Several mortgage lenders are suspending doing business in that area. I believe D-1 also pulled out and more will obviously follow and I applaud thier decision. Equal credit and Fair credit does not mean you have to lend your money in Cities or towns where you put you company at risk. Oakland, Ca also passed legislation a few years back that many lenders just said hell no were not lending there.
Somehow I wonder if this can affect property values. If prospective buyers dont have competitive loan options to choose from wont they just go to other towns or counties to buy? If no one can get financing how are you going to sell your home for a decent price.
It is important to provide loans with integrity and morals, and predatory lending is definitley wrong. However a fair market price has to be established to validate the work needed to close certain borrowers, and the obvious risk involved in holding thier note. Here is a link from the Maryland MBA:
http://www.mamb.org/2005montcountyban3.htm It sad that this legislation probably was started for a noble reason, and now it will end up hurting everyone especially home owners, and buyers. They were the ones it is intended to help. One thing for sure is that I am glad I don't lend there.
just my $.25 cents worth! I understand both sides, but wish I knew what it would take to fix this.
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