As home prices continue to decline and loan defaults mount, U.S. regulators are bracing for dozens of American banks to fail over the next year. But after a large mortgage lender in California collapsed late Friday, Wall Street analysts began posing two crucial questions:
- Just how many banks might falter?
- And which one could be next?
More importantly how is this affecting the housing industry. Right now the requirements are already tightening. Could we be facing 50% down payments and borrowers only allowed to borrow money with high FICO scores? With less foreign money available for credit, the requirements will become stricter. Those marginal borrowers will find themselves out of the market because of their credit.
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