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Changing Borrower Demographics: Part 3

The first two posts in this series of Changing Borrower Demographics explores creative ways of how lenders are increasing business to account for the changing world around them. But they share one thing in common…they are from the lenders perspective. You guessed it – Part 3 explores how the 2 giant players in the mortgage game (Freddie & Fannie, referred to as the GSEs) are introducing new alternative “pilot” programs to help lenders that are finding it difficult to reach borrowers. Now when I think of Freddie & Fannie, one of the first things that comes to mind is that they set the rules of the game. They determine loan limits (which are increasing in 2018), they publish the guidelines, and they buy loans in the secondary market to help free up cash that lenders need to stay in business. It’s very refreshing to see that the GSEs are willing to do their part to ensure the wheels of the mortgage industry keep turning. Here’s a couple examples: A lot of people want to buy homes (or do they?) but find it difficult to meet down payment requirements. What if you can setup a GoFundMe (maybe change the name to “Are you down to give me my down payment?”) and raise money for the down payment that way? This is one of the pilot programs that CMG Financial is exploring. Or let’s say you rent out a house with a couple buddies but your 30 some years old and decide it’s time to buy….Bank of America has a program where you can buy and then lease space to your friends and use that as rental income for qualifying purposes. These types of creative ways to expand borrower reach will be an important factor as the needs and wants of generations will continue to evolve. And hey, if mom & dad (Fannie & Freddie), are the ones encouraging this movement, who are we to say no!? Have you come across any alternative programs or creative ways to reach more borrowers? Please share!

Wait a second, I swear I was just getting into the cool, trendy summer beer scene, and now you’re telling me I need to start looking at Christmas ale this and nutmeg infused that? Time has flown by this year, but a very cool thing happened and even more exciting things are in store for 2018 so stay tuned! I’m excited for this holiday season so I can sit back, sip on some eggnog, open a couple presents (maybe, I might be too old), and cheers to all that has been accomplished this year because if we don’t take the time to appreciate what we’ve done, we can’t get excited for the future.

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