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|Subject: Is the Mortgage Business Ready fer the Free Mkt?||Date: 12/5/2012 2:13 PM|
|Author: tjscott0||Number: 658416 of 860679|
f you insist on getting a mortgage from a big-box retailer, you have to go to Costco COST +0.49% , which began offering them last April in a partnership with a New Jersey community bank, First Choice Bank.
Nevertheless, one out of three people would consider taking out a mortgage at Wal-Mart, according to a survey released Monday by Carlisle & Gallagher Consulting Group.
Houtop said the kinds of mortgages retail lenders would make would be simple and straight-forward, not the exotic varieties of stated-income loans and sneaky balloon notes that the banking industry continues cleaning up to this day.
Still, if the financial crisis taught us anything, it should be that shopping for a new home-equity line should not be as easy as driving to Wal-Mart.
Consumers still don’t get enough blame for the housing crisis that nearly brought America’s economy to its knees.
Brokers, lenders, Wall Street bankers, politicians, Fannie and Freddie — they rightly receive their share. And to be sure, what really tanked the market, was the trillions in troubled mortgage-backed securities and derivatives — not so much the billions in defaults from homeowners. But in the end, it is one long chain of fools that began with a home-buying public that now wants to shop for mortgages at Wal-Mart.
I doubt if this will come to pass as TBTF banks will engage their lobbyists to stop such competition.
But if it did; I would contemplate selling my house & land & put the proceeds into gold & wait fer the bubble to burst. Then come back & buy up alot of land. The problem as always is timing.
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