Well it seems that we are continuing to deal with a variety of issues related to the money lending business. Since I started my vacation, we've had a bank fail (partly because of their lending strategies), IndyMac. On a personal and professional note, I hope that many of the Loan Officers and Processors I have dealt with at IndyMac over the years aren't affected by this failure too severely. I have worked transactions with them and found them to be reasonable and they worked with the client, myself, and the closing attorney to get the transaction through (and this wasn't a questionnable transaction at all).
Many people seem opposed to the potential bailout of Fannie Mae and Freddie Mac. I have mixed feelings about a possible bailout if necessary. First, both of these organizations were formed by the Federal Government in an effort to promote the housing industry. They have certainly done their job. But there has been some serious fallout from them doing their jobs. The mortgage lending standards dropped significantly as a result of the good job they did. So something has to give. I am hopeful that Fannie and Freddie will succeed.
One good thing that has come out of the entire mortgage crisis is the revitalization of FHA and the increased lending limits of FHA. We have to hope those limits continue.
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