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Wall Street firms, which make money by packaging loans into bonds and reselling them to investors, acquired mortgage companies in recent years to get more loans, a trend that is now reversing.
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And the Fed undermined its own efforts when it declared in June that it intended to begin a retreat by the end of the year, causing investors to immediately begin to demand higher interest rates on mortgage loans and other financial products, a trend that the Fed said Wednesday was threatening to slow the economy.
And many consumers and small businesses are unwilling to take on more debt, a trend that reduces demand for loans.
He may have started a trend: Following Kookmin's lead, three other banks refused new loans as well.
But it cannot go against a trend, he argues: in 2009 it saw a 23% drop in volume demand for loans, compared with 2008, while loan repayments rose by 53%.
The number of newly delinquent loans seems to have declined in the second quarter, although it is hard to know if that is a trend that can continue.
When it comes to new loans, the trend is clear.
Three makes a trend.
But a trend?
— has been a trend.
Three's a trend.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com