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Getting a Home Mortgage Loan Will Continue to Be a Challenge

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By : John Cutts    99 or more times read
Bank rate has pooled the opinion of several mortgage industry professionals with regards to the future of the home mortgage loan market. According to most of them, mortgage loan rates will maintain their low levels, but acquiring a home loan will be difficult for most consumers. They also predicted that homeowners seeking refinancing will be lured by mortgages that have zero closing cost.

The predictions were made by industry professionals for the last quarter of 2010. According to most of them, the rate of mortgage loans will maintain its level for quite some time but will not go any lower that it already is. Some have explained that rates are determined by funds cost and inflation and with both factors considered, the mortgage rate is actually at a level where it is supposed to be.

In terms of the impact of delayed foreclosures brought on by questionable documentation and processing, most industry professionals believe that this will have the negative effect of prolonging the foreclosure crisis. They stated that as borrowers sit around waiting for the issue to be resolved, payments are also not coming in and foreclosures are not being processed. All these are expected to hit the market eventually in a few months or so.

Meanwhile, consumer frustration will continue as experts predict that getting a home mortgage loan will continue to be a challenge for most borrowers. They stated that a refinance will be the most difficult transaction to secure. Industry experts have explained that processing applications takes longer than before partly due to a bottleneck at the underwriting level.

They also reveal that due to the overwhelming volume of applications, some lenders are considering implementing two-month locks in processing. The difficulty in obtaining refinance is expected to hit homeowners with home equity loans the hardest.

Industry professionals have explained that this is because they need equity lenders to approve a resubordination before they can get refinanced. Majority of the surveyed professionals also expect a big number of borrowers to go for zero-cost home mortgage loan refinancing. According to them, the low rates of mortgages make zero cost schemes more tempting than ever.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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