Well, as if we thought things were finally getting a little more normal in the lending world. Interesting article this morning in the WSJ that talks about the newest problems that banks are having.
It seems that with the market down, that lenders aren't making as many loans as they used to. So in addition the losses the banks are experiencing because of the downtun in housing prices, the economy going so far south that it's passed Mexico! :)
The issue now is that with fewer numbers of mortgages being written by lenders, the banks are experiencing difficulties with keeping their bottom lines in check. They are missing the fees that have helped them.
So what to expect? We may see some cutbacks in the banking industry (remember the days when one bank CEO used to have everyone count paperclips) that may make loan processing a little more difficult in addition to other areas of the banking industry.
Let's hope this is the final shoe to drop in this current situation. Prime lenders aren't necessarily the bad guys. Much of this is about the economy!
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