Lenders May Have To Scale Back To Survive

By SCOTT KIMBLER Since early 2022 officials at the Federal Reserve have been raising interest rates as a means of combatting inflation but the trickle-down effect is making life hard for the lending industry. More specifically for non-bank lenders. This is according to financial experts and industry observers such as Dr. Rohan Ganduri of Emory University’s Goizueta Business School. Ganduri says there are really only two types of lenders, bank and non-bank lenders. In the current mortgage climate the smaller, non-bank lenders have a landscape that is changing rapidly and not in the favor of those employed by such lenders, he told The Mortgage Note. “A non-bank lender differs from a bank lender in several ways,” says Ganduri. “The biggest…

Economist: Build Back Better Will Put Downward Pressure on Housing Prices

By SCOTT KIMBLER The House version of President Biden’s “Build Back Better” plan includes about $170 billion for affordable housing and people are asking what that means. Biden’s spending plan includes $65 billion to preserve and rebuild public housing and another $15 billion to help build or preserve more than 150,000 rental properties for lower-income families. It’s part of the administration’s goal to build or preserve 1 million affordable homes. The bill is almost certain to change drastically in the U.S. Senate. But if the housing policies remain unchanged, what would this spending splurge mean for the overall housing market, at a time when prices are high and supply is low? The Mortgage Note spoke with Tom Smith, Ph.D. of…