Wells Fargo is a Joke! My wife lost her job, got a 7 month baby at home. I have 5 year fixed loan at 7%. I called back for help for 4 months and they don’t care. People who call you don’t even why they called. All I asked for 40 year fixed at 5.50%. Got a job for 9 years I make 100k per year my FICA score is 730. No one will help. All they ask me if I’m still current. Few more months and I will not be able to make my $4200.00 payment. I’m about 50% upside down I don’t want to loose my house.
SO TELL ME WHY ARE WE BAILING OUT BANKS?? I SAY GIVE IT TO PEOPLE THAT ARE MIDDLE CLASS!! I BET WE CAN HAVE OUR ECONOMY TURNED TO NORMAL IN 18 MONTHS. I HOPE SOMEONE WILL READ MY COMMENTS AND LET ME KNOW WHAT I SHOULD DO NEXT.
Recently I applied for new car loan at Pentagon Federal Credit union they did not give the loan even I have the credit score of 740-780
they said my income and debt ratio is high I was surprised. This is never happened to me in my life. Also same bank denied me for re-fi of my home
for same reason.
Same story with Chase for re-fi.
Bank are not lending I wonder what happen to the bail out money?
My husband and I were recently turned down for a home equity line of credit in the amount that we have left on our home equity loan. Our individual credit ratings are both well over 800 and our income is stable. The issue? The ‘loan to value’ ratio doesn’t work for BOA. We came in at 83% instead of the maximum 80% on the loan to value. The HE line of credit is a minimum of $25k and the balance of our loan is $20k. So, according to their math, we do not qualify. The current $20k is with BOA, so instead of us going to another bank, why wouldn’t they work with us? They did not have enough ‘history’ with us to consider anything different. I started banking with Standard Federal in 1986, they were bought out by LaSalle a few years ago, and last year by BOA, and they are telling me I don’t have enough ‘history’ with them. Pardon me, but I’m not sure BOA has enough ‘history’ with me to earn my business anymore. I didn’t choose for them to purchase my bank, so I’m going to choose a bank I WOULD like to work with.
Jill from Seattle I agree, Chase should be ashamed of them selves. They not only won’t help me, they tricked me into wrecking my credit by not telling me the truth when making payment arrangments with them. What that did was force me to stay with them and not being able to refiance with a better bank. I also was never given a choice to do business with them. I was sold to them like a slave, and now forced to stay with them and they continue to make me beg for them to work with me. Does any one know if Chase is an American based company or a foreign one? If a foreign based bank, which one?
New corporate jets, eye popping bonuses, and lavish off-site retreats. Yes, it all sounds very scandalous, but I would like to focus on another banking faux pas which for actual bank customers hits a bit closer to home, and is in my opinion a clear example of irresponsible behavior.
Within weeks of the Washington Mutual takeover by JP Morgan Chase, Chase canceled all secured credit card accounts for WaMu customers. They sent a brusque letter giving one weeks notice and being the kindhearted bank that they are, sent these letters one week after Christmas. People get a secured credit card because they are new to the country and need to build credit in the US, or they are young people building credit for the first time, or they are people who have had trouble in the past and are rebuilding their credit. “Secured” means that the account holders have actually deposited the amount of their limit in the bank, so that the bank is covered if the cardholders default on payment. Therefore there is no risk to the bank. So basically, Chase has taken away the possibility for all of these customers to build credit so that they can stimulate the economy. This is in DIRECT conflict with the stimulus package, of which Chase received a whopping $25 billion. When asked WHY they would do this, the answer was, “because Chase doesn’t have a secured credit card service”. When asked why they couldn’t wait a few months and let people who already had this card get a credit score first (it takes 4 months to establish a credit score), again the answer was “because Chase doesn’t have a secured credit card service”. When asked where to appeal this decision, customers received a Post Office Box number. When asked for a phone number to talk to an actual person at Chase, a fax number was given. When I told the poor WaMu customer service agent who had to field these calls that I felt sorry for him having to work for such a rotten company, he replied “don’t worry about me, ma’am, I’ve been laid off by Chase as of Friday.” I am so incensed that JP Morgan chase received $25 billion dollars in tax payers money, only to treat the customers of their new bank so incredibly poorly and customers who provide little risk as the accounts are secure. Shameful? Yes, I would call them shameful. Harmful to the economy? Absolutely.
I would hope that when “strings” are attached to some of the new money we will soon see floating into the banks, that helping Americans build credit responsibly would be one of the requirements. JP Morgan Chase already admitted it would use the money to acquire other companies and not increase lending. But it should be prevented from taking actions that do not ALLOW Americans to build their credit honestly and responsibly. I’d like to see more stories like this about what banks are doing directly to their customers. This is just one story. I’m certain there are thousands more. Banks need to be saved, that’s for sure, but like a child who has broken trust and acted hurtfully, they need to be closely watched and given strict guidelines about how to improve their behavior. Chase is one example of a bank that CLEARLY hasn’t learned its lesson.
like the MSM, most of the posters have mistake capital for loanable funds.
Banks lend the money that belongs to depositors, not capital funds. Because the depositors want every cent back no matter what happens [you do, don't you?], the proper amount of risk to take in a bank making a loan is near zero — in fact, a three percent loss rate would wipe out nearly any bank anywhere.
One of the things that happened over the past two decades is that banks made loans, but with someone else’s money and risk — this is called securitizing the loan. To the extent that those buyers were willing to accept higher than normal levels of risk, riskier loans were made.
[FNMA and FMAC were two of those major buyers of weak or bad loans in the housing markets -- because Congress wanted them to do exactly that. It buys votes.]
Now the banking industry is making loans for itself — which means we’re back to the lending standards that should have been in force all along.
620 isn’t a good credit score and should never have gotten a good auto loan rate. 9% with 20% cash down at best.
