Executive Perspectives Blog
A fairly typical pattern for American households for decades has been much the same as my own experience. I grew up in an apartment (in New York City) and lived in apartments throughout college, graduate school, and my first few years in the workforce; my wife and I purchased our first house shortly before we had our first child. However, subtle signs indicate that a new pattern may be emerging.
From a lender’s point of view, one of the most critical needs for building a successful business in today’s mortgage market is certainty.
Lenders want greater certainty each loan file is complete before delivery. They want certainty borrower and collateral data are accurate. They want certainty the loan complies with the investor’s guidelines so, and most importantly, they have certainty the loans they sell will stay sold. Period! That’s why Freddie Mac’s Single-Family Business is focused on giving our customers greater certainty in every loan we buy or guarantee. We call it our Greater Purchase Certainty initiative.
Remember last year when the 15-year fixed-rate mortgage rate was an unbelievable bargain at just over 2.5 percent, the lowest in recorded history and about three-quarters of a percentage point below a 30-year fixed-rate loan? So everyone buying a house was getting a 15-year loan, right? Nope. Thirty-year fixed-rate mortgages dominated – accounting for more than 85 percent of the home-purchase loan market in 2012.