Mortgage Industry and Greed – when will it ever end….
I don’t find it surprising that the government is backing away from their initial $500 Billion+ proposal to buy back toxic assets to $125 Billion they are now proposing – they are coming to the realization that we must place this problem back to the private sector if we have any chance of making a real correction. The question I continue to have is why don’t these large financial institutions hire back the talent that is just sitting out there in the mortgage industry today to manage the process? Why is it that consumers, realtors, appraisers are having to speak with non-mortgage, contracted short-term employees to negotiate modifications, short sales, foreclosures, 2nd mortgage liens the list goes on? Buyers are being found for these properties but it’s such an effort to get them closed many professionals don’t even want to deal with it anymore. All this is doing is bringing real estate values down even further. Why does a borrower who wants to pay on their mortgage told that if you don’t pay your full arrears balance due you will go into foreclosure anyway – it simply doesn’t make sense. Why are people going to closing only to find out a 2nd mortgage on the property they are buying was sold and they have to go straight back to the negotiating table but now with a new party? If we utilized the management talent out in the market today from the thousands and thousands of lay-offs we would have people in place who know this industry inside and out. They could properly supervise and train staff, and pay for themselves in the monies they would save the industry. Why – it’s again all about greed. They are thinking short-term profit – instead of long-term gain. It’s a shame to not look out into the future and pay professionals what they are worth and create quality for the future of the industry.
For more information on the revised toxic asset plan check out the New York Times today… http://www.businesstimes.com.sg/sub/news/story/0,4574,341099,00.html?
