An Analysis of Innovations in the American Mortgage Banking Industry

Due to the numerous outside forces and factors which affect the housing and mortgage industry it is important to see the changes that have occurred in home financing to allow people a chance to understand and realize how the current market place affects them and their family. Since the 1960\u27s the average price of a home has risen from $15,000 to a current average of $100,000. In an attempt to keep up with this increase, private lenders have had to develop new products which allow people to purchase the home of their dreams. However private lenders are not alone, government backed mortgages have had to adjust to the changing times and meet current public need. With the advent of our computerized world the small mom and pop mortgage company is giving way to the corporate giants who, after taking quite a hit in the foreign market, are coming back to the small consumer. This includes banks and large institutional investors. It is believed that further deregulation in the banking industry will leave in its wake roughly fifteen to twenty national banks or institutions who will control the finances of the country