Sensible Lending Must Return
“Sensible lending standards would permit 500,000 to 700,000 additional home sales in the coming year,” NAR chief economist Lawrence Yun said in a statement. “The economic activity created through these additional home sales would add 250,000 to 350,000 jobs in related trades and services almost immediately, and without a cost impact.”
We think that the chief economist is correct, though we don’t think you need a Ph.D. to realize just how horrible clients have it of late.
During several recent transactions, we have seen multiple instances of experience Buyers being treated as less than valued clients, and potential long-term customers.
Because of the value we place on the privacy of our clients, we won’t elaborate. But we will say that this situation IS hurting the market.
We can appreciate that reasonable risk should be avoided. And unreasonable risk should be avoided at all cost. However, we are seeing situations where good, well qualified Buyers are being abused by banks in the purchase process. We find that regrettable.
We feel that lending has been treated like oxygen: Too much was allowed ot the point of irrational exuberance and euphoria. Now, too little is choking off the market.
We call on lenders to use sound judgment in their lending activities. We hope you share your stories of good and bad lenders on this page.