Yesterday I was on a call where we discussed the two first-time homebuyer bills making their way through Congress.
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Hi LOs —
We're expanding our LendingLife newsletter to bring you lending insights every weekday! Along with the content you are used to receiving three times a week from Managing Editor James Kleimann, we'll be rounding out the coverage with other editors and industry voices. Today's my turn!
Several times a month I get invited onto coaching calls with about 30 LOs. I review the news and get to hear what's top of mind for them. Yesterday I was on a call where we discussed the two first-time homebuyer bills making their way through Congress.
One is a fairly straightforward $15,000tax credit that's similar to provisions under the Bush and Obama administrations. The other is agrant for first-generation, first-time homebuyers that would serve as down payment assistance. The LOs on the call were decidedly not excited about the down payment assistance option.
Their reaction mirrors the reporting done by Senior Mortgage Reporter Georgia Kromrei, inthis article. The objections lenders have for the bills are:
Both bills would increase housing demand, when what we need is more housing supply
The down payment assistance grant could be a nightmare to execute
Neither bill helps first-time homebuyers who come up against an appraisal gap
But here's the thing — assuming one or both of them become laws, buyers are going to be clamoring for those options. After publishing these stories we've been inundated with emails and phone calls from buyers looking to sign up. I can only imagine how many questions you are getting/going to get. Are these buyers qualified? If they are, will they be able to win in this competitive market? There's no telling, but the opportunities to educate and form relationships will definitely be there.
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