Report: subprime mortgage effects likely to continue
Storm clouds will persist over the subprime mortgage market, according to a report out today from Aite Group LLC.
The Boston-based advisory firm focuses on business, technology, and regulatory issues and their impact on the financial services industry.
Although it is still too early to know how all the issues will play out in the subprime mortgage market, Aite Group said it believes that likely scenarios include pressure from all sides that will lead to tighter mortgage underwriting; lenders continuing to exit the subprime market; opportunities for lenders committed to the market; and regulators and legislators acting on both state and federal levels.
"There is little debate that mortgage industry practices have created ill effects for lenders, consumers, and the economy as a whole," Eva Weber, the Aite analyst who authored the report, said in a statement. "The question now is when the fallout from these practices will dissipate. The unfortunate answer is that things may still get worse before they get better."
(By Chris Reidy, Globe staff)
