A view from the Cheap Seats; One Mortgage Broker's Opinion on the current Market

Hi all,

Tom Purcell here - The Mortgage Pulse blog. Also, please check out my Blog at LowRatesOnline.net/Blog. I try to post every week or two and

write about current real estate and mortgage topics of most

interest and relevance to what's going on out there in the "trenches" the real world. From the Mortgage (insider) Brokers perspective. It's not always what the "media" tells us it is!! They'd like to start and end the blame of the sub-prime mess (media term) with the Mortgage Broker, Mortgage Banker, when in fact the reality is it should be the reverse pyramid effect.

Wall ST. Investment Banks created the market thru investment vehicles they created! They packaged and sold Mortgage-Backed securities all over the Globe. Then when the Air ran out of the Balloon and the party was over (bonds turning to junk status), fingers started pointing to the originators in the trenches. Now do not get me wrong here- their were a lot of Bad Apples filling up the Mortgage Broker tree starting into this new millenium and All they did was sell Sub-prime. They never took the time to Learn the business and Offer Conventional 30 year fixed rates to the borrowers who Qualified for them!! That part Is the Broker and Mortgage Banker's fault!! Not training their people properly. Heck, a lot of shops didn't even ask for licenses! Those folks should be found and penalized to the fullest extent. And I do put some of the responsibility to the home owner or Home Buyer who didn't contact me at LowRateOnline.net for a 30 year fixed Mortgage Loan that they could've and should've gotten in the first place.

The good news is - The bad apples who jumped in to make a quick killing in sub-prime, have mostly all jumped or been kicked back off the now 3 wheeled mortgage loans band-wagon and bumpy real estate road we've experienced for the past year to 18 months. I personally feel the lenders will all start loosening up guidelines in the next few months as the stats start to show some semi-good news. Basically that American's a slowly starting to dip toes back into the Home Buying waters. Well that's it for now, please send along your comments, thoughts, hopes, feedback.