Banks are BogusSeptember 16, 2009
As a real estate agent in the trenches, if you asked me to point the finger (and I don’t like to point) at anyone holding up the recovery of our economy – I would have to point at the banks.
Lenders received bail-out funds to stabilize their systems and promptly bonused their executives while then HOLDING the federal funds internally. In other words, the banks are doing exactly what they don’t want the general public to do – HOLDING ON TO THEIR CASH. They are certainly not re-distributing the wealth and they are certainly not giving out MORTGAGE LOANS to WORTHY borrowers.
To get a loan today is a lesson in frustration and there are no guarantees until the money is in the bank. LITERALLY. Recently one of my real estate transactions was cancelled one day before closing without cause and it took us two weeks to find another lender to consummate the transaction. Absolutely ridiculous!
Congress needs to take action to ensure that ALL LOAN NEEDS are being met; not just FHA underwritten loans – but loans for people who exceed FHA limits. The market over $400K has come to a screeching halt. I point the finger at the banks. They are so risk adverse that they aren’t willing to loan even to the most qualified buyers.
I understand the need to work on health care. What I don’t understand is how it takes precedence over economic and housing recovery. I will say it again – as the housing market goes – so goes the economy.