San Diego Real Estate Voice : August 2007

Are We About To See A New Definition of " Redlining " ?

http://www.flickr.com/photos/joe_13/Will the current credit crunch lead to creating  a new or quasi type of redlining by the major lenders and those that invest in the loans?

Is it possible that whole categories of borrowers, loan types and credit profiles are going to suddenly be shunned or priced so high that they will soon be out of reach?

If that happens, how will 2nd home purchasers, non-owner occupieds, high-rise condos and people with minimal cash available fare in the seeking and obtaining of affordable mortgages?

What of the new FICO scoring methods about to be unveiled later this month, or even the zip code that doesn't quite fit the new guidelines now being implemented and the other modifications still yet to come?

Maybe the word redlining, typically used in real estate circles with highly negative implications, will take on some new and even broader meaning than the way it has been defined in the past. Will its inclusion in the broad stroke discussions taking place in Washington catch the eye of regulators and legislators alike?

Will that old and often used political axiom of " when a man is down, kick him"  bring even more change in the lending/investor practices that have given rise to the current morass?  In these uncertain times only time will tell. 

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Comment balloon 13 commentsWilliam Johnson • August 28 2007 02:38PM
Are We About To See A New Definition of " Redlining "
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