The future of the Mortgage Industry

Real Estate Broker/Owner with Wyse Home Team Realty SL3192071

A growing number of economists have fresh concerns about the future of the mortgage industry, and the availability of home loans for future home buyers. Many question how many buyers will be left in the market when the $8000 tax credit expires.

A New York Times article  supports the notion that banks will continue to tightly monitor all lending practices, and that it will continue to be difficult for Americans to borrow money. FHA Mortgages that have provided the financing for many home buyers in 2009 may see some changes in 2010.

There is legislation being drafted to increase the required down payment from 3.5% to 5%, and would potentially take away the option for seller concessions for closing costs. The mere fact that such a proposal even exists, is cause for concern for many. This report from Fox News has more information.


Comments (2)

Tom Caulfield
First Financial Lending Corp. - Grosse Pointe, MI

THe down payment increase does not bother me as much as what the big banks are trying to pass with Reg Z.  They are really trying to eliminate the broker.  Big Banks do not have to disclose YSP at all.  And now there is something in the works to eliminate YSP?  Where brokers would have to originate loans for a flat fee.  Talk about limiting borrower options.  Scary

Oct 13, 2009 07:09 AM
Ron Wysocarski
Wyse Home Team Realty - Port Orange, FL
CEO, Pricing Specialist

I don't see how any of these things are helpful to a recovery.

Competition and choices are important to the industry.

Oct 13, 2009 07:23 AM