More Mortgage Company Mergers On The Horizon

Look for more mergers of mortgage companies as the rising costs and increasing liabilities of the compliance monster, along with continued pressure on existing earnings models makes “going it alone” an unattainable option. In addition net worth requirements, to keep a seat at the investor table, continue to rise. Once upon a time, the mortgage banking industry was a private practice between mortgage lenders, bank and insurance company investors and the GSE’s.  Now, the proverbial government gloppity, glop regulation machine, under the premise of protecting its' citizens, has, once again, overreacted to what was a temporary aberration of excess. A blip which occurred, but once, in the 80 year history of the mortgage industry.  I maintain that over compliance has caused more strife and put more costs on the consumer than the value of problems it has resolved.  Wouldn’t it have just been easier to put Angelo and his Wall Street cronies, who devised, marketed and sold those toxic mortgage programs, in jail?  Then, after replacing those avarice driven CEO’s of the GSE’s and withdrawn their golden parachutes for cause, we could have gone back to the mortgage industry as it was and had been. A noble partnership between the private and public sector, which housed this country.