Chinowth & Cohen's CEO Sheryl Chinowth wrote an wonderful article for the Tulsa World's Viewpoint section about the housing market still needing federal support.
"The mortgage industry's lax underwriting requirements allowed for less-secure mortgages, and the focus became the up-front profits of selling these pooled mortgages. Through securitization, the loan originators were separated from the risk of the loans they were writing. All of this played a large part in the mortgage banking crisis and led to the takeover of Fannie Mae and Freddie Mac by the Federal Housing Finance Agency, an action that was described by former Treasury Secretary Henry Paulson as "one of the most sweeping interventions in private financial markets in decades. Why is all of this so important? Housing creates jobs. Housing accounts for more than 15 percent of the Gross Domestic Product, or $2 trillion. For every 1,000 home sales this year over last, about 500 new jobs are added to the economy. And jobs are critical to the nation's recovery."
To read the entire article CLICK HERE.