Mortgage loans are even tougher. The banks KNOW that present housing prices won’t hold up — if only because they KNOW how many more loans are going bad and will be foreclosed in the next few months. So you have to either buy at very cheap prices indeed, or put at least 20% cash down because an estimated 15% of the gross price of the house will be lost in the next few months. [This should be your signal to not buy a house now, but some people aren't getting the signals.]
As to the big banks — they are all on the hook to make huge volumes of commercial loans to outfits like your employer. that’s because your employer can’t borrow in the commercial paper market any more [too risky] and thus is calling on his bank to lend to him via his backup line of credit [which employer paid for before this mess got so bad].
So the big banks have no spare money to lend — their net deposit inflows are all committed to the major employers of America.
Small banks still have deposit growth dollar to lend to smaller people and are doing so — IF and WHEN they see a good deal with sound credit.
***
But capital dollars like the misnamed TARP capital purchases can’t be tracked to individual loans, or even groups of loans.
BofA got $15 billion in those funds [excluding the ML part] and made $155 billion of loans in the fourth quarter of 2008. Which 10% do you want them to tell you about and which 90% were made with depositors’ money?
In fact, all the loans were made with depositors’ money and none with TARP funds. Capital isn’t used to make loans — it is what eats loan losses [in bad times] and what gets profits [in good times].
***
[sigh] how does one educate the people when the schools did such a poor job?
What I want to understand is why banks that are given this money are allowed to charge outlandish fees and rates on revolving credit. They should learn to manage the company on the same amount of interest that they are offering as return on investment. Or better yet, why not limit the interest that is charged to two or three percent greater than they can borrow the money for. And the fees involved with this credit, need to come from the interest charged, after all that is what makes them profit. Keeping the rates lower allows the debt to be paid off more quickly. And since paying down debt usually results in taking on debt, or spending, the economy will recover faster than waiting on the bank to water-down, and filter out the money until there is little left to loan. I understand that an agreement was taken by the consumer when applying for the credit, but how often does that agreement get changed …..I think that this would be a remarkable time to make a positive change to some lending agreements.
No Banks are not lending anymore to me it is all window trimming. They have to show us the average people hey look at what we are doing, because if enough of us get fed up we will bombard our congressmen and senators. And then they will have to do something and the banks really don’t want the gravy train to stop. So lets do a little PR and we can keep collecting the government (Welfare Money) oh excuse me Bailout money. And hey we need to put on a good show here remember the number of $4 Trillion dollars has been mentioned to actually bailout the economy, so they need to go for the gold.
But bottom line is banks are not going to do anymore then they have too!!! I have not been turned down for a loan, but I own a business, and when I asked my banker just jokingly, could I get a credit line he just laughed. But in retrospect if I were able to consolidate everything to one place I would save a few thousand a month. I also guess the one thing that really put a thorn in my side is the fact that they raise interest rates on credit cards by 9% or more and justify this. I have never missed a payment and always pay more so where do they justify this? So this just makes me assume they would be the last people I pay if I were in trouble.
As I’ve seen some common threads here, I want to offer some possibly helpful advice: whenever possible, shift your banking businesss away from big banks over to smaller banks and/or credit unions. It will make your life better.
Here’s why … in most industries, smaller companies run circles around bigger companies, and this is certainly true in banking. Smaller companies have lower overhead, offer better prices and service, and have longer vision. Management is usually very on top of their day-to-day business, which is good for the customers. In addition, SMBs (small and medium businesses) generate more than 100% of the job growth in our country; the big guys are almost continuously laying off workers, especially now. Support yourself by supporting small business.
All of the above applies for credit unions plus the additional benefit of their being not-for-profits. There are no investors, and the members and the customers are the same. They only have to make enough money to survive; profits are reinvested in the organization or returned to the customers in the form of lower fees.
The big banks are definitely trying to feed at our taxpayer trough, and we need to stop them. Write your Congress-people and our new President. Someone is reading those emails.
I feel that we have just experienced a bloodless coup in this country where with the stoke of a pen the politicians and big business has raped our treasury for their own selfish greed. These acts are treasonist and have destroyed our country as much as any terriorist could ever hope to do.
I had a home that lost its value over the last year and a half. When I tried to work out a modification plan with Country Wide Mtg. I was told no problem as long as I am 3+ months in arrears in making mortgage payments. Then Bank of America bought Country Wide for twice of what it was worth and now no one will talk to me.
It seems that Americans should be able to begin suing lenders for not negotiating in good faith. Banks and Lenders are as guilty as anyone for approving the loans that have created this mess. Why does the middle class bear the burden while crocked rich politicans and business executives roam free. Class warfare may be just around the corner
Ultimately the banks got themselves into this situation, the ones that did should fail and those that didn’t should prosper.
I worked many years at Washington Mutual at the VP level and have very little sympathy for the executive management layer that should got us into this mess. I have to say I do find the executive departures SO ironic. Dec 17, 2007 WaMu’s Chief Legal Officer Fay Chapman left the company to “retire”. Bull.
It’s not complex, it’s very simple: YOU CAN’T EVER give a person a “stated income or no document home loan”, yet some institutions did by the truck load.
Now I’m afraid to even approach my bank about expanding or modifying my home loan OR home equity loan for fear they will do an appraisal and there will be some unexpected consequence (in addition to being recently unemployed).
No they are not-
I have been trying to refinance a small commercial building since April 2008 and have been turned down by 2 banks who had pretty weak reasons for denial. The loan officers say that the FDIC is really cracking down on these loans and picking through everything with a fine tooth comb.
The building has 3 times the loan amount in equity, I have over 700 credit score, the rents clear 1500 after all expenses. Yeah, it sounds risky doesn’t it?
I finally am making progress with a SMALL LOCAL bank that has been doing these kind of loans for 30+ years. I doubt if they got free money from the government but instead have resisted the GREED that large banks displayed during the heydey of sub prime lending. They originate and hold their mortgages- what a concept.
