Mortgage Rates Reported Lower But Can We Believe the Banks?

Posted on | March 27, 2009 | 1 Comment

I distinctly remember Bank of America CEO Ken Lewis making the statement that his company was profitable for the first two months of 2009.  He also made the claim that his financial institution would be able to pay back TARP funds as early as this year.  Right!  Ken Lewis, many uneducated Americans may believe you but I will continue to call bullshit.  Jamie Dimon admits that the road is going to be much tougher than expected by saying that March was a little tougher than the first two months of the year. So, Dimon and Lewis are drinking the kool-aid together.  Mr. Lewis, I am not sure who is full of more bullshit, you, Dimon or Pandit, but either way, you show me the numbers and I will believe you are profitable.

With that in mind, how can we possibly believe what rate these finanical institutions are lending money at?  I’m sure Ken Lewis will be willing to tell you whatever you want to hear.  4.25%?  Sure, why not!  Bank of America is profitable so why not lend at rates almost as low as the prime rate?!  The only way that you will truly know what mortgage rates currently are is to personally go through the mortgage application process.  This is quite time consuming, but if you believe what you see on tv or through advertising, you will be let down.

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