Supreme Court Ruling May Boost Mortgage Demand

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Filed under: Market Comentary

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According to a recent article by Bonnie Sinnock, the Supreme Court’s decision that makes same-sex marriage legal across the nation might boost mortgage demand as it will provide gay and lesbian couples with more financing opportunities and stronger joint property rights.

Shoshana Grossbard, economics professor at San Diego State University was quoted in the article as saying, “In the short run, it will increase demand for loans because more couples are going to get married.”

Grossbard added, “Married couples find mortgage credit more accessible than single people. It’s much easier for a married couple to buy property and get a mortgage than two singles.”

Sinnock explains that in a recent survey of gay, lesbian, bisexual, and transgender consumers, 81% of respondents said the Supreme Court ruling for marriage equality would make them feel more fiscally protected and confident. This”feeling” is a key real estate market driver, according to the survey.

The article also stated that the Supreme Court’s decision not only will most likely be a catalyst in more purchase lending, but also may lead to more refinancing.

Holly Hanson, founder and principal of a Los Angeles financial planning and wealth management firm said, “As far as making more loans, I do think that changes. One of the reasons would be, for instance, if you wanted to refinance a loan into a joint name in order to build credit for one of the spouses that maybe didn’t have great credit.”

In addition, married same-sex couples will also have more access to the Department of Veterans Affairs mortgage program, according to mortgage loan officer Gary Boyer.

Boyer said, “This has big implications as far as federal agencies. The VA, for example, has honored a same-sex spouse in states where marriage is legal, but did not honor same-sex spouses in states where it was not yet legal. Any veteran will now be able to have their same-sex spouse on the mortgage with them.”

If you have any questions about the mortgage industry, please feel free to call me and I will be happy to discuss whatever is on your mind.

source: http://www.nationalmortgagenews.com/news/origination/what-gay-marriage-ruling-means-for-mortgages-1054626-1.html from web www.nationalmortgagenews.com

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