Comment Detail
Date: 05/16/23 First Name: Alex Last Name: Wood Email: alexwood@gulfbank.com Organization Type: other Organization: Gulf Coast Bank and Trust Comment
While I understand the business model of better rates for higher credit, well qualified borrowers. It's utilized from revolving debt to installment debt to mortgage loans. The more well qualified borrowers contain less risk, thus a better rate. However, the lower score borrowers have a harder time qualifying due to higher rates, DTI restrictions which pushes them into lower tier/quality homes in certain areas. Often times, these homes then require work and repairs that come up and they cannot afford to make those repairs, some of which may be necessary. The current shock and awe environment of rates plummeting to the 2's during Covid pandemic to almost 4x those rates today, has a lot of borrowers uncertain about the future. A flatter rate environment in my opinion is healthier, especially in today's environment and going forward.
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