3Points with Mat Ishbia, May

All of those April showers have led to some May flowers already, and the mortgage industry has a similarly rosy outlook for the month ahead. With the Fed announcing that rates would hold steady yet again, everything is status quo in the mortgage world, right? Get real. Mat Ishbia, president and CEO of United Wholesale Mortgage, highlights three things in his monthly update that can impact business for mortgage originators.

1. Change to Mortgage Licensing Act
   As of November 24th, 2019, a mortgage originator with an NMLS license can move from a bank to a non-bank lender without having to be immediately licensed under their new employer. Instead, they have a 120-day grace period, and can originate loans during that process. This might sway some originators away from banks because there will no longer be a lull in their business during the transition.
2. Home equity continues to go up up up
   Americans have never before had more equity in their homes, and that coupled with continued low interest rates means that originators have been given a new lease on capturing refinance opportunities. Even borrowers with relatively recent borrowers may have a need or desire to refinance for renovation and debt consolidation purposes, or eliminating mortgage insurance. You haven’t missed your chance!
3. Freddie Mac’s Asset-as-Income
   Originators can now divide a borrower’s assets by 240 months instead of 360 months. This change went into effect immediately, and this makes more people eligible to qualify for a mortgage.

Hear Mat discuss these details in full here.