MORTGAGE LENDERS LOOKING FOR NEW VENDORS
September 21 2008
New York, NY – Ameribank, the latest bank to fall victim of the subprime lending disaster, has made its contribution to the record collapse across the United States. This year twelve banks have gone under, been sold, or been bailed out with federal money. While the trouble has caused a great deal of nervousness, some little known companies are also falling victim to the collapse.
“We hit on the idea a long time ago but it was only when the laws began to relax that we were able to implement the idea,” said Bennie Chow, owner of Chow Vending. “We spent many years working with traditional vending machine content; pop, chips, sandwiches, but there is so much competition in that area we felt we needed to break out and do something different. For a while, it was great.”
Chow’s idea was to offer subprime mortgages and other lending options at vending machines to give consumers the option of not having to go to the bank to finance their home.
“What we found was that people who were more likely to spend way beyond their means and risk getting into trouble were also much more likely to be lazy,” continued Chow. “Making appointments, getting to the bank, it was just too much trouble for a lot of those people. Some people have to work 2 or 3 jobs and just don’t have the time so we figured they would be receptive to a quick fix, and they were. People could get a mortgage on their lunch break.”
Chow’s company offered mortgage selections from most of the major US banks including the now troubled AIG and Lehman Brothers. They also had an exclusive deal with the largest lenders in the country Fannie Mae and Freddie Mac. Now, with the implosion of the majority of those banks, Chow has been forced back into the traditional product in his machines.
“Americans like things easy. Everyone wants the American dream and many will pretend they have that life even if they are nowhere close. We just wanted to help people with that, and of course get a little closer to that dream ourselves.”
While Chow invested heavily in the mortgage market, he maintains that the company will be able to remain fluid after an investment from his in-laws and friends.
“We came close, but we are going to make it through this I think. We’re just going to have to back to the fundamentals. It was pretty sweet while it lasted, but those days are over and we have to come back to reality. Fortunately we’ve been able to keep our vending machines in all our locations, well except for the handful of businesses that bought their mortgages from us. Sorry guys.”
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