How Is The Mortgage Investment Company Industry Faring?

To sum it up in a simple phrase, the mortgage investment company is still on the rocks.  The main reason for this is that while most companies were hit with one crisis, these companies were hit with two subsequent crisis period. From 2007 to 2009, there were two distinct financial crises. The first crisis was the sub-prime mortgage collapse. The second crisis involved all financial markets. Most companies were impacted greatly by the second crisis, however mortgage investment companies were severely impacted by both. Recovering from back to back financial blows is a difficult and slow process.

Recovery

Recovery may be painstakingly slow for mortgage investment companies. The beginning of the process will occur once borrowers begin to purchase homes and lenders provide credit. But that is only the beginning because many mortgage investment companies have been eradicated.  The economy will need to establish consistent economic growth for a number of years before investors can once again raise sufficient funds to recover from their financial crisis. 

Therefore, although economic recovery will start to show in other areas, mortgage investment companies will be the last to recover. Although they were the first to be hurt with financial meltdowns, they will not be the first to recover-but the last.

Mortgage investment companies are critical within our economy because they promote competition and drive down interest rates and fees. Without them, large institutional banks can charge whatever they want and there is no one left to act as a consumer advocate.

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