Answer:
I admit, I hold reservations on this one. I understand what the campaign is going for, which is to convey that rates come and go, but high rates shouldn’t be a barrier to entering homeownership. I hear it used a lot by realtors, influencers, podcasters and industry forecasters, and that’s fine & dandy for their stations. However, I have concerns with formally using it in bank advertisements. Simply put, we are held to a higher standard. I see this phrase:
- Blurring one’s ability to repay a loan at a (temporary?) higher rate;
- Dancing to the edge of market speculation (implying that rates will eventually down – but will they though?); and
- Casually conveying that “marriage” leads to better outcomes. Yes, it is subliminal, but I can certainly see an examiner targeting such subtext in a fair lending exam.
Using the phrase, therefore, requires risk analysis and determining if it fits your institution’s risk appetite. Join “Variable Rate Compliance in a Rising Rate Reality” on August 20, 2024 to hear more variable rate issues to consider!
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Learn more about Rebekah Leonard’s Variable Rate Compliance in a Rising Rate Reality webinar.
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