Mortgage Bankers Are Still Clueless

[CNBC.COM 2011-03-30] Mortgage Bankers Are Still Clueless

You would think that mortgage lenders would be chastened by the financial crisis and prolonged economic slump. After all, mortgage loans played a central role in the calamity from which we are still struggling to recover.

But you’d be wrong.

Based on my conversations and emails with people involved in the mortgage sector, they are still extremely confident.

They believe that they understand a whole array of things that the mortgage meltdown suggests they did not. Most importantly, they believe that they understand why borrowers default on their mortgages and how to predict defaults.

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