In our ProSchools 20hr SAFE course
we have an instructor assignment which involves reading about the disastrous sub-prime crisis of 2005. It is very important reading since it covers what went wrong in our industry at that time.
Here is a superb article that sums up what happened after
the implosion and I think every student in our course would benefit from this knowledge.
This article was published in the “National Mortgage Professional”
and was written by Mark Greco, the owner of a mortgage business in Austin, TX. He presents an interesting chronology of what was going on both politically and economically in our industry between 2008 and 2012.
Persons who are new to the mortgage business will find this very informative, and it will help them understand what the rest of us were going through at the time.
The article also addresses the differences between wholesale and retail channels of origination. This is food for thought when choosing whether you want to work for a bank or a broker, and the advantages or disadvantages of each.