I have a client who has also become a good friend. He is representative of what made this country great. He did not, by any stretch of the imagination, come from the well to do class. In fact he did not come from the middle class. He has, as many Americas have, pulled himself up by his bootstraps and today owns his own company. He has also reached the point in his life where he is able to dabble in other things to make hiim money.
About ten days ago he started the process of buying a piece of land where he and a builder friend can build four townhouses. The local government has given thumbs up on the project. My friend has a buyer for one of the lots and they are going to build her a townhouse. Two days ago a bit of a monkeywrench was tossed into the plan. Three banks refused to lend him the money to get the land. One of those banks is the one he has used for years.
Now keep in mind that my friend has an on going business that is successful in this market. He has done everything he was suppose to do to become a success. All of this gained him a 750+ credit score. Yet he was refused the money that would have allowed him to be a producer. This has to stop and it has to stop quickly. The banks, who agreed to misbehave and make huge loans to peopel with a 505 credit score. have decided to become a cacooned industry. If we do not move to get the lenders off square one, we will see more and more people unemployed. That will mean less revenue for the bills that need to be paid. In turn it will be longer before the economy resets.
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