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Ann Heinz Of Kensington Mortgage Says-Still Not At The Bottom!

BrokerIPTV : Today we are talking with Ann Heinz President of Kensington Mortgage and Ann thanks for being with us.

Ann Heinz: Thank you.

BrokerIPTV : Great to see you. Every body, I turn on the television and every one is speculating, she is has, housing and subprime mortgage crisis really hit the bottom of the barely area, so I am sure you will get that question a lot.

Ann Heinz: We do, we do. And the answer is no, it hasn't. We are going to see, I think more lenders, go out as far as large institutions probably not, but we have already seen in number of smaller groups go out, brokers and that type of thing.

BrokerIPTV : Citi Groups not so long go said hey, we are going to have to write off another two billion dollar loss. What happens to these big players in the mortgage market? Eventually the while Wachovia is the Washington Mutual, the Citi Group say, may be we shouldn't be in mortgage. Alright, they are there for the long haul, no matter, what happens.

Ann Heinz: I think, they are for the long haul, I think they are going to have some larger institutions that pull back and you already have significantly, but I do think the Chases the Cities will stay in the game.

BrokerIPTV : As of today in the last three months, we have seen interest rates drop by about three quarters of a point. There is some talk in the next few days that we are going to see another quarter, may be another half, some people are .... the question is and it's debated on the television all time, if we move a point in three months, does that make people buy more and does that bring us out, or does that make people go and debt more and thus springs the recession?

Ann Heinz: I think it does bring people out more in to thinking of buying, thinking of moving, that type of thing, the only issue that we have right now though is that people are also highly leveraged on their homes and the market is not reflecting this great rate of appreciation, so even though you may have the lower rates and be able to buy more, the question is can you sell and get out the equity that you need to move on.

BrokerIPTV : And the days are gone of a hundred percent stated, is that right?

Ann Heinz: Yes. Thank heavens. That did not do anyone, any favors, that was not a good policy and we did not do much in that realm, our loans are typically fully documented loans and normally not a 100% financing, there are some cases for a 100% financing where you do have strong borrows, you do have liquidity, you do have a strong individual. Things that were being done were just ridiculous, ridiculous and so, I think it is the good thing, that we were coming back a little. It is going to be painful. But I think it is a good thing. Good programs are out there, we are just not good programs.

BrokerIPTV : Ann thanks for being with us, great talking with you.

Ann Heinz: Thank you so much.

BrokerIPTV : Appreciate it.