can bet lenders will be more conscious of their lending practices.

Atlanta, GA Real Estate

Atlanta, Georgia’s capital city and a major Southern financial and creative hub, remains a city of the future and one of the top five cities for relocating young professionals to call it their home. Atlanta’s strategic location in the foothills of the southern Appalachians in north-central part of Georgia, its mild climate, physical beauty and job prospects have been instrumental in attracting large numbers of settlers making it a sought-after destination for home owners. The average estimated value of a home in Atlanta, GA was $274,281 in May 2009, up 0.05% from April 2009. Currently Atlanta has an average listing price for homes for sale of $444,954.

Atlanta comprises of two County Areas: 10 County Region, covering Clayton, Cherokee, Henry, Cobb, Douglas, DeKalb, Fayette, Gwinnett, Fulton, and Rockdale counties; and a 20 County Area including Barrow, Carroll, Bartow, Coweta, Hall, Forsyth, Newton, Spalding, Paulding, and Walton counties. The County Regions are home to several cities and communities like Acworth, Douglasville, Alpharetta, Fayetteville, Marietta, Kennesaw, Milton, Powder Springs, Peachtree City, Roswell, Smyrna, Sandy Springs, and Woodstock. How about investing in Marietta? It is at a distance of 15 miles from Atlanta downtown area and is reputed as one of the largest suburban regions of the metro area. Whether you are a first-time buyer or a pro at real estate, Marietta offers a choice just for you.

Given the current situation, one thing is certain – the Atlanta metro area still has an over-supply of homes for sale due to an abundance of new homes, Atlanta properties that are up for foreclosures, difficulty in availing loans and an overwhelming number of houses, be it simple apartments or large estates. Real estate is soft at present, but the Atlanta real estate market has been not been affected by many of the national changes. It’s a great time to buy a home condo or town home in Atlanta; in short, this is perhaps the right time to negotiate your next new home with an experienced Atlanta real estate agent. The chief advantage of opting for Atlanta real estate is that while in other US locations a large property price could scale up to millions, here it is within the comfortable zone of $200,000. Atlanta’s cost of living is also equitable with the national average, leaving the people with enough to take off on vacations, enjoy nightlife and explore the city’s cultural wealth!

Advertisements in the dailies published locally are considered to be the largest expenditure incurred by Atlanta realtors. However, today Atlanta homes are also within visibility range, thanks to the popular home search or listing services on the internet; advertisements on the radio and television, and catalogues of Atlanta real estate. Good news is on the horizon with recession showing signs of waning and housing prices once again picking up ensuring that your new home will appreciate in value as the years go by.

Grace Periods Do Not Work in Home Loan Modification

A number of people around the Atlanta area are working with home loan modifications. They are doing this as a means of helping to afford their mortgages and to avoid adding themselves to the nearly two thousand foreclosures that Fulton County deals with each month. However, an Atlanta home loan modification will not feature a grace period at any time.

A grace period in a loan is a period of time where a person is not going to have to pay anything off. This means that the person can miss something and not be punished for it. This could be a useful thing but at the same time it will end up not being a factor in an Atlanta home loan modification.

The Atlanta home loan modification one is in will not feature a grace period like this when it is in its trial stage. A person who is in a trial modification must make all of the payments on it on time. Failing to make payments on time in the trial period will cause a person to end up losing the loan and dealing with the original terms on the loan.

In some cases the modification will not be cancelled. However, it can be delayed substantially. Remember, a person who is with a trial modification is on a very short leash and is not going to have a grace period to work with for getting the loan paid off.

When the loan modification does become permanent there is still no grace periods involved. The punishment for missing a payment and being late on it during the final period of the modification is going to be the same as what one dealt with. The same late fees and added interest charges will still be involved. This is used because the lender should be expecting the client to make payments on time when a modification is being handled.

Also, the chances of a lender trying to start the foreclosure process sooner are important to see. The lender might want to start the foreclosure process sooner if a person does not pay off mortgage loan payments on time after the modification. This is due to how the lender will want to believe that the borrower is actually going to pay off the loan in a respectable period of time. A lender who sees that a client is not paying it off properly will end up being more likely to pay it off.

It will be a good idea to take a look at this when it comes to dealing with an Atlanta home loan modification. The grace period that might be found with some other types of financial investments is not going to be present in the Atlanta home loan modification that one can get. The investment that is used here should be something that a person can easily pay off over time. Using this standard is critical for anyone to work with when getting something to work out right on a mortgage loan.