Mat Ishbia, the CEO of United Wholesale Mortgage (NYSE: UWMC), voiced his support for the 50-year mortgage floated by President Trump and Federal Housing Finance Agency Director Bill Pulte while praising them for concern and support of the housing market.
In a video shared on the company’s social media platforms, Ishbia stated “I love the concept from President Trump and Bill Pulte,” commending them for proposing different solutions to tackle housing affordability.
“I do know that these guys care about the housing industry, and they’re trying to come up with new ideas,” he said, citing the idea of a portable mortgage. “They’re thinking about things that we’ve all talked about in our industry. And so, it’s great to have leaders that are thinking about the housing market, and how can we make things better.”
Ishbia added that if the 50-year mortgage came to fruition, it would be “a huge program, especially if you can get the liquidity from Fannie and Freddie and make it so the payment and the math works. Because lower payments are always better. It would help housing values; it would also help more people to be able to buy houses. It’d be a win across the board.”
I’ll give Trump and Pulte some credit for at least throwing some new ideas out there, but the 50 year mortgage sounds like a disaster. How will it help housing values? Adding millions of new buyers who otherwise would not be in the market will create more demand. That demand will drive prices up. It will do the same thing that lowering mortgage standards did in the early 2000s, and we all know how that ended up. I guess eventually it will create a huge crash, which actually will make housing affordable, but at the expense of all those people who will lose their homes because they are under water.
Ok this proves there is no integrity left in this industry/my profession. Very disheartening. Someone at the top of the pyramid on the mortgage side endorsing 2 corrupt, self-serving (businessmen first/lame duck politicians second)… while the portable mortgage has legs- those 2 would implement a terrible version of it and as for 50 year mortgages? Stop pouring chocolate all over a turd. Wanna bet Ishbia is one of those ballroom donors, too?
very informative in a timely manner.
100%!
They care to plunge it into recession to make billions!!!
How do you build equity with a 50 year amortization..Peoples lives change and they need to sell their property and have little or no equity… especially if their local or our national economy market is unstable…. and, usually is for 5 or 10 years at a time. Now they have credit issues because they can’t afford the payments because the other person they took out the mortgage is not there and not being responsible. Property taxes, homeowners insurance, HOA and/or condo fees have blown up the monthly $ overhead and qualification. People need REAL affordability and they need and want to build stability, pride and wealth thru homeownership…aka American Dream.
I am willing to be educated more about this … because borrow now and worry later seems more like the same old ‘buy now pay later BNPL’ programs so popular today
This has to be the worst idea ever. The only ones that will come ahead are the mortgage companies and will keep the homeowner in debt the rest of his life.
Of course he wants a 50 year mortgage more interest for his company. That means if you buy your first house at 30 you don’t pay it off until you are 80. Amazing that all of these billionaires think this is a great idea. How about making housing more affordable for the middle class. Help with incentives for first time buyers instead of programs that just line the billionaires pockets which is the whole goal of the Trump swamp.
Supply vs Demand (more capable buyers of all types, individuals and investors) is the main reason, plus increasing cost of materials and labor; price/cost of housing climbs year over years, decade over decades. Only recessionary periods and/or black swan events such as afinancial/foreclosure crisis allows for a temporary period/opportunity of cheaper prices. everything else is a band-aid or gimmick (buy-downs, seller assistance, extended mortgage amortization terms,etc) to allow a slightly more palatable payment plan
get use to it, higher prices are here to stay
Yes, and make incentives for the building of start homes. We don’t need more McMansions.
No it means you are able to buy at a lower pymt ! Dummy…..
No one keeps a 30 yr you just need to get your foot in the door with a lower pymt an refi as rates go down
The negativity & stupidity is beyond me how ppl think once you get a mortgage it’s yours for years educate yourself people !!!!
Interest only for the initial 5 or ten years on a 30 Yr loan with a balloon in 30 yrs and the right to refinance any time during the term should work better for home buyers and owners.
Larry
The 50 year mortgage should be an option albeit one that will have a small impact on affordability. Any incentives should not be more government grants because that is another firm of welfare. Incentives can be more closing costs and down payments being added to the total loan. 100% to 105% financing would give buyers the opportunity to purchase with no monies out if pocket. As long as buyers have 3 months estimated mortgage payments in their account then this too will help. With the 50 year and 100%+ financing solve the housing affordability problems? No, of course not but again it’s a piece to the affordability issues that plague parts of the real estate industry.
The 50 year mortgage will only help, if has been mentioned, people have at least three months of reserves in their checking or savings account and this will help sellers and builders, as this incentive must be put in to state in writing…you must refinance within the first three years. That’s the only way that Fifty year mortgage is ever going to make a dent and I also 100% agree with 24 years of experience as a mortgage loan officer and real estate agent, Government incentives do absolutely nothing. It is just another form of welfare which we as tax paying Americans do not need.
Just terrible ideas that only help Pulte and big corporations. None of these things help the average American consumer. People saying otherwise are either indifferent to the adverse effects on their clients or clueless to them.
Even if people do not stay in their home for 50 (or 30) years anymore, on a 50 year, by the time they actually have any equity, it will mean they have been in their decades anyway. (Especially putting minimums down like those in favor of this farce advocate.)
Going back to the bad old days of putting zero (or negative) money down is an absolute disaster waiting to happen. Were none of those people around for the Baby Bush meltdown in 2008? Or do they just not care.
Constantly advocating for refinancing is another joke agents and lenders seem to love playing on the public. Like it is being done for free. “Sure, just keep churning those refis! Pay for another vacation for me to Vegas, baby!” Like sociopaths out there, pushing for more expensive, more terrible ideas to make your own dollar while costing clients thousands.
Raise minimum wage, make mortgages assumable/transferable, stop giving handouts to the Pultes of the world, the mega corporations that do not need the help.
People in this industry LOVE to CLAIM they ‘got into the business to help people’, but then they drag this tripe out into the world, refuse to work with renters (or mobile homes), cling to the anachronistic system of commissions…
No wonder the public sees us as worse than used car sales, with approval ratings Congress looks at and says, “Well, at least we ain’t them!”
These are not good ideas for anybody but the grifters within the industry.
We need to be better.