Attom Data Solutions reports that small mortgages are becoming scarcer for low- and middle-income homebuyers. The real estate firm estimates that lenders offered about 106,000 mortgages with balances between $10,000 and $70,000 last year, a 38 percent decline from 2009, with originations falling 26 percent for mortgages priced between $70,000 and $150,000. By comparison, lenders underwrote 65 percent more higher-priced mortgages. “The whole system incentivizes high[-balance] loans,” says Structured Finance Industry Group President Michael Bright. Experts attribute the decline to lenders’ difficulty in profiting from smaller loans, given that they usually extend mortgages at fixed costs.
Similar Posts
Loans Get Cheaper for Some
Borrowing costs have trended lower for some U.S. consumers in recent months, especially home buyers….
The Transformation of Automobile Purchase: 5 Significant Shifts
The automotive industry underwent a substantial shift during the global pandemic, presenting a myriad of…
Robo-Calls Are Getting Worse
Robocall volume has reached a frenzied pace, even as the Federal Communications Commission explores how…
How Does Buy Now, Pay Later Affect Customers’ Credit?
This paper explores the relationship between consumers’ use of buy now, pay later (BNPL) and…
Oregon Requires Consumers to Repay Title, Payday Loans Before Lender Makes New Loan
Oregon’s governor has signed a bill that bans title loan and payday companies from making…
Auto Loans Shrink For Borrowers With The Worst Credit
Auto lenders have pulled back on loans to customers with the riskiest credit and as…