Brad Avergon is a senior loan officer at loanDepot’s Mortgage Master in Westborough

Boston Agent: Based on your mortgage volume, what sections of Greater Boston are seeing the highest level of housing demand?

Brad Avergon: At this time, the sections of Greater Boston seeing the highest level of housing demand are areas that have multiple listings of renovated properties. For example, in South Boston, some of the older single-family and multifamily homes have been significantly updated over the last decade.

Younger buyers, who are often less willing to make their own repairs, are in the market for a “new” or updated home, and they are spurring the demand.  Renovating older properties has not been limited to South Boston, and has spread to other areas around Boston proper such as Charlestown, Chelsea, Somerville, Medford, Malden, Quincy, Jamaica Plain, West Roxbury, and Roslindale. Location is important, and the closer to the city, the greater the demand.

Boston Agent: In a high-priced market like Boston’s, do you ever experience difficulties with jumbo financing?

Brad Avergon: Jumbo financing, especially in the Boston area, can be complicated. As your readers are likely aware, financing in the Boston area for single-unit residential loans greater than $523,750 (the Fannie/Freddie  lending limits) are considered jumbo. Because there are no specific set of standard guidelines for a jumbo mortgage, as there are with Fannie and Freddie loans, borrowers really need an experienced mortgage professional to help them through the process.

For example, an investor in need of a jumbo loan may have additional requirements for lenders to ensure the borrower can satisfy. Mortgage Master has access to a large number of jumbo investors that we work with, which enable us to find the best product and rate for our borrowers. In addition, appraisals on jumbo loans can be daunting. There are often no comparable sales in the immediate area, especially in the predominantly jumbo markets, where properties are selling over list price and sales data is lagging behind.

Boston Agent: How are things on the regulation side? Was it difficult adapting to the TRID regulations?

Brad Avergon: Because of the time and investment that loanDepot made leading up to TRID, we have been able to move forward seamlessly. The TRID rule had an initial launch date of August 2015, but was delayed until October. We proactively made the decision to stick with the original date and implement the procedural changes in August so we could be prepared for the new regulations and work out any potential issues in advance.

In the end, we were way ahead of the learning curve when the change was mandated in October. The credit here goes to our management team, as well as our processing and closing departments. As a loan officer, I make it a point to communicate often with my clients and their agent throughout the process, so the TRID changes ended up being just additional points of contact.

Boston Agent: Do you worry that consumers are too used to record-low mortgage rates?

Brad Avergon: I have been writing mortgages for the last 29 years. When I started in the business, interest rates were around 12 to 13 percent, and I remember thinking, “When rates go below 10 percent, we are going to be swamped,” and we were. Consumers have grown accustomed to historically low rates, and they may be somewhat disappointed when/if they apply for a loan and receive an interest rate slightly higher than the recent record-low interest rates. Helping borrowers understand that rates are a reflection of the economy is important.  Interest rates dropped to increase spending and stimulate the economy.

Hopefully the economy has healed and can now stand on its own a little more without requiring the stimulation of record low rates. As rates rise, so hopefully will the economy reflect higher incomes, rates of return on investments, etc. Janet Yellen, the chair of the Federal Reserve, recently said that interest rates will rise gradually. I believe this will allow consumers to get comfortable with the increases, should they occur.

Boston Agent: Finally, do you anticipate any new lending challenges this year?

Brad Avergon: Low inventory in the Boston area will continue to be a challenge for homebuyers this summer. Additionally, increases in interest rates may result in some individuals qualifying for less of a mortgage at a higher rate, and if home prices continue to rise, homebuyers will need larger down payments. Put clients in touch with an experienced loan officer early in the homebuying process; they can educate them about interest rates and low down payment mortgage options, and will help alleviate the stress of searching for a home.

Brad Avergon is a senior loan officer at loanDepot’s Mortgage Master, in their Westborough branch office. He works with first-time homebuyers, borrowers moving up or buying a second home and those looking for an investment property in the Greater Boston area.