Tag Archives: Banks
Making it Rain? Not so Fast! Banks Ease Lending Requirements, But New Mortgage Rules Will Manage Some Risk
Interesting story in the Los Angeles Times. According to their business desk, banks are easing lending restrictions and lending more freely, using “creative financing,” which could bring more risk to the market.
The Wall Street Journal and other financial news media are reporting that the U.S. home ownership rate has slipped to it’s lowest in 15 years, and experts predict it will slip even further. Why? Mortgage lending is tighter than a violin string, with no signs of loosening, not even for an election. This echoed what every single Realtor I know says: we have record low, like HISTORICALLY low mortgage-interest rates and falling home prices that have made homes more affordable than at any time in the past decade. But whose lending money? Not the big banks, that’s for sure. Could this have anything to do with the fact that five institutions in this nation control 50% of all the deposits? Talk about an oligopoly. Warren Stephens (a Little Rock, Arkansas wealth manager) argues that we need to dismantle the big banks, and I believe he is correct. A recent re-financing experience put me through the big bank wringer. Mr. Stephens solution, in case you cannot read the actual article, calls for a five-step program I whole heartedly endorse:
I never thought I’d see the city of my birth blow out Miami and Phoenix when it comes to having the most foreclosures in the nation right now, but Chicago takes the cake. Almost 119,000 homes in foreclosure. The problem: those stubborn banks are not letting go. This, of course, in President Obama’s home town, too…
This photo by Jana Martin, Neighborsgo/The Dallas Morning News, was in the Home section of the Dallas Morning News March 4.¬† Clarice Tinsley and I were saying Happy Birthday to Ebby! Thanks to Maloree Banks for telling me about it and sending a hard copy, thanks to Jana for sending it digitally!