Banks will be back in the lending game
Article Abstract:
The scarcity of commercial bank loans for builders resulted from weak bank portfolios, risk reductions, regulators' decisions and the competition with treasury and municipal securities. However, bank portfolios have improved and some are thinking of opening loans for residential construction and lot development. Mortgage bankers have been finding ways to ease construction lending for securitization, providing competition with commercial banks and thrifts. Meanwhile, a proposed legislation for Federal Home Loan Bank System may provide builders with an alternative loan program.
Publication Name: Professional Builder and Remodeler
Subject: Construction and materials industries
ISSN: 1053-6353
Year: 1993
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Luxury/spec builders face more finance frustration
Article Abstract:
Builders are having a hard time securing loans for their projects. They attribute this to the regulators and auditors who make decisions on loan amounts and determine which loans pose risks to the bank. The banks themselves have shown their willingness to grant loans but regulators force them to practice low-risk banking. However, some banks have started to implement the policy of character loans which empahsize trust and character as requisites to granting loans. Meanwhile, builders should not withhold information from the lender as this may cause problems for the latter.
Publication Name: Professional Builder and Remodeler
Subject: Construction and materials industries
ISSN: 1053-6353
Year: 1993
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A new look at adjustable-rate mortgages
Article Abstract:
There are many reasons for the continued popularity of adjustable-rate mortgage (ARM) loans during a period of low fixed-rate loan percentages. Sophisticated borrowers are using ARMs to finance purchases of homes they intend to own less than five years, partly because of lower closing costs. Additionally, ARMs are popular with lenders because they can match shorter-term savings liabilities with mortgage assets.
Publication Name: Professional Builder and Remodeler
Subject: Construction and materials industries
ISSN: 1053-6353
Year: 1993
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