Summary: Sherry Gallitz recounts her experience as a mortgage insurance account representative at Genworth Financial, which she characterizes as a cautious mortgage insurer. During her time at Genworth, Gallitz witnessed the emergence of new kinds of mortgage lending products, all designed to avoid having the borrower pay for mortgage insurance. Gallitz also discusses her experience at Taylor, Bean, and Whitaker (TBW), where she served as an account executive in the CBO (Community Banks Online) division. Gallitz describes TBW’s embrace of Alt-A lending (no or low documentation loans) and emphasizes the role increasing borrower demand played in facilitating the growth of riskier products in the mortgage market. Gallitz further discusses her work on compliance with affordable housing regulations, which included preparing loan officers to make required information available to borrowers and directing borrowers to mortgage education programs. Gallitz offers a definition of “predatory lending” that emphasizes efforts to take advantage of vulnerable borrowers and suggests that the government push for homeownership introduced new and riskier lending products. She believes many parties are to blame for the Global Financial Crisis and concludes by emphasizing the delicate policy balance between expanding home ownership and curtailing risky lending practices.
Biography: Sherry Gallitz attended the University of North Carolina at Charlotte, where she earned a bachelor’s degree in finance. After college, Gallitz served as a Business Analyst at Moody’s Investors Service, and later as a Regional Credit Analyst at JPMorgan Chase. After working at Northrop Grumman, GE Capital, and Genworth Financial, Gallitz spent 4 years as an Account Executive in the CBO Division at Taylor, Bean, & Whitaker, which notably sold loans to the now defunct Colonial Bank. After her time at Taylor, Bean, & Whitaker, Gallitz held positions at AmeriSave Institutional Lending and First Federal Bank of Florida. Gallitz now serves as a Senior Account Executive at Union Home Mortgage Corporation and is President of the Florida Mortgage Bankers Association.