[Mortimer]

Originally Posted by dalakhani

Rudeboy, im sorry, but this isnt really the case. Many banks dont have much money to lend...AT ALL regardless of risk. Notice I said "many" banks as opposed to "all" banks.

The bank that you got your loan from is probably a good healthy small to medium size bank. Thats great. They are getting fed funds at a rate that is effectively zero and lending it to you for 72 at 4.25. Decent spread. Thats what they were supposed to do. Most likely, they have a healthy amount of deposits and don't have a lot of mortgages on their books. This isnt the type of bank going to the TARP window.

There are many banks that didnt make risky subprime loans commercial or residential and are STILL IN TROUBLE. Such is the peril of borrowing short and lending long. Securitization was the name of the game until last summer. Many millions of dollars of loans were made to GOOD clients that are still paying on time but can't get sold. Those loans are clogging the balance sheets and banks cant get those loans off of the books to get more money to lend.

There is some liquidity coming back into the markets and consumer loans are easier to get now than they were a month ago. This is not true for mortgages. There is still absolutely no execution for triple AAA rated jumbo mortgage backs. In plain english? Even if you have perfect credit and qualifications, you have to pay a huge premium to get financed unless it can be purchased by a fannie/freddie or FHA/VA.

Ah love Dala Coulter....don't you?