home loan

One of the biggest revenue drivers of banks is providing loans to home buyers and collecting interest. This, in part, contributed to the real estate collapse because lenders lowered their standards for approval in order to accumulate as much profit as possible. Many of the people who received these mortgages could not afford the monthly payments, and thus banks were forced to foreclose countless homes throughout the United States. In other words, the financial sector took on too much risk than it could afford. Today, a home loan is much harder to get, and the standards to get market rate interest have been increased.