No matter how good your credit is, the lender must still have funds to give you. Or the inclination to take the risk of giving you any funds you need, despite your credit standing.
Conventional bank profits came from lending money to worthwhile credit risks. These days, that convention isn’t as simple as that.
Uncle Sam’s regulators now have a nasty habit of butting in for political reasons. After all. consumers vote and banks do not. That’s called populism. It is also called state socialism.
When officials feel existing mortgage terms have to be changed, they “suggest” them. When they feel the bank’s books need strengthening, the customers' good risks cannot be taken. And so on.
Credit availability is thus on the line.
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