Banks Need to Start Lending

I was talking with another agent the other day, when he told me the following story. The bank in question I won’t name, we’ll just use their initials.

“My client, is 5 days away from the closing and the bank is refusing to give him a mortgage. The guy is putting 50% down and BOA won’t give him a loan. It just doesn’t make any sense! Even if the guy defaults, the bank picks up the property for half of what it’s worth and they can easily flip the property. If I had the money, I’d loan it to him it’s such a good deal.”

Now, having heard that story all I can say is: BOA it’s time to loosen the purse strings! You guys took over $45 billion in TARP money and it’s time you use it to help keep the economy moving. Anyone else going through something similar let loose in the comments.