Mortgage News

Really soon for another blog, but the news tonight carried some significant "testimony" in Sacramento before the legislature by some self appointed experts. Finger pointing is perhaps entertaining but the fingers were otherwise engaged while the problem was growing and was largely ignored by the owners of the fingers. The problem is variously laid at the feet of investors, mortgage brokers, lenders and real estate salespeople. Appraisers were not mentioned in the news segment I watched. We have said previously that the problem is caused by a pervasive greed, no different from the greed that afflicts the likes of Enron, Worldcom, Tyco, political lobbyists and those they lobby. The ability to take advantage of those greedy impulses in the real estate business arose from the substantial and largely artificial escalation of home prices. Like tulip bulbs, Ponzi investments or the dot coms without substance, eventually the Emperor shows up in his birthday suit. The current viewing with alarm is hypocritical at least, and productive of nothing. Market forces which became badly skewed in the race to be first at the trough will right themselves and only people who should be homeowners will be homeowners. The folks in our industry are rightfully burdened by a load of guilt for putting their interests ahead of their clients, but while the shame is certainly there, caveat emptor has always been a good guide, and those who ignored it share a portion of the blame. After the fingers have been returned to their holsters and the politicos have turned their blather to some other cause, those of us with a serious interest in the sale of real estate and the provision of mortgage money will continue to serve. There are good guys out there waiting to help you. A little diligence on your part will make for a satisfying experience.
As usual, thanks for visiting.