Tax Tip #4: Adding "Green" Home Improvements

#4 - Energy Efficient Home Improvements

Did you have a big remodeling project this year? You may be able to deduct some of those expenses if they were energy-efficient improvements by way of the Nonbusiness Energy Property Credit. Doing things like installing insulation, new windows or furnaces qualify. However, you can only claim $500 over your lifetime.

If you have installed a solar electric system, solar hot water heaters, wind turbines, fuel cell property, or geothermal heat pumps in your home, look into the Residential Energy Efficient Property Credit. This credit will give back 30% of what you spend on running those features. There is currently no cap on the amount of credit, except for on the fuel cell property. Find out if your home qualifies!

In fact, the IRS is suggesting that before you purchase energy-saving home improvement items, make sure to check for a certification statement first. You can find these on the packaging of the item, or through the company that sells them. For more information, view form 5695. Going green can really pay off!

If you have any questions, call us at 877-828-8851! Click here to view Tax Tip #3!

Read More

Update on Pending Home Sales in November

According to the National Association of Realtors, the month of November saw some stabilization where pending home sales are concerned. They received a slight gain. There were also some monthly increases in the South and the West that managed to make up for certain declines in the Northeast and the Midwest.

Have you ever heard of the Pending Home Sales Index? Well, if not, it is based on contract signings of existing homes on a large national sample that makes up about 20% of all transactions in the country.  According to that index, the number of signings increased by 0.2% to a score of 101.7 in November. Keep in mind that it does not account for closings, just contracts. This is good news for the economy.

NAR's chief economist, Lawrence Yun, had plenty to say about the market in a recent interview. He said, “We may have reached a cyclical low because the positive fundamentals of job creation and household formation are likely to foster a fairly stable level of contract activity in 2014. Although the final months of 2013 are finishing on a soft note, the year as a whole will end with the best sales total in seven years.”

As of now, mortgage interest rates are a bit higher but still relatively low when compared to years past. We have also seen strong gains in home prices that add to the overall market growth that we should expect to continue to see in 2014.

The market is still kind to buyers right now which means that we could see as much as $5.1 million in existing-home sales for 2013. That figure is nearly 10% more than 2012 experienced, and it is expected that 2014 should be similar.

Read More

Issues the Housing Market is Currently Facing

Recently, a group of realtors pinpointed the biggest issues that are currently impacting the housing market. These are issues that could have consequences for homeowners, realtors and mortgage professionals alike!

Right now, the biggest issue concerns interest rates. Historically, low interest rates have always driven the economy and in turn the real estate markets. Since the rates have increased recently, capitalization rates could also rise. That refers to the ratio between the income produced by an asset and the cost of it. This could lead to investors and homeowners becoming more and more wary of their purchases.

Another concern revolves around healthcare. As the population continues to age, there will eventually be a demand for more senior housing. This will have an affect on available housing inventories and the building industry for both medical facilities and senior housing.

Economists have even started accounting for a future housing boom! Between 1982 and 1995, there were 80 million Americans born. They are calling this an "echo boom".  Those that fall into this age range tend to prefer urban lifestyles that are flexible and active. However, there are also plenty who prefer the suburbs. This could lead to a future need for even more mass transit for those commuting between the suburbs and the city. There will be money pouring into bike paths and public transportation, as well as homes with great locations!

Right now, commercial real estate is doing well. There have been increases in transactions for these properties and plenty of credit is available. Also, the underwriting for commercial real estate is less restricted than in the past and plenty of debt options are in place.  However, the residential market is still seeing tough underwriting rules. But the rates are still relatively low and affordability in general is high!

Extreme weather and the changing climate are another issue. Areas that are continuously affected by storms and hurricanes, like those in the path of hurricanes Katrina and Sandy, are facing changes in code and zoning standards. They are also having to pay much higher insurance premiums. All of this has a strong impact on coastal homes.

An issue that is harder to calculate includes global events like terrorism, war and debt crisis. It is hard to anticipate what could happen but economists agree that the impact of major events can lead to drastic changes. But that goes without saying.

An issue that is a bit easier to analyze concerns the increased natural gas and oil production in the US. This is having an impact on the economy and the environment. On one hand, the increase of these productions have lead to more employment opportunities and reduced America's dependence on foreign oil supply, but climate changes and potential contamination have a big affect. If there are communities in nearby areas, it could really change the value of the homes.

