Loan limits will likely go up to $625K in 2022, but FHFA hasn’t announced it yet. Still, higher home values have convinced some lenders to boost loan limits now.WASHINGTON –
Risky Loans From Housing Bubble Era Resurface ☘ Hoey Team ☘ eXp Realty Florida
Dated: July 14 2019
Mortgage products that haven’t been widely used since before the Great Recession are making a comeback. The volume of loans with alternate documentation has more than doubled in the last two years among loans included in mortgage-backed securities, according to a report from Fitch Ratings.
The alt-doc loans have performed well since the housing crisis, but Fitch analysts say they’re still concerned about the uptick. “Although alternative document residential mortgage loan products that were introduced in the U.S. after the financial crisis have performed better than our expectations, we maintain a cautious approach to these loans because of their limited history,” Fitch analysts noted in the report.
One such no-income, no-asset mortgage program called the Agency NINA was recently announced by the 360 Mortgage Group. It does not require borrowers to prove their income or assets to be approved for the loan. The loan program is available to investors, not owner occupants.
These riskier loan products are appealing to borrowers who may be unable to qualify for a loan using traditional underwriting due to, for example, high personal debt-to-income ratios.
So far, the loans have been performing better in recent years due to the Ability-to-Repay rule and other protective measures that have taken affect since the housing crisis, Fitch notes. The Ability-to-Repay rule, “combined with increased third-party due diligence and improved alignment of interests with issuers, have all contributed to better than expected performance,” Fitch notes in its report. But when the housing market cycle turns, the industry will need to be prepared. The agency concludes: “Fitch will likely need to observe continued strong performance over a longer horizon before making any significant changes in its approach to the programs.”
Article content from Realtor Magazine
Also; please check out the other blogs, and tabs to many other different Links, Updates & Reports that we have here on our informational website. ☘
"We hope that you find the information useful. If you have any questions, please do not hesitate to contact Kim or Barry with the Hoey Team, email us at Barry@SWFLLuxury.Com or KimZuponcic@Gmail.com or Call/Text the Hoey Team at: (239)-360-5527
Please Share this Page with anyone who you think the info will help. Feel free to refer any family or friends; it is the greatest compliment that you can give to us; we really appreciate referrals, and we will help in any way we can. Most of our business is referrals by word of mouth from past Sellers and Buyers who we have helped; please ask for and check out our testimonials. Thanks, Barry & Kim"
"Your Real Estate Concierge" If you are looking for a REALTOR® or one-stop Real Estate Team who will fully communicate; promptly, professionally, and in detail with you, to efficiently help you wit....
Latest Blog Posts
A price increase of almost 20% year-to-year is unheard of – until now. Home prices hit record highs in 19 of the 20 cities included in monthly Case-Shiller reports.WASHINGTON (AP) ;
Today’s market isn’t like the boom-bust cycle leading up to the Great Recession: Tough loan standards are the norm, plus many factors have kept housing supply low.MCLEAN, Va. –
Hello,Barry & Kim with the Hoey Team 🍀 239RealEstateDeals.Com LLC ☘ hope that you and yours are doing good; wherever you are located at this time.Hot off the press