The last week of Decemember, I discussed refinancing my car loan with a regional bank. At the time, I was approved and the refi would save me $220 monthly. I am working a part-time job now to earn the extra money to put toward the “down payment” on the refi (the difference between the balance of the current car loan and the actual value of the car). Concurrently, my primary job is laying off this week; I pray I have my main job long enough to still be attractive to the lender.
All the Banks, as well as Fannie Mae and Freddie Mae, should be investigated for PROFITEERING! What few loans they have or may make in the future are at increased spreads justified only by the “risk” in the market that the financial firms control and manipulate. Rates need to fall below 3.5% to shock the market back and stop foreclosure. We are in a depression, but everyone seems to be addraid to say that we are all naked!
“I have not applied for a loan in the last 3 years. I have a credit line at 0%. It’s called Savings. During the last 4-5 years when our family income has increased exponentially, we have been saving as much as we could. Now we don’t need banks, we bought a new car last month with cash. I advise others to do the same, save first and then buy what you want or need.
Posted By nam, chicago il: February 3, 2009 1:35 pm ”
Winner – the economy is in a mess because of two main reasons (among others):
1) People (and businesses) don’t save. They RELY on credit, and that is their downfall.
2) Forcing banks to loan is what put us into this mess (all those toxic assets came from bad home loans, remember?)
That said, the pendulum has swung too far in the opposite direction, and people with excellent credit should be able to get loans. Strangely, most of the smaller banks (who weren’t exposed to subprime mania, for the most part) have been lending all along. They deserve our business more than any bank that was “bailed out.” So instead of the big name banks, try smaller banks. You’ll find that many of them have done it the right way.
Yes, I’ve just been turned down for a loan by the very banking system that is meant to pull out of this mess. But aren’t they still smothered in greed and stupidity that got us into this? Why am I surprised, the banks are not part of the free market system or we all would have walked by now, we are tied like prisoners to financial system that now wallow in self pity. They made horrendous decisions gambling and losing the nations wealth, and millions of people are suffering because of this. They have successfully decimated the housing market and wiping out 401ks and subsequently caused catastrophic damage to US economy. This wasn’t capitalism at work it was abuse, abuse of the system, abuse of our nation. What does the abuser do? Go ask for more! and we’re giving them it ….more money. The saddest part is that they won’t even operate like banks any more. They hoard our tax dollars instead of taking the calculated risks that responsible banks are supposed to do…the greed continues!!!
Wells just raised my Credit Card rate 5% because I owed too much? I have owed much more in the past. When I (a taxpayer)just loaned them $25,000,000,000.00 for next too 0%. We should start charging the banks 18% to 30% now that Wells owes more than last month.
I am a Wells Fargo Customer I have checking, savings, credit card mortgage and up until recently two lines of credit. In 2006 my place was valued at 300,000 now my place is barely above 216,000 im lucky because my loan is only about 1/3 of the value even now. However I have been laid off and forced into lower and lower paying jobs since then. However I found it interesting that just last month I got 2 notices on my line of credit accounts (that they stated would be available whenever I needed them at the time of inception.) Stating that they had closed them because I had not used them in 12 months. I called and asked them to reopen them since there was a reason I had them incase of immediate need of funds for improvements to my home. They stated I would need to reapply and qualify for the same lines of credit at a higher interest rate. Now I have had some home repair issues that need to be addressed and I do not have the capital to do them without these lines of credit but, of course if I have to reapply and at a higher interest why would I do it through Wells Fargo? My credit is fine the only thing that even remotely changed was my pay but even with that I could cover the the lines without difficulty on a monthly basis and I have great equity so much for keeping open the the lending Wells Fargo you are shutting it down on current cutomers let alone new ones.
The last straw came after listening to the conference call hosted by Bank of America’s to try to defeat fair labor initiatives…I’m definitely taking my money to a community bank! I’m done with mega-corp greed. I applied for a loan two months ago, 740 FICO, 23% debt ratio and I own my home outright. After giving me the run around, they denied me. To hell with this crap…I’m moving to Switzerland!
You think the big banks have some nerve? How about Sen. Claire McCaskill (D) grandstanding on the Senate floor about the nerve of Wall Street Bankers with their bonuses and new furniture? Well, the so-called stimulus plan she is touting has $248 million dollars set aside for office furniture for the Dept of Homeland Security! Obama and the Democrats should rename this joke of a stimulus bill to “The Audacity of Dope”.
“Let’s see, since that appraisal, I have replaced the roof on all 3 structures with 30 year architectural shingles, remodeled the last bathroom and added a patio and hot tub.
Who are you clowns kidding!”…Ed from Savannah
That’s all very nice Ed. But you failed to mention that:
~ Within a 5 mile radius of your dwelling, there are 23 bank owned homes for sale…that they can not unload.
~ Since your appraisal (at the peak of the housing explosion), the median selling price of existing homes has fallen 23%.
~ Compared to your last appraisal when there was a 4.6 month supply of existing homes for sale, today there is an 11.2 month supply.
~ In Q1 of 2006, there were approximately 2.3 million existing homes for sale. Today there are 4.2 million.
So Ed, while your neighbors appreciate you maintaining your property and we’re sure you are enjoying your hot tub, the fact of the matter is that your property was not immune from being over valued in 2006 and is not immune to the severe correction that everyone else in the country is experiencing.
As much as the average person hates the idea of bailing out banks, the fact is that this crisis is not going to go away until banking stabilizes. And no, they shouldn’t be lending to us if they’re worried about surviving month to month. It makes as much sense lending money to a stranger while failing to pay your own mortgage. And no, we should not be forcing banks to lend. That’s a sure-fire way to make a bad situation worse. The scary part is this: I don’t think anyone knows for sure where the bottom is, and what’s going to pull us out of this mess. Another dot-com bubble, anyone?
