ResMAE, a large stated income lender, announced a year ago the discontinuation of all their stated income loan programs used for self-employed borrowers. Since then virtually all sources of loans for the self-employed are all gone.

A Florida mortgage broker found a way to rip-off people he never even met: the home seller! Mortgage broker greed reaches an all time high with this unconscionable scam.

So I was over checking my blog on ActiveRain and ran upon a Florida real estate agent who sparked this post. His comment said a buyer client was told to ask the seller for 6% in closing costs!

Mortgage stock prices are dropping like a stone creating a huge profit opportunity. I wrote a post 10 months ago on my ActiveRain blog showing folks how to “short” mortgage stocks to bank these profits.

Since then a most mortgage stock prices have literally freefallen. Right after that post, Novastar’s stock (symbol: NFI) dropped 40% in one day down to about $15 a share. Today Novastar has dropped even further down to $2.08 another 60%.

Bad credit mortgage loans are for borrowers who have credit issues and do not fit traditional mortgage credit standards. Bad credit mortgage programs are also known as B paper or subprime loans.

On July 19th, Fed Chairman Bernanke testified before the Senate Banking, Housing and Urban Affairs chaired by Senator Dodd. In the Q and A portion of his testimony, Senator Carper asks Mr. Bernanke about the modernization of the FHA mortgage program. FHA mortgage programs have lost ground to more “adaptive” mortgage programs in the last few years. So much so, they have nearly fallen into obscurity. I wrote an article about a month ago if you’d like a refresher on the FHA home mortgage demise.

The subprime mortgage meltdown is now filtering it’s way through the economy hitting the stock market on Friday June 22, 2007. The Dow dropped drastically (over 185 points) after Bear Stearns announced $3.2 Billion (yes that’s Billion…with a “B”) bailout of one of their hedge funds (High-Grade Structured Credit Strategies Enhanced Leveraged Fund) that suffered losses due to subprime mortgage lending.

In addition to the credit issues, the bad credit refinance is facing barriers of dropping home values, loss of cash-out programs, and the loss of many bad credit lenders.

A bad credit refinance is a loan that replaces an existing loan with a borrower who typically has less than 600 credit score.

Many folks have tried to lay the blame for the subprime mortgage meltdown which could plunge the nations real estate market into a decade long decline on unrestrained or crooked mortgage brokers. However, the mortgage brokers could only sell what the subprime lenders created. So do you blame the monster or Dr. Frankenstein himself?

We are hearing a lot lately about how the subprime lenders are dying due to the default rate inherent in loan programs which are primarily adjustable rate with lax income verification and/or credit requirements. This is where most people who don’t have a subprime loan start nodding off…snoozzzzZZZZ.