Breakdown of the Mortgage Supply Chain
Executive Summary
This report reviews the current financial crisis by looking at the lack of quality management through the mortgage supply chain. The crisis represents a failure of proper regulation and visibility throughout the mortgage supply chain. Only careful management of these quality issues through all financial institutions and through all aspects of the financial supply chain will remedy the past issues. This is a difficult task but not impossible. This report will discuss each section of the mortgage supply chain and how the weaknesses in the integration caused the financial crisis. Proposed legislation will be explained in detail. Several recommendations will be proposed, both short-term and long-term, which I believe are necessary to resuscitate the mortgage industry through supply chain integration. The recent “Dodd-Frank Wall Street Reform and Consumer Protection Act” which was signed by President Obama will be discussed as it applies in the mortgage supply chain.
Mortgage Supply Chain Introduction
As this report is being written the economy is attempting a massive recovery. Economic recovery, as positive as it sounds, will not immediately resuscitate the mortgage industry. The lending institutes are still facing several years of increased foreclosure and delinquency issues. Needless to say, mortgage loan origination will not be going back to the “old way” of doing things anytime soon. (Focardi) One would hope that lessons have been learned that will never be forgotten. H.L. Menchen summed it up when he said, “Nobody ever went broke underestimating the intelligence of the American public.” (Zipkin)
The entire mortgage industry has changed from, “Don’t ask, Don’t tell:” to a “Zero tolerance, Zero defects.” (Focardi) As more information becomes available regarding the mismanagement of the mortgage supply chain new changes are being implemented. These changes will take many years to effectively realign the inconsistencies upon
This report reviews the current financial crisis by looking at the lack of quality management through the mortgage supply chain. The crisis represents a failure of proper regulation and visibility throughout the mortgage supply chain. Only careful management of these quality issues through all financial institutions and through all aspects of the financial supply chain will remedy the past issues. This is a difficult task but not impossible. This report will discuss each section of the mortgage supply chain and how the weaknesses in the integration caused the financial crisis. Proposed legislation will be explained in detail. Several recommendations will be proposed, both short-term and long-term, which I believe are necessary to resuscitate the mortgage industry through supply chain integration. The recent “Dodd-Frank Wall Street Reform and Consumer Protection Act” which was signed by President Obama will be discussed as it applies in the mortgage supply chain.
Mortgage Supply Chain Introduction
As this report is being written the economy is attempting a massive recovery. Economic recovery, as positive as it sounds, will not immediately resuscitate the mortgage industry. The lending institutes are still facing several years of increased foreclosure and delinquency issues. Needless to say, mortgage loan origination will not be going back to the “old way” of doing things anytime soon. (Focardi) One would hope that lessons have been learned that will never be forgotten. H.L. Menchen summed it up when he said, “Nobody ever went broke underestimating the intelligence of the American public.” (Zipkin)
The entire mortgage industry has changed from, “Don’t ask, Don’t tell:” to a “Zero tolerance, Zero defects.” (Focardi) As more information becomes available regarding the mismanagement of the mortgage supply chain new changes are being implemented. These changes will take many years to effectively realign the inconsistencies upon
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