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What Is the Future of Banking and Lending?

By Corey Dutton

Mortgage and Lending with Private Money Utah

February 17, 2009 03:05 PM

I found this interesting blog post recently that discussed current changes in lending and future changes: New World of Lending: 2009 Economic Forecast.

Some of the facts in this post I found to be a tad bit shocking but unfortunately very believable. One of these facts was that 40% of foreclosures are investment properties. Not a surprise.

Another fact for buyers that I found interesting was that there are 71% fewer mortgages available than a year ago.

Something I wanted to add to this was that, for the mortgages that are available, fewer and fewer people can qualify for the lower rates that are being advertised. And, mortgage companies are having to get really creative in assisting their borrowers to get into the loan programs that are still available. Processing loans takes 3+ times longer than it did a year ago because of this.

The question is, how will investors, home buyers, and banks survive the ‘New World of Lending?’

Any further thoughts on the future of lending the U.S. and/or Internationally? How will changes in lending practices in the U.S. affect lending on a global scale? Please share your insights.

Investor seeking discussion or just great ideas? Visit my Think Tank Investing Blog: http://www.ThinkTankInvesting.com OR Enter a discussion on our Blog about leveraging Private Money in this environment: http://www.PrivateMoneyUtah.com

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Rod Moser

NextHome Navigator - South Jordan, UT

Supply and demand tell us that rates should be much higher. There is very little money available and a huge demand. The cost of money is interest. Shouldn't rates be going up instead of down? The reason we aren't seeing double digit rates like Alan Greenspan suggested is because the government is pumping billions of dollars into the banks. Without this money, rates would be much higher and the current housing crisis could be much worse.

These are just my thoughts

Feb 17, 2009 03:13 PM

Brian Richard

Richard Realty Groups - Carlsbad, CA

Corey, thanks for reading my Blog post ( http://www.BrianRichardHomes.wordpress.com/ ). In past posts I wrote about Gary Watt's Economic Forecast beginning with a Chronology of the past Economic Factors leading to where we are now - I think you might find this information to be very interesting and feel free to pass it along to your clients and/or re - "tweet" anytime. My twitter is www.twitter.com/brianrichard hit me up!

Feb 17, 2009 03:30 PM

Corey Dutton

Private Money Utah - Salt Lake City, UT

I agree with Rod. Rates should be a lot higher due to the liquidity crisis. In the U.K., many banks are not passing lower rates onto consumers so rates are much higher. Also, they are requiring a heftier down payment from borrowers over there. 40% down is not unheard of in the U.K.

Feb 18, 2009 07:06 AM

What Is the Future of Banking and Lending?

I found this interesting blog post recently that discussed current changes in lending and future changes: New World of Lending: 2009 Economic Forecast.

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Corey Dutton

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