Martha Brannigan from the Miami Herald reports that Coral Gables-based Great Florida Bank has just hired on 32 new FHA sales associates in an effort to take advantage of the bank’s recent approval to offer Federal Housing Administration loans. It’s a smart move.
The folks at Great Florida are practicing good business by moving into a residential lending position as many lenders are moving out. FHA loans today fall under tighter scrutiny, are managed better, and offer minimal risk in comparison to the residential loans that got us into the mess we’re currently in.
A good number of banks here in Florida have pulled out of residential lending as a result of the recent wave of sub-prime lending and falling home values. Those banks still in the residential lending business are demanding down payments that many borrowers, especially first-time home buyers, simply cannot afford. There’s a huge misconception out there that there is no money to lend. This is false. Lenders have money, they’re just gun shy.
I think what this shows us is that more and more banks are going to seek increased revenue streams through becoming approved to offer FHA loans. Word has it that the FHA Commissioner’s office is receiving about 350 applications a month from institutions seeking to become FHA-approved lenders. That’s more than double the rate last year.
I’m happy to see that Miami-Dade, Broward, and Palm Beach counties will be seeing an uptick in loan applications and approvals through banks like Great Florida. This is a good thing, in that these counties were and continue to be some of the hardest hit by the latest round of foreclosures and delinquencies. Hopefully this trend will start to key up across the state as well.
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Kevin Sandridge
The Florida Mortgage Pro
Signature Home Funding
410 Laurel Cove Way
Winter Haven, FL, 33884 |
Mobile: 863-604-3019
Fax: 888-496-0265
kevin.s@sigfunding.com
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