Banks are reporting record breaking profits now and it raises a question on everybody’s mind. Why can’t I get a mortgage? The main reason is that banks are still in the midst of their mortgage crisis and they are trying to balance cleaning up the mortgage mess while at the same time increase their profits.
Mortgage lending is a large portion of the large banks’ business and it will continue to be a major part of their business in the future. A good sign is that the banks are more willing to lend jumbo loans. Jumbo loans have two major advantages for lenders. The banks retain these loans and also set their own standards. The healthier the bank the more lending it will do.