Some of the big names in the banking industry are hiring loan officers with the expectation that the housing activity will increase, therefore increasing the number of home loan applications.
But some housing experts and economists think this is a little optimistic and a bit too early. There’s still too much uncertainty in the market and until it stabilizes more, people will be hesitant to buy or refinance.
New home loans are expected to rise over the next 2 years to $916 billion but refinancing loans are expected to plummet to $437 billion in 2012.
Chase is putting many of its new loan officers in the branches to encourage more branch-based lending because they feel this type of loan has a lower default rate. They also want to expand to other markets where they see a need for lending.
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