This housing boom was different in many ways, starting with how the actual mortgage loans were made. Time was you went to Jimmy Stewart and the local Building and Loan and, if the bank’s lending officer smiled upon you, you got a loan. No more. Banks decided the “overhead” of employing mortgage reps was too expensive, so they increasingly outsourced the origination to a new generation of independent mortgage brokers who were, basically, paid for “piece work”—getting a commission on each mortgage loan they brought to the bank.
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