Book Reviews

Our Lot: How Real Estate Came To Own Us

Alyssa Katz

2009

Published by Bloomsbury

The author addresses the subject of the Mortgage Market from a historical perspective. I particularly like this approach; the more detailed the better, as far as I am concerned. Ms. Katz defines the forces that have influenced the Mortgage Market: The Government, Wall Street, Mortgage Bankers, Bankers and Community Activists. In fact the book begins with well intentioned Community Activists wanting to help people get into better housing and home ownership. She describes how this group, with pure intentions, set into motion Government policies that would lead to the Mortgage Market Collapse in 2007 and then the Financial Implosion in 2008.

She concentrates on the Mortgage Market since the days of securitization and CRA (Community Redevelopment Act). She states that both of these events combined to set the stage for a real estate and mortgage collapse that is going to be with us for a good while. She is not so much blaming as she is educating the reader on the roots of Mortgage Market Collapse.

In addition, she provides a lot of facts that are really interesting and revealing. Here are two:

The Big Short

by Michael Lewis

2010. W.W. Norton & Co.

Mortgage Bankers and Brokers are pressed these days to act responsibly in favor of both their borrowers and their lenders-investors. The Federal Government has mandated it. Gone are the days of "If the Warehouse Lender will fund it, fund it."

Bankers and Brokers are in the financial industry and their knowledge and understanding of the financial markets is more important than ever.

Each month, I will review a book that I think might be helpful to you. A good writer to begin with is Michael Lewis. He is a graduate of the London School of Economics and worked for Salomon Brothers until 1987 at which time he quit to become a financial journalist.

His book, The Big Short, written in 2010, is written about our Mortgage Industry but from the perspective of Wall Street. It gives insight to the back end of the MBS and CMO part of our Mortgage Industry.