My response to Austan Goolsbee's NYTime artice

http://www.nytimes.com/2007/03/29/business/29scene.html?ex=1332820800&en=5c1f69d5b118d63d&ei=5124&partner=permalink&exprod=permalink

Professor Goolsbee:

Hallelujah on your article in today's Times. As an owner of mortgage brokerage, and an MBA from Vanderbilt, I am writing to let you know how much I agree w/ your point of view. Our economy works best when people have free will to decide how to deploy their capital. I never heared a politician belly ache during the housing boom about the increase in first time home buyers. I realize that no doc and no income verification loans may have allowed some homebuyers to qualify for properties that they really couldn't afford, but nobody put a gun to these peoples' heads and said, "you must buy this house!!"
Thank you for writing this article....it is always nice to hear a voice of reason rise above the din of the masses....
Best,
Rich


Richard C. Bouchner
Principal
Commodore Mortgage Group Ltd.
"The Right Loan at the Best Rate"
One Exchange Place, 9th Floor
Jersey City, NJ 07302
direct: 201.434.7622
toll free: 888.604.7400
fax: 201.434.7601
www.CommodoreMortgage.com

The Sub Prime Market is Drying Up

The sub prime market is drying up. The lenders that are left are saying "no" much more often than they are saying "yes", and their guidelines are getting tighter.

While the independent players in the sub prime space seem to be withering, the "A" lenders that have sub prime affiliates are in a prime position to grab market share. Chase's sub prime group in NJ for example, just hired 25 New Century employees (mostly underwriters and processors). Chase's sub prime business is on the verge of exploding, because along w/ Citi and Homecomings, they are one of the few sub prime shops left. As a result of having actual guidelines, the aforementioned lenders seem to have much lower default rates, and obviously, having the deep pockets of a large money center bank goes along way during this sub prime melt down..