Nashville's "City Paper" Reports that Mortgage Lenders in TN has Dropped by More than Half!
I was perusing the Nashville City Paper and an article on mortgage lenders caught my eye. Apparently the number of mortgage lenders who are licensed in the state of Tennessee has DROPPED BY MORE THAN HALF over the last two years! That is an EXTREME number!
I won't quote the whole story to you since it is available online, but the gist of the story is that due to the drop in demand for housing and the new stricter standards for lending, there is simply not the need there previously was for these services.
This story also reports that a lot of these Nashville and other TN mortgage lenders needed to go, and I think we can all agree with that! Fraudulent and non-documented loans need to be gone for good! Newer, stricter regulations are also coming in 2010, according to the article, so we may see the number of Nashville and other TN mortgage lenders drop even further.
Here were the numbers given:
1. 2007 - 17,000 Licensed Originators in TN
2. 2009 - 7,824 Licensed Originators in TN
I want to give an opinion here. As a Realtor, I want to see a healthy housing market where homeowners are making gains on their homes and truly creating wealth for themselves. That would include a healthy number of mortgage lenders to accomodate the need. But, as a consumer, an American, and a human being, I believe FRAUD IS A BAD THING and I think we need to be mindful right now. Less credit debt is a good thing, money in the bank is a good thing as well, and an honest look at how we can improve our economy and our nation as a whole is also good!
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Emily this could be a bad news/good news situation in the long run. I know that we have had way too many lenders here in Austin and the downturn has caused many to drop out and for the most part the lenders who are still here are more adept and experienced and hanging in there. It's the same with Realtors as many of the part timers and those in for the easier times are beginning to fall by the wayside. I hope you had a great Halloween and always look forward to visiting with you on Facebook!