Hello, I'm refinancing soon and all week have been hearing about bank stress tests. Do I need to be careful about these when deciding on a bank or can I just look for the best rate? I don't want to have problems later on.
The tests were designed to gauge whether any of the nation's 19 largest banks would need more capital to survive a deeper recession. If a bank cannot survive the recession, then it may be insolvent and unable to pay out an insurance claim.
You probably want the best rate from a strong healthy bank.
If you're concerned only about your mortgage, then the stability of the bank doesn't have much of an impact. If they become insolvent, someone will end up buying the mortgage and you'd continue making the same payments to the new lender.
Another point to consider is if you have more than $100,000 in deposits at the bank, you want to make sure the bank is stable, or that you split up your deposits between several banks. The FDIC insures only the first $100,000 in deposits per account holder per bank.
The banks that do not require additional capital based on the results of the stress tests are: JPMorgan Chase, Goldman Sachs, MetLife, U.S. Bancorp, Bank of New York Mellon, State Street, Capital One, BB&T and American Express. I've included a link to JPMorgan Chase below.
|
|
Not sure where to start? The SmartHippo community is here to help.
rmcvanguard
90 answers
entitledirect
41 answers
orionmortgage
28 answers
GeorgeFavvas
21 answers
fredglick
11 answers
SmartHippo, Inc. 123 10th Street, San Francisco, CA 94103
Logos are trademarks of their respective owners. All other content is available under a Creative Commons license.
(4 reviews)
You need to be logged in to enter a comment