Bank of America

Bank Of America – What’s Ahead?

Chris Whalen – Institutional Risk Analytics

In a recent interview the need for voluntary filing for restructuring is explained, and more importantly how this could save Bank of America from Billions and Billions of dollars in settlements from alleged improprieties in mortgage lending.

What does this mean for Homeowners?

Photo of Bank of America ATM Machine by Brian ...

Image via Wikipedia

If anything is constant in this business it is change! Bank of America has made it clear they are restructuring their company and removing the less profitable areas in order to consolidate and be less vulnerable in the market. Some of the changes homeowners will be seeing – not just from Bank of America but from all lenders with regard to new scrutiny from government  include strict adherence to the debt to income ratios and the increased credit score requirements.

We will probably also see less products offered Wells Fargo and Bank of America have already stopped selling reverse mortgages. Some lenders are moving to higher down payment requirements and mortgage insurance dependent on your debt to income ratio, your credit score, your employment history and more.

On an encouraging note – farmland in Texas is selling at incredible prices which was fueled by commodity prices that rose 29% from March 2010 to March 2011. Because the market has been so volatile farmers have not been selling forcing a scarcity in the market, with rising food prices farmers are reluctant to sell. Other factors include the quality of the croplands and the stable overall higher rental rates for farmland – it is too lucrative to sell.

And green is still good. Moving toward green buildings still adds value to a home or office with 3% higher sale prices. Studies are even showing increased rental rates for green buildings, and more demand for green rentals.



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About the author

Sherry Fields Sherry Fields has been working in real estate since 2002. Working with the development team for the Hilton Garden Inn gave her strategic information on the commercial real estate market in Missoula. Broadening her scope she moved into the residential market and earned the designation SFR in short sales and foreclosures. Currently affiliated with Prudential Montana Real Estate, she works with both buyers and sellers "building relationships so you can buy & sell with confidence". Sherry Fields has recently earned the CREN designation - Certified Real Estate Negotiator. While price is a large part of negotiation - it is also about timing everything from the closing date to inspections, appraisals, home insurance - and it is about negotiating items that can show up in home inspections to achieve a mutually acceptable outcome.

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