I mentioned yesterday that 4 out of 3 people have trouble with math, but it doesn’t take a genius to do subtraction. 6 - .2 = 5.8, right? Wouldn’t you like to earn 5.8 percent on your money? The Federal Reserve reports that U.S. households are holding $17.9 trillion in cash and cash equivalents. If your credit union or bank is paying you (and other depositors) .2 percent on your bank account, but owns a portfolio of new Freddie or Fannie loans where borrowers are paying 6 percent, well, that is a darned nice spread. I know that I am simplifying that somewhat, but what bank wouldn’t want that? Along those lines, underwriters are keenly aware that the average monthly payment on a new car loan hit a record high of $686 in June. Household balance sheets are still in good shape after bolstering savings during the height of the pandemic, but we can expect those to ebb with inflation. (Today’s podcast is available here and is sponsored by SimpleNexus, an nCino company and award-winning developer of mobile-first technology for the modern mortgage lender.) Lender and Broker Products, Software, and Services Closing the racial homeownership gap is a priority for Fannie Mae and Freddie Mac, and the enterprises’ 3-year housing equity plans emphasize down payment assistance (DPA) as a key means of doing so. Award-winning DPA database provider Down Payment Resource (DPR) understands that to effectively confront racial homeownership disparities, we must first address generational wealth disparities that make it harder for qualified minority consumers to afford a down payment. Using DPR’s lender tools to connect borrowers with home financing support, mortgage professionals can grow their book of business while opening doors for historically underserved markets. DPA awareness is growing, so there’s never been a better time to jump on the DPA bandwagon! Check out some of the ways DPA plays into the enterprises’ housing equity plans.