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Mr igor lemberskiy Mortgage Industry: Past and Present Mortgage Industry: Past and Present There are many branches in the Finance Industry and one of those branches
Submitted by flexxjr13 on April 20, 2008
Category: American History
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igor lemberskiy
Mortgage Industry: Past and Present
Mortgage Industry: Past and Present
There are many branches in the Finance Industry and one of those branches is the Mortgage Financing Industry. Even the average person who does not know about the Mortgage Industry has been exposed to it especially with all the press it is receiving right now. The mortgage Industry in the United States has really evolved throughout the decades. These changes have not only been technological but also structurally.
Originally Mortgage lending was started with national and state banks. These financial institutions were self-regulated and principally established to create a business relationship between government and private businesses. They were established to meet the public’s need but that was not the reality of things unless you had money.
Then came the savings and loans, which originated in response for the growing needs of the middle class. These financial institutions financed to members only and were government backed. They were the leaders in mortgage lending until commercial banks caught a break through government regulations. Commercial banks needed this break because up until then savings and loans were able to maintain their interest rates relatively low in comparison to commercial banks.
Commercial banks have dominated the mortgage financing industry up to the present. With the dominance of the mortgage financing by commercial banks the industry has shaped into what it is today. Commercial banks began transforming into commercial lenders around the 1980’s. This shift in their business focus resulted in the creation of mortgage brokers. Those commercial banks became commercial lenders turning their focus on wholesale lending because this would maximize profits for them. These lenders knew that they could finance these loans through mortgage brokers, which eliminated their need of dealing directly with the borrowers....
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