Florida Mortgages: We Need to Be Weather-Proofed

I’ve been meaning to write about this great post by Holden Lewis of Bankrate.com because he serves up a tremendously appropriate analogy about today’s mortgage financing system and how it’s just not designed for stormy weather. I’m not an advocate of change for the sake of change, or having an itchy trigger finger when it comes to responding to situations…see HVCC, THE quintessential over-reaction almost ever…

Florida MortgagesBut putting shock absorbers into place that can move when the market fluctuates gives us the infrastructure that will get us the farthest. In the mid 2000’s, we travelled to an insanely crazy place in this mortgage industry where the contest at that time seemed to be that the Florida mortgage lender who could ask for the least documentation and the smallest shred of evidence that a borrower was a low risk candidate would win the day. But we all know who lost on those deals; the unassuming buyers who were blinded by the American Dream and smarmy sales talk.

At the end of the day, since “Those who cannot remember the past are condemned to repeat it” (George Santayana); when things are at their most tenuous, we need to right the proverbial ship and identify on the map exactly where this Bermuda Triangle we call a housing market is and never go back once we find our way home.

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