A Blown Mortgage - And The Deadly Shrapnel

The Blown Mortgage Blog posted an interesting article today about an interesting, if not disturbing, knock off effect on smaller, licensed mortgage brokers who otherwise plan to sell their closed mortgages to investors. But the foundational sands appear to have shifted with these investors, many of whom have decided to tightened their loan purchasing guidelines as a result of the recent fall of New Century Financial and a higher aversion to loan default risk.

So what is the potential knock off effect? Thousands of dollars in losses on loan sales for small mortgage lenders.