- Jul 29, 2014
- 22,194
- 23,455
I'm not really good at explaining what I know but see if this makes any sense to you....here goes.That’s nice but there still seems to be a lot of fat in there compared to 2012.
Lenders in 2010-2014 were coming off catastrophic losses with short sales and foreclosures at an all time high. Yes, the money was cheap then too BUT if you had just lost your ass lending money to a bunch of people would you be as excited about lending money for a while especially in Obummer's economic guidance?
Well now they are wanting to lend money to anyone with a pulse BUT the home values/loan amounts are higher so their spread/fees are also higher to make more profit while the getting is good....Most of these lenders are selling off the loans in a couple of years time if not sooner so they are scraping off the top and passing it on.
I spend a good part of my day doing title searches mostly for refinances and I got to tell you I wouldn't lend half of them a stick of bubble gum seeing all of the judgements, liens, lis pendens a lot of time from the same credit unions and banks that are refinancing them again for the 3 or 4th time over the last 5 years and almost always paying off 40-80K in revolving credit card debt...