Update January 17, 2008.  I just called Bellevue’s office of MortgageIt where the receptionist told me "we’re not closed YET".  I asked if they were closing and why would their rep send this email out and she replied that other offices are closing and she has no idea why the rep sent the email.   These are odd times for sure.  I’ll try to get to the bottom of this.

Update January 17, 2008 5:30 pm.  I understand that MortgageIt will be closing their Bellevue office at the end of this month.  I guess our rep was a wee bit premature with her announcement.

I just received this email from our Wholesale Rep of MortgageIt in Bellevue:

Hello!

I just wanted to let all of you know that the Bellevue Branch of MortgageIT has closed today.  I wanted to wish all of you well and the best of luck in the New Year.  I will truly miss the relationships I have made in this industry….Please keep in touch.  Thanks again!

Sincerely,

Stephanie Price

MortgageIT is a growing Top 25 lender that originated approximately $29 billion in wholesale, retail and correspondent loans in 2005 and continues to build a network of established offices in the US.

Here are a few bits and pieces from the minutes of the FOMC meeting from December 11, 2007 that was released today.

"In the housing market, new home sales were below their third-quarter pace, and sales of existing homes were flat in October following sharp declines in August and September. These declines likely were exacerbated by the deterioration in nonprime mortgage markets and by the higher interest rates and tighter lending conditions for jumbo loans….

Participants discussed in detail the resurgence of stresses in financial markets in November. The renewed stresses reflected evidence that the performance of mortgage-related assets was deteriorating further, potentially increasing the losses that were being borne in part by a number of major financial firms….

Moreover, participants recognized that some lenders might be exposed to additional losses:  Delinquency rates on credit card loans, auto loans, and other forms of consumer credit, while still moderate, had increased somewhat, particularly in areas hard hit by house price declines and mortgage defaults. Past and prospective losses appeared to be spurring lenders to tighten further the terms on new extensions of credit, not just in the troubled markets for nonconforming mortgages but, in some cases, for other forms of credit as well….

In light of elevated inventories of unsold homes and the higher cost and reduced availability of nonconforming mortgage loans, participants agreed that the housing correction was likely to be both deeper and more prolonged than they had anticipated in October.  Moreover, rising foreclosures and the resulting increase in the supply of homes for sale could put additional downward pressure on prices, leading to a greater decline in household wealth and potentially to further disruptions in the financial markets."

Remember, this is not a forecast into the future but a press release of minutes from the meeting a couple of weeks ago.   With that said, 2008 will have many homes facing their ARMs adjusting unless they take action soon.  If you have an adjustable rate mortgage with a fixed period ending in 24 months or sooner, please contact your Mortgage Professional.