There are several predictions as to what to expect in the lending industry as 2022 draws nearer. Here are some of the changes to expect as discussed briefly:

  1. A rise in Interest rates: Many sources, including the Mortgage Bankers Association, has predicted that there will be an increment in interest rates over the coming year, which may be higher than what has been experienced in the previous years.
  2. Increment in Housing Inventory: Many people feel that there is a housing shortage in the United States. However, many people bought homes for the first time during the epidemic because of low lending rates, while investors snatched up rental properties at a breakneck pace. As a result, we should see an increase in inventory available for sale as rates rise and purchasing slows.
  3. Rental loans keep up their stronghold in Mortgage lending: The need for long-term rental loans at reduced interest rates was one of the more recent trends we saw emerge in 2021. Lenders have also produced a portfolio rental loan product, a profitable and safe investment due to its larger loan amount. Over a third of the population rents their property, indicating that this will be a key growth region until 2022.
  4. The popularity of Bridge to Term Loans: This is an exciting development that we look forward to for private lenders. Many lenders have already shifted their loan offerings to build-to-rent real estate investors. This is a convenient one-stop shop for a short-term bridge loan.
  5. Long Term Multifamily Loans: As lenders increased their loan offers to include long-term rental loans in 2021, the collateral remained rather stable, sticking to 1-4 family homes. We expect to see multifamily collateral and a comparable loan product available as lenders become more comfortable with the loan product.

As we approach 2022, we anticipate certain changes and the development of industry trends. To read more, click here.

https://geracilawfirm.com/?s=9-things-to-expect-in-2022-the-crystal-ball-presented-by-melissa-martorella-nema-daghbandan-dennis-baranowski-and-kevin-kim/

About Note Servicing Center

Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid.

Contact us today for more information.