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.
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