Improve ties between lenders, borrowers

Re: 'Let's assist distressed owners, small business' (April 26)

Dear Editor:

Lending and the risk that it incurs should be done on the local level where the lender has an intimate knowledge of the market. The banks have gotten too large and too impersonal, with lending decisions being made at distant locations.

If decisions are made by qualified local lenders, pooled and sold to investors who have trust in the decisions of the local lenders, both the availability of loans and investors should increase.

Lenders should know their market, use competent appraisers, and be familiar with the local Realtors, thus resulting in quality loans that investors will want to own.

Just imagine that the lenders will actually know the borrowers.

Elliott Caplan
Director
Caplan School of Real Estate
Neptune, N.J.

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