What’s the reason for slow growth for the Capital Region? The Housing Market is putting a damper on recovery. Typically, the Housing market leads us out of recovery, especially with the record low interest rates. But the problem is that the banks aren’t lending. There is an overhang from all the potential litigation from investors who were sold securitized mortgage loans from banks such as CITI and Bank of America. These banks have had to take huge reserves for this possible litigation. These reserves use up much of the capital the banks could lend, thus money is tight in the Housing market.
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