New York City Real Estate | NYC, NYNew York City Real Estate | NYC, NYNew York City Real Estate | NYC, NYNew York City Real Estate | NYC, NY
  • ABOUT
    • ABOUT SCOTT
    • ABOUT THE TEAM
    • PRESS
  • BUYERS
  • SELLERS
  • VIDEOS
  • LISTINGS
  • JOIN OUR TEAM
  • BLOG
  • CONTACT
  • CALL SCOTT NOW

Mortgage Brokers and Dodd/Frank

    Home Newsletter Mortgage Brokers and Dodd/Frank
    NextPrevious

    Mortgage Brokers and Dodd/Frank

    By admin | Newsletter | Comments are Closed | August 14, 2012 | 0

    I’ve been spending some time speaking to those with different viewpoints on the impacts of Dodd-Frank legislation.
    Impacts?

    Are there actually impacts of Dodd-Frank on the housing market?

    Of course.

    The legislation directly impacts underwriting, disclosures, etc. with mortgages, but I didn’t give it that much thought at the time it was passed in mid-2010- Frankly, the housing market had begun to pick up in NYC and it wasn’t quite clear what its impact would be, if any.

    Mortgage lending in NYC remains based on a large downpayment, usually 20% or more.

    Underwriting since 2008 has precluded taking more debt than that, in the markets in which I work.

    And lending has been a pain here for a long time.

    Not the darlings of the mortgage world anymore


    Further, predatory lending doesn’t seem to be an issue here.

    Buyers know what they are doing, and coop boards ensure the same.

    You can read some of the Dodd-Frank legislation here.
    Fast forward to 2012.

    Over the last few months, different banks have stopped allowing mortgage brokers to sell their products.

    They are taking their residential business in-house, generally speaking.

    If what I’m hearing is correct, the liability for mortgage brokers’ promises falls on banks- so this becomes a protection issue.

    Citibank, then Chase, Bank of America, HSBC, then Wells Fargo.

    Mortgage brokers would seemingly go out of business in New York City.

    How do they put together loans when there are not banks willing to let them do so?
    It’s not so simple, of course.

    Rather than suffer the fate of no one to buy their loans, many of these mortgage brokers and their teams have moved under the auspices, or umbrella, of a bank.

    Friends have moved to Citi, Sterling National Bank, Wells, HSBC, etc.

    In doing so, they can then, in many cases, again take advantage of products offered not only by their bank, but other banks as well, as correspondent lenders.

    It is not exactly clear how this limits liability, except that banks accept the underwriting of these other banks.

    Some will have more money to lend, some will have less.

    But there is lots of money chasing limited returns – and much of it ends up in the housing markets.
    In the end, smaller, community banks and private lenders will likely pick up the slack of lending where larger banks don’t fill the role.

    Outside of NYC, it seems that mortgage brokers will have tons of opportunities to make lots of money.

    In New York City, where buyers are nearly all with great credit, lots of assets and income, it becomes about the best rate- and it may be that mortgage brokers get beat up here.

    We shall see.
    Government regulation ends up being very disruptive here, but the rates and the loans, wherever they come from, continue to be very exciting!

    While it lasts, which most say is another 12-18 months, many, many buyers and those refinancing are taking advantage.

    It is pushing the market volume as much as can be done with limited inventory.

    Your mortgage broker may be with a new bank, or a new group- and this is likely why.
     
     

    apartment listings, apartment ownership, buy vs rent, Condo sales, coop sales, mortgage rate, Mortgage Rates, new development, nyc mortgages, upper west side

    NextPrevious

    Recent Blog Posts

    • VIDEO: No Supply Problems, No Demand Problems. It’s Only About Pricing. January 1, 2021
    • The Myth of the Desperate Seller – And Other Real Estate Fallacies December 25, 2020
    • Bottom of the Market, Part II – New York is Coming Back, Baby! December 25, 2020
    • Year Over Year: The Real Estate Recovery is WELL On Its Way December 9, 2020
    • VIDEO- Am I Really Calling the Bottom of the RE Market? Yes, I Am. November 30, 2020
    • All Signs Point To A Bottom- And Don’t Just Take My Word For It November 27, 2020
    • Virtual Real Estate vs Brick and Mortar Real Estate Investment- “Unlimited Upside”? November 27, 2020
    • An Inclusive New York City Real Estate Market- A Dream Home For Everyone November 27, 2020
    • Should I Stay or Should I Go? (A NYC Real Estate Market Conversation) November 27, 2020
    • Our Inventory Report: Actual Inventory Levels vs Sales Pace October 29, 2020

    Archives

    Call us: (646) 400-0769
    Email us: sharris@bhsusa.com
    Visit us: Brown Harris Stevens
    1926 Broadway
    New York NY 10023

    © 2021 The Harris Residential Team. All rights reserved.
    • About Scott Harris
    • About the Team
    • Press
    • Buyers
    • Sellers
    • Videos
    • Listings
    • Blog
    • Contact
    • Call Scott Now
    • Brown Harris Stevens Fair Housing Policy
    • ABOUT
      • ABOUT SCOTT
      • ABOUT THE TEAM
      • PRESS
    • BUYERS
    • SELLERS
    • VIDEOS
    • LISTINGS
    • JOIN OUR TEAM
    • BLOG
    • CONTACT
    • CALL SCOTT NOW
    New York City Real Estate | NYC, NY