Access to mortgage credit inched up in June, as competition for jumbo loans resulted in looser underwriting, but government lending standards got more restrictive, the Mortgage Bankers Association said.
Fannie Mae and Freddie Mac enjoy considerable advantages because of their lower cost of capital and significant government subsidies. But with some conforming loans, the private market is finding a way to compete.
Technology startup Eave is making a foray into Colorado's fast-moving, high-end mortgage lending market by offering software designed to quickly analyze jumbo borrowers' more complex incomes and assets.
As policymakers take another crack at housing finance reform, federal leaders and the housing lobby are once again perpetuating the false notion that ending government guarantees would cause the 30-year, fixed-rate mortgage to vanish.
If GSE reform leads to the 30-year mortgage's demise, homebuyers' monthly payments could soar by $400, according to a recent Zillow estimate. But lenders aren't convinced this housing finance staple is in any danger of being replaced.