Merrill Lynch Bought by Bank of America – the future of mortgage lending?
This morning, real estate is being blamed for the falling of two financial giants in the American economy: Merrill Lynch and Lehman Brothers. As fingers point towards billions of dollars in losses resulting from bad mortgage finance and real estate investment deals gone south.
Earlier this year, Bank of America bought troubled mortgage lender Countrywide Financial, a long-standing staple in residential lending. The acquisition of Merrill Lynch, an aggressive lender during the recent real estate boom, places Bank of America as the nation’s largest brokerage house and consumer banking franchise.
What the trickle-down will be remains to be seen. For the average consumer, it’s likely to mean a continuation of tighter lending criteria until the market settles – which this collective collapse could signal. Savings and CD yields will remain nominal and banking will still be every day business. If you’re looking to buy or sell a property right now, it’s a prime time to make sure you’ve done your homework regarding your lender. At the risk of sounding conservative, fully-amortized mortgages look like the best bet and it’s really hard to go wrong with a 15-year or 30-year fixed rate. If you’re looking at adjustable products and payment options, make sure you’ve got the fortitude to bear the futures of the market, as we don’t know what it will hold.
Your Realtor can always point you towards a credible lender, one who does business with integrity. If you need lender referrals, call our office for a handful. We encourage you to meet with several to make sure you find one that’s an ideal fit for your exact needs!
Read the New York Times’ story on the Merrill/Lehman Brothers Collapse HERE
The Staff at San Juan Realty, Inc.
Tags: lending, montrose, mortgage, ouray, real. estate, ridgway, telluride
