Analysis: Small lenders ride U.S. mortgage wave as big banks cut back

Comments (5)
americanguy wrote:

I refinanced my house a few months ago.
Closing costs from the big banks on the loan, $8,000.00-$10,000.
Closing cost on the small bank loan, $250.00 and a lower interest rate.
Remember that if you want to get a loan. The $7750.00+ was totally bogus.

Feb 04, 2013 7:43am EST  --  Report as abuse
Harry079 wrote:

“Small lenders, some of which are backed by private equity and hedge fund money, are also aggressively taking advantage of federal guarantees to make home loans geared toward low-income borrowers”

Isn’t that a big part of what caused the crash before?

Feb 04, 2013 11:42am EST  --  Report as abuse
GA_Chris wrote:

I have financed 2 mortgages over the past 2 years (principal residence + rental) and never even looked at large banks.

Small lenders are customer centric and offer better rates, and frequently are locally based so know the market.

Feb 04, 2013 11:42am EST  --  Report as abuse
Harry079 wrote:

But the question is:

What are these small lenders doing with these mortgages?

Are they lumping them together and packaging them to resell as MBS’s and CDO’s?

If I was a betting man I would say they are.

GA_Chris: I would be very interested to know if the lender(s) you used still hold your mortgages and haven’t sold them to someone else either in the open market as a Mortgage Back Security some other intsrumemnt.

Feb 04, 2013 12:22pm EST  --  Report as abuse
jrj906202 wrote:

I think the combination of FHA’s loose lending standards,combined with Bernanke’s easy money and mortgage purchases, is producing another housing bubble.It will burst,as soon as inflation gets worse,causing the Dollar to fall,forcing interest rates up.Business as usual,in our economy,that depends on phony govt stimulus and bubbles to give the impression of a growing economy.

Feb 04, 2013 12:24pm EST  --  Report as abuse
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