Several borrowers are opting for mortgages with balances right at the conforming loan limit even though interest rates on jumbos are often lower. Relatively tight underwriting standards for jumbos look to be the cause.
If the mortgage industry doesn’t change the way flood risk is assessed, lenders could begin to “blue-line” certain areas, refusing to lend due to unacceptable flood risk, according to a paper published by the San Francisco Fed.
Fitch is including environmental, social and governance relevance scores as part of its ratings of securitized products. The scores help assess sustainability and ethics though they aren’t a major factor in credit ratings.