This episode is a part of Unlocking Loan Solutions with Radian, a micro-learning series for mortgage & real estate professionals, with video, audio, and job aid for each topic. Choose your preferred learning style and take your learning experience to a new level.

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In this episode, we explore the concept of payment shock, its impact on loan reviews, and how it can be mitigated. We discuss:

• Understanding payment shock in mortgage transactions
• GSEs' guidelines on payment shock
• Real-life scenarios illustrating payment shock
• Strategies to mitigate payment shock
• Importance of borrower education and suitable mortgage products in managing payment shock

Resources

• Fannie Mae Selling Guide B2-1.4-02, Adjustable-Rate Mortgages (ARMs) (12/14/2022)
• Fannie Mae Selling Guide B3-6-04, Qualifying Payment Requirements (06/07/2023)
• CFPB: Ability-to-Repay/Qualified Mortgage Rule
• Radian Guidelines

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