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walkathisway asked:
Do you know where I can find a list of banks that were not involved in subprime lending fiascos? Thanks
Do you know where I can find a list of banks that were not involved in subprime lending fiascos? Thanks
Tags: Foreclosures, List Of Banks, Subprime Lending
July 20th, 2008 |
July 24th, 2008 at 4:45 am
The truth is that most major banks that do “A” paper loans have subsidiaries that do subprime lending. They didn’t want to admit it but that’s where the money was. You know about Countrywide already but even lenders like Merrill Lynch Bank own First Franklin, WAMU had Long Beach Financial in California, both players in subrime lending. Wachovia acquired World Savings that still does neg am mortgages, and the list goes on and on …
Why do you want this list anyway? If you are trying to choose a lender that never did a subprime loan you are going to be out of luck. Besides, the problem is not subprime lending, the problem is not properly qualifying subprime clients. Estimates are that 10 to 25% of subprime loans will end up in default, the flip side is that 75 to 90% will NOT!. That’s a bunch of people to exclude from ownership. A bunch of responsible people that DO PAY their bills getting caught in this as well.
There is nothing wrong with helping people with damaged credit get a mortgage. Unexpected medical bills can devastate ones credit but that does not mean the person becomes a deadbeat. Life happens and the key is to properly evaluate an appropriate amount of risk. Experienced mortgage brokers, the ones still in business that didn’t cut and run, can assist you with finding the right fit, whether it’s with a lender that does subprime or not.
Edit:
To those that say “My bank never did subprime”.
Subprime is anyone below a 620 FICO score, are you saying your bank never made a loan, gave a credit card with a lower limit or any loan to a person with a FICO below 620? They would be out of business in 1 week. How many people with FICO scores under 620 drive cars, use credit cards, buy houses?
Wake up … get real.
July 25th, 2008 at 3:38 pm
State Farm Bank didn’t do any subprime lending. I know because I processed their mortgages.
And I would repeat, why are you asking, or what is the real question?
July 25th, 2008 at 5:25 pm
The answer you are looking for would be hard to come by. Most all the banks and lending institutions have most of the same mortgage programs, other wise they would not be able to compete with other banks and would suffer.
I don’t think you will be able to find a list of banks that did not some how find themselves involved in subprime lending. Some did,but more so than others.
Most of your large mortgage bankers that had sub-prime as their primary business are no longer around. I can name a few B&C mortgage, New Century Mortgage, American Home.
You might not have heard of these companies, but they were a few of the giants in the sub-prime lending.
Even though some banks did not have sub-prime as their #1 product most did do some as a matter of being able to stay competitive in the mortgage industry.
Some banks might not have orginated sub-prime loans, but might have purchased sub-prime mortgages from brokers or added them to their portifillo from other sources.
The mortgage industry is a strange animal.
70-75% of mortgage originations come from mortgage brokers not individual banks. Now since these mortgage brokers/bankers don’t have any money to fund these loans, they gather the information necessary to have a lender fund the loans for their clients.
Now even after the lender/bank fund the loan, in all most all the cases the bank or lender will sell this loan to one of the two big mortgage purchasers.
Why are you interested in banks that were not involved in sub-prime lending and can withstand the pressures of foreclosures.
You will have to look at the strength of each bank, the reserves they have and any outstanding debt they might have.
I hope this has been of some use to you, good luck.
“FIGHT ON”
July 27th, 2008 at 4:59 am
There are a number of regional or local smaller banks that do mortgage lending and do NOT do subprime loans (my bank being one). However, I don’t know of any database for them. I would check the smaller banks or S&Ls in your area.
July 27th, 2008 at 6:02 pm
Synovis did very few ‘El Stupid” sub-prime mortgages and is in great shape.