Local Banks and Lenders

I have read a few good articles lately about our local economy and our local banks. Despite all the gloom and doom out there, this community is holding on pretty well. I am taking the data reported in these publications to be accurate, but from the looks of it we are pretty stable! Our Nation's large banks and financial institutions have bee reeling, but Mid-Missouri Banks remain strong.
There are always exceptions and some are stronger than others, but this is normally the case. For the most part local banks stuck to traditional lending practices and are not faced with the tough times that Wall Street is. Subprime was a huge factor in their troubles and our local banks didn't dabble in this. Now some did get pretty aggressive with commercial lending and are paying for it, but for the most part they are ok. Currently all financial institutions will see some sort of decline as a result of the housing downturn and the economic struggles we are all facing. Deposits are suffering on top of the bad debt and loss of loan production. These are just par for the course and will be managed until thing turn back around.

As far as lending goes, I wanted to point out that yes banks and mortgage brokers can still loan money for mortgage financing. This is a big misconception right now. Lending standards are tighter that they were previously, but money is still available. One big shift with banks that is more prevalent than in previous years is that banks broker loans just like we do. It is scary for them to hold on to loans in house these days and as a result brokering is their option. So when you are shopping around, keep this in mind. Some local banks will house high quality loans in house and you can receive some added flexibility. Otherwise, they are on the same playing field with us and we have more products and lenders to access.

I just wanted to briefly point out these items. Have faith in our local banking institutions and local lenders. Your money is safe and we will both work hard for you!

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Professional Mortgage Group, Inc.