Tony H. writes, “I just switched my 30-year home mortgage to ‘student loan.’ Follow me for more financial advice.” I have been fielding questions about the impact of student loan forgiveness on credit (probably won’t impact credit scores) but also whether the forgiven debt is taxable (not at the Federal level, but Forbes thinks it may be at the state level in some places). While the government is intervening, wouldn’t it be nice if someone put a cap on college cost escalation? The government doesn’t directly determine compensation or profit margins, but both are huge issues for lenders. (“Lenders are Eying Compensation and Ops Trends” is the current STRATMOR blog.) The government doesn’t directly determine the rate of inflation either, but the Federal Reserve can address it. During his Jackson Hole speech, Powell said that the Fed will continue raising interest rates and hold them at a higher level until it is confident inflation is under control. Of course 30-year mortgage rates are pushed more by supply and demand, and inflation, than by the Fed. Meanwhile, lenders are “gutting it out” until… when? (Available here, today’s podcast has an interview with Dawar Alimi, CEO and Co-Founder of Lender Price, on how lenders should evaluate, implement, and use new technology. This week’s podcast is sponsored by MCT’s Hedge Advisory. As the industry leader in pull-through analytics and best execution with the highest staff-to-client ratio, lenders of every size trust MCT to manage risk and optimize profitability in their mortgage loan pipeline management.)

Published On: September 1, 2022 / Categories: Mortgage News /