Banks gear up for more mortgage lending.

Despite new homes sales showing historical lows, and the housing market not really in a cheer, banks are hiring hundreds of loan originators, getting ready for what they believe will be a significant pick-up in lending. JPMorgan Chase, one of the nation’s largest lenders, is in the midst of hiring 1,200 mortgage officers. “We may not be inundated with applications tomorrow, but we are confident the need will be there,” said Christine Holevas, a spokeswoman for JPMorgan Chase. Housing experts, however, warn that overall mortgage lending is expected to remain flat, largely due to a decline in refinancing.

Loans for home purchases should steadily increase over the next two years to $916 billion, up from an expected $725 billion this year, according to forecasts by the Mortgage Bankers Association. But refinancings should plummet to $474 billion in 2012, down from $717 billion this year. Citizens Bank, meanwhile, is also growing its mortgage operations. The Providence, R.I.-based bank, which operates in a dozen states, increased its lending by 167% in 2009, compared to the year before.

Source: Loss Mitigation Institute LLC

All that even despite the fact that people are dropping out or failing in the Obama refinance programs.

A 15 or 20% increase would be nice.:slight_smile:

Not true. Just a feel-good article. The media loves Obama, and will print anything to make Americans feel good. It is not the real world. Go try getting credit approved for a loan. I have friends trying to get a home loan now, and they want 3 years of all of their credit card payments, bank statements, and 5 years of pay stubs. Good luck.

http://money.cnn.com/2010/06/24/news/economy/mortgage_lending/index.htm

Be sure to watch the video.

This is why Banks are starting to Hire More Loan Officers. Mortgage Broker may be a thing of the past.

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Financial Compromise Bill Close to Passage
The U.S. House and Senate reached agreement early Friday morning on the largest financial overhaul since the Great Depression.

The bill will particularly affect home buyers seeking mortgages, requiring lenders to ensure that a borrower is able to repay a home loan by verifying income, credit history, and employment. It also would ban payments to brokers for helping borrowers find alternative financing.

The measure sets up a consumer financial protection agency to police lending, and it adopts new rules for mortgage-backed securities, requiring banks in most cases to retain 5 percent of the credit risk on their books.

Congressional leaders hope to win full House and Senate approval next week and send the bill to President Obama by July 4.

What are they talking about? The government offers “alternative” financing. There they go again. Telling 2 consenting adults what type of business they are allowed to transact. :roll: Here is a government that can’t even run itself except for running itself into massive debt, and they have the audacity to tell total strangers that they can’t conduct business between themselves.

When will these government idiots go away and leave us alone?