Yeah what could possibly go wrong with giving out lots of easy, cheap loans to people that might not be able to repay them. :hmm:
D:
:'(
LOL +1 If only history furnished some sort of examples to help answer that question . . .
Er, I hope someone realizes the difference between taking a loan on a fraction of your wealth than taking a loan on multiples of your future wealth.
This. Bank's are looking for really safe investments since they have to generate profits to pay interest and meet costs, and this is almost the definition of a safe investment. Does make me wonder though about the advisability of a law limiting the bottom interest rate - is this sort of safe haven really useful to society? Considering that we taxpayers are subsidizing the banks via our GSEs' loan guarantees, perhaps we wouldn't be out of line to force a more level playing field. While I have no lust for Zuckerberg's fortune, neither am I wild about in effect subsidizing subsidizing its expansion. (Although it's worth pointing out that since the amount is above government guarantees, I have no money in his bank, and indeed I have no mortgage, I'm not in any way subsidizing his mortgage no matter how small the rate.)
Sorry, you just pretty much spelled out what kind of person you are with that post.
One's credit rating is only a small part of what kind of person one is. Dave's a nice guy, I've met him. Beyond that, there are numerous reasons why a particular bank would not want to refinance your average bear while offering such sweetheart deals to people who don't actually need a mortgage, such as the bank's current mortgage exposure, its current repo holdings, his credit rating, and the perceived direction of home values in his part of town, off the top of my head.
The bank's behavior is pretty much human behavior though. When a man's looking for a woman, bet your bottom dollar he's gunning for those women who need no help in finding a lover and running from those who need a little help to find a man.