Mortgage Industry Shake Up is Good News for Borrowers
Real Estate expert, Jeff Adams, examines the changes being undertaken by the mortgage lending industry. The U.S. mortgage industry is undergoing the most intensive restructuring it has ever been under and some of it still going on as I write this. To be sure, all this restructuring, or rather the need for it, has been self-inflicted.
It came about as a result of the legislative and non-legislative pressure being brought to bear upon the mortgage lending industry as a result of what has been widely, now, acknowledged to have been predatory lending practises by some of its proponents. While a little greed may, arguably, be a good thing helping speed things up and energizing specific situations, the moment it gets out of hand everyone gets hurt and this is exactly what’s happened now.
So we are having a shake up where mortgage lenders have come under criticism and legislature has been put in place to ensure that we now have more transparent lending practices.
This has created quite a few opportunities for those seeking new mortgages as the market itself is now gearing up to attract potential mortgage buyers through more competitive mortgage packages as well as competitive rates.
The fact that there is a more transparent process in place means that those seeking to get a mortgage now are less likely to get ripped off or find themselves in the situation of having to accept foreclosure on their home which is better for consumers and better in terms of the direction the market is shaping up in.
The better than usual terms for borrowing money does not mean it’s a borrower’s market. Quite the opposite. We may be heading towards a general economic slowdown as our institutions learn from the current crisis and try to understand what they need to do in order to get back on the financial growth path.
Every time that happens the market revamps itself, discovers new ways to grow safely and the whole cycle begins in a way that benefits not just the mortgage lending industry and real estate but also those who are looking to purchase new homes and the ones who want to sell their existing ones and either downsize or move on to something bigger and better.
This means the beginning of a new growth cycle and the presentation of a fresh batch of opportunities to all those who are looking for properties to buy. It also means, inevitably, a fresh increase in foreclosures as they are part of the natural cycle of our economic model and an inherent percentage of the properties being sold and bought. So as they go up, foreclosures, naturally increase and believe me when I say this is a good thing, but that is a different story.
Jeff Adams
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