Sunday, December 13, 2009

American bank-lending follows India's

The economic meltdown has effected a sea-change in the way American banks look at home refinancing. Prior to 2007, refinancing of home loans was a routine annual ritual. Borrowers gained in the form of additional loan amounts and sometimes by way of reduction in interest rates also. All this has changed now and American banks are now a chastened lot. Have a glance at the New York Times article given below. Indian banks have traditionally been cagey about takeover of accounts from other banks, which is what refinancing is all about. Only now the US banks have become alive to the risks in refinancing.

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