Just refinanced our beach cottage at a great rate. The mortgage broker told me the underwriter is completely backed up. What usually takes 20 days for the closing takes about 30 to 35, even so they just added 85 resources/people.
Q1 profits were good for banks, but just wait for Q2. We only saw the tip of the ice berg. Banks will be filling, their pockets with cash from the refi business, easily offsetting any potential loan losses.
and then they will pay ALL of that money back to the taxpayers. Then, there will be NO re-fis pretty much for the next 15 years. Also, not many home purchases or loans of any type. THEN, you need to see how the banks are borrowing SHORT and lending long and LOW. Later, interest rates go back up and banks ARE ABSOLUTELY CRUSHED because they have lent long-term, at low rates.
Remember the S&Ls??
Better understand banking before you fancy yourself a bank investor.....you'll just end up a broke guy who bought bank shares.
You're a funny guy. You think you understand the banking business. I do know that most banks don't even keep their loans, but resell it to Fanny and Freddy, so they make a nice profit without the long term headache. How oten did banks go bust over the last decades, and re-emerged better and stronger?