Bankers, lenders, mortgage backed securities investors lend me your ears! Not everyone today is a credit risk. Just like not everyone in 2004 and 2005 was eligible to borrow.
With crisis always comes knee jerk reactions. And in our current credit/financial crisis we have been seeing the lenders act as overly cautious as they were irresponsible just a few years ago. No loan seems to go smoothly these days. Even folks with 750 credit scores, six figure incomes, and steady employment are under the tightest scrutiny these days.
Let me say this to the lenders. You're in the business to LEND MONEY! If you don't lend money, you don't make money. Plain and simple.
Now, I'm not saying we need to go back to the free for all days of '04 and '05. I'm just saying that just because someone was late on a utility bill 4 years ago does not make them a credit risk today. Loosen up the reins guys or this thing is going to continue to spiral out of control.
And for the securities backed investors who got burned by this housing meltdown, well all I have to say is, no ivestment is risk free. With high returns come high risk. You should know this. As I've mentioned several times in previous blog posts we don't seem to learn from our mistakes. Just look back at the junk bonds of the late 80's dispensed by Michael Milken and Ivan Bosky. Sure high returns, but also high risk. Brush yourselves off and get back in the game. There's still money to be made.
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