Mortgages: a wild struggle for survival; with volume shrinking at an alarming rate, overstaffed lenders have searched for recovery - and shrinking margins - with a variety of new or recycled products

Lenders are trying to boost mortgage volume by marketing innovative products such as reverse mortgages, subprime lending, and 125% loan-to-value models. In addition, lenders are targeting consumers who may not realize that they could qualify for a home loan. Lenders are also exploring the Internet as a medium for consumers to initiate mortgage originations.
In 1993, the home-loan industry generated more than $1 trillion of mortgages. In 1994, the figure was down to $775 billion, and last year volume was an anemic $690 billion. [...]