Chalke, president of Mortgage Harmony Corp., has written an op-ed about the "disposable" nature of today's mortgages and why he thinks loans need to be more "durable."
Something's not quite right in the mortgage business. I'm not talking about the obvious relaxation of underwriting standards in recent years (now corrected a bit too much), but something deeper-something fundamental to the business itself. During the past 20 years, the residential mortgage has become disposable. The consumer keeps a product only as long as it remains fashionable and rates don't move too much. Should product trends change or rates move, borrowers toss their mortgage aside like an old suit and obtain a new one. We all know this, but the fundamental issue continues to fester.
