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What's Working and What Needs to Change For Mortgage Process -Urban Institute
Thursday, April 23, 2020
Two Urban
Institute (UI) researchers pose a pertinent question in a recent paper. Laurie
Goodman and Aaron Klein ask, "What is the purpose of the Fed lowering short
term rates to zero and buying hundreds of billions of mortgages to lower
mortgage interest rates if people cannot functionally access a mortgage?"
They point out that the
mortgage process, whether to purchase a home or refinance it, has a long to-do
list including title searches, appraisals, applicant employment and income
verification, notarization, closings, and recording of the transaction in
county offices. If any of those items cannot be checked off, the ability to get
a mortgage is jeopardized. With much of the world shut down in order to mitigate
the COVID-19 pandemic, the entire process could be broken.
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