The article merely states that Citibank has claimed they made the loans; no mention of any of the agencies mentioned by Mr. Eddie. Perhaps he has a special source of information. Besides, wasn’t it the CNN expert panel that pontificated that it was not the job of the SEC to police the markets and that given their resources they really could not do a decent job anyway? I guess it is wrong to question the almighty banks.
Yes, It’s a struggle for the average joe I had 700+ credit and was turned down by 2 banks for an Auto Loan finally #3 Bank said YES Very hard on eveyone Yet the Goverment continues to Bail out those that may not need it the most Yes I do mean the average “FAMILY”. Wake up America. We the people need help too!! ):
These banks are continuing to squeez small businesses that rely on credit card lines of credit for short term financing. Immediately after the government announced the limits on increasing interest rates (to be effective in 2010!!) the banks have been on a rampage of slashing credit lines and jacking up interest rates, in some cases as high as 30% or more. As long as banks coninue to do this the economy will not recover. With the Fed Fund rate at zero and all kinds of back stops from the federal government why to they insist on an interest spread of 20% to 25%.
In summary, the banks are now pricing much consumer debt at default rates even though the gonvernment has agreed to guarantee these outstanding balances. As with the foreclosure mess it is a self fulfilling exercise.
See what happens when you don’t moderate these blogs? People like Kalvin Eddie, who don’t have a clue come along and say the OCC, SEC, OTC and a host of independently hired auditors will not allow the banks to cook the books.
If that is true how was it Madoff made off with his stolen billions and why is he not yet in jail? If these auditors and regualting agencies were doing their jobs and not allowing the banks to cook the books how did we get to this point?
As for Mr. Eddie. Would it kill you to try…just once…to wake up and smell the coffee? I realize you are a shill and want to minimize the plain straight out thievery performed by the banksters and endorsed by the Clown from Crawford.
Try just once, Mr. Eddie to wake up and see the real world, we already have an abundance of republicans and salesmen in the world exploiting the rest of us.
Oh and by the way learn that it is spelled Calvin, not Kalvin.
Any bailout should include States! Take 100 Billion and give each State 2 billion,that would immediately help States who face budget problem and at least keep those people working.
Here’s a dandy…NO, THEY AREN’T LENDING AT ALL! I have excellent credit and have refinanced my house once before using BofA’s “streamline program”. It was a breeze and in 3 days I was fixed at 6.35 for 30 years. Seeing that rates were near 45, I decided it made sense to do it again. The following is a summary of what I was told by the loan officer:
Mr. Field, according to our market analysis program for your area (Savannah, GA of all places which is still very strong!), your home has lost $50,000 since you refinanced 2 years ago. You have no equity and we are unable to help.
Hmmm…lost $50,000 in 2 years. Let’s see, since that appraisal, I have replaced the roof on all 3 structures with 30 year architectural shingles, remodeled the last bathroom and added a patio and hot tub.
Who are you clowns kidding!
Are banks really lending more? Most media outlets don’t think so, but most of them are comparing the number of newly originated loans now to the number of newly originated loans made 1-2 years ago so of course it wouldn’t seem so, but hey makes for a great story right?? Let’s step back and get a reality check people. Banks are lending to those who are credit worthy. The landscape has changed though…..a 720 credit score today doesn’t carry the same weight as it did a year ago. Bank are paying more attention to your debt to income ratio among other things so as not to overextend you financially, the way it should’ve always been. Just to say “I have a credit score of 800″ doesn’t instantly get you approved anymore if 60%-70% of your income goes to keeping your debt obligations current. You still have monthly expenses too right? What do you want the banks to say, “Here take this loan, and have fun not eating, and trying to put gas in your car until you pay us back”? You’ll be complaining about that next. I’m not defending banks here people, but we have to realize the game has new rules now. Actually, there not new they’re just the normal sensible ones that existed before greed and a sense of entitlement started to consume society. Trying to compare current lending activity with the past is just pointless and only creates further distrust in the banking system, and the American financial system in general, and will cause this recession to continue….which is why I guess the media continues to feed us their unfounded, uneducated, and biased attempt at news. This is the story of a generation so what better way to capitalize on the opportunity then to use a “tabloid style” to report the news. How many more ways can they say the same thing until we believe it to be true? Time to use common sense (that’s what I’m defending and advocating for) and see the writing that’s on the wall everyone. Punish the one’s that did it illegally, let those that mismanaged go out of business, and let those who did it right take their place at the top…no matter who it may be or how big or small they might be. At least have the dignity to form your own views on issues once you have all the facts (research them yourself) instead of letting these “reporters” herd you around like mindless sheep. Maybe then consumer confidence will start to rise again!!!
There are many liars out there and many of these liars work in TARP relieved institutions. Over the last 6 months, i have had my credit card balances (bank issuers)cut back arbitrarily to just above my current balance. What that means is the creditors do not want me charging anymore.
Two different banks have cancelled my home equity lines of credit (HELOC) due to “downturns in the housing market”.
I went to try and get a car loan for my son @ the same credit union he had his last car loan at and the rate had gone from 6.5% on his last loan to 9.25%!
From all that I read, lenders are tightening up their standards so that a 620 credit score that used to get you an “A” loan now has to be 720! Instead of getting a mortgage with 0 down or 5%, the requirement is now 20-30% down.
Refi’s are a thing of the past since a large portion of owners owe more on their home than it is worth.
It was recently published that Citi has lent out less than 10% of the 36.5 billion they got for business and personal loans COMBINED!
Unless we take the heat off the real estate market (remember that was the origional TARP plan), we are DOOMED and the banks will continue to hoard money to keep themselves alive as the toxic CRAP they continue to hold resurfaces like the pus spewing wound it is.
Once again, politicians have it wrong. Even with the vast amounts of money they are throwing around, they CANNOT save this country and yes, the world economy from it’s free fall.
I just hope it all does not end in anarchy with violence and bloodshed.
Thats all I’m sayin………..
See what happens when you don’t really moderate these “blogs”?
