Saturday November 21, 2009

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Entrepreneurs Cut Own Pay to Stay Alive
A number of small-business owners have stopped paying themselves as they struggle to keep their companies afloat.
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Broke -er Posted: 9:35 AM On April 28, 2009
I became a mortgage broker back in 1995. I'm broker than ever before. I do mostly commercial lending, which has hit the skids in the past 18 months.

What baffles me is that even as Obama and treasury officials try to urge banks and others to lend, the lending standards have tightened every month.

The most recent move was Fannie Mae. This is now a government run agency. They just announced they are cutting loan to values on apartment buildings 5%, raising the minimum debt service coverage ratio 5%, and have all but stopped lending in 5 states. Seems counter productive.. do as I say, not as I do. They want the banks to lend more, but their own government lending standards are tightening. I hear the same comments from the residential lenders. The GSEs keep tightening the rules.
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