Given the home price spike seen in the past 18 months, many distressed borrowers have enough equity to sell their homes rather than face foreclosure. Still, previous practices suggest that a notable share of borrowers with strong equity positions will go through foreclosure.
Less than 30% of younger recent homebuyers report feeling that mortgage lenders are “trustworthy and reliable.” Millennials and Generation Z also are heavily reliant on the internet to fill gaps in financial education.
UWM accepted six mortgage payments with cryptocurrency before ending the pilot program; closing costs increased in the first half of 2021; Fannie strengthened underwriting standards for condos and co-ops.
Changes implemented in response to the financial crisis of 2008 helped the MBS and ABS markets perform better than expected at the onset of the pandemic.
Many lenders have increased their GSE loan limits nearly three months before new official limits come into play. Originating the loans, though, between now and the end of the year isn’t going to be as simple as lenders think.