“The year proved to be a swift introduction to how the industry must and will soon change in order to correct the financial turmoil that so quickly flipped the entire American economy on its head. Two to three years ago, mortgage loans were readily available through a variety of means including numerous small-retail outlets, the Internet-only based non-depository lenders and through various underwriting standards. Increased demand by investors and consumers, quick and easy short-term gains, and plenty of inventory helped to create an alternate real estate reality worth nearly three trillion dollars in 2006. Since then, in a span of less than 18 months, over 300 companies once originating mortgage loans have ceased doing business. Three lending and banking giants were acquired by the other three left standing. Freddie Mac and Fannie Mae, the government sponsored enterprises (GSEs) now under conservatorship of the director of the Federal Housing Finance Agency (FHFA), were subjected to complete restructuring. The federal government issued the financial services industry at-large rescue funds, and giving the government ownership interest in the secondary market firms. Significant mortgage reform legislation is being considered, aimed at policing industry professionals in an attempt to protect consumers and lenders from deceptive acts or practices, some of which are already being implemented through the SAFE Act licensing and registration law. The unprecedented onslaught of financial losses, reputational damages, and rehabilitative public policies will forever reshape the mortgage industry.”
Sabrina is the also the solo Editor/Publisher and Founder of LLRX.com® – Legal, technology and knowledge discovery resources on the “moving edge” for Librarians, Lawyers, Researchers, Academic and Public Interest Communities – launched in 1996.