The Reemergence of Pre-Pandemic Mortgage Options

The Reemergence of Pre-Pandemic Mortgage Options

by Stacy Mohr (EVP Capital Markets – Mountain West Financial)

The beginning of the pandemic brought a big squeeze on product offerings, but things are opening back up. As the world has gotten more comfortable with the changes that COVID-19 has brought, so have investors gotten more comfortable with the current lending environment. The depth and breadth of the economic impact have not been as bad as was feared. Let’s look at some positive changes in the area of product offerings in the past few months.

The brightest spot in terms of product recovery has been in the jumbo market. After a virtual shutdown of jumbo lending, this area has made a nearly full recovery. Some of the original investors have not returned but new entrants have hit the market. You can expect MWF’s jumbo lineup to grow in the coming weeks. Likewise, government lending to borrowers with low FICOs had nearly dried up but is now slowly making its way back into viability. One area that is recovering a bit slower in Non-QM. Some players have returned to this space, but it isn’t as robust as pre-pandemic.

What can we expect next? If the economic recovery does not take a turn for the worse and delinquencies stay at or better than current levels, we can expect even more recovery in low FICO pricing and Non-QM offerings. The future looks bright for product options!