(Rob Carson sent this in. He's snowed in at home today.)

The Federal Reserve’s dramatic cuts to lending rates have so far done little to help South Sound consumers, mortgage brokers in the Tacoma area said Thursday.

Home loan costs did not drop significantly with the Fed’s most recent cut on Tuesday, they say, and loans are still only available to those with excellent credit, lots of equity and proof of employment.

“Our phones are definitely ringing,” said Kevin Tinsley, president of All Tech Mortgage in Lakewood, “but we’re not able to help as many people as we could in previous booms.”

Tinsley said his business is up about 50 percent over a month ago, with much of the interest coming from people who took out loans 10 or 12 years ago and are interested in refinancing.

However, he said, those who want to refinance find the guidelines have changed since they took out their loans.

“There are a few more hoops people have to jump through,” he said. “We’re having to run people’s credit before we can even quote them a rate.”

Tinsley said his clients tend to be in upper income levels but, even so, only about 40 percent of them qualify for the lowest rates.

Jack Hansmann, loan officer at Capital Resources in Tacoma, said the Fed’s rate cuts may have made matters even worse.

“They’re doing the exact opposite of what they should do,” Hansmann said.

Lowering rates makes lenders even less willing to loan, he said.

“When rates get too low, there’s no money in it,” he said. “There’s just risk.”

Darcy Hansen, a loan officer at Financial Services Northwest, Inc. in Tacoma, estimated that the number of people calling her office has doubled since last week.

“Lots of people are calling in,” she said. “There’s a lot of interest out there.”

However, rates available to consumers are directly tied to the fed rates, Hansen pointed out, and they remain basically unchanged since last week.
Even so, there is significant interest among consumers, Hansen said.

“Everyone is under the impression they will come down further.”