Regulatory reforms initiated after the 2008 financial crisis seemed to work as intended during the COVID-19 downturn, according to participants at the ABS East conference.
If not for the surge in originations and refi income, the delinquencies and defaults seen this spring could have caused some mortgage companies to fail, according to Federal Reserve Governor Michelle Bowman.
Only one bank said it “very frequently” offers a reduction in interest rates or principal owed, according to a recent Federal Reserve survey. The most frequently offered relief option for portfolio loans: payment deferrals.
As originations surge, the mortgage employment picture continues to brighten — that's good news for the rank-and-file but potentially bad news for the C-suite.