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David Lykken, Mortgage Banking Solutions managing partner, on why people may have a harder time getting a mortgage, plus why MetLife is getting out of...
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Mortgage applications up last week and interest rates still -- At these historic lows but still housing is not coming back to strongly not a market -- -- -- new -- MetLife is pulling out of the mortgage business my next guest.
Is -- more companies will follow so getting -- -- will get potentially tougher.
-- look at it is from the mortgage banking solutions and -- right now David what does this mean.
If you're players ultimately are in the mortgage business does not make it harder for folks to get mortgages.
There's lots of lenders still out there we hate to see this announcement about met life getting out of the business.
But it's understandable in the -- what the point that what the backdrop behind this whole story.
Is the billion dollar lawsuit the US attorney's office launched against -- -- bank in May of this year.
Any lender that's in this business and that that that admit that mortgage banking is not their core business deal.
There -- -- they go why stick around in this litigious environment.
-- -- too much exposure by the way it's not such a bad idea for people are tangentially related.
To that business to get -- I mean when.
When Danny started offering mortgages -- -- that wasn't a move in the block direct about.
But but that yeah that you know what is it like everybody remember it was like here's Joe's mortgage company -- Dell was giving mortgages so.
Not not comparing to giant insurance companies to them but.
They were doing things that may be if we look back to the Glass-Steagall days that should not have been -- And -- and the main needed -- -- -- business purposes on it did -- debt is best sense to stick to your knitting understanding insurance.
Aren't so is that all bad.
Well eight we got to have a healthy housing industry we gotta have a healthy mortgage industry to have a healthy.
Housing industry -- so.
We got him that the litigious slates nature of our environment that we're living in as a mortgage lenders mortgage bankers bankers anyone in the financial services -- as a related to housing.
That is not get.
And we've got to get this settled back and dial back but there is some good news out there -- on a couple fronts.
As relates to you know with the news and MetLife heading out we've got guys -- -- -- The father the mortgage backed security just made an acquisition along with he and a number of other individuals.
In -- -- underpin financial this is a significant development went -- the father of the mortgage backed security is coming back into the market and making a significant investment.
That name along with Wilbur Ross just made an investment in Cunningham mortgage just bought that -- It's really just read my question -- is this what you should be word because I think housing has -- to turn around.
Which is reason I think -- -- -- just to just get out of your bonds now but.
I see that that did that -- that anecdotal evidence -- follow the Wilbur Ross and you just alluded so I don't think this net development isn't significant sort of anecdotal development.
For more and more of this stuff that I and I'm beginning to wonder.
Not so much whether it's happening -- I'm convinced it is I agree would you.
I guess my question -- you is the expert here is how long it takes to start really picking up.
We are speaking all over Florida -- -- Florida mortgage bankers' association are not doing this talk right now it's two to five years before riskiest sustainable.
I mean a real significant climb out of this ditch we've got so much inventory out there deal that we have to go through it's still the law supply demand we've got to get to that supply how long -- -- -- record -- -- anti.
Two to five years to cook I'm that happy note.
-- -- -- you David thank you very much had to be with you thank you what do you want to --
