…and with good reason. You can’t trust these banks! Everybody know this by now. Bank of America is concerned that mortgage applications are down:
“Bank of America Merrill Lynch (BAC) analysts just emailed a research note reminding clients they feel the Fed needs to continue to back the mortgage market if the so-called housing recovery is to remain intact.
Justin Borst and Chris Flanagan say the fundamental numbers behind household formation — mortgage purchase application activity — remains critically weak.”
This is what happens when fraud is the business model, like it is with these banks. Sooner or later, people will learn they can’t trust the banks and other fraudsters. Seems maybe people are finally learning that lesson.
Also, the lack of new mortgage applications may have something to do with the fact that the majority of people in 37 states have “subprime credit,” with that being true of 69.1% of people in the state where my kids were born–Mississippi. Of course, there’s always the inflation that we mentioned yesterday that is eating away at everyone’s purchasing power.
The BoA analysts’ solution to this problem? One might think they’d say that fraud should not be their business model. But of course they don’t. They just want more free money from the Fed to keep the fraud going:
The housing recovery may not continue, they indicate, if the Federal Reserve continues to pull back on its purchase of mortgage-backed securities and decides to raise rates sooner-than-later.
“Until proven otherwise, these numbers are awful, and create a need for continued Fed accommodation and a positive technical backdrop for securitized products, especially credit,” they add.
Fraud a gogo!