By Danielle Douglas
The Washington Post
JPMorgan Chase and Wells Fargo, the nation’s largest mortgage lenders, say they won’t make home loans much cheaper for consumers, even as they reported booming profits.
Those bottom lines have been padded by federal initiatives to stimulate the economy. The Federal Reserve is spending $40 billion a month to reduce mortgage rates to encourage Americans to buy homes.
Instead, its policies may be generating more benefits for banks than borrowers.
“The government can’t force banks to give out loans at lower rates any more than they can force Macy’s to sell me sheets for a dollar,” said Karen Shaw Petrou of consulting firm Federal Financial Analytics.
Consumer Bureau Considers Lawsuit Protection for Lenders in Some Foreclosure Suits /ABA Journal
If you’d like to discuss real estate matters, contact Rose Law Group Founder Jordan Rose, jrose@roselawgroup.com
