What needs to happen in order for the current lending situation to improve?
Daryn Peterson
ROC Financial Inc.
Chicago
In my opinion, the current lending situation does not need to improve. Interest rates are still at all time lows. What needs to improve is the education and honesty of lenders. It is essential for consumers and agents to find a lender that understands the current marketplace and can educate not only the client but the agent on current lending changes as they continue to happen each week. It is also crucial for full disclosure of any and all risks involved with every loan program that is chosen. Information and education to the consumer will improve everyone’s confidence in the current marketplace.
Maria Kernahan
Chambers, Cross & Associates
Winnetka
Wall Street’s exuberance with the sub-prime market paved the way for the current mortgage meltdown. But it is Wall Street that needs to step up and start buying mortgages again to get the industry back on its feet. The mortgage lenders are doing their part: no more no-doc, interest-only loans with 100 percent financing. Today’s buyers need to do their homework, get their paperwork in line and get a realistic handle on what they can afford to borrow.
Dean Rouso
Prime Property Partners
La Grange
To improve the current lending situation, news reporters need to be accurate about the lending crisis. There is no crisis in conventional loans such as Fannie Mae, Freddie Mac or Ginnie Mae, but the media stories suggest that there is a problem at all levels. Borrowers that qualify can still obtain mortgages at very attractive rates and terms. Media outlets report a doubling of foreclosure rates, but in perspective, are .45 percent of all mortgages in Illinois. We don’t hear the accurate statistics because “doubling foreclosures” or “100 percent increases” make much better news stories.
Debbie Carmichael
Realty Executives Fox Valley
Geneva
In the past few years many banks and lending institutions made up new lending guidelines and rules because people did not fit the established rules. Those rules were there for a reason and now the banks and lenders who bent the rules are paying the price, loan defaults. This readjustment will be good for the real estate and lending industries. The strong, responsible lenders and hard working Realtors will still be here and the tried and true lending guidelines will once again prevail. This necessary readjustment should increase consumer confidence and, in my opinion, bring about a stronger and more positive market.
Debbie Carmichael
Realty Executives Fox Valley
Geneva
In the past few years many banks and lending institutions made up new lending guidelines and rules because people did not fit the established rules. Those rules were there for a reason and now the banks and lenders who bent the rules are paying the price, loan defaults. This readjustment will be good for the real estate and lending industries. The strong, responsible lenders and hard working Realtors will still be here and the tried and true lending guidelines will once again prevail. This necessary readjustment should increase consumer confidence and, in my opinion, bring about a stronger and more positive market.