RESIDENTIAL PURCHASE LOAN TRENDS Residential Purchase Loan Originations YoY Pct Change

requirements, new laws and regulations and a hostile legal environment have combined to reduce the willingness of big banks to take on mortgage risk. “The Consumer Financial Protection Bureau (CFPB) pretty much crippled the mortgage industry,” said Whalen, author of “ Inflated: How Money and Debt Built the American Dream ,” a book on the history of borrowing in the United States. “The way that CFPB sees the world they want to make it impossible to do mortgages.”

“We are going to have a good year,” he said, referring the residential mortgage lenders. “The mortgage industry will probably do $2 trillion in business. But the industry is sick in terms of the back office. They’re not making money. They’re trading at half their book value.” “One of the untold stories of the social engineers (in Washington, D.C.) is to cut out one-third of the population from the mortgage market,” said Whalen. “I’m very concerned that you are going to see some failures.”

The Consumer Financial Protection Bureau pretty much crippled the mortgage industry. ”

Christopher Whalen Seniro managing director at Kroll Bond Rating Agency

Like Bove, Whalen believes the U.S. mortgage market has effectively been “nationalized.”

ATTOM Data Solutions • P8

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