Years ago I wrote blogs about how banks and other mortgage lenders had basically caused the real estate boom because they were lending any amount to anyone. The rapid increase in prices for real estate became ridiculous to say the least. Than the boom went bust and lenders were faced with pay-back for their greed but the government bailed many of them out.
The country is trying to recover and real estate is a large part of that recovery. People want to purchase real estate but now banks have made the qualifications for a mortgage almost impossible even for those with excellent credit. The FDIC found that for the fiscal year ending March 2011 loan volumes fell by $260 billion while the banks assets grew by $80 billion and profits were up by $12 billion.
The majority of banks are now so large and spread over so many states that they are no longer the place where you put your money and they lent you theirs. Hopefull someone at the top of those institutions will realize that banks are hurting home sales which is hurting our economy.
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