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MBANow: Laurie Goodman of Urban Institute on Mortgage Credit Availability
The Mortgage Bankers Association released a new MBANow video featuring Laurie Goodman of the Urban Institute, who discusses mortgage credit availability and the plight of first-time home buyers in the purchase mortgage market.
The video can be viewed at https://www.youtube.com/watch?v=wHqSyQZ0I1w&feature=em-uploademail.
Goodman, co-director of the UI Housing Policy Finance Center, said housing credit availability continues to be tight. “The market is taking less than half of the credit risk that it took in 2001, a period of reasonable credit standards, and less than a third of the credit risk taken in 2006, a period where we all agree credit standards were too lax.”
As the mortgage moves more to a purchase market, Goodman said credit is set to loosen somewhat. “In the purchase market lenders tend to work a little harder with that marginal borrower, because they don’t have a huge amount of refi volume coming in and they have time to do it,” she said. “That said, higher rates tend to stress affordability, and so you also have fewer people qualifying for mortgages.”
Goodman will be a featured speaker at the upcoming MBA Risk Management and Quality Assurance Forum, taking place Sept. 24-26 in Miami. For more information, click https://www.mba.org/store/events/conferences-and-meetings/risk-management-qa-and-fraud-prevention-forum.
Other videos in the MBANow series can be viewed at the MBA YouTube channel, https://www.youtube.com/watch?v=Swk2VUJeZFI&feature=em-uploademail. The videos are also available on the MBA Insights landing page, https://www.mba.org/publications/insights/insights-publication##SubscriberID####RND##&PageID=21109.