#FHA Coronavirus response | Explore Tumblr posts and blogs

youjustgotlawyered · 5 years ago

Text

Your (Evolving) Financial Rights and Responsibilities during COVID 19:

This is in no way a comprehensive list, but much of it has been shared in my networks and compiled by me. I would encourage people to reblog and add to it so that as many people as possible can be aware of their financial responsibilities during these times.

FEDERAL:

1. Student Loans - “Lenders must stop all payments for federal student loans through Sept. 30. During that time, interest will not accrue on the loans and nonpayment during that period cannot be used to affect credit scores or a person’s qualification for loan forgiveness. According to the bill’s text, ‘each month for which a loan payment was suspended’ will be treated as if ‘the borrower of the loan had made a payment.’ The bill also suspends any wage garnishment or tax refund reduction for people who have defaulted on their federal student loans. It does not, however, have any effect on private student loans.” (source: https://www.buzzfeednews.com/article/sarahmimms/coronavirus-bill-ends-student-loan-payments-interest-6 )

“Lenders will have to notify borrowers that their federal student loan payments were suspended within 15 days of Trump signing the bill, which he did Friday evening. Beginning Aug. 1, lenders are also required to notify borrowers when their student loan payments will start up again with at least six notices.“

2. Eviction/Foreclosure Moratorium - for evictions of persons from FHA-insured single-family properties, for single family homeowners with FHA-insured mortgages, for homeowners with mortgages backed by Fannie Mae or Freddie Mac. (please note the press release indicates 60 days but other sources said until the end of April. source: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_042)

3. Disconnection Moratorium (have to contact and mention COVID 19): EBMUD - 60 days, PG&E - 60 days, AT&T, Sprint, T-Mobile, Verizon, Comcast

STATE:

1. Eviction Moratorium - I was able to find a website which seems to be rapidly updating with new information, so please refer to your individual state for now and add along: https://www.fool.com/millionacres/real-estate-market/articles/cities-and-states-that-have-paused-evictions-due-to-covid-19/

CALIFORNIA:

1. Statewide Eviction Moratorium - until May 31, 2020. https://thehill.com/homenews/state-watch/489910-california-gov-newsom-declares-statewide-moratorium-on-evictions-for

2. Paid Family Leave - Caring for family member with COVID 19, eligible

3. State Disability Insurance - Illness due to COVID 19, eligible. 7 days unpaid waiting period waived.

4. Unemployment Insurance - unemployment, loss of hours, or having to work remotely due to children being at home due to COVID 19, eligible. 7 days unpaid waiting period waived. https://www.edd.ca.gov/about_edd/coronavirus-2019.htm

ALAMEDA COUNTY:

1. CalFresh - eligibility determinations waived for 90 days

2. CalWORKs - eligibility determinations waived for 90 days

3. In-Home Support Services - eligibility determinations waived for 90 days

4. Medi-Cal - eligibility determinations waived for 90 days

5. Women, Infant, Children - in-person visits suspended until April 7th. Apply by phone.

6. City of Oakland - Parking meters, time limited parking and street sweeping signs not enforced as of 3/17/2020. Continued enforcement of red curbs, fire hydrants, sidewalk and crosswalk blocking, bike line violations, and wheelchair ramp obstruction.

7. Free “Grab n Go” lunches for minors: Oakland Unified School District - Mon - Thurs, 8AM - 12PM, Alameda School District - Tues and Fri, 10AM - 1PM, Fremont Unified School District - Irvington, Kennedy and Washington High, 10AM - 11AM, Hayward Unified School District

#know your rights #coronavirus #covid2019 #eviction #eviction moratorium #financial rights #economic rights #remember we're all in this together #feel free to reblog #feel free to add to this #something I started #hope it helps somebody somewhere

12 notes · View notes

bettydgunter90 · 3 years ago

Text

What Is House Hacking?

If you’re new to real estate investing, you’ve probably discovered that it’s not as easy to break into as, say, the stock market. There is no Robinhood for rental property, and you can’t start with just $1. But there is a way to get your foot in the door — house hacking.

How Does House Hacking Work for Investors?

House hacking is an innovative way to leap the two biggest hurdles facing new property investors:

Most mainstream investment property mortgage products won’t allow borrowers without previous landlord or property management experience.

Investing in tangible real estate (as opposed to REITs) requires a sizable down payment or an all-cash deal.

If you don’t have landlord experience or a truckload of cash, house hacking might work for you. House hacking means using your own home to generate rental income and learn to be a landlord. You can modify your current home or purchase one designed for hacking.

Hacking Your Home

There are several popular methods for generating income from your personal home. Determine which is best for you by comparing the advantages and drawbacks, cost and income of these options.

Buy a duplex, triplex or fourplex

Many buyers begin their landlord careers by buying a multi-unit property, living in one unit and renting out the others. This is a great way to enter the rental market as a first-time investor. Not to mention, many investors can live in their unit for free, as tenants’ rent may cover the mortgage or let the investor pay off their mortgage quickly.

As long as you live in one of the units, you can get an owner-occupier mortgage instead of an investment property mortgage. Buying as an owner-occupier gets you cheaper financing, a smaller down payment and less-restrictive underwriