Major Commercial Lender shut its doors

Well, I won't say which lender but 600 people from the division are supposedly out of jobs and it was before 4th of July.  I am working on a  2+ million dollar loan and was going to use them since they have a good program.  This company was straight from Wall Street and had double dipped into residential mortgages. 

I have to wonder if this is not the end and am glad that many commercial lenders did not get involved in the residential side of lending. 

There are enough commercial lenders that can survive this mess..but its obvious people are still going to lose their jobs.  And once the FHA loans , short sales and loan modifications have all dried up the only thing left will be purchases.  The loan officers that really want to make a career out of mortgages will survive because it is what they love.  The loan officers that are willing to manage their customers properly will survive.  Those that charge to many points and to much on the rate will eventually struggle.  Sadly, many consumers who got a good deal didn't go back to the loan officer that gave them a fixed rate and kept the closing cost in check..they made the terrible mistake of going to another bank and wound up getting an adjustable or neg am loan and are now in foreclosure.

So how come you don't hear about this on the commercial side?  And commercial lending is LESS regulated by the government!  Is it because of the strong culture that a larger down payment should be required?  Is it because of the absence of negative amortization loans in the commercial lending arena?  Is it because adjustable rates in commercial lending are quite common and less of a surprise to owners of buildings?

One thing is clear, the commercial lending community must never allow the careless, reckless, deceptive and self destructive lending practices of the residential banking community to invade our side of the lending industry.

Lastly, blaming the brokers is a waste of time.  The banks fund the loans, write the checks and ALWAYS make up the programs that are either solutions or problems.  If the banks did not supply the poison then the apple that many people ate would not have been a poisonous one.