Back in 2007, banks made 3 out of every 4 home mortgage. As the financial crisis deepened, they became just about the only source for mortgage loans— that despite the fact their lending practices were at the root of the cause of the financial crisis. Go figure?!
However, now the wor has turned. Banks now account for just 1 out of every 2 mortgages, and we’re starting to see some of the big banks exit the mortgage biz altogether. That’s fine with me. Good riddance! Historically, big banks have been the stingiest and least friendly lenders to work with.
Today, we’re seeing more and more credit unions and especially mortgage companies making loans so that people can buy houses. I think that’s great news for consumers. Mortgage companies are more consumer-oriented, more creative, willing to figure out ways to make more loans, and just downright friendlier and easier to work with. I mean, what’s not to like? Hopefully this trend continues.
If you have questions about mortgage financing, please be sure to ask. I spent 17 years in those trenches and still have a strong network to call upon. Talk soon, Bob