I was just talking with my future brother-in-law about this. He's a broker here in WI. Several of his B/C lenders have vanished, and most others are taking a hard line on what they will and won't do. Seems the heyday of "we can get anyone into a house" has led to "geez, we're stuck foreclosing on too many people". He'd said that deals that would have been easy to get done six months ago are untouchable now.
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