Lastly, technology is changing the world as we know it. Many offices and corporations are choosing to employ people to work from home. This can cause some companies to downsize their office space which has an affect on commercial real estate. With less retail space needed, there will be fewer and smaller stores. Retail demand is down across the country due to an increase in internet sales.

All of these issues have a play at this game of tug-o-war that is balancing the housing market. While the market is recovering overall, trained economists are required to keep an eye on this delicate balance.

There will be many changes in the future. Right now, some of the best advice we can give is to lock in low mortgage rates while they are still low.

If you have any questions or would like more information about how all of these issues can impact your local housing market, give us a call at 877-828-8851.

Read More

Impact of the Shutdown on the Mortgage Industry

As the government shutdown is nearing its end and its employees have a chance to get their jobs back, many are wondering about the effects that the shutdown has had on the mortgage industry. Beyond those who were furloughed being unable to make money, many others were unable to purchase homes or get a mortgage due to the IRS being unable to process the 4506-T form. Additionally, USDA loans were on pause during the shutdown as well.

“Outside of the obvious process impacts of submissions, approvals and income there are immediate and lingering tangential impacts to housing and housing finance markets. With over a decade of shenanigans by members of Congress who are not doing their jobs, the consumer and investor uncertainty continues to restrain any meaningful recovery,” said Mark Dangelo, president, MPD Organizations. “Without the extraordinary impacts of the Federal Reserve, the economy would be at zero growth from its 2009 levels and joblessness would have remained at over 8.5 percent.”

Because of the shutdown, it has become a major problem that loans were not making their way to borrowers and that forms were delaying the sale of homes. Everyone who was in the process of buying or selling was essentially put on hold. Specifically, those who needed an IRS verification of income were stopped in their tracks. Mortgages that were beyond that stage and were scheduled to close during the shutdown may have been able to do so but the mortgages in the beginning stages definitely suffered.

Ultimately, even once the shutdown is completely over and everyone is back at work, there will no doubt still be a delay due to the amount of paperwork that has piled up.

“There may be a trickledown effect for anything that may have started the process during the two weeks of shutdown. My guess is now that the shutdown has been ended, they will get back to the way things have been, a relatively positive outlook for housing and lending ... especially purchase transactions,” said  Gregory Teal, president and CEO at Ernst Publishing Company.

Has your mortgage been effected by the shutdown?

Read More

Freddie Mac on the Government Shutdown

Freddie Mac is allowing borrowers who are not being paid as a result of the government shutdown to still have their mortgages delivered to Freddie Mac as long as they meet all the usual requirements and the borrower is expected to return to work after the shutdown ends.

"We're issuing this guidance to help ensure the continued smooth operation of the mortgage market during the temporary shutdown of the federal government. Today's bulletin is intended to give lenders the certainty to continue approving and delivering new mortgages that meet Freddie Mac guidelines to eligible borrowers, such as federal employees and contractors," said Dave Lowman, executive vice president, Single-Family Business at Freddie Mac. "During the temporary shutdown. We are also reminding servicers of our forbearance options to assist qualified homeowners with Freddie Mac mortgages to minimize the shutdown's impact on our nation's families and communities."

Freddie Mac will continue monitoring the current situation and promise to provide guidance if the shutdown lasts for a prolonged period of time. Right now, they have relief policies available to both public and private sector employees who are affected by the shutdown. This allows servicers to provide forbearance to eligible borrowers that must not be reported to credit bureaus. The forbearance can range from 3 to 12 months.

Servicers can also accept a borrower's most recent signed federal tax return even though the IRS is unable to process forms right now. This is helpful when tax information is needed to evaluate a borrow for a loan through Freddie Mac.

As always, Quest Loans is here to answer any questions you may have regarding the mortgage industry during this shutdown. Call us at 888-883-5252 anytime!

Read More

What The Shutdown Means For The Housing Market

Since Tuesday morning, many government services were shut down or cut back. Congress is battling back and forth trying to resolve their issues. This is the first government shutdown in 17 years. "Essential employees" are still allowed to work but as many as 800,000 "non-essentials" are not allowed in government buildings and they don't know when they'll be paid again.

As you may know, the central issue being debated is Obamacare.  According to House Speaker John Boehner (R-OH), "The House has voted to keep the government open, but we also want basic fairness for all Americans under Obamacare."

