Lenders Are Back In The Game

The subprime mortgage crisis brought underwriting standards back into the mortgage origination process. And while the final quarter of 2009’s financial meltdown led to a sense that financing had dried up, mortgage funds are now available.

“If you have a job and can afford the payment, chances are you’ll qualify for a mortgage,” says David Reed, a mortgage banker and author of Mortgage Confidential: What You Need to Know That Your Lender Won’t Tell You.

Also noteworthy is the recent drop in jumbo mortgage loan rates and an uptick in the high-end of the housing market. The sector which was not bolstered by the $8,000 first-time home buyer tax credit is faring quite well, providing further evidence that the recent sales setback is simply a function of the market readjusting to the expiration of the tax credit.