Posted by
Sue on Wednesday, February 13, 2008 1:40:50 PM
02/13/08 10.28am PST
When things are tough, they can get very tough. But, if you are in the middle of a tough situation, it matters whether you got into it of your own stupidity or laziness, doesn't it?
It is also very hard to discuss anything when the situation causes you to get upset, made, hurt, whatever. That is the situation for me regarding the mortgage industry. An industry I have been part of for over four decades and have weathered very tough times in the 70's, 80's and then the 90's. In all of those instances, I made it through. Lots of people came in and out of my life. Most ultimately just disappeared from the industry, never to be heard from again. The majority left the business never to return. Lenders, brokers and others had to hire the inexperienced just to keep the business moving. This time, the amount of expertise that is leaving this industry never to return may be a harbinger of things to come. We are back to the very "old" ways of doing things when only a few knew what to do and the rest just answered phones, kept you on hold or promised to have someone call you back. Most of these people earned their small salaries and didn't care. It is like this today.
No matter what the president or the head of HUD or congress say or want, the lenders are not being required to "do anything". They are encouraged but not required. Who do you think is handling the ball. And the lenders that are left are primarily the huge lenders that never got into the trenches. It will be very sweet for them in the next 10-30 years. We're back to a 25% of gross payment (PITI), good credit, minimum 20% cash downpayment.....unless they go the FHA route.
Here, things will get sloppy because they always have. The lenders will love this route because the MMI/MIP insurance the borrowers will be charged will protect the lenders...not the consumer.
Oh, what fun we will have. Let's get a bowl of popcorn and watch the show. As usual, when it involves government, we will be treated to some interesting events.....