While 800,000+ employees are on the sidelines, the members of Congress are still working and because of the 27th Amendment, all 533 of them are still being paid.

President Barack Obama has said "the idea of putting the American people's hard-earned progress at risk is the height of irresponsibility, and it doesn't have to happen. Let me repeat this. It does not have to happen."

Congress and the President continue to disagree and have yet to reach a resolution. What does this mean for the housing industry? According to the president of NAMB- The Association of Mortgage Professionals, Don Frommeyer, "the shutdown isn't going to help the U.S. economy continue to grow and interest rates across the board could very well increase, depending on what the bond market does during this time."

As of September 27th, The U.S. Department of Housing & Urban Development (HUD) has indicated that the FHA will continue to endorse single-family loans during the shutdown. Of their 8,709 staff members, only 349 of them are "essential" and continue to work. However, an even more limited number of FHA staff is allowed to do their underwriting and approve new loans. So right now, anyone in the process of purchasing a home may see delays since the shutdown will cause these processes to take much longer than usual.

Those facing foreclosure right now will still have loss mitigations continue but the FHA will not approve any lender applications right now.

If you have any questions about how the shutdown could be affecting your mortgage process, feel free to call your loan officer or give us a call at 888-883-5252 and we will try our best to answer your questions!

Read More

HUD Will Sell Thousands of Delinquent Mortgage Loans

Although the economy is improving, there are still many severely delinquent mortgage loans. HUD plans to sell 20,000 distressed loans that are insured by the FHA in an effort to deepen the inventory and bring relief to areas hit hard by foreclosure.  Its Distressed Asset Stabilization Program (DASP) will help with the sale of these loans and help to stabilize the nation's communities.

HUD has sold delinquent loans before, and previously did so by conducting note sales. There are two auctions planned, one for June 26th that will handle the sale of 15,000 notes through "national pools" and another auction on July 10th that will offer 5,000 notes through Neighborhood Stabilization Outcome (NSO) pools. The NSO pools allow qualified bidders notes located in Southern California, Chicago, Southern Ohio, and North Carolina. In addition, HUD is expanding the use of single-family loan sales by including a competitive bidding process in which loan pools are sold to the highest bidder.

“We’ve seen a tremendous response to our note sales which allow us to support particular areas of our country hard-hit by foreclosures while improving outcomes for FHA,” said FHA Commissioner Carol Galante. “These auctions allow us to continue stabilizing hard-hit housing markets and to improve FHA’s overall financial position at the same time.”

HUD expects to sell more than 40,000 distressed loans this year. These sales will help to reduce the FHA's total claims costs and increase recovery on any loses the FHA may have experienced regarding their Mutual Mortgage Insurance Fund.  The severely delinquent FHA-insured loans will be sold competitively at a market-determined price. Generally, the price will be well below the outstanding principal balance. When the loan is purchased, foreclosure is delayed for six months and the new servicer has time to help the borrower find an affordable solution to avoid foreclosure.

Read More

Housing Market Outlook for 2013

After a rough few years, the housing market and the economy are finally on an upward trend! Housing starts, prices and confidence are showing better figures everyday. Of course there are always ups and downs, and while some investors are still being cautious about jumping into the market, 2013 is promising to bring a more competitive market for homebuyers.  With the housing inventory as low as it is, experts wouldn't be surprised if bidding wars break out among investors and homebuyers. It is expected that homes will sell fast in 2013 as long as they are priced right. It is a homesellers market!

When the market was experiencing buying dry spells during the recession, the Federal Reserve dropped interest rates to record-lows in order to lure buyers. Now that things are steadily improving, the rates may begin to slowly climb upward, however experts are not expecting significant jumps. Some banks have already vowed not to touch the interest rates until the unemployment rate drops.  Even if mortgage rates do inch upward, they are expected to remain around 4% which is still remarkably low compared to years past.

Mortgage rules are always being amended in order to prevent fraud and reckless lending to the underqualified. The Consumer Financial Protection Bureau recently issued new mortgage standards with new criteria for qualifying for a loan. Some of the new rules state that a qualified mortgage cannot include risky features like interest-only payments or negative-amortization payments. Loans cannot have fees and points above 3% of the total mortgage, and the total debt-to-income ratio must be limited to 43%. Some experts are concerned that these tighter rules may restrict credit and discourage lower-income homebuyers. Additionally, there are new rules designed to stop over-borrowing. Some fear that this could make the process longer for potential homebuyers or even prevent some from qualifying. Those looking to purchase a home should begin the mortgage lending process at least three months in advance since some of the new lending standards may cause time delays.

