Agent

Big-name lenders come tumbling down

Top real estate story of 2008

The real estate event of the summer
Connect with other top producing agents at Connect SF, Aug 7-11, 2017

What is the top real estate story of 2008? Fannie Mae? Lehman Brothers? Washington Mutual? A year ago, we discussed how the excessive extension of credit that led to defaults, foreclosures, home prices and more expensive mortgage money was the most talked-about story of 2007. Everyone in the home buying and refinancing process was complicit, including brokers, bankers, securitizers on Wall Street, wide-eyed consumers and real estate agents. Clearly, lenders made loans far too available, bowing to the pressure of Wall Street funds willing to securitize any instrument secured by a home. Yet home buyers and investors did not use caution. While genuine buyers determine what they can afford by measuring their borrowing costs against their income, many others were blinded by the dollars signs of potential appreciation and stretched themselves to the maximum. This year, the demise of the once-revered players who extended that credit is the story of the year. The big names have c...