People like Bill who don’t have a clue come out and claim that the OCC, SEC, OTC and a host of independently hired auditors are allowing a bank to “cook the books”?
As for Mr. La Monica. Would it kill you to try and…just once…give anyone the benefit of the doubt. I realize you make a living out of stirring up emotions and feeding the frenzy of “the mob”.
You say “until banks start to lend more freely to responsible individuals and businesses that deserve credit, we will remain in this recession”. While true, the bigger part of the equation is simple. Until the buying public stops having the snot scared out of them by the sky-is-falling media, that hard earned dollar is going to stay under Joe Publics mattress and the economy will go nowhere.
Try just once Mr. La Monica to be a journalist…we already have an abundance of bloggers.
What came first?
The idiot that accepted a huge and obviously bad loan they could not afford.
or:
The big bad banker that was willing to loan it?
Most people that gripe on this blog are probably the former.
I sell cars, so I know who’s making loans right now. Capital One is still making car loans to people with 650 to 700 FICO scores – but none of the banks listed in any of these reports are making car loans, even above 700. I haven’t seen a Wells Fargo car loan in Months!
Big Banks aren’t lending, they are stealing… plain and simple.
They have already fleeced 8.5 trillion dollars…
The Federal Reserve is as federal as Federal Express *aka NOT FEDERAL*…
Even if they are loaning current fiat currency, it is not LEGAL for them to do so, as the money has NO GOLD or SILVER backing it… look it up on google.
I have an excellent credit score over easily over 700 last time I checked. Of course, my own bank, Citibank denied me a line of credit. The funny thing is that I have had lines of credit several years ago from Citibank and my credit score wasn’t has good as it is today. It is definitively more difficult to get any type of credit, even when you have excellent credit these days. Bye Bye Citibank!!!
Now Citibank has released some claims that they are lending out the TARP funds. Are these simply unverified claims or have the books been audited and the data verified by an independent (a really independent, not one of the bond rating agencies) auditor? Citi has every motivation to cook the books; unsupported, unverified claims are just that, unverified and unsupported.
With regard to the Citibank claims that they are lending – has any independent, not paid off agency audited their books or are we depending on Citi’s self serving unverified claims? If you conclude that I do not trust them, guess what – you are right.
Only one things will satisfy me with the banks and the politicians—external, independent, hard edged audits of how they are using the TARP money. If they will not submit to this and/or if elected representatives will not make them do it, then we will need to fire them (them meaning the upper echelon of management and our elected representatives).
I don’t know of anyone who wants to get into more debt at the moment. Maybe that’s why the banks aren’t lending – nobody wants a loan. The only people looking for loans are those who have no intention of ever paying it back. I’m sure the new stimulus to the banks will go straight to the bonus pool. Bonuses will be astronomical next year after the tax payers buy all the toxic assets through the proposed ‘BAD BANK’. What is Sheila Bair thinking? If the tax payers back bad loans (new or existing) the banks will just continue making bad loans. And a bank’s job is to assess credit quality and lend based on that. They should go out of business. Obviously they have no idea how to do their job.
The banks are in it for the profits. If they can get profits without risk by glomming onto government funds….
The fact is that banks big and small have taken our money to shore up their books and bottom line..There has been NO credit thaw despite what Wells Fargo, or BOA claim..This is just more of a lie to the public..In fact the FHA loans which most homeowners have had to turn to in order to refinance their homes are being told no..Why? because even though the FHA has no credit score minimum, the loans are channeled through these banks–the same one’s that have taken our tax dollars and the banks have in turn RAISED their minimum credit scores in most cases to 620. They are shutting out a good portion of people that have low scores, yet have still made their mortgage payments on time. This is a complete joke and insult to the American taxpayer and why I was against the bailout to begin with..Businesses fail every day..it creates opportunity for others..why are we wasting our $$$…The worst is yet to come
I just want to make sure I have this correct!?!?
I paid my $9,000 in taxes, so the government, in turn, can give the money to Bank (Crooks) of America. Then Crooks of America, can, in turn, loan the money back to me, in the form of a credit line on my credit card, and charge 20-30% interest!?!?
Doesn’t anyone see anything wrong with this picture???????
I was turned down on my refi from third federal bank in Ohio. My credit score is over 750 and they gladly accepted over $300 of my money to get started then called me several weeks alter and denied my loan. This is how are tax money is being used people! Our elected morons are clueless!
My brother had also applied at this same bank and finally found that he was turned down. He has a debt to income ratio less than half of mine even!
Why do the banks need customers again?
What this entire experience has taught me is that you can not trust a banker or stock person ever!
The government and banks just don’t get it, we have way to many loans already and are in debt up to our ying yangs, which is why we’re not going to apply for loans or spend anymore! What is wrong with these economic idiots the government hires! If you put the money in our hands we’ll spend on our debt or put it in savings which the banks will get anyways, retail which will boost sales, hello, is anyone in our greedy government listening, give it to the taxpayers!
The big banks continue to be predators of us all. How we would ever succumb to their misinformation and corruption is beyond me. I praise Sen. McCaskill for her comments on the floor of the Senate. Vice-versa, it is clear that Rep. Franks is in the pocket of every Wall St. bank…it is despicable!!
Lending? I guess some of them are. Just refi’d my house. Down from 6.125% to 4.625%.
On the other hand Citi raised the APR on my Masterard from 10% to 18%. Their excuse? Price of lending went up. Really? Maybe for them cuz they gonna go out of business soon.
I was offered to opt out. I don’t think so. I have a cash rewards card and I pay it off at the end of every month. Citi usually pays me $200/yr in rewards. It was fun thoogh messing with their cust service department and hear them squirm.
My job has been requiring me to drive more to client sites, which is a good thing because it means business is good. I wanted to buy a more fuel efficient vehicle for simple client visits, not requiring bulky repair equipment, because the gas bill on my truck has been getting to be two car payments. Driving the truck for jobs not requiring equipment didn’t make financial sense.
