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Big banks are fleeing the mortgage market
Market Watch ^ | 12 February 2016 | Andrea Riquier

Posted on 02/13/2016 6:17:35 AM PST by Lorianne

When it comes to residential mortgages, big banks are waving the white flag.

Banks originated 74% of all mortgages in 2007, but their share fell to 52% in 2014, the most recent data available from the Mortgage Bankers Association. And it could go even lower.

But even at these levels, the big bank backtrack is reshaping a lending landscape that’s already undergone seismic shifts since the housing bubble burst.

While there’s widespread agreement that banks should have been reined in — and perhaps punished — after playing a major role in the housing bubble that helped tank the economy, the past few years have been tough for banks’ mortgage businesses.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy
KEYWORDS: bigbanks; mortgages; toobigtofail

1 posted on 02/13/2016 6:17:35 AM PST by Lorianne
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To: Lorianne
While there's widespread agreement that banks should have been reined in and perhaps punished after playing a major role in the housing bubble that helped tank the economy,

Here we go rewriting history again.

2 posted on 02/13/2016 6:24:16 AM PST by SunTzuWu
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To: SunTzuWu

Opinion stated as fact. It’s what they do. BTW I absolutely hate Market Watch. Any ideas on a better way to track the markets?


3 posted on 02/13/2016 6:33:40 AM PST by KSCITYBOY
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To: SunTzuWu

Totally.

People bought houses they couldn’t afford and couldn’t make the payments, triggering the shock and collapse. Idiots.


4 posted on 02/13/2016 6:35:18 AM PST by CorporateStepsister (I am NOT going to force a man to make my dreams come true)
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To: SunTzuWu
Here we go rewriting history again.

Yes very sad, we are doomed to repeat all of this crap. Why would lend any money if the are not really required to pay it back. It truly bazaar.

5 posted on 02/13/2016 6:35:27 AM PST by WHBates
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To: Lorianne

The housing bubble was needed to hide the disappearance of manufacturing to foreign countries.


6 posted on 02/13/2016 6:36:29 AM PST by cassiusking
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To: Lorianne

I’m guessing its because:

1. They are being pressured (for diversity’s sake) into giving loans to people who cannot pay them back.
2. When the House of Cards collapses again (as it will), they know Politicians will demonize them for forcing “predatory” loans on “unsuspecting” borrowers.


7 posted on 02/13/2016 6:36:45 AM PST by rbg81 (Truth is stranger than fiction)
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To: KSCITYBOY

Ino.com is a good site to get just the facts


8 posted on 02/13/2016 6:38:43 AM PST by cassiusking
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To: SunTzuWu

Absolutely. That one was easy to predict.


9 posted on 02/13/2016 6:48:21 AM PST by sarasota
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To: sarasota

Banks don’t want to be on the hook for buy-backs. So they will use mortgage bankers and small banks for the originations, then buy the notes. Reduces liabilities


10 posted on 02/13/2016 6:50:55 AM PST by rstrahan
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To: cassiusking

Thanks


11 posted on 02/13/2016 6:50:57 AM PST by KSCITYBOY
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To: KSCITYBOY

Bloomberg has lots of free content. The professional services run several thousand a month. I’m not sure if theres a mezzanine level of content. Depending on your involvement the free content probably will suffice.


12 posted on 02/13/2016 6:56:02 AM PST by wiggen (#JeSuisCharlie)
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To: rbg81

After 08 the agencies pulled back some out of necessity but from the numbers seem to have taken more of the market. Not surprising under Obama.


13 posted on 02/13/2016 6:57:47 AM PST by wiggen (#JeSuisCharlie)
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To: Lorianne

Those evil banks are discriminating against poor people again.


14 posted on 02/13/2016 7:00:55 AM PST by wjcsux ("In a time of universal deceit, telling the truth becomes a revolutionary act." - George Orwell)
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To: wjcsux

They have no interest in it...


15 posted on 02/13/2016 7:09:01 AM PST by refermech
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To: Lorianne

Let’s see;
First, the Fed’s tell the banks they MUST make loans to unqualified buyers,
Then, they fine the banks BILLIONS of dollars for selling bundles of loans that ultimately fail, because the borrowers were UNQUALIFIED!!

Where do these BILLIONS in fines go?

Into Democrat slush funds, as there is NO ACCOUNTABILITY or traceability for these off book transactions.

Aside from stopping these government frauds before they start, we need legislation creating accountability for gov’t fines.
My first recommendation is that they go as a direct offset to the debt.


16 posted on 02/13/2016 7:12:46 AM PST by G Larry (ILLEGAL IMMIGRANTS impose SLAVE WAGES on LEGAL Immigrants.)
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To: rbg81

And the gov’t is fining automakers because the interest rates they charged had discriminatory outcomes against minorities. It’s the outcome, not the normal credit process that they are being taken to court over.


17 posted on 02/13/2016 7:24:50 AM PST by Rusty0604 (1q)
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To: G Larry

Those fines went to ACORN type organizations so that they could agitate another crisis.


18 posted on 02/13/2016 7:27:21 AM PST by Rusty0604 (1q)
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To: rbg81

Force banks to Give loans to people that can’t pay back. Force people to buy insurance they cannot afford. Nice freedom we have here.


19 posted on 02/13/2016 7:41:41 AM PST by taterjay
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To: wjcsux
Those evil banks are discriminating against poor people again.

Never could figure out why banks cater to people with money.................(/s)

20 posted on 02/13/2016 8:10:52 AM PST by varon
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