Mortgage Insurance In Ottawa Ontario: There are Banks Out There Who Are Writing Mortgages
Posted by: Guest Author / Category: MortgageBanks have been cutting their home loan portfolios back, that is for sure, but the careful borrower can still locate a mortgage.
Many local banks never were involved in the credit crunch and are actively originating loans. This is not startling. Mortgage loans originated with the old building societies, such as we see this time of year on “It’s a Wonderful Life”- taking Joe’s depositsto build Bob’s house. Of course, they go by other names nowadays, but lenders that focused on their core business and area have for the most part avoided many of the problems in banking.
They are actively granting loans to their customary clients and even expanding to absorb the slack where other banks are no longer active.
Big commercial banks have cut back drastically in mortgage lending, but the small community banks have continued their mission, even if their growth has slowed.
But there are still many organizations, community-development banks, credit unions, and other institutions that are not only still making loans, but lending to sub prime customers, because they are involved in shoring up the communities they are located in. In fact, many of these banks are not just staying alive, they are earning a profit.
Take, for example, Shorebank, a small community lender serving that city’s poorer community; its delinquency rate is 3.1%, compared to a national average of 18.7%. They do lend at increased rates than for prime rate borrowers, but they are careful about their risk. And their goal is merely to be profitable, not profit maximizing, a fine point made by Mark Pinsky, the head of Opportunity Finance Network, an umbrella group for these kinds of banks. If we take profit maximizing as another word for greedy, then this may be one of the main things that separates these banks from the national chains that are on the ropes now.
If you look at the salary of a CEO of one of these small community based institutes, such as that of Douglas Bystry of Clearinghouse CDFI, at $190,000 as compared to that of Angelo Mozilo, CEO of Countrywide Financial at $22.1million, you can realize the problem. The location of Shorebank lies in a modest renovated movie theatre, not an expensively built corporate complex.
These kind of lenders usually remain close to their customer base, and by doing so, they can monitor their portfolio and protect their assets better. For example, Shorebank has an interesting energy program that assists and encourages bank clients to lower their energy bills, making money available to pay the mortgage!
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Tags: home, insurance, life insurance, Mortgage, mortgage life insurance, Real Estate