Mortgage Lenders and Mortgage Brokers Face Troubling Times

The mortgage industry has been seeking to extricate itself from the quicksand it has been mired in since last year. However, it is in this year and in recent weeks that the mortgage industry, including mortgage lenders and mortgage brokers has been hardest hit. Huge companies like American Home Mortgage, Ameriquest Mortgages, and Countrywide Home Loans have faced the brunt; the first two have gone bankrupt. Thousands of mortgage lenders and mortgage brokers are out of a job.

As the anxious housing market looks for a safety net, so does the mortgage home loan market. The subprime mortgage crises have led to disastrous consequences for Wall Street as well. Recently, two Bear Stearns funds worth over a billion dollars, invested heavily in risky mortgages lost over 90% of their value. The home loan crisis has even affected the stock markets overseas.

There is complete agreement amongst various experts that something dreadful has happened in the mortgage arena, but they disagree to the extent the mortgage crisis will last. Major brokers and mortgage lenders are already in 'crisis mode.'

The crisis is only deepening day by day as mortgage lending standards have become stricter, oversupply of homes, lessening interest in home buying, rising foreclosures, increasing defaults on mortgages, and Wall Street investors fleeing mortgage-backed securities. Due to higher interest rates, a homeowner is not even performing a mortgage refinance. Mortgage Lenders and Mortgage Brokers Face Troubling Times

GimmieTheScoop.com