They weren’t giving loans to anyone under a 750. I have a perfect credit history. I use credit sparingly and only when there’s a long term revenue stream to support the payments; they dinged me for not being in hock up to my eyeballs.
The TARP was just more “trickle-down” economics. Well, it didn’t work. The wealthy CEOs took it and redecorated their offices with the money, as expected.
The problem is the mortgages at usurious rates. With Mortgage Backed Securities, you can’t get anyone to agree on modifications. So, why not retire the MBSes?
The TARP money needs to be given to the FHA, or some other Federal agency, so they can refinance home mortgages in areas hit the hardest by the collapse, like Las Vegas. This will take the bad mortgage backed securities off the books. The banks will get their money as the MBSes are retired. Then, they can start lending.
I can see this being called “socialism”. It’s funny how the CEOs call it socialism when they aren’t the beneficiaries.
I never understood the popular appeal of Bonnie & Clyde in the 1930’s, until now.
It’s never enough is it. Further proof that stirring up the pot is better news than just reporting the news.
First it’s “What are the banks doing with TARP?”
Then it’s “How dare they publish reports telling us what they’re doing with TARP”.
The lines between reporting news and blogging are becoming increasingly blurred. It’s apparent to a growing number of informed citizens that the “press” is becoming a growing part of the problem when it comes to consumer confidence. Next tie the clouds open up and let the sunshine in, how about announcing “it’s a sunny day” instead of claiming a catastrophic calamity. I’d sure CNN News would have flourished in Salem, Massachusetts around the 17th century.
I am married with 3 young children. I have recently lost my home to foreclosure because my mortgage company refused to work out a loan modification with me. I even contacted Hope Now. They were very helpful returning calls, working with my mortgage company until one day….wham! I couldn’t get a response from anyone, couldn’t get a call back. The mortgage company stated they couldn’t even get in touch with our Hope Now rep. We lost our home and are now leasing. Our credit is destroyed for a minimum of 3-5 yrs. The banks can just put their hands out, no questions asked and receive $billions in aid from my pocket, yet I couldn’t even get anyone to help me modify my loan and lost my home I and my family had for 11 years. I have been following how the banks refuse to disclose how they are spending the TARP monies and how B of A even so boldly attempted to purchase a company jet. I am appalled. I am in the process of closing out all accounts I have with Wachovia (now part of Wells Fargo) and am putting all my money in to my credit union. I will keep my credit card accts open simply because I can’t afford the ding to my credit by closing them. If we all stop what little bit of business we can from these big banks maybe they’ll realize who bailed them out in the first place…not the government but we the taxpayers.
This is in regards to JP Morgan Chase. In October 2008 they offered 5.99% if you used one of the checks they sent until you finished paying the balance off. My minimum payment was 240.00 dollars, I have paid 400 a month on the card which is more than the minimum without fault. My credit FICO rating is 735. Yesterday I received my monthly statement and it had the minimum payment now at 725.00 plus a 10 dollar processing fee. This is 3 times the amount I had agreed to pay. I called Chase and they told me that they are calculating it differently now and the minimum payment is now 5% of the balance plus the processing fee. This is outrages. They take the Tax payers money via the bailout and then they don’t release the money and they make it harder for ordinary people to pay the bills. So now many people will have to file bankruptcy because they won’t be able to survive. People have budgets and if the person pays his bills on time he should not be penalized for that. I am luckey that i have the money to pay the card off completely, but what about the people who cant. So instead of helping the economy they are taking the bailout money and hurting the economy even more.
The greed of wall street and these banks. We help them and they hurt us even more.
Are they lending more? I don’t think so. I just received a notice from Citibank informing me that my interest rate on my master card is going from 7.99% to a minimum of 14.99%. Now, I’ve had this card for 19 years, never once paid late…nope, not even a day late, have a $49,000 credit limit, which seems to increase each year, never ran a monthly balance more than $5,000 and have a current balance of $1,300, which I’ll pay off ASAP. Furthermore, my FICO is 756, I earn a significant income and I’ve never been late on any bills, mortgage, etc…EVER. Finally, my debt/income ratios are in the single digits!
So, aside from the fact that there is no justification for raising my rate, how then does this action spur additional lending on their part? I think it will have the opposite effect. In effect, they just made it more expensive for me to borrow. So, what will be the result of this action? When I need to borrow, I will go to less expensive sources, such as my Credit Union Visa card. So, I will borrow less from Citibank. I am also considering transferring my 401k account from Smith Barney.
I will also “opt out” of Citi’s program which means they will keep me under my current terms (7.99%) and when the card expires my account will be closed. Good riddance. I’ll never do business with these $%^# $^&*$#@!s again.
And, I must say that it is an absolute slap in the face in that after tax payers like me bailout their sorry butts for all their corruption, greed and incompetence, I get a thank you with an interest rate increase. This is the height of arrogance, stupidity, gall and greed.
I say, no bailouts for any bank. Period. People, call and write your elected officials. Why are tax payers bailing out private businesses? The shareholders, bond holders and management of these banks need to take the hit…not us.
I have a FICO score of 801-perfect credit have never been late on anything ever in my life. I have a net worth of about 8,000,000 and have a verifiable income of over 200,000 per year and almost no debt.
Recently I had 2 lines of credit taken away by InterBank.(secured by 2 duplexes in a suburb of Mpls). No notice- they just took them away. They said they don’t like rental property any more. They would not negotiate a lower amount or rewrite at all!
2 days ago Wells Fargo took away my Business line of credit. No notice AGAIN! They claim it was due to inactivity-even though I just used it 3 weeks ago. Same deal-they will not reopen unless I reapply(and I am sure the answer will be no or MUCH less than I originally had). WHAT THE HELL!
This is getting riduculus! I am to the point where I may just max out my existing credit lines before they are taken away!
