On the wagon.

Mortgage borrowing online has really come of age in recent times. No longer are mortgage Web sites mere glorified advertisements for lenders. And no longer are they just rate-shopping destinations for the very young and curious--as opposed to serious homebuyers. The numbers prove that the online channel in today's market is for real.

Take, for example, the statistics compiled by Mortgagebot LLC in its yearly study of the online lending sites of its customers. The Wisconsin-based company maintains nearly 4,000 consumer-direct mortgage Web sites for roughly 750 lenders nationwide. Mortgagebot's Benchmark 2007 study found that in 2006, fully 50 percent of the loan applications submitted online through its members' sites came from consumers aged 40 or older. Surprisingly, a tiny group of 70-year-olds was out there submitting loan applications over the Web as well, the study found. Admittedly it was only 1 percent of the total, but that's still pretty amazing. An article this month titled "Jumping on the Online Bandwagon," by Scott Happ, co-founder and chief executive officer, Mortgagebot, showcases more of the study's findings.

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This month we also hear from two influential lawmakers, including the powerful chairman of the House Financial Services Committee--Rep. Barney Frank. In a recent interview with Chairman Frank, we hear about the legislation he has introduced to curb abusive lending practices and bring tighter regulatory oversight to the mortgage market (H.R. 3915). The legislation passed the House on Nov. 15. We also feature a Newsmaker interview with Rep. Paul Kanjorski, chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. Chairman Kanjorski has introduced his own legislation, called the Escrow, Appraisal, and Mortgage Servicing Improvements Act (H.R. 3837). Both lawmakers share their views on problems in the current mortgage market and the practices that have contributed to the situation.

We round out this issue with the second article in our series called the Small Lender Survival Series, with strategic advice for surviving mortgage market downturns. The article by Matthew Lind, of STRATMOR Group, provides valuable tips that could help small lenders survive the next two years. Who knows--maybe an efficient, low-overhead, properly supported Web channel could be the ticket to survival for the lean times ahead. And that advice may apply to both big and small lenders alike.

Janet Reilley Hewitt

Editor in Chief