Banking Social Media and Updates

Restricting Bank Foreclosure Threatens New‑Build Lending

I understand the principle of precluding large firms from buying existing homes. They do “compete” with young families and raise prices. But the ROAD to Housing needs to be **clearly** re-written. Preventing "investors" from owning homes they built not only affects Build to Rent institutions ... it will also hamper banks from lending on Build to Sell product too. A bank needs to be able to foreclose on any asset they make a loan on. When a lender finances a new development (regardless of whether it will be rented or sold), if the developer doesn't make payments, or screws up the construction ... the bank always has the rights to take it over. It's their collateral. If, as a large institution, the bank is inhibited from taking possession of or renting out those units, or is required to sell them (which is very painfully long process), it will significantly reduce or even eliminate their ability to make the loan, regardless of whether it was designed to sell or rent @jayparsons