A new survey conducted by the Turnaround Management Association (TMA) indicates that most survey respondents believe the housing sector—particularly homebuilders— will face the most turmoil in 2008.

Turnaround Management Association, a nonprofit specializing in corporate renewal and turnaround management, says in its annual Trend Watch Poll that 62-percent of survey respondents predict homebuilders will experience the most financial and operational difficulties in 2008, while 35-percent believe mortgage lenders will feel the most heat.
The survey also concluded that 32-percent of respondents believe residential loan origination and servicing companies will have to deal with the most distress in 2008.
“Mortgages are the most visible part of this iceberg,” said Tom Henderson, an attorney who serves as chair of the Turnaround Management Association. “What started in the subprime mortgage market is likely to infect the entire spectrum of securitized lending products that have become common in the markets over the past several years. The unanswered question is whether this credit-induced trauma is coming to an end, or just beginning.”
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