A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
One Size should never fit all
I was reading an article in the Wall
Street Journal that talked about how difficult it can be for retirees to
qualify for a jumbo mortgage. Many of these Retirees have plenty of assets and
could easily pay off the loan at any time, but the lack of monthly income makes
them unable to qualify for these loans. This is the problem with the one size
fits all approach to lending.
In my business of Property Management
in Orange County Ca. most of my clients are retired, and many of them hold
plenty of assets. What drives me crazy is that when they do get a loan, many
times they are treated like first time buyers, being forced to pay PMI (Private
Mortgage Insurance). That is ridiculous. We need to get rid of the One size
fits all attitude in the lending community and get back to community based
lending.
Many of these retirees have worked
very hard to be in the comfortable financial position that they are in and have
never defaulted on a loan, in a rational world they are great low risk
Borrowers, but in our irrational lending world we live in, these people become
persona non grata.
The article goes on with some suggestions for these retirees
and if you would like to read the entire article. http://on.wsj.com/1xtPKRS
Now this problem when it comes to one
size fits all lending is not only a problem to retiree’s, but also small
businesses and many small businesses are forced to alternative high interest
options due to the one size fits all bank policies.
What needs to be done is that every
borrower should be looked on an individual basis not just thrown into a
computer model. The funny thing is that it is so easy to get money for other
things such as student loans, and the risk of payback is much greater, but
those loans are backed by the government.
Banks today want no risk lending, but
that should change when interest rates start to head north
A.D. Cantelmo Property Management Specializes in Property
Management on Orange County Ca.