Fears of Delinquency have Subprime Lenders tightening their belts.

With the recent filing for bankruptcy of Ownit Mortgage Solutions a major subprime lender in December a steady stream of mortgage lenders including, Wells Fargo & Washington Mutual bank have tightened up their underwriting rules.

The trend continued downward last week with the filing for bankruptcy of ResMae Corp out of CA, & Fremont; this may mean that Home Buyers with impaired credit will face higher rates in the months ahead.

Quoting AnaLisa Cordoba of Pennington Financial (see financial page www.BuyaHouseNM.com for more info): "My concerns are with my clients with blemished credit to be able to find financing at all. The days of the zero down payment maybe coming to an end."

Will Mortgage Bond investors head for the hills in the subprime market with the rising delinquencies? Time will Tell.



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