Lenders not desperate? What’s making them fail to lower their prices quickly enough to keep up with the new foreclosures?
1. Can’t keep up with flood of REOs. (Hard to believe. Companies can trigger spending of millions per day for professional help on 24 hour notice if a company acquisition is planned. But they can’t get 10 top people to plan and implement aggressive pricing actions on an avalanche of REOs that could bury them?)
2. Don’t want to be first to acknowledge the problem
3. Hoping (and negotiating?)for a bailout (from lower interest rates, FNMA/Freddie support, easing of accounting rules, SEC rules, underwriting rules, agreement with CCB for them to buy more MBSs…)
Does anyone here at one of the big lenders have a high-level insight they can share with us?
Patient renter in OC