Capital Markets: Impact and Dynamics

[Ethan Gidcumb]

Good morning fellow lenders! I was reading an article this morning and it explained the effects traditional mortgage owners are experiencing due to changes in capital markets. I'm new to the lending world so I have not experienced or understood these changes first-hand. But, it emphasized how changes in financing costs have increased rates that borrowers are seeing on DSCR loans and also are requiring more liquidity on RTLs. I've assumed this is due to the Fed's rate hikes and the impacts of the pandemic and so forth.

Are there any other reasons you think this could be happening? And, how has this changed how you are lending to customers in the last few years?

Here's the article if anybody wants to check it out: https://aaplonline.com/article...

Thanks!