No Loan for usWell I would say we did not get turned down since they threw us out when we did not have 85% equity in our home and never got to apply (at our Wells Fargo branch.) We have been paying Wells Fargo payments of $1700, on time, for the last 1.5 years. Our home is worth about $350-400K and we owe 245K. We would like to expand our 2 bedroom 1 bath home since our two kids are getting to be teenagers (boy & girl) and would need separate rooms. I give the banks a loan (since I’m a tax payer) and they treat me this way. Shame on them. PS – we also have great credit!
If the Fed is lending money to banks at a 0.25 interest rate, why are those banks turning around and charging the consumer =>5.50?
It seems to me that the banks are profiting more now with the current spread then prior to the bailout
I have not applied for a loan in the last 3 years. I have a credit line at 0%. It’s called Savings. During the last 4-5 years when our family income has increased exponentially, we have been saving as much as we could. Now we don’t need banks, we bought a new car last month with cash. I advise others to do the same, save first and then buy what you want or need.
By god Paul, I believe your getting it. And the American consumer is getting it to; we are not going to buy over priced goods and services any more. Why should I take a loan at 6% interest, when the current interest rates are at zero? Why should I buy a HDTV made by slave labor in China at about $30.00 cost for $1000.00 retail? Why should I buy an auto with interest rates at 8-10%?
hey we know we have been getting ripped off by Corporate and global greed for decades and to pour salt into our wounds our Government is making us pay out in our taxes to correct the economy for the same folks who have been over pricing, and ripping us off for our money, our jobs for the last forty years.
On top of no bonuses for companies receiving taxpayer money, how about no bonuses for executives who lay off employees to make a bonus?
I say the banks can say anything they want, but until we have jobs, why do I need a bank loan?
after 9 years without missing a single credit card pay payment with BOA my wife called to ask for a lower interest rate. the customer rep was rude, then put our cc on hold where we could no longer charge anything. talk about some cold blooded people. dont be fooled you are in no way special or cared for by BOA
Wells Fargo called me up to come in an apply for a debt consolitation loan. This was 100% cold call. So I showed interest and came in to talk about the loan.
Well, to make a long story short. They said I had a credit score of 780, but since I have worked at my current job for less then 1 year they will not include any overtime, and they will take the last 6 months worth of pay and divide by some unknown number to figure out my monthly income. By time they had my monthly income it was about 66% less then my monthly income.
I work for a company and part of my job is to obtain capital financing for acquistions, expansions, etc. Since the last few months of 2008, I have been trying to refinance an existing property and find money to expand the operation at the facility.
The existing operation will provide cashflow that will more than support the existing debt plus the additional debt of the expansion – in banker speak we have a 2.0:1 debt service coverage without any additional income from the additional capacity.
I have spoken to all of the lenders we have relationships with. All but one has indicated that they “don’t have an appetite for construction” at this time. In other words, they’ve turned us down.
Only one bank (out of close to 20)has issued a proposal. It’s amazing – a year ago, I would have received a proposal from each of the lenders I approached. This is a financially strong company!
BTW – the responsive bank was The Private Bank in Chicago (not the B of A Private Bank).
No. The big banks have not been honest with us and are still hiding massive losses; Obama said it in so many words on Sunday to Matt Lauer on the tube.
We are in a loan-loss cycle. There is new lending going on: new, smaller loans are replacing old, bigger loans, so the net lending is down, not up. We need to let this process play out: home prices are resetting down to affordable levels (we’re not there, yet), and the loans against them need to be written off (through short sales, repossessions, refinancings, and bankruptcies, if necessary). It’s very important that we do NOT put any more money into real estate until it stabilizes at an affordable level, which is either 1998 or 2000 pricing levels (pre-bubble). Then, normal lending can resume: fixed-rates, down payments, assumable loans. Otherwise, we’re just throwing away good money after bad.
As for all of the other strange loans that big banks do (short sellers, pawn brokers, derivatives, etc.), we want none of it. These are very high risk activities; close down these operations.
Haven’t been turned down for a loan, but in the current environment of layoffs why would I want one?
This idea that we use massive amounts of revolving debt and loans as a mechanism for daily financing is a huge mistake.
There are two points to the “tight credit” situation that aren’t considered and those are 1) people who don’t want loans because of the economic circumstances, and 2) people that now rightfully don’t qualify for a loan, and never should have. Both of these groups will give the illusion of tight credit if we compare levels of lending now with those in the past, because now neither group is borrowing.
I have a small business an the big banks won’t even look at my business plan. All the see is my credit, which is 721, but it’s not high enough. I hate that they can mismanage money, get a loan from the government to loan to us and don’t even think about doing it. I suggest people go to credit unions and pull all their money out of big banks, because if there aren’t going to loan us money. What is their purpose?
I am the CEO of a restaurant chain of 60 restaurants in the western USA and have been in business for over 40 years and profitable ever year. We have banked with BofA for over 20 years and went to them for a line of credit in December so we could expand our operations. This is a great time to expand franchises because costs are down and the labor market is strong. Every new restaurant we open adds approximately 40 new jobs. BofA turned us down for a line of credit and said they did not want to do business right now.
JP Morgan Chase is definetely NOT! And I know from first hand experience. I’ve had a HELC with Chase for a few years. My home to value ratio is around 30% (including my first mortgage). My interest rate is 2.49% (a very good interest rate). I have an excellent credit score. About a month ago, Chase froze my line of credit because my home is not worth as much as 2 years ago. Keep in mind that even at their “market value”, my loan to value ration would be less than 40%. They chose NOT to lower my limit (which would have made sense), but to FREEZE my account.
I thought the purpose of the TARP money was to start lending again, not to FREEZE lines of credit of individuals with low loan to value ratios and excellent credit.
I wish someone in the media would confront Chase. I tried calling, but all I get from Chase are “canned” answers.
The only way they will un-freeze my line of credit is if I get an appraisal (I would have to pay for it) and my home value must be the same amount as two years ago. Even I know that will not be the case so why bother!
