RK

Banks Stressing the System vs. Potential Winners of the TARP Repayment Race

Anecdotally, in my small office, I know of 2 people who failed to refi their mortgages in the last 2 months due to drops in the appraised values of their houses. Conforming loans for under 20% equity are not to be had. Banks are scared to make bad loans (for now). Until housing values begin to stop falling and the mortgage rates come back down to 5%, the residential mortgage market won't lift.