There’s a new rule from the Federal Housing Finance Agency, and it makes membership requirements in the Federal Home Loan Bank system new. Lenders are not happy about this change, which is why, a coalition along with the Mortgage Bankers Association met with members from the House Financial Services Committee to discuss their concerns.
For those who do not support the rule, they believe that the changes regarding membership are harmful. In addition, they argue that the new rule calls legislative intent into question as far as the overall mission for the Home Loan Bank System.
At present, mortgage bond investment seems to be halted. Some experts believe that the best days during the cycle of growth have already passed, and that continued home price appreciation slowing can be expected. What lenders, among others, are hoping for is more certainty from the Federal Reserve as it relates to rates. Right now, more certainty on that front could transmit a message to the market about the positive nature of risk assets. Those in the lending industry, however, are not convinced that a rate hike will benefit credit for securitized products.
In other news in the lending industry, mobile is surging ahead as a potential trend that companies like Trulia are trying to jump on. With more home searches happening from mobile, Trulia recently redesigned its app and made it more user-friendly.
Many of the same borrowers checking out homes for sale on their phones fall into the Millennial generation, which is being heavily hit by increases in rent around the country. With rent becoming increasingly difficult to manage, it could be the perfect storm for millennials to check out owning a home.
That brings up the issue of what is already holding this same age group back from making a purchase, however. Many argue that it’s an issue of perception about lack of ability to get a loan. In light of the recent recession, many would-be borrowers held back on getting a mortgage or identifying a home to buy because the market tightened up so much. Now that things are finally starting to turn around, however, it could be a great opportunity for lenders to educate this generation of potential buyers about the benefits of owning a home and the ease of originating a loan.