I was planning on making some improvements using the line of credit (which would have helped the economy), but those plans are now on hold.
I have written to my senators, media, etc. and no-one has responded.
So Citi has claimed to “expand credit lines with TARP”, well as a Citi card holder, I think I may have been the recipient of this expanded line of credit.
Funny thing is, I never use more than 10% of my credit line as it is. And I got a 50% increase in my line. So, given my history, they expanded my credit line with TARP money, knowing full well I won’t be using it.
Additionally, 2 weeks after expanding my credit line, they raised my interest rate by 5%. I can only assume it’s a further incentive to not actually use the line, as I’ve never been late with a payment and carry little to no balance.
Nice work Citi, way to use those TARP funds to get the flow of money moving, giving it to someone who never uses his previous limit and then raise his rate. Really good move.
I have had a Bank of America Visa card since 2001 with a $19,000 limit. I had about $1,500 on another card that I wanted to find a balance transfer deal on. When I would log on to Bank of America they kept advertising a Visa Signature with 0% APR for 15 months so I applied. I received a crypic response that stated I would be contacted within a few days. After 4 days I called and spoke to the Credit Services department. They gave me the 4th degree of questions, did I have a degree, how much did I earn what was I using the money for etc. Now, I have an 800 bureau score and perfect credit; not only that but I have a checking account and the afore mentioned Visa with them so I was pretty upset about the treatment. The rep approved the new account but said that I had the maximum amount of credit that BofA would allow so they reduced my existing Visa to $14K and put the $5K on the new account. I then called back wanting to cancel the new card. The rep said that she would but that she would reduce my limit to $10K on my existing card! I just kept it open so I didnt lose any more. BofA has some nerve! They will not get any new business from me after this.
b of a turned me down for financing. wife has 814 credit score, i have 785 credit score, we have 3 mortatges with them, plenty(over 50 % equity) and were turned down for income to debt ratio. funny though we always pay all our bills early…
Wells Fargo has maintained home equity lines of credit, so they have maintained liquidity for the good citizens of the US, right? Except that these LOCs are frozen, and cannot be used for such extravagences as home repair (not even when I front the other 80% of costs). I could go on for hours about the deceptive materials that WF mails me on a nearly daily basis. Think of the postage they waste, too…
I have been refused by Chase bank to refinance my home loan. I have also been refused to refinance my house with two other big banks. Reason : A little over 1 year ago I was close to being 30 days late on my payment so I called and made payment arrangments with Chase. They promised that my payment arrangements would NOT hurt my credit. About 5 months after that I wasn’t sure if I’d make my payment on time and asked Chase if I should do another payment arrangement again. They were happy to do that again. Stateing once again that it would NOT hurt my credit. When I tried with two other big banks to refinance with this housing disaster, I was told that my credit score didn’t matter but, my 8 late payments did. I had NO idea that my payments arrangements were considered late payments. No one at Chase even suggested that my arrangements would hurt my credit. I was given advice to have Chase modify my loan sinse I was now STUCK WITH CHASE! I pay over 54% of my net income for my house payment per month with my yearly income of $32,000. When I asked for a loan modification in October 2008, I was told it would be 3 months before a decision. When it came time for an answer, they LAUGHINGLY said No! I’m now tring to work with a morgage counslor on getting a loan modification. Chase harasses me daily. I’ve sent to them where every $1.00 I make is spent. Yet when I asked them what they did with $25 Billion dollars from bailout money, the agent denied getting any. How ironic, I as a taxpayer am going to lose my home and pay for their free money. Why are these banks not punished? When I don’t make enough money to pay for all my bills ( because of unforseen medical bills) I get it from every angle. My credit is hurt, my insurance goes up because of bad credit, I pay a higher interest rate on any loan. Strange that the people with the least money have to pay more just to do the right thing or live. How are the banks having to pay for their irresponsibility?
I used to watch movies made and set in the Great Depression and I was at a loss to understand the amazing venom directed at banks and bankers.
Now I understand the attitude at the time toward the “Banksters”.
As to your question, I haven’t been turned down for a loan. I haven’t applied for a loan. I have a feeling that when most folks talk about the “lack of lending” and the (ohmygod) need for banks to lend more, that they are missing the fact that a lot of people DON’T WANT TO BORROW more money.
We do not need more imprudent lending. And a move to prudent lending has to mean LESS lending. What am I missing here?
As i overhear continued discussions regarding TARP, bailouts, economic troubles and job losses, isn’t it odd that simplicity is overlooked?
If most agree that the housing debacle roots many problems, such as foreclosures, bad debt, loss of construction jobs-materials etc., and a defined stimulus program cannot be agreed upon and/or identified, why not implement the following:
A 6 mo.deferment for all qualifying primary mortgages whereas, if the loan was issued within a predetermined “bubble time frame”, primary homeowners could be eligible for a 6 month deferment.
all prevailing rates and terms may be applied. 6 mos. would be added to the term of the loan.
This would free up money, increase spending, create jobs, opportunities, and perhaps add hope to the struggling auto industry.
hope and faith would be restored. Since the banks are getting $trillion or so, and aren’t receiving monies from struggling homeowners, the “good paper” could be preserved while the bad debt could be relieved while we sort out this mess.
THE ALTERNATIVE:
Paying banks with tax holder money and throwing the American public out of there homes could prove to be disastrous.
Stephen Berg
West Palm beach, FL
As a Wells Fargo customer with 2 30 fixed mortgages, it has taken me 3 months to do a ‘3-step’ in house refi with them. It seems more like 20 steps. This is their own refi program for current good customers, but they keep asking for more paperwork and still no closure on the loan. I would have thought that then refinancing me and reducing my monthly payment would benefit them, but they totally believe that they are doing me a favor…and I am customer with over 750 credit score and never missed a mortgage payment. I strongly believe we should have a nationalized bank, and then give the banks a run for their money.