The past few years saw quite a boom in the availability of easy loans and although smaller banks were traditionally more conservative, many stepped onto the bandwagon at the time. These same banks are now regretting offering these easy loans as they go into default at an astounding rate. Although the big banks that offered easy loans have been grabbing all the headlines, the problems at little banks may be just as severe.”The overall mood in the industry is one of resignation — that the good times are over,” says Patrick Rusnak, chief operating officer of AmericanWest Bancorp in Spokane, Wash. “As bad as it seems right now, the economic forecasts indicate that it could get worse.” ”If you competed fiercely for deals, turned a blind eye to the loose terms that were available in the market or took on significant undiversified concentrations, you may well get hurt if we have a sustained slowdown in real estate,” FDIC chairman Sheila Bair warned last month.For those seeking an easy loan, experts warn that many banks will not be willing to make a deal. Consumers with great credit may still get an easy loan, but it will not be as simple as it was in the past.
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