There's been a lot of talk lately about whether the Biden administration should forgive student debt.
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Hello, LOs!
There's been a lot of talk lately about whether the Biden administration should forgive student debt. The Washington Post reported that senior administration officials have examined limiting the relief to people who earned less than either $125,000 or $150,000 as individual filers the previous year, with a limit for couples who file jointly at around $250,000 or $300,000. Like everything in the Beltway, the planning is fluid and subject to change.
Forgiving student debt up to $50,000 per borrower (as Senators Elizabeth Warren and Chuck Schumer have proposed) would cost about $1 trillion. Limiting the scope of loan forgiveness to $10,000, as Biden has proposed, would cost about $373 billion.
According to a 2021 study by the National Association of Realtors, 51% of all student loan holders say their debt delayed them from purchasing a home.
LOs – I'm interested in hearing what you think about this. How many prospective borrowers can't get the home they want because student debt has hurt their DTI or ability to afford a downpayment? Are you in favor of a national debt forgiveness program? Share your thoughts with me at james@hwmedia.com.
With a housing market in transition, originators are looking to seize profitable opportunities that benefit both borrowers and their own bottom lines. HousingWire recently spoke to Jonathan Scarpati, Senior Vice President of Wholesale Lending at Finance of America Reverse, about tapping into the reverse mortgage market in light of the changing market.
Add Mr. Cooper to the list of lenders and servicers reducing staff: pink slips arrived for 250 employees in the first quarter, as the company faced declines in the earnings from loan originations. And it's going to get very rough in Q2.
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