He wanted to borrow $80k to buy a $325k property with a home and income producing commercial property on it. He was putting $245k of his own money in it.
Did you mean to say “consumers are getting smart”? The bank made an absurdly bad decision in this case.[/quote]
You don’t know the condition of the bank, so you don’t know what other motives – aside from creditworthiness – might be at hand here.
Struggling banks that have to de-lever can’t make new loans – even to good customers. In fact, they often have to chase out good customers just to get their loans off the books so that their capital ratios improve.
Again, you have to know the FULL story before you cast aspersions. Although it could be that the bank is just a bunch of dummies. If so, they’ve got plenty of company.
