By CNBC staff | May 05, 2018 09:01:24A new trend in the housing market has made the financial assistance for mortgage lenders available to those who can’t pay their mortgage.
The new law also creates incentives for those who are on a waiting list to get a loan to refinance.
“There’s been a huge shift in the market and a lot of people are not making payments on their loans,” said Jim O’Sullivan, president of Fannie Mae.
O’Sullivan said the banks are offering to lend money to those on a wait list, so long as they can prove they’re not going to default on their loan.
He said many people are looking to refinances and are willing to pay more.
“We are going to work with those who have been on a hold out for a while to refocus their efforts on refinance,” he said.
The credit builder loan is another option that some lenders are offering, with some lenders also offering financing for those with no down payment.
O ‘Sullivan said lenders are not necessarily offering loans for a lower rate than what they normally charge, so some people might need to pay less than they would normally.
He added that lenders are still making a big investment in the economy and will need to keep up with the housing bubble.
“The banks are investing a lot and the banks have the resources to do it, so there’s no reason for anyone else to stop doing it,” O’ Sullivan said.