Here's the deal guys:
Spreads have widened over the last year on broker (and direct bank) mortgage pricing .vs. Fannie and Freddie bond pricing.
How much?
About 200 basis points worth.
Why is this important?
Because you, the consumer, are getting cornholed in the "pricing" these guys are "offering" you!
That is, the banks are exploiting the dislocation in pricing and the credit markets to screw you and post what Wells now says are record profits.
Are you being told about this? Of course not.
Are regulators stomping on this? Of course not.
Are you being looted to pay for this? Of course you are.
You are seeing near-zero (or actual zero) interest earned on money you loan to the bank (when you make a deposit or buy a CD you are loaning money to the bank) and yet when you go to borrow money you're being screwed with record-high spreads that the bank is pocketing - in mortgage and credit card interest rates charged.
How much does this add up to?
About $4,000 in extra profits per mortgage on top of the "usual" $1,000 profit.
That's right - the banks are making five times the "usual and customary" profit per loan, and it is coming right out of your hide.
I've been hollering about this for months (as has Mish Shedlock) but it appears that both our intrepid lawmakers and the mainstream media simply refuses to talk about it.
When does this stop?
When you, America, are tired of being ripped off and demand that it stop.
Remember, the mantra of both government and The Banks is "never waste a crisis."
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