35
articles … the big owners of rental SFR in
the space who also own traditional stacked
multifamily have reported increased demand
for their single-family rentals. ey've reported
strong rent collections in their single-family
rental properties, possibly even outpacing the
collections they're seeing in their traditional
stacked multifamily.
How has LendingHome updated or
changed its internal processes to adapt
to this year's challenges?
Look, it was a big shock. None of us have
dealt with a global pandemic where we can't
leave our houses. All of us are doing our best
to assess what the risk is in the marketplace
because things have been so volatile. Of course,
the entire private lending space, and I would
suggest even the public lending space, made
adjustments to lending criteria in terms of
maybe scaling back leverage, increased pricing,
better creditworthiness in terms of the credit
box as far as who could qualify for those loans
in order to address market volatility and a vast
amount of uncertainty.
Some lenders, based on how they're
capitalized, even had to pause lending altogether
for a period of time, LendingHome was not in
that camp, fortunately; we continued lending
throughout. Many of the policy adjustments
that we made then have been unwound
back to pre-COVID levels. We continue to
adjust to the market demand, and demand
has rebounded much more quickly than we
anticipated. We have more loans in processing
and more applicants than ever before. So, we're
seeing a quick balance, and that's exciting, but
we definitely had to make those adjustments
related to managing risk initially.
"We're looking at factors such
as unemployment issues,
the winding down of the
government assistance that's
been out there for those that
have been unemployed, as
well as eviction moratoriums
in many jurisdictions
handcuffing landlords' ability
to enforce leases."
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