Market Drastically Altered in Past 14 Months

Market Drastically Altered in Past 14 Months

In prophetic comments delivered just over a year ago, Freddie Mac's chairman and chief executive officer warned mortgage bankers that too much capital was chasing too little product. Since that time, the residential subprime sector has unraveled -- destroying an industry that, during the past quarter century, had gone from the shadows of mortgage lending to the forefront. Losses, which have spread far beyond U.S. subprime lenders and have wiped billions of dollars off the balance sheets of international financial institutions, may continue into 2009. (Dec. 24)