...*MORTGAGES:Secondary mortgage markets -- the investors who buy up home loans and provide lenders with cash -- should be back on their feet a year from now, forecast Raphael Bostic, Lusk's associate director.
During the credit crunch that hit last summer, financial markets "experienced an almost immediate shutdown of the secondary markets," Bostic said. When will it end?
"It is not conceivable that the secondary market will be in this state a year from now," he said. "The regulatory structure will be in place to create certainty and stability to re-engage."
But not to the same extent as before the 2007 subprime meltdown. Such products as negative amortization loans -- in which loan balances get bigger over time -- won't be around, Bostic said...