Why oh why did Mr President do such a thing to the mortgage industry…. Boohoo…
How about GREAT JOB TRUMP! You probably positioned the GSE’s to last a few more years instead of going broke. While foreclosure rates are lower, the median rates are rising and the planned deduction to Monthly MI on FHA loans was cancelled, in what I see as good reason.
Expect this, expect more of this. Where finally we have an executive in the White House that’s going to RUN the USA and all entities like a business. And frankly I think the MI rate is just fine where it is, I even locked on a FHA loan recently at the current MI position. Heck I remember when MI monthly was double what it is right now. While a boom of refi business could’ve been stirred up with FHA streamlines on this reduction, the focus is to make sure the GSE’s function stays around. Or at least in the best financial position to move forward. There was a time not so long ago I remember reading industry buzz that the GSE’s and HUD where on the verge of bankruptcy. Let’s hope the Trump Administration helps keep loans affordable and available as a whole. Look at the positive side of changes and the reasons for them. I think this was a great move by the president.
In fact, I think he may have more in store for us in the wonderful world of mortgages as we are always under scrutiny of “change”. I also think that the market is shifting again, and when rates are going to go up slowly but steadily, the market and products offered will expand. I believe a new era of NON QM products is on the verge of really exploding. Not necessarily the “stated” aspects and “negative amortization” loans of the past, but perhaps variations of good lending programs designed to stimulate the housing market will be born.
And I bet, that the Trump Administration will address certain aspects of our laws in the coming years to forward focus, not just consumer protection anymore, BUT FREE ENTERPRISE. I think more small business will be born in the mortgage industry in the next 5 years than any other time. I think Trump will make the barriers to entry less restrictive, and more advantageous for those that do this industry right. Maybe that’s in the form of tax breaks I don’t know. But I what I see is he’s already protecting our industry for good reason.
Keep calm and Mortgage On. I’m here to provide sales JUICE if needed. Join Us In Creating Excitement on Sales Talk with Mortgage Pro’s group on FB. Share, interact, Like, Repeat.