A few of the big banks like Bank of America, Wells Fargo, and Quicken Loans are pulling away in part or entirely from offering FHA loans. You might not think that’s a big deal because you don’t need an FHA loan or to you Bank is just another dirty word so if a few of these big lending institutions take a hike good riddance. Disparaging the big banks as evil is now a national pastime and has been the incessant message pounded into our heads by the media since the mortgage meltdown of 2007-08. I have very little sympathy for the big banks and many times think they are short sighted in their lending practices but I’m telling you we need great lenders like Quicken Loans.
Quicken Loans is one of our lending partners and the largest FHA lender in the nation. For them to pull back on FHA loans would hurt lending in general and more specifically where we need it most which is the entry-level buyers who have marginal credit and little cash reserves. So why would they pull back from offering FHA loans? They are tired of writing great loans and still getting sued by HUD and the DOJ.
Lending has never been safer and if HUD wants to offer the FHA loan product they either need to lend the money themselves or look to work with banks instead of against them.
For now we have several lending partners that offer FHA financing. To know if that is your best option click here.
By David Hughson