Friday, April 15, 2011

Current Credit Availability

No matter how good your credit is, the lender must still have funds to give you. Or an inclination to take the risk of giving you funds despite good credit standing.

Conventional bank profits came from lending money to worthwhile credit risks. That convention isn’t any longer as simple as that.

U. S. regulators now have a habit of investing their populist political reasons. After all. consumers vote and banks do not. It is also a form of 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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