Noted home builder KB Homes is getting out of the mortgage business after spending 40 years in it.
"What drove our decision is that the mortgage business has changed dramatically, whether in the competitive nature or in the system and technology that has to be as efficient as possible.
"As a homebuilder, we just aren't quick enough to keep up with it."
And apparently they cannot follow the rules either. In this LA Times article KB Homes has to pay 3.2 million dollars for violating FHA lending laws.
More consolidation in the mortgage market place in California is on the way. In order to sustain the housing boom, mortgage lendors need to get a lot more creative about their practices. As they have already loosened credit standards, we will see more innovative products such as 40 year fixeds or a 3/2 arm.
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