Countrywide Increases Down Payments In 100 Counties

[BryanS]

...ran across this on tickerforum.org... We're on the list, but thankfully toward the bottom. Problem is... we are on this list, even if low on the list...

On Jan. 25, Countrywide Bank sent mortgage brokers a list that categorized hundreds of counties as "soft markets" with rankings from 1 to 5, in ascending order of perceived risk. In areas rated in categories 4 and 5 - roughly 100 counties in metropolitan areas nationwide - Countrywide said it will now require 5 percent larger down payments from most applicants. If a loan program previously allowed a minimum 5 percent down payment, now applicants will be required to come up with 10 percent to qualify.

This could affect Houston (slow moving properties):

An additional 970-plus counties are rated more-moderate risks, in categories 1 to 3, with 5 percent down payment increases if an appraisal report indicates there is an "oversupply" of houses for sale or a marketing time of more than six months.

Article: http://www.sfgate.com/cgi-bin/article.cgi?...3/REHVUND7E.DTL

Here is the list:

http://blownmortgage.com/wp-content/upload...softmarkets.pdf

Harris county is in Category 2, lower risk.

Here is the "heat view" of the meltdown. Note, there is a "red cloud" hovering over Houston, Austin, San Antonio. Guess that is not as bad as the nuclear flash over Nevada/Southern California.

Edited February 5, 2008 by BryanS