Volumes have been written about real estate speculation, especially in residential real estate—with good reason. Residential real estate has become the major asset for many Americans. Yet the popular media characterizes the market as over priced, highly leveraged, and ready for a decline. Many market commentators have termed the market “frothy” at best and a “bubble” at worst.
Given these issues and widespread discussion about too much leverage in residential real estate, one important question is “What’s a lender to do to thrive in today’s market?”
According to FNC CEO Bill Rayburn's article (click here)
The answer is simple. Lenders must continue what they do best: making loans. It continues to be the major income generator for them. Interest income from loans accounts for most of a lenders income. Residential mortgage lending has grown into a significant portion of most lenders’ businesses.
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