The CFPB says the new lending rules that went into effect on January 10th are no more than a back-to-basics approach to mortgage lending, designed to lower risk of default. However, many industry veterans feel the rules may hurt those they are designed to protect, primarily low-income borrowers. Carrington's EVP and managing director Chris Whalen shared his thoughts about the new rules with us on the Five Star Radio Mortgage Markets Today program.
"What we have in the wake of Dodd-Frank is a government mandated and regulated mortgage market that prohibits a lot of products that in the past have subject to abuse, but also made credit available to mid and lower income borrowers. Today, if you look at the world as it is, with the CFPB rates in effect, you have about half of the households in this country that really can't get a mortgage from a bank."
Veros Real Estate Solutions has raised its expectations for home prices in 2014, but indicators still point to a slowdown in appreciation. In its newest forecast, the analytics firm predicts home prices will rise on average 5.1% in the nation's top 100 metro areas. The company's previous projections, released last quarter, called for 4.8% growth.