The new rules aside, 2013 is expected to remain in this upward trajectory. Home pricing indexes started to rise last year and promise that home prices will continue to increase. This will encourage homeowners to want to sell again, and cause homebuyers to jump in quickly before the prices rise too high. It is expected that home prices will jump 6% this year.

We already mentioned that housing inventories are low. They've been steadily falling since 2007. If the inventory remains at a below-normal level, some fear that this will hold back home sales and impede the market's recovery. However, rising home prices should help to increase inventories. Housing construction is up 60% in the last two years as well, however it is still far from where it should be. It is estimated that roughly 1.5 million units need to be built every year to keep up with housing demands. Last year, only 600,000 were built, and experts are expecting 750,000 to be constructed in 2013. With high building-material costs and a lack of skilled laborers, builders confidence is moderate, but there is potential for this to all improve this year.

As far as foreclosures go, there are still more than a million homes in the process but the overall crisis is nearly at an end. As the market improves, more and more people are taking advantage of foreclosures and short sales. Some investors are even buying homes at 50 cents on the dollar, renovating them, and putting them back out there which helps to stimulate the market.

2012 saw a refinancing boom because of low interest rates, but 2013 is expected to slow. Refinancing helps to boost the economy by reducing payments so homeowners have more money to throw toward consumerism. Refinancing will only continue booming as it did in 2012 if eligibility requirements expand or if rates drop further. However, borrowers looking to refinance should start the process now!

Overall, the complexities of the housing market are very reliant on a tug and pull system. Something increases and causes something else to decrease, but the balance is improving and 2013 is expected to be a strong year for all involved.

Read More

Two Nebraska Bills Amend Mortgage Requirements

As of March 7th, some new amendments to lender licensing rules were enacted thanks to two bills that were passed in Nebraska. They are intended to clarify the requirements for installment loan brokers, payday lenders, mortgage bankers, and mortgage loan originators. The first one is called the LB 279, (short for Legislative Bill.) It makes non-substantive clarifications to how a "loan broker" is defined. It also narrows down the exemption for accountants to certified public accountants only. Additionally, this bill gives the Nebraska Department of Banking and Finance authorization to share examination reports and other confidential information with the Consumer Financial Protection Bureau and any other relevant state regulators.

The second bill is known as LB 290 and it was designed to remove many of the mortgage licensing requirements that were previously applicable to individuals. It also identifies the duties of mortgage loan originators, including providing notification to the department within 10 days of events such as bankruptcy, criminal indictments, and suspension proceedings.  They must also notify the department within 30 days of other changes, such as changing employer and address. This bill also allows firms to submit reports electronically. It also states that the 120-day period for calculating abandonment of a license application must begin from the date that the department sends the applicant an electronic notice of deficient items.

Both of these bills are set to take effect three months after the end of Nebraska's legislative session, which falls on May 30, 2013.

Read More

Home Sales to Rise in 2013 Despite Low Inventory

In some areas of the country, there is a shortage of homes available for sale. This low inventory is the main factor limiting the signing of contracts. Because of this, pending home sales has declined overall in December.

Despite that, the levels of home sales is still higher now than in the previous year when compared per month on a year-over-year basis. Contract activity has actually risen for 20 straight months and buyer interest remains strong too. The low inventory consists mainly of homes that cost less than $100,000 and are greatly located in the West, which means that first-time home buyers have fewer options to choose from.

Experts say that a seasonal rise of inventory may occur in the spring of 2013, however it may not bring about a seller's market. Much of the West is already a seller's market, though, for homes that cost under a million dollars, and conditions are even more balanced in the Northeast.  Existing-home sales are expected to increase 9% in 2013 which mirrors the rise of 2012.

All of this indicates that the housing market is steadily becoming stronger. If you are interested in purchasing a home this year, call Quest Loans to get the best rates and best service around! 888-883-5252.

Read More

Benefit by Working with a Smaller Lender

Here at Quest Loans we pride ourselves on having the professional standards and expertise of a large bank while still giving you the friendly feeling of a smaller community bank--and now there's even more perks for stopping by our office or giving us a call!

