Wow! The past two weeks in the mortgage industry have been wild. Sub-prime lenders are scared to death. Several more companies have gone out of business. All of the others are quickly tightening their guidelines. Stock prices have plummeted and employees are scrambling.
I honestly believe most people saw this coming. We certainly did.
What’s in store for the mortgage industry going forward?
1) more sub-prime lenders will go under
2) mortgage brokers will begin closing their doors
3) there will be record numbers of foreclosures
4) federal and state regulators will begin rigorous investigations
5) fewer borrowers will qualify for home financing
6) mortgage insurance premiums will increase
7) ethical and compliant mortgage companies will have more business than ever
This will be a year in the mortgage industry that is talked about for some time. Changes were needed and I’m glad to see them being made. The real winners in this shake-up are the consumers who’ve long been treated unfairly.