The whole world has been enjoying easy and cheap credit through the globalization of finance, which has tapped the savings of billions of people in the developing countries. This in turn has fueled the longest and strongest period of global growth in modern history, the most spectacular effect of which has been a housing boom allowing millions of people to buy homes they never thought they could afford. But the credit boom, which also inflated the market price of stocks and bonds, is now being superseded by a global credit crunch.

With more than $1.8 trillion worth of securities backed by sub-prime and low (no-doc) documentation mortgages created since 2000, banks and investors are suffering losses that are exposed every week, affecting the overall confidence in the credit markets.  The housing boom was dependent on these loans that pushed home prices to levels far above what many current and would-be owners could afford, and the risk of further, nationwide decline in home prices will inflict real hardship on millions of Americans.

I also want to reaffirm to you our commitment to the mortgage business and assure you we will stay focused on remaining a stable, reliable mortgage banker you can count on to meet your needs.  Skyline Funding’s financial strength combined with our diversified and vast lending resources will ensure we will be one of the strong survivors from this difficult period.  I want to thank you for your support and loyalty.  It’s important that you know…I always have time for you or someone you care about. I’m looking forward to us building an even stronger relationship in the months and years to come.

M. Klein