|  Register
February 04, 2012
Admin  >>  Home
  Search
 

Breaking the Bank : Think You Can’t Get a Mortgage?

by James Hartman

Photo by Shamus Pons
 

The news has been grim for years now. Spurred-on by Congress, lenders made loans to people who really couldn't afford to pay them. Then sub-prime mortgages wrecked the banking industry. Then unqualified lenders led to mass foreclosures. The credit market got so tight you could bounce a quarter off of it – if you had a quarter left, or could find a place to borrow one. And all of it led to problems for homebuilders, both large and small, who couldn't make the payments on spec houses and had to shut their doors.

It was a very sad time.

It was also a lot of hooey.

Sub-prime mortgages accounted for only about three percent of all mortgages. Foreclosures spiked, but didn't really "soar." Lenders tightened credit requirements in response to federal regulators who, in the opinions of many, overreacted. The rest...well, the rest pretty much happened as presented. So while the trickle-down problems were real, the impetus wasn’t as cut-and-dried as some would have you think.

So here we are, three (or four, or five) market fluctuations later, with a new President, a new Congress, and a lending industry that either has its hands tied or has put on mittens, depending who you ask.

"There is increased government regulation that is making it more and more difficult for borrowers and buyers," said Matt Faust, president of First Community Bank, headquartered in Hammond. "It's getting more regulated every day. Despite the administration’s efforts to get banks to lend, we are actually being hampered by their own regulations."

Read more ...

CONIFER POLL
Do you think the oil spill disaster in the Gulf of Mexico will have an economic and environmental impact similar to that of Hurricane Katrina?



Submit Survey  View Results
SUNSET
Copyright 2008 by Northshore Conifer