Monday, August 20, 2007

Buh Bye Mortgage Industry

Get a clue.

What's that sound you hear It's the sound of silence. The banks have just closed their doors on stupid mortgages - for about the next 7-10 years. Just like the tech bubble of 2000-2001, the fat lady is singing on the American housing industry. NEWS FLASH, AMERICAN HOME OWNERS LOOKING TO SELL. Even if you find someone who agrees with your price, they won't be able to get a loan. The only good thing is we'll see the end of the "Flip that house" series....easy money is over.

The musical chairs game is over, and many don't have a chair to sit in, OR , they can't afford the chair they're in....Let the layoffs begin:

Capital One to Cut 1,900 Jobs and Close Its Wholesale Mortgage Business Capital One Financial Corp. said Monday it will cut 1,900 jobs and shutter its wholesale mortgage banking business, a move that comes as lenders continue to struggle in the nation's housing and mortgage markets.

Atlanta-based SunTrust Banks Inc. kicked its cost-cutting program into high gear Monday, saying it will cut 2,400 jobs by the end of next year and record a one-time charge of $45 million in the current quarte

Countrywide Financial Corp. has warned its staff to expect layoffs as falling home sales take their toll on the firm's mortgage business. Chief Operating Officer David Sambol told a part of Countrywide's workforce that 5 to 10 percent of their department's jobs would be eliminated in the coming months, according to media reports. The firm wouldn't provide specific figures, but the Los Angeles Times said the firm would determine specifics numbers soon.