Industry News

Sound-off on subprime mess

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Editor's note: The following excerpts on the subprime lending mess and home financing are from this week's Inman News Blog. A lot of provocative opinions and dire predictions surround the events taking place in the subprime mortgage market. Join the discussions at the Inman News Blog by clicking on the discussion links under these posts. (To read more about the subprime lending collapse, read the four-part Inman News special report, "Subprime Tsunami.") Opinion: Overreaction or cleaning out the system? Financial scandals follow a predictable process. Here are my predictions for the subprime mess: 1. A period of unraveling as bad news accelerates. More sunshine will be cast on the industry from unqualified brokers, fraud to institutional enablement. Some big names will be drawn into the mess. 2. Excess by industry executives will come out: parties at the MBA confabs, sales meetings and other functions. CEO gains will also be exposed. 3. Congress will hold hearings. 4. Wall St. will retr...