Summary
Innovations in the mortgage lending industry - Profitability - Cover Story
See the full content of this document
Extract
A time of innovation.
There are certain moments in history when key inventions change the entire social or business landscape. Such a time is now for mortgage lending.
Now, as we move into the 21st century, we are at the threshold of yet another transition that will alter the course of the industry. While the mortgage itself was the focus of the last 20 years, this next chapter will focus on how the loan is generated. Leading up to the mid-1970s mortgage lending was clear and simple. It was generally a local or regional business dominated by commercial banks and thrifts. Mortgage bankers were considered a third-tier lending source, specializing in government loans, and mortgage brokers, as an industry, didn't exist. Loans were the property of the thrifts, and the mortgage banker merely managed the loans for a service fee. Then a monumental event took place that shifted the mortgage banking industry from a group of small, independently owned firms to the mainstream of financial services: Wall Street and the Government National Mortgag...See the full content of this document
Sponsored links
