Dallas Home Appraisals News and Information

An article linked by Huffingtonpost.com reports that 3 banks, and 4 institutions total, are now issuing 50% of home mortgages and 2/3 of all credit cards.  Federal data shows that in the wake of recent failures, acquisitions and government bailouts, three banks - J.P. Morgan Chase, Bank of America, and Wells Fargo - along with Citigroup (rescued and now owned by the government) - have become even more powerful than before.

The article points out two of the most obvious problems.  First, banks that were months ago deemed "too big to fail" and therefore received government bailouts are now even bigger.  They can continue to take poor risks for short-term gain (and higher bonuses?) with the expectation that the government will have no choice but to keep propping them back up - at least that could be the expectation of their creditors.

Worse in the short-term for the consumer is that the consolidation of so much power into so few institutions have already led to fewer choices in banking and lending as well as higher fees.  Our own experience with a behemoth bank has been that our accounts - all in good standing over a long term - have been hit with new and higher fees.  Where last year a call to the customer service department would result in not only the elimination of some fee that popped up but also an offer to open several more fee-free accounts and pre-approval for a home equity loan, today service reps apologize for not being able to remove fees and offer to help close frivolous accounts (one account for vacation money, one for taxes, one for emergencies, etc.) that are all of a sudden laden with monthly fees and minimum deposits.

Mortgages are of course another problem with so few institutions making loans.  Loan modification horror stories abound (though about 4 million have reportedly been modified), lenders require an over-the-top amount of paperwork (making up for the 2-question application pre-crisis), and loans are taking longer to close and costing more (interest rates may have gone down, but many fees have gone up).

What has your experience been?  Is your friendly neighborhood bank suddenly less friendly?  Are you having trouble getting your lender to return your calls?  We'd love to hear from you.  In the meantime, if you need assistance with your mortgage or are thinking of buying a home, contact us at Blue Star Appraisals Inc. and let us refer you to some of the best mortgage brokers and realtors in north Texas!