Two Sides Of The Mortgage Crisis

: Chris Lee Law Firm

  Filed under: Mortgage

mortgage crisisWhen we think of all the damage done by the mortgage crisis and foreclosure troubles, we focus on the homeowner and how it has affected so many families. At times, we may allow our thoughts to drift to the lender and how the mortgage mess affects them and, ultimately, comes back to impact the borrowers. While both sides of the coin are equally important in terms of evaluating the damage done to the market, there are two other sides that rarely get considered.

Shareholders and Consumers

Several big lenders have shareholders who have already lost quite a bit over the years. Bank of America shareholders have lost 40 percent in revenue due to falling stock prices in the last 12 months alone. Shareholders have become increasingly concerned about the effects the foreclosure crisis may continue to have on the company, especially after the billions lost in legal settlements and loan losses. Principal mortgage write downs, additional loan modifications and other proposed industry solutions have many shareholders weary of the future.

Bank of America held an annual meeting yesterday to review the lender’s performance thus far and review predictions for the remainder of the year. One thing was different about this year’s meeting, the shareholders fighting their way through a crowd of consumers protesting outside of the meeting. Even consumers who haven’t experienced a foreclosure first hand are becoming increasingly outspoken about the state of the mortgage industry and their concerns over its future. Potential buyers are shying away from new mortgages, as the fear of subprime mortgages continues to scare away the very people who can help the market recover.

 

 


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