Friday, April 18, 2008
Credit crunch kills another lender
Credit crunch claims another victim as the roof finally caves in on sub prime lender Rooftop
Rooftop Mortgages has blamed unsustainable market conditions for its decision to finally close down its operation. The UK based sub prime subsidiary of US bank Bear Stearns has informed mortgage brokers that its entire range will be withdrawn at 5pm today with a view to winding up the operation completely by July 2008...
Posted by converted lurker @ 12:11 PM (539 views)
2 thoughts on “Credit crunch kills another lender”
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Rental John says:
Had a look at Rooftop’s website – no mention of current situation, but didn’t expect any.
Please, for a simple guy like me…..can anyone explain what happens to Rooftop’s mortgage book? And….what happens to the those lenders that owe, or have walked away, owing money?
p. doff says:
But, but – subprime only happens in America.
You would be suprised at the number of valuations we used to do for financially challenged borrowers using American lenders like Bear Stearns/Rooftop, Citigroup, GE Money, Gmac etc. There’s loads of them.
If you ask me, the banks were hooked on throwing money around like there was no tomorrow and had to move on to the hopeless cases when creditworthy borrowers ran out, in order to keep the bonuses rolling in. After all, they believed they were immune as the risks had been sold off and dissipated into the financial system.
Do you know, there are even ‘specialist’ lenders who have sprung up that will give you a mortgage on ‘Unrepaired Designated Defective’ ex local authority houses (Airey etc). Traditionally, banks wouldn’t touch these with a barge pole and being unmortgageable they were worth next to nothing. As soon as specialist lenders popped up that changed things and prices shot up accordingly. In my opinion, all they have done is create their own market and these houses could tank in value if these lenders tighten up and have a change of policy. Nobody else wants them.