The lending market is evolving again, and this time around, the industry and its players must respond to new regulations effectively. The Government of the United States has made it plain that lenders will be entrusted with helping the underrepresented communities in the country to find more affordable housing alternatives. Although it is pretty unclear how the industry will achieve this, this mandate needs to be firmly taken.
Furthermore, Rohit Chopra, the newly appointed Director of the Consumer Financial Protection Bureau, is ready to hold lenders accountable if they fail to make every attempt to make homeownership more accessible to more Americans. He believes fair and effective regulation in the mortgage market can help build a more resilient and competitive financial sector while addressing systemic disparities affecting families of color.
Lenders have built successful businesses over the years merely by waiting for a drop in mortgage rates and then having the resulting orders from the decline for refinancing. But as mortgage rates slowly climb up, the volume of refinancing loans has been reducing. Thus, Purchase money mortgage loan businesses influenced by real estate agents might later be the primary avenue for growth. Although, the industry is also evolving, with many properties being found online by borrowers.
Suppose the lending industry and its players do not increase its newer outreach efforts. In that case, government authorities may conclude that the Government’s mission is not being considered seriously. Only lenders that put in the steps on this crucial mission might outlast the evolution.
To read more on how lenders can serve the underserved communities, click the link below:
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