Quotes About Lenders

I had begun to worry about the housing market back in 2003, when lenders first resurrected interest-only mortgages, loosening their credit standards to generate a greater volume of loans. Throughout 2004, I had watched as these mortgages were offered to more and more subprime borrowers - those with the weakest credit.

When does money run out of time? The countdown begins when investable assets pose too much risk for too little return; when lenders desert credit markets for other alternatives such as cash or real assets.

The Pentagon got fed up with its recruits getting ripped off by payday lenders and in 2007 got Congress to make it illegal to extend such loans to members of the military. But civilians remain fair game.

I have seen how payday lenders and check cashing outfits set up in towns around military bases to take advantage of young service members, whose starting salaries are barely over $20,000 per year.

I've repeatedly seen unscrupulous lenders use every con in the book to charm and lie to homeowners. Lenders actually paid brokers a premium to put people in higher-priced loans with toxic features, such as adjustable rates and prepayment penalties.

Investigating some of the largest subprime lenders - Wells Fargo, Countrywide, Ameriquest, Household Finance - I've seen how their terrible, toxic loans were closed by any means necessary and eventually packaged, sold as securities, and bet upon until they exploded and decimated our economy.

Consider the recent financial crisis and its link to faulty reward systems. President Bill Clinton's objective of increasing homeownership by rewarding potential home buyers and lenders is one example. The Clinton administration went to ridiculous lengths to increase homeownership in the United State, promoting paper-thin down payments and pushing lenders to give mortgage loans to unqualified buyers according to Business Week editor Peter Coy.

It is wrong when we, in effect, throw safe and sound financial institutions into the same category with banks and lenders that climbed too far out on a limb with no way to return.

The Model Will Provide Consistent Value to Your Customers, Employees, Suppliers, and Lenders, Beyond What They Expect

Because the lenders sold many—though not all—of the loans they made to other investors, in the form of mortgage bonds, the industry was also fraught with moral hazard. "It was a fast-buck business," says Jacobs. "Any business where you can sell a product and make money without having to worry how the product performs is going to attract sleazy people.

there is a decisive difference between the loans supplied by private lenders and the loans supplied by a government agency. Each private lender risks his own funds.

This is only another way of saying that the government lenders will take risks with other people's money (the taxpayers') that private lenders will not take with their own money.

We want to create more jobs. We want to qualify more lenders and expand lending markets. But also, I want a very different SBA - it's not your father's SBA. I want to modernize it and reposition it so when people think about jobs, they think about how the Small Business Administration would really be helpful.

Stronger regulation and supervision aimed at problems with underwriting practices and lenders' risk management would have been a more effective and surgical approach to constraining the housing bubble than a general increase in interest rates.

The average credit score of today's FHA borrowers is higher than the average American household with a score. As it becomes more costly and difficult to get a FHA loan, loans from private mortgage lenders will become more attractive and their market share will grow.

Ultimately, the success of America's market economy depends on trust. This includes trust between buyers and sellers, between lenders and borrowers, and between investors and the companies in which they invest.

If you could really insure banks and other lenders against default risk, that might well unleash a great wave of capital into the economy.

Lenders look at potential borrowers from many angles before extending credit: How much of its income will a household need to put into debt repayment? How large is the down payment? Does the borrower have a job with a stable income? What is the borrower's credit score?

As I travel across Illinois and talk with people, and as others reach out to my office desperate for help, I am becoming convinced that, despite their rhetoric, many lenders have no interest in actually helping their customers.

I worry about whether SBA programs are still doing what they are meant to do - support lenders who fund good business startups and good expansion plans.

Crises, especially severe crises, have a purgative effect. In the business world, insolvent businesses that adopted a bad strategy close down, and bad loans are written off. Then lenders can lend with a new confidence again. This is the process that Joseph Schumpeter celebrated as creative destruction.

The best companies with the strongest credit ratings borrow like the United States: on a non-prioritized basis. This means that in the event of a default, all of their debts are of equal priority because lenders and creditors believe default is highly unlikely. And they spend considerable effort maintaining this status.

When people feel like, 'Lenders weren't fair with me; I don't have any responsibility to be fair with them.' If we go far enough down that line, much of the fabric of our economy starts to unravel.

If the banks become unreliable lenders, apartment prices will drop dramatically.