With the housing market in a slump and foreclosures on the rise, is it time to tighten regulations on the mortgage-lending industry… or by doing so, do we hurt the marketplace even more? Huge question!
Mortgage lenders don't get all, or even most, of the blame for the problems in the various real estate markets. But should they at least be held partially responsible?
A steady, but not booming economy could be some of the cause for the demoralizing drop in home sales and home prices, but personally, I don’t think so at all.
First off, if you look at GDP, inflation numbers and unemployment numbers, they are a strong and steady as they have been for nearly 15+ years. Yes, there is movement up and down, but no real recessionary-like valleys at all.
That said, nearly one in five recent mortgages made to buyers with sub-par credit expected
to default, many industry insiders say it's time to get tough on those who write bad loans. In a continuing and maybe too much so, effort ‘to make everyone a homeowner’ the loan programs and lenders themselves should be held just as responsible and the homeowner… and some might say, even more-so.
Yes it is the “American Dream” this home ownership issue, and yes, it also fuels our economy more than any other business or industry, but does that mean we as a lending community should put everyone and anyone in a home and a mortgage, no matter what? Is it really the right thing to do? Big question again, huh?
Ponder that and we will continue again in the next day or so with even more revealing and even incriminating insight…
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