"The ratings agencies get a lot of blame, but even if the rating agencies transformed overnight and everyone had complete confidence in them, the problem is the global community has lost confidence in the quality of our data. We have to re-establish credibility in our appraisal process, the ability of our lending staff to verify income and assets; really, a rebuilding of underwriting fundamentals. Companies that have a true culture of quality will emerge as leaders, and will help bring back the secondary mortgage market."

–Jess Lederman, senior vice president and chief credit officer, Kinecta Federal Credit Union

"I don't think people who are foreclosing today will be out of the housing market forever, although they will be out for the foreseeable future, because those loans can't be sold on the secondary market. If credit unions choose to put those kinds of loans on their portfolios, that's a business decision for them to make, depending upon the member's situation. I really think when the housing market returns, say, four to five years down the road, and we've weathered the storm and guidelines have loosened back up a little bit, if a borrower's only blemish is a foreclosure, I don't think it will be an issue. If the borrower can show it was isolated, I think you'll see common-sense underwriting prevail."