You have got to check out The Mortgage Lender Implode-O-Meter.  It is a funny website to see at first, but then realty sets in.  I posted this because it allows you to keep an eye on the problematic companies.

Here is what has happened lately.  You go and try and get a loan through your broker, who “brokers” the loan out to First Magnus, for example.  Your closing date to buy and move into your new home is set for August 20, 2007.  You go through the loan approval process and you meet all of their guidelines for qualifying for the loan.  Underwriting even approves your loan, and August 16, 2007 comes and First Magnus announces that “First Magnus has been forced to stop accepting new loan applications or funding loans effective today.”

Guess what? You don’t get your loan or the home you want.

Why did I post this web-page?  So you can scroll down to the “Ailing/Watch List Lenders” section.  Beware of these guys.  if you have a loan with them, you may want to submit your loan to another broker just in case the above happens or switch to another lender if you have enough time left in your transaction.  The longer your transaction length the more likely you will experience problems.

I had a lender friend look at this list before he submitted the loan.  He saw one on the Ailing/Watch List and decided to submit to another lender as well.  Good thing.  A week later, he was called and told by the “Ailing” lender that they couldn’t do the loan and was shutting down effective immediately.  The loan carried through with the other lender and closed.