Salt Lake City, UT / February 1, 2008 / Press Release / --  As regulators, politicians and rating firms signal the doomsday of the mortgage industry, big name lenders hoping to stay afloat are seeking light from a different tunnel - "Mergers and Acquisitions".  The most recent example comes on the heels of talks between Countrywide Financial Corp., and Bank of America Corp. 

Those close to the potential talks of the two say that regulatory fear has brought the two together in addition to Countrywide's need to remain liquid as the housing turmoil heats up.

But what about other lenders that have found that their source of funding has all but dried up and the ease that once existed for the new channels of cash flow gone by the wayside?

For short-term relief, some lenders are turning to industry giants Fannie Mae and Freddie  Mac in hopes of raising short-term borrowings that would be guaranteed by the two government-sponsored investors.  Senator Schumer who has played a pivotal role in the revitalization of the housing market wrote to 12 Federal Home Loan Banks in November 2007 with hopes of expressing grave concern of national lenders taking on more debt that could prove disastrous should the housing debacle continue to erode banking's safety and soundness mechanisms on the whole.   

Still lenders that have high anxiety over what the months ahead will bring are remaining vigilant in their quest for additional funding sources without addressing what may be pivotal for the future of their success - SOP. 

Quality control SOP's for loan origination for many lenders has remain hidden on the shelves behind years of cob webs and dust but now may be the time to institute spring cleaning.  "Financial Institutions that have reached out to us are concerned about their balance sheets remaining financially healthy," says Sheri Fitzpatrick CEO of Perfect Home Living.  "The biggest threat we see to healthy balance sheets is fraud within the real estate transactions themselves and until we get that under control, lenders are going to continue to find heartburn within the housing market," Fitzpatrick continued.

Fraud within loan origination is certainly on the rise and on the radar of federal authorities.  "Greed is definitely not good for our economy right now," said FBI's top criminal investigative executive Ken Kaiser.  "It's hurting homeowners.  It's hurting honest businesses.  And it's hurting investors and markets around the world."

So while some may see this as a national problem, regional lenders as well will now begin to witness proactive initiatives by government and private sectors in removing criminal elements of the lending process that extend into the housing market.  U.S. Attorney General Offices across the country in conjunction with other government agencies such as the SEC will push forward in scrutinizing transactions where fraud has remained hidden to stop cycles of fraud before transactions become muddied by eventual mergers and acquisitions. 

"What can happen at the national level can certainly happen at the regional lending level and sometimes with greater ease." says Fitzpatrick.  "At federal and state level we have the talent and resources to address wrongdoings of financial transactions especially where real estate is concerned, now its time to put those resources and talents in motion," Fitzpatrick continued.  

About Perfect Home Living 

Perfect Home Living is a nationally recognized leader that assists in implementing programs and providing training and education to financial lenders , government entities, consumers and licensed professionals to red flags within today's  real estate market.   For more information or to request assistance please visit us online at:  http://www.PerfectHomeLiving.com