Just last Thursday, a new mortgage rule has been introduced denying consumers a "qualified" mortgage if they have debt exceeding 43% of their income. However, the Consumer Financial Protection Bureau proposed that smaller creditors be given an exemption to that new standard thereby giving the smaller guys an advantage over the larger banks, especially when they operate with low and moderate income communities.

Now, some consumer advocates may claim that this new standard could shut out first-time home buyers or those with low income. While this may be the case for those who step through the doors of larger banks, the new exemption provides small lenders like Quest Loans a formidable piece of the mortgage market.

Not sure where you stand in relation to this new mortgage rule? Have questions on what other special programs or offers you may be eligible for? Give us a call at 888-883-5252 and let Quest Loans look at your specific mortgage needs and get you the very best deal out there!

Read More

Unemployment Rate Dropped; Economy Recovering

According to the Labor Department, businesses around the nation have added 146,000 new jobs! As a result, the unemployment rate has dropped from 7.9% to 7.7%. This rate is the lowest that it has been since December 2008 when President Obama took office.

There was concern initially that businesses would slow down their hiring out of fear of the federal budget's "fiscal cliff" and what it might do to next year's economy, but this appears to not be an issue. Also, Hurricane Sandy did not have as big of an effect on the job market as originally anticipated. The holiday season seems to be keeping moods high as Christmas sales are booming. As a result, most of November's job gains were in clothing, electronics and general merchandise stores.  However, there were declines in employment for manufacturing, construction, and government workers. The average hourly wages only rose 1.7% over the past year and the average worker continues to work 34.4 hours a week.

Economy analysts were expecting weaker growth because of the storm but are currently increasing their forecasts due to the better-than-expected jobs performance. The economy is slowly but surely recovering. And of course, the stronger the job market, the stronger the housing market.

If you are currently doing well and in need of a new home, let Quest Loans know! Don't wait until the new year, take advantage of the Christmas Mortgage Rates we have available for a limited time! Call for more information 888-883-5252!

Read More

Number of Home Sales Rises in October

Compared to last year, the month of October saw a 17.8% rise in home sales. This means that more people are buying homes and taking advantage of the low interest rates!

Also, the Median Home Price has gone up, meaning that you could potentially sell your home for a higher amount than you could in previous months.

If you are looking to buy a home, the overall inventory of available houses is declining so it may be harder to find the perfect home for your family. However, if you do find a suitable candidate, the low interest rates are in your favor!

If you find that these statistics are pleasing to your pocketbook, don't hesitate! We'd love to help you start the loan application right away.

Keep in mind that Quest Loans specializes in HARP and FHA loans, as well as refinancing! Give us a call today! 888-883-5252

Read More

Homes are More Affordable than Ever!

The affordability of the Nation's houses has hit a record high. 77.5% of all homes that were sold in the first quarter this year were considered affordable to the families who purchased them. These families earned the national median income of $65,000 per year. However, lenders are continuing to tighten their procedures and policies, making homebuying a greater obstacle than in the past. The good news is that if you can qualify for the loan, the homes are at the most affordable prices than they have been in the past 20 years. Unfortunately, many are unable to take advantage of these prices because of new strict lending practices. We at Quest Loans want to help everyone find the right loan for them and get into the house of their dreams. We work hard to match potential homebuyers up with the right lender to get the job done! Contact us for more information on how to get started. 1-888-883-5252

Read More

Sneak Peak at the April Mortgage Monitor Report

We have a sneak peak of the "April Mortgage Monitor" report from Lender Processing Services, Inc (LPS). The report is scheduled to be released in full at the end of the month, and takes its data from more than 40 million loans. According to our sources, the report states that the total U.S. delinquency rate (loans 30 or more days past due but not yet in foreclosure) is at 7.12%. That figure is up 0.4% from March but it is down by 10.6% compared to last year. Currently, there are 3,522,000 delinquent mortgages on residential homes, including 1,595,000 that are more than 90 days late.

We reported on the foreclosure pre-sale in the past. Its inventory is now made up of 2,048,000 properties. Combining that with the past-due mortgages gives us a total of 5,570,000 properties that are either delinquent or in foreclosure. The states that have the highest percentages of non-current loans include Florida, Mississippi, Nevada, Illinois and New Jersey.

