Savor this one, borrowers: The Mortgage Bankers Association is feeling the credit crunchBy
Great article this past weekend in the Washington Post (maybe not as great as the six 2008 Pulitzer winners, but still great) about how the Mortgage Bankers Association is being squeezed by higher borrowing costs on its new $100 million headquarters.
Says the Post writer, Jeffrey H. Birnbaum: “Scheduled to close on the building in the coming weeks, the association will have to pay millions of dollars more than it would have a year ago when it contracted to buy the 160,000-square-foot structure — millions of dollars it is now less able to afford.”
Why is the Mortgage Bankers Association less able to afford a big mortgage now than, say, a year ago? For one thing, it has lost about 500 of its 3,000 members. Some of them blew up because they made loans that the borrowers couldn’t possibly afford to repay.