Mortgage Industry Update
What is Happening:
Simply put, the industry is in crisis. The reasons being are mainly two fold. Lenders are hesitant to lend because there is no visibility into how many Americans will be unemployed and how many will not be able to make their mortgage payments in the foreseeable future.
How this affects your business:
Lenders are not willing to take on risk if avoidable which has resulted in the cut of many non- traditional loan programs, tightened guidelines on others, raised minimum credit scores, added reserve requirements and raised interest rates at times to make loans unattractive. This means less of our buyers will qualify. Anyone wanting to borrow that isn’t perfect and for the most part guaranteed to be employed will have a tough time getting home financing.
Challenge:
Our challenge is to find and add a wider variety of loan programs in this environment to meet the needs of more buyers until the market returns to normalcy. To help the lower credit score, first time home buyer, Jumbo borrower, lower down payment and the cash out refinance consumer which is now being constricted.
Solution:
We are mortgage brokers which gives us flexibility to be approved with hundreds of lending institutions. We’ve been in business for 31 years with strength and stability which allowed us to get approved with lenders within days to offer non-traditional loans, self employed, lower credit score and lower down payments, cash -out refinances and the under served. In addition we have some great Jumbo Portfolio loans too with interest only options to keep payments down in this time of crisis.
It's more important now than ever to keep your clients informed. Providing them with the right information will help enable them to make the best decisions for their families. We are here to help you do so. If you have any questions, please don't hesitate to reach out. We're all in this together and we're here to support you any way we can.
Stay well,
Scott Osder
818.590.2265