As ballots continue to be counted in battleground states past election night, the country faces days or even weeks of uncertainty, with the presidential race between President Donald Trump and former Vice President Joe Biden still undecided.
A delayed outcome was not unexpected, given the increased use of mail-in ballots amid social distancing measures. But with no clear leader in the counts thus far, the election could enter a complicated next phase that stands to impact financial markets.
"If we get for a day or so of some uncertainty, I don't think it's a big deal," Brian Gardner, chief Washington policy strategist at Stifel Financial
The past few months have seen a number of nonbank mortgage lenders either
A number of stimulus measures also hang in the balance as the election remains unresolved. The CARES Act, for example, could create liquidity problems for servicers should the market take a turn, and that will require a legislative intervention, analyst
The regulatory landscape stands to be altered under a Biden administration given that Trump’s time in office has been defined by deregulation. Four more years of the Trump administration could remove barriers for
"It's very likely that the Fannie Mae and Freddie Mac conservatorship would end in a second Trump term, which would reduce the government's role in the mortgage finance industry, and would probably bring more private capital into the market," Rick Sharga, VP at RealtyTrac, said in a statement to National Mortgage News. "This could make loans more readily available for more borrowers, but could also make loans more expensive and somewhat riskier."
A Biden win would tip the scales the other way. Reinstating the eliminated consumer protections and regulations would be near certainties. Given a Supreme Court ruling over the summer, Biden would the option of
While President
"This would make buying a home somewhat more expensive for most people, but might also provide affordable rental properties to people who are currently rent-burdened," he said.