The mortgage market had been thriving recently, with lenders offering products to customers far different from just a decade ago. Banks and nonbanks both actively competed in the space with jumbo loans being their goto product to garner more deposits from customers. This product required a final deregulatory move from the Consumer Financial Protection Bureau (CFPB).
However, this is no longer the case as it seems the days of banks offering rock-bottom rates on jumbo mortgages are likely coming to an end. This is thanks to the Consumer Financial Protection Bureau rolling back the regulatory frameworks that enabled lenders to do so. This decision is also causing banks to scale back from the space, meaning there won’t necessarily be a void that can be filled by nonbanks.
Overall, it is expected that the mortgage market will enter a new phase whereby accessing these types of products will be different and less consumer friendly than it was before.
Key Points:
• Regulatory frameworks regarding jumbo mortgages recently changed
• Banks no longer offering rock-bottom rates on jumbos, nonbanks unlikely to fill the void
• Consumer access to mortgage products are expected to diminish in terms of friendliness
You can read this full article at: https://www.housingwire.com/articles/datadigest-tracking-the-jumbo-downturn/(subscription required)
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.
