Mortgage Lender Adopts Anti-Flipping Policy
Inman News reports that the big banks are closing the door on speculators. "US Bank Home Mortgage this week implemented an 'anti-flipping'policy for conventional home purchases, saying it will no longer fund loans for properties in which the seller has held title for the property for less than 90 days's. Property flipping has become 'a threat to the integrity of the residential real estate industry.'"
Mortgage banker Alex Stenback notes, "It won't eliminate flipping or fraud. If all the top institutional lenders implement similar 90-day seasoning policies, he said, 'You have the subprime market out there waiting in the wings who would be more than happy to finance flipped properties.' People will still be flipping properties, and inexperienced buyers could end up holding high-cost loans on overvalued properties."
For some reason the writer ties the new measures to combating mortgage fraud, but that isn't the meat of the problem; it's speculation.