Lenders’ Position

Again the Los Angeles Times runs a lender-bashing article, “Do Lenders Play Bait and Switch With Refinancers?” (June 14).

Now the topic is undelivered interest rate “lock-ins” for refinances. Please consider the lenders’ position:

1--Risk-free, the homeowner voluntarily enters this capital market to lower his interest rate for his own gain.

2--Rates go up and the homeowner demands protection; rates go down and the homeowner demands options.

3--To get just a 1/8% lower rate, a homeowner will abandon a locked rate that a loan officer and staff slaved for weeks to produce.

4--When the homeowner is willing to risk his own cash advance fee to lock in his own loan, then he can demand the same risk protection from interest rate changes that the secondary market provides.

5--It is a paradox that the homeowner demands the absolute lowest rates and then wants the absolute best service. Logically, the lowest rates have the longest waits.

The article suggests that our lending industries cannot make or keep a promise. There are far more borrowers who have lied to lenders than lenders who have lied to borrowers.

Remember: The S&L; crisis is not because too much money was lent out to borrowers; it is because not enough was paid back by borrowers!

BRUCE CONN, President

California Equity & Loan