What Makes Neighborhood Housing Services Such a Good Service?
• Usually they lend only on 30 year terms. • The loans are fixed rate. • They make sure you can afford the rates and loans. • These organizations tend to put profits aside and loan to those who need help. What I found very interesting is that even with such a group of clients (low income borrowers), they maintain about a 98% success rate. That’s astonishing! I don’t think there are too many banks anywhere near that success rate. I also feel that this is a more sane solution to the “casino banks” that were running mortgage programs. Often banks packaged mortgages and sold them to investors, as far flung places as Asia. They cashed in the loans to buyers and often used the proceeds of the sales to make more loans and keep the cycle going. The problem was that often good loans got mixed up with bad ones –but the banks didn’t care. They sent the processing of loans to someone else, put the assets up for sale to another, and kept their marketing mission going. Now everything has come to an
