- Despite tough new regulations aimed at lowering risk for banks, Wall Street continues to find a way to finance subprime loans.
- Instead of direct lending, big institutions like Wells Fargo and Citigroup loan money to nonbank institutions — shadow banks — who then deal with higher-risk clients.
- Banks say this way helps lower their exposure.
An Alternative To Traditional Real Estate Investing
There was good news in Black Knight’s Mortgage Monitor concerning 2016 Fourth Quarter Loan Originations released this week. The report revealed that purchase lending during this period hit its highest level since 2006 at $1.1 trillion. However, this was still 28 percent lower than 2005’s peak volume.Read More
Although home prices have been rising steadily over the past year, house flipping is still extremely popular among investors. And it’s the banks that are being credited with helping investors jump back into the flipping game.Read More