As the music group The Talking Heads famous song says “Same as it ever was ….. ”

One of the main cogs of the 2008 financial crisis was the exotic home loan products to assist consumers to purchase “more” home then they would originally be qualified for or have the capital to qualify for the loan.  This repeated cycle contributed to the increase in home prices and paper gains for many individuals.  As this housing bubble grew, so did the individual home owner’s risk.  Eventually, the bubble bursts and left many home owners with sizeable debt and without the means to pay for it as the entire economy hurt the income of many home owners.

As the reduction of the down payment from 20% to 3% becomes a standard, the real question is whether the market returns to its pre-financial crisis practices and policies to generate revenue.  In the past year, lenders issue a record low of $1.12 trillion in mortgages for 2014.  This is down 39% from the previous year and the lowest since 1997.  Clearly, the banks do not want to allow for this trend to continue.   This is a good time for the financial auditors and regulations to continue its strict review of the banking practices from mortgages to verify the market will not experience another financial bubble as in 2008.

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Gary Kapanowski – Lean Six Sigma Master Black Belt – Excelsior

The following blog is the opinion of Gary Kapanowski and  It is the sole intent to broadcast this opinion from Gary Kapanowski and exclusively and not to reflect on any other institutions or organizations associated with Gary Kapanowski or

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