Wednesday, March 3, 2010

Why Banks Aren’t Going To Ease Mortgage Underwriting Anytime Soon

“Banks Out of the Woods? Maybe Not” had some sobering news from the FDIC.

$1 of $8 in outstanding 1-family mortgage loans is to a troubled borrower.
40% of 1-family residential construction loans delinquent or uncollectible.
Number of outstanding loans falling, even after adjusting for write offs.
2.9% of loans written off in 2009, highest rate in FDIC history.
Some good news?

Fewer loans are going bad – 30-89 day loan arrears falling
However this good news may be misleading – a regulatory change allows banks to only write down the exposure.

www.LivingChattanooga.com
Ricky Haynes - Remax Properties
Homes for sale Chattanooga, TN

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