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According to the November 2015 Freddie Mac Multi-Indicator Market Index, the MiMi (don’t you just love these acronyms?), housing markets across this nation are doing quite well (MiMi).
This report indicates that most markets are improving thanks to better employment and current mortgage payment trends.
In November, the MiMi index increased to 82.5. This is about 39% higher than the low point in October 2010. The index has risen more than 7% over the past year. This bodes well for mortgage lenders.
Even with the recent Fed rate hike, mortgage rates are still at all-time lows. With the FHA premium cut, and the GSEs 97% financing options, low down payment loans are readily available.
Potential first time home buyers, like the millennials, who have a steady income, with the lower down payment required, can now qualify for the financing needed for them to buy instead of rent. More first time buyers mean more move up buyers.
Are lenders gearing up to service these buyers, or are they bogged down trying to cope with TRID? Will the increased time and costs associated with the TRID rules have an adverse effect on this recovery? Hopefully not, but only time will tell.
I’m optimistic. I believe that mortgage lenders will do what they have always done in the past. Lenders will figure out what they need to do to comply with TRID, and minimize its effects, so they can get back to the business of lending money to help homebuyers. That will help continue the housing recovery. Because that’s what mortgage lenders do.
Opportunity is knocking. Can you answer or are you mired down in trying to meet the new compliance requirements? Lenders should concentrate and do what they do best – lend.
To ensure this is done right, and the loans perform as expected, it’s important for lenders to carefully monitor their loan origination, approval and closing processes. This can be done through comprehensive pre and post-closing reviews conducted monthly in-house, or via the use of an outsource QC vendor.
Either way, Loanlogics can help with our audits services, or LoanHD QC platform. Lenders do the lending and leave the compliance to us.
It’s lending time…
