FRB: Senior Loan Officer Opinion Survey: January 2014

The October 2014 Senior Loan Officer Opinion Survey on Bank Lending Practices addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months. This summary discusses the responses from 76 domestic banks and 22 U.S. branches and agencies of foreign banks.
http://www.federalreserve.gov/boarddocs/snloansurvey/201411htm

Questions on commercial real estate lending. A modest net fraction of banks reported that they had eased standards on construction and land development loans, while standards for loans secured by nonfarm nonresidential structures and multifamily residential properties remained about unchanged. Moderate net fractions of banks indicated that they had experienced stronger demand for all three subcategories of CRE loans. On balance, foreign banks also reported having eased lending standards on CRE loans and having seen stronger demand for such loans over the past three months.

Questions on residential real estate lending. A moderate net fraction of large banks reported that they had eased standards on prime residential mortgages over the past three months. Smaller banks reported that standards for prime residential mortgages were about unchanged on net. Reported changes in demand for mortgage loans were mixed. On net, although large banks reported that demand for prime mortgages had weakened, smaller banks experienced increases. However, demand for nontraditional mortgages was weaker, on net, across both bank size groups. Few banks reported having changed their standards on home-equity lines of credit, and respondents indicated that they had experienced little change in demand for such loans on net.

Here’s a real industry secret, Banks and Finance companies owning Appraisal companies | Internet Lender Hit with $20 Million Plus in Penalties

http://www.mortgagenewsdaily.com/08122014_mortgage_fraud.asp

Amerisave advertises and lends nationwide.  CFPB contends that between mid-2011 and 2014 the company used online banner ads and searchable rate tables on third-party websites, posted inaccurate rates on these ads, and when consumers followed the ads to the Amerisave website were given rate quotes based on a FICO score of 800 regardless of the score the consumer provided in a questionnaire.   Consumers were required to order and authorize payment for an appraisal before Amerisave would provide a Good Faith Estimate and the company did not tell consumers until later that appraisal orders were being referred to Novo, its affiliated company. 

Here’s a real industry secret, Banks and Finance companies owning Appraisal companies | Internet Lender Hit with $20 Million Plus in Penalties

http://www.mortgagenewsdaily.com/08122014_mortgage_fraud.asp

Amerisave advertises and lends nationwide.  CFPB contends that between mid-2011 and 2014 the company used online banner ads and searchable rate tables on third-party websites, posted inaccurate rates on these ads, and when consumers followed the ads to the Amerisave website were given rate quotes based on a FICO score of 800 regardless of the score the consumer provided in a questionnaire.   Consumers were required to order and authorize payment for an appraisal before Amerisave would provide a Good Faith Estimate and the company did not tell consumers until later that appraisal orders were being referred to Novo, its affiliated company. 

#FannieMae saves homes and pays off their loans.

What if you fell behind on your mortgage? Then by taking out a loan you were able to save your house and the lender made a profit off the loan. THEN, they came and took your home ANYWAY!

Why are we closing Fannie Mae, to help Banks, again. Housing needs the government to back residential loans. We have this faulting thinking about government agencies, “if it’s broke close and start another agency from the ground up.” Or, let businesses, in this case BANKS (hmm), control and regulate themselves and the industry. That sounds like what we’ve just been through – liberal banking, government intervention, start all over from the beginning.

Not only has Fannie Mae done its job, it’s paid it’s loan off with interest. The government MADE money. As was the case with the Auto industry. Let’s fix what’s broken, we’ve wasted enough time and money.