Two of the biggest non-institutional mortgage lenders had staggeringly successful first quarters of 2022, likely a holdover from last year. When the interest rates were lower recently, margins were higher, and the real estate industry made a great deal of profit. Refis have fallen 33%, and purchases are up 14%, but with margin and volumes down and $1.7 trillion in loan originations dropping in 2022, the uptick in purchases won’t offset the lack of dollars coming back into the system. Other lenders are in trouble and have to let go of underwriters, setup people, agents in the field, and account execs. This necessitates the need for those companies to find creative ways to attract buyers, and lenders must offer more diverse programs to keep up with the changing environment to keep loans coming in to stay in business.

The qualifications and corresponding loans available to each tier of borrowers vary widely, and often there is unspoken discrimination against those whose FICO scores and ability to repay are on the lower end of the scale. With rates rising exponentially and rapidly, minorities and young college graduates whose degrees don’t guarantee immediate jobs with adequate salaries to afford a home frequently find themselves at a distinct disadvantage in the real estate marketplace. To further complicate matters, as housing costs and mortgages have become so expensive, coupled with the lack of available properties, many are looking to rent and finding the prices are even higher than mortgages in most areas. In these instances, it’s even more vital to find a professional who is up on all of the constantly emerging accessible programs and can be an advocate and problem solver to make that dream of homeownership a reality. Joining Jeff this week:

– Katherine Martin discusses her new book about discrimination.

– Justin Hardman (Deephaven Mortgage) shares available loan products.

– Thomas Trujillo (AT Lending) says the current situation is “no big deal.”