Teresa Bryce Bazemore is president of Radian Guaranty Inc., Radian Group Inc.’s principal mortgage insurance subsidiary. As president, Bazemore is responsible for all domestic and international mortgage insurance business operations.
Almost a decade after the housing crisis, many responsible potential homeowners remain locked out of the market. But recently there have been a pair of hopeful developments that may be key to opening doors to homeownership for qualified first-time and underserved buyers. Fannie Mae and Freddie Mac have unboxed two long-anticipated initiatives designed to make credit more available to deserving potential buyers without compromising standards. Importantly, these are not politically driven affordable lending programs.
Many people want to own a home of their own, but it does not seem within their reach. Equipped with the proper information and support, the possibility of responsible and sustainable homeownership is not as remote as it may seem.
Millennials will continue to enter the housing market in growing numbers in the coming years, and those who work in housing need to recognize and embrace the most important ways the Millennial generation differs from previous generations of homebuyers. Their diversity is at the top of the list.
In the aftermath of the financial crisis, low interest rates and strict capital requirements combined to make servicing a losing proposition for many banks. The sharp glare of regulators didn’t help either, as banks and nonbanks navigated the already thankless waters of servicing with a new target on their backs. But all that changed abruptly in the fourth quarter of 2016 with the one-two punch of a Trump win and a rate hike by the Federal Reserve.
Singling out the law that created the CFPB generated a backlash from Congressional Democrats, but it remains to be seen what Democrats can do to stop the Trump juggernaut. See what Mike Jones of Navigant advises servicers to do in this uncertain environment.
Portfolio managers and investors also have a vested interest in the expansion of the non-QM market. They have an appetite for non-QM assets as they represent an attractive yield opportunity. That’s why we’re seeing more “hold” strategies at work with current non-QM production.