The COVID-19 pandemic brought with it the most uncertain credit risk environment we’ve seen in at least a decade. Shuttered economies and historically high unemployment brought concern about borrower ability to repay, and assistance provided by governments and financial institutions clouded long-term solvency even further.
In an uncertain credit environment, adequate collateral is key to mitigating risk.
Home prices and overall collateral values have regained their status as a magic bullet where values ‘only go up.’
According to data presented on 2020 Analytics’ web-portal compiled from the Federal Housing Finance Agency (FHFA), home prices in the Tampa-St. Petersburg-Clearwater, FL MSA have increased almost 6% over the past year and almost 20% over the past five years:
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