Atlanta Quote Blog
Mortgage Crisis in Atlanta Initiates Discussions with Finance Executives
Richard Dorfman, Phillip Humann, Dennis Lockhart and Martin Flanagan met recently to discuss the mortgage crisis being experienced in the Atlanta area. All of the panelists agreed that the subprime mortgage loans caused a lot of damage to the market. Flanagan emphasized...
the cheap credit extended to homebuyers that caused the subprime meltdown wasn't limited to housing...mortgages were just the first to go bust, and even more conservative lenders were impacted.
Another purpose of the panel was to determine the financial future of Atlanta's home mortgage lending. Although a good prediction of the market wasn't made, the panelists, like Humann of SUnTrust Banks Inc., admitted that they "recorded millions of write-downs in so-called Alt-A mortgage loans, which are low or no-documentation loans aimed at more credit worthy borrowers.
"Some of us tip-toed into Alt-A," Humann said. "But those also fell into the category that nobody told the truth."
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