Lending Problems?

By
Real Estate Agent with TIM LORENZ - Elite Home Sales Team DRE# 00919781
https://activerain.com/droplet/rF8

Lending Problems?

A spokesperson, Dustin Hobbs, for the California Mortgage Bankers Association disputes that banks are the reason for Lending Problems.  He was responding to the report that Realtors were blaming lenders for the stall in recovery.  He points to high unemployment and economic instability as the problem. 

I agree that those are to carry some of the blame.  But in the resolution of the short sale and the foreclosure, issues the banks are front and center on the recovery problem.  The banks have carried out the most outrageous rules for handling there two issues.  Further, the Dodd Frank financial reform act rules are still being written.  The banks are afraid to move until they understand the rules.  In addition, there are the marching orders from Fannie and Freddie as well as regulations from FHA.  So I guess there are many factors that are causing a problem with lending money at this time.

 One banker stated that he thought the problem was the non-performing loans that are still there from the bubble leaving many banks short on capital.  It is still a major problem that is not going to be fixed in the short run.

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Topic:
Lending / Financial
Location:
California Orange County Mission Viejo
Groups:
RealtorsĀ®
Keller Williams 'Rainers
Orange County Real Estate
Silent Majority
Outside Blogs
Tags:
loans

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Rainmaker
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Keisha Hosea- KASIHomes.com
KASI Homes - Chino Hills, CA
Real Estate Solutions For Real People

Hi Tim, you are right on all counts. There are a multiplicity of problems contributing to the current stall in Real Estate. But I agree with you regarding lending. Banks have become immobilized with fear and it is affecting good buyers. I have had buyers with 800 FICO scores and loads of money be denied a loan. Trust me when I tell you, there is such a thing as being "too cautious." Something has got to change!

Nov 27, 2011 12:08 PM #1
Rainmaker
856,247
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Tim

You are dead on.  This problem is a real issue and it is all caused by do gooders.

Nov 27, 2011 06:14 PM #2
Rainmaker
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Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Keisha

The problems are many and the solution are not easy but simple.  The government has complicated and confusing solutions.

 

Nov 28, 2011 02:06 AM #3
Rainmaker
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Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Mark

Thank you for your remarks

Dec 20, 2011 07:31 AM #4
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Rainmaker
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Tim Lorenz

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