Read More

FHFA's Foreclosure Prevention and Refinance Report

According to the FHFA's Q4 2011 Foreclosure Prevention and Refinance Report, Fannie Mae and Freddie Mac have completed more than 2.1 million foreclosure prevention actions to help keep borrowers in their homes. This includes 1.1 million permanent loan modifications. Additionally, fewer than 20% of these loans that were modified in the four quarts ended March 31, 2011 had missed two or more payments which is an improvement from previous years.

The FHFA has also released an interactive Fannie Mae and Freddie Mac State Borrower Assistance Map that allows you to see how many loans are owned or guaranteed by the GSEs, and how many of which are delinquent, in foreclosure or refinanced per state. There are more statistics involved as well in this report. Click here to view more.

Read More

HARPs New Guidelines for Homeowners to Refinance

Good news for homeowners from the federal government! The Home Affordable Refinance Program (HARP) has recently changed its guidelines to allow homeowners to refinance at today's lower mortgage rates even if their homes have declined in value. Depending on the loan they choose, homeowners can now refinance without LTV limits. This will help them to improve cash flow to pay off their mortgages easier and, hopefully, not be hesitant to become a homebuyer again in the future. HARP works with primary residences, second homes and investment properties.

HARP was established in 2009 to help homeowners with good payment history to refinance into more affordable mortgages despite declining home values. Originially, HARP capped LTVs at 125 percent for fixed rate loans, and 105 percent for adjustable rate loans. It maintains its ARM cap, but now there is not a limit for the LTV for a fixed rate mortgage of 30 years or less. However, if the loan is for more than 30 and up to 40 years, it is still capped at 105 percent.

This is very good news for those who are in states that were hit hardest by declining home values such as Arizona, California, Nevada and Florida. Mortgage rates are at the lowest levels in decades. Now is an opportune time for homeowners to take advantage of HARPs new policy and reduce their interest rate and monthly payments. They could then pay off their loans faster due to shortening the loan terms. This could lead to them making more real estate investments in the future as well.

To qualify for HARP, the property cannot have been refinanced by HARP before. The loan needs to have been originated before May 31st 2009 and be associated with Fannie Mae or Freddie Mac. No private mortgage insurance is required if it wasn't needed for the original loan and income documentation is not necessary. The amount of the loan just can't exceed the conforming loan limits for the property's location. The loan must be current and the borrower cannot have made late payments in the last six months, and no more than one late payment in the last 12 months.

If you feel as though you are drowning in the stress of being behind on your mortgage, HARP urges you to take advantage of this once-in-a-lifetime opportunity while you can! HARP wants to help bring you back into the home buying market with these low rates. Look into it today!

Source

Read More

New Freddie Mac Loan Forbearance Policy

As of February 1st, 2012, Freddie Mac will begin allowing unemployed borrowers an additional 6 months of forbearance on their mortgages. That's 6 months without prior approval from Freddie Mac, and an additional 6 months on top of that with prior approval.  So unemployed borrowers will now have up to 12 months to find jobs before they need to pay their loans. This direction comes straight from the Federal Housing Finance Agency (FHFA).

"These expanded forbearance periods will provide families facing prolonged periods of unemployment with a greater measure of security by giving them more time to find new employment and resolve their delinquencies," said Tracy Mooney, SVP of single-family servicing and REO for Freddie Mac. "We believe this will put more families back on track to successful long-term homeownership."

  The above quote was taken from this article where you can find additional information about this new policy.

Read More

Helping your Clients Understand the Loan Process

If you are looking for a way to simply break-down the mortgage application process to your clients, follow our other blog, 411 Rates. We provide a detailed but easy to follow explanation of all things mortgage related.  We hope that this resource will prove helpful to you!

Read More

Current State of the Mortgage Banking Industry

As a Mortgage Professional yourself, you are likely aware of all the economic issues going on in our country. We at Quest Loans found this article to be informational. It discusses the state of the industry regarding the loan process, the new LO compensation reform, and more.  The following is an excerpt of the article written by Leif Boyd.

"As we look at the current industry and where it will likely head over the next few years, many brokers have more questions than answers. Companies, brokers and loan officers are still figuring out how loan originator (LO) compensation reform will impact their balance sheets and wallets. As the government and banks have continued to add more requirements to get loans approved, it has become harder for once-qualified individuals to get loans. A few large companies seem to control a large share of the market."

Read More