About
This year, the mortgage industry has undergone major changes. Over 150 lenders are out of business. There have been close to 100,000 layoffs in the industry. Wall Street will no longer buy many mortgages due to the inherent risk of default. If Wall Street doesn’t buy the paper, the lenders will not offer the programs.
Meantime, while mortgage companies and programs disappear on an almost daily basis, real estate prices are tumbling in a historical manner. Foreclosures are reaching an all time high and that is bad for anyone who owns real estate.
Furthermore, with the absence of aggressive and sometimes foolhardy mortgage programs, the pool of potential buyers has shrunk dramatically. This is a huge negative for the supply/demand aspect of real estate. We have an abundant supply with a shrinking buyer base and the result will be even more pressure on real estate prices.
This blog will attempt to familiarize you with the mortgage industry’s “brave new world”. I will provide unique insight into the ongoing changes in the industry and how they affect home owners and buyers.
Now that our political leaders are becoming aware of just how serious this “mortgage meltdown” is, they are trying to make themselves look good by getting involved. Unfortunately, much of what they bring to the table will only hurt the industry and it’s customers, you. I will be shedding light on their activities as it pertains to the industry.
The insight I bring here is derived from twenty five plus years as a financial services professional, including but not limited to being a former Certified Financial Planner. Additionally, I have been active in the mortgage industry for over fifteen years as both an originator and owner of a company.
I hope you enjoy your visits here and find them worthwhile.