Excuse Me? Who are the “Entitled” Ones?
There are lots of articles written about Millennials – you’ve read them (e.g., the notion that they are lazy, filled with too much self-regard, have unrealistic monetary expectations, etc.). The ages of Millennials varies depending on the author, but seems to focus on the era between 1982 and 2004 – or, said another way, their average age today is about 22.
What does this have to do with mortgages you ask?!
For all the perceived negatives, these “kids” (I can call them that because they are younger than my children) are the most adaptable and cooperative of all my clients. EVERYONE (note the emphasis) must open their books to get a mortgage done today – regardless of age or socioeconomic status. This is mainly thanks to the Consumer Finance Protection Bureau (CFPB), which significantly tightened the regulations for mortgage qualification purposes after the 2007 U.S. Housing Crisis. Sure, I complain about the paperwork all the time, but welcome to the new reality – which, by the way, is here to stay.
For the most part, I don’t have a problem with the requirements – and I deal with them every day. Consumers get more sensible mortgages and banks have stronger balance sheets to return dividends. From my experience, the people who have the biggest problem with regulations are the affluent Baby Boomers (1946-1964). Is it because many of them have never had a mortgage? Regardless, they have the perceived notion that: The higher the net worth, the less paperwork that should be required. Wrong.