I have to say 60 minutes got it right on Sunday night. The housing boom and economic downturn that followed has been blamed on just about everyone, from the consumers to those in the real estate and mortgage industries. Consumers were outraged at the six figure incomes that Realtors, mortgage brokers and title agents were making. None of these people were making $10 million dollars a year though! That's right, $10 million a year and that wasn't even an executive position.
The video below is the single best explanation I've seen on the credit mess and why a national foreclosure rate of 6% is having such a devastating effect on the economy when 94% of homeowners are making their monthly mortgage payments. Not only do most people not understand the way mortgages were bundled and sold, but the products that they were turned into, along with the "so called insurance" that guaranteed them was not understood by the best and brightest on Wall Street. In addition a way was found to bundle these mortgages so that there was NO governement oversight!
The video below & article on CBS.com is aptly titled Wall Street's Shadow Market:
60 Minutes requested interviews with top executives at Bear Stearns, Lehman Brothers, Merrill Lynch , Morgan Stanley, Goldman Sachs, and AIG. They all declined.
Garren Grup, REALTOR®, GRI...
Noteworthy Results in Naples, Bonita Springs, Estero & Fort Myers!
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Garren the lenders got away from looking at the customer from a relationship perspective(ie servicing the loan for the next 30 years), and instead looked at them as a borrower, a loan, a commission, a quota, an opportunity to increase quarterly earnings, an incentive fee, and a few golden parachutes thrown in.
But then I saw this happen in the mid 90's also.
Its time to get back to building lasting relationships with our clients.