Residential Mortgage Madness
Where do we go from here?
Over the last three years there have been many unexpected bumps, diversions, and setbacks in the U.S. residential mortgage market. While the situation is stabilizing, the market has yet to demonstrate growth, leading to considerable speculation about its near- and long-term viability and resulting impact on the U.S. economy.
The residential mortgage market’s recovery is being challenged, in part, by a vastly changed regulatory and legal environment in which banks, Real Estate Investment Trusts (REITS), and private entities are transacting deals.
The review concludes that the industry’s internal control environment — risk/compliance management, vendor management, and MIS infrastructure and reporting — was not as rigorous as regulators wanted it to be. Subsequent enforcement actions and consumer protection mandates have been shaking these banks and mortgage operations to their core, prompting them to significantly rework procedures across their mortgage products’ lifecycle.
On May 10, Deloitte, in collaboration with Bloomberg Television, hosted its 2nd annual Distressed Debt & Assets Symposium at the New York Athletic Club. The event brought together top executives and industry specialists from the U.S. capital markets for presentations and informed discussions on the state of distress in the markets, as well as provided an excellent opportunity for the sharing of insights and the exploration of new ideas. This article includes content from the DDAS panel discussion “Residential mortgage madness: Where do we go from here?