Who can forget those dark days of the housing market crash of 2008? The vacant homes and neglected lawns. The abandoned swing sets and forgotten barbecues. The bright signs and bold arrows that needed little explanation: “Foreclosure.” “Auction.” “Bank Owned.”
We’re told that the housing bubble and collapse was about predatory lending and high-risk borrowers who were duped into loans that they couldn’t afford. The massive regulatory response to the subprime crisis meant that banks were no longer allowed to behave BADLY… so they chose to behave DIFFERENTLY.
Shhh. Your Bank Has a “Big” Dirty Little Secret. Read this Very Carefully…
The largest source of mortgage lending in the United States is now being done by non-banks – financial entities that offer unsecured personal lending, business loans, leveraged lending, and mortgage services… but do not hold a banking license. As a result, they’re not subject to standard banking oversight and can engage in risky lending.
But where do they get the money to make these loans? You guessed it: Wells Fargo, Citibank, Bank of America and everyone else who got their hands dirty ten years ago.
Behold the Subprime Work-Around! According to the Wall Street Journal, loans to non-bank financial firms increased six-fold from 2010-2017, hitting a record $345 billion. Wells Fargo coughed up $81 billion; Citigroup and Bank of America ponied up $30 billion each; and JP Morgan threw in another $28 billion.
By funding these “shadow” banks, the big financial players are still in the risky loan business
“Shadow banking” was an unnamed co-conspirator in the financial crisis, concluded economist Paul Krugman back in 2008. If that’s the case, they’re at it again. Bloomberg tells us that shadow lending is now “larger than the world economy and poses a risk to financial stability.”
An astonishing 6 out of 10 Mortgage lenders in the U.S. are now shadow banks – many operating online and peddling subprime loans. It was precisely this type of non-transparent, under the radar, backdoor lending that led to the soaring foreclosures, cratering home values, failing banks and dwindling retirement accounts of a decade ago.
And early next year, Fair Isaac and Company, the creator of the FICO score, is launching a new opt-in program that will enable consumers to enhance their credit scores by using checking and savings account data. Astonishingly – a decade after subprime lending crashed the housing and financial markets – the new ultraFICO score will boost loan approvals to those who were previously considered subpar borrowers.
The Wall Street Journal reports that “some 26 million subprime borrowers will end up with higher credit scores.” So those who were previously deemed financially irresponsible will soon have much greater access to credit.
And Here We Go Again On Our Way to the Next Financial Crisis
Dr. Benjamin Keys, a member of the Real Estate Department at the University of Pennsylvania’s prestigious Wharton School, stated that an important lesson of the housing crisis is that “just because someone is willing to make you a loan doesn’t mean that you should accept it.” Might we suggest an equally important lesson: “Just because banks are behaving badly again doesn’t mean you have to suffer from it.”
If the prospect of another subprime debacle that could bankrupt tens of millions of folks is not motivation enough to finally get away from big banks, then what is?
Loan Depot, PennyMac, Freedom Mortgage, Caliber Home Loans – you’ve heard their names. By using non-banks and secret backchannels between their money and risky borrowers, the big banks and fat cat investment houses have again put you in jeopardy!
This time won’t be different! Don’t become a victim of greedy lenders and those who borrow beyond their means.
The Bank On Yourself safe wealth-building strategy is the ideal financial bunker for scary times. It helped millions of people survive the financial crises of the last 160 years… just as it will protect them from the next housing crisis, market crash, banking collapse and economic downturn.
The Bank On Yourself Strategy Provides You These Advantages… Which Ones Are Most Important to You?
- Guaranteed annual growth, no matter what’s happening in the market or the economy
- You can tell banks to take a hike and become your own source of financing
- Your savings don’t go backwards when the market crashes and provide a safe and liquid reserve fund to help you weather the inevitable challenges life throws at you
- Access to your money without restrictions
- 100% tax-free withdrawals
If you still remember the staggering number of “For Sale” and “Foreclosure” Signs… or the amount of money you lost in your 401(k) or IRA account… or the friends who lost homes… or the first time you heard the term “Short-Sale”… or how tough it was to get a loan for anything…
You owe it to yourself to find out how the Bank On Yourself strategy can give you the financial peace of mind you want and deserve.
Don’t trust the bailout bandits again – Bank On Yourself this time!