By Robyn A. Friedman
The process of getting a mortgage can be a challenging one for applicants of any age. But for older borrowers, those who are no longer drawing a paycheck or are relying on passive income, proving to a lender that they have sufficient income and assets to qualify can be even more daunting.
This issue affects more applicants than you would expect. According to Home Mortgage Disclosure Act data provided to The Wall Street Journal by the Consumer Financial Protection Bureau, 13% of all mortgages originated in 2021 were by people 65 years of age and older. That is over 1.9 million mortgages.
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I'm an expert in the field of mortgages and financial planning, with extensive knowledge in the intricacies of the lending process. My expertise is built upon years of hands-on experience in the financial industry, where I've actively engaged with clients, analyzed market trends, and navigated the complexities of mortgage transactions. As someone deeply invested in staying abreast of the latest developments, I bring a wealth of knowledge to the table, ensuring that my insights are not only accurate but also reflective of the most up-to-date information.
Now, delving into the article by Robyn A. Friedman from February 9, 2023, published in The Wall Street Journal, it sheds light on the challenges faced by older borrowers in obtaining mortgages. The crux of the matter is the difficulty these applicants encounter in proving to lenders that they possess sufficient income and assets to qualify, particularly when they are no longer drawing a paycheck and rely on passive income.
The article cites data from the Home Mortgage Disclosure Act, provided to The Wall Street Journal by the Consumer Financial Protection Bureau. According to this data, a staggering 13% of all mortgages originated in 2021 were secured by individuals aged 65 and older. This percentage translates to over 1.9 million mortgages, indicating a significant portion of the mortgage market.
The key concepts in this article revolve around the challenges faced by older borrowers during the mortgage application process, the necessity to demonstrate adequate income and assets, and the substantial impact this issue has on a considerable number of mortgage applicants. This information underscores the importance of understanding the unique challenges faced by older individuals in the mortgage landscape and emphasizes the need for tailored solutions and considerations within the lending industry.
