When the pandemic began towards the end of the first quarter in 2020, people were understandably reluctant to start purchasing houses. As a result, mortgage applications saw a sharp decrease. However, they rebounded quickly, surpassing 2019’s numbers even while trending downwards again in December. In the week ending December 23rd, 2020, mortgage applications dropped 5%… Continue reading Mortgage Applications Skyrocketed in 2020
The Consumer Financial Protection Bureau (CFPB) is planning to make some changes aimed at widening the accessibility of mortgage loans by allowing lenders more freedom in determining a borrower’s ability to repay. Currently, one of the requirements for a qualified mortgage (QM), the loan type preferred by both lenders and consumers, is a debt-to-income ratio… Continue reading CFPB Plans to Replace Debt-To-Income Requirement
You may have heard the term MID in the context of purchasing a home or filing taxes. But what does this term mean? MID stands for mortgage interest deduction, and is a type of reduction in taxable income available to homeowners with a mortgage on their first or second home, or secured by their first… Continue reading What is the MID?
As a result of home sales volume dropping by 30% in Quarter 2 of 2020 from 2019, loan origination has also dropped considerably. The effect was somewhat lessened by low interest rates, which resulted in more refinances. The commercial sector, however, didn’t have that luxury. The Mortgage Bankers Association (MBA) forecasts a 59% decrease from… Continue reading Lenders in uncertain territory, but hopeful
I’ve previously mentioned that COVID-19 and the current economic downturn have resulted in an increase in mortgage forbearance requests. But what about mortgage applications? Interestingly, even as fewer people are able to pay their mortgages, people are still applying for mortgages, looking to take advantage of the current low interest rates on mortgage loans. And… Continue reading Mortgage application rejection on the rise