Around the Web, Mortgage News Daily is another blog site I think could be useful. I am adding it to the “blogroll” so we can find it easily. The site claims to have a continuously updated stream of news we can use. For example there was a news article that I found on this site called: “Obama Plan on Housing Said to Push Lenders” by Edmund L. Andrews from CNBC news that was a very good read. Since I am new to reading this blog I don’t know how long the articles stay on the list. Here is a quote from the article:
The plan, to be announced Wednesday, is expected to include government subsidies for reducing a borrower’s interest rate, which a lender would have to match with its own money.
But officials cautioned that subsidies for lower interest rates would not in themselves help many troubled homeowners, because lenders were still likely to view many of those borrowers as bad risks and refuse to restructure their loans. As a result, they have been casting about for sticks as well as carrots to persuade the lenders to take part.
This article wet my appetite for the housing plan due to be announced tomorrow. I want to know what the “sticks” will be for lenders. Interesting concept, I think. Another interesting article that we real estate professionals can use is the one from CNNMoney by David Ellis called “Why You Can’t Get a Loan.” Here are two quotes that I find very revealing:
Despite this, many banks are doing what they have always done during tough economic times - pulling back on all types of lending and trying to hold onto capital to help safeguard against further loan losses.
and….
Banks contacted for this story, all of whom were recipients of billions in government aid, stated that they were simply trying to manage risk in the current credit climate and that changes experienced by consumers or business owners were merited in some instances.
This quote made me laugh, because it is based on an old saying we have all heard (and said ourselves) time and again:
So who is an ideal candidate to borrow nowadays? “Someone who doesn’t need any money,” said Charles Wendel, who runs Financial Institutions Consulting, a Connecticut-based strategic consulting firm that advises banks.
I think that this blogroll is going to be worth checking every day. I’m happy I found it. I’ll keep researching and see what other blogs I can find that all of us can use.
