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| I'll lead with its of course not all people. But my experience is the same as yours. Term out machinery and current debts to land to cashflow and add working cap, wait a year or two and poof, borrower went to JDC and screwed up the cashflow again and usually the working cap from purchases. It's even worse with residential home refinance to payoff credit cards. Nearly every one I have ever done ends up with the borrower(s) racking up the credit card debt again, and now - as you stated - they are worse off. If I wasn't on my side of the desk, I am not sure I'd actually believe how bad the statistics are. For secondary market consumer residential, we can't really deny them if they meet the agency criteria, but it comes with a stiff lecture from me. | |
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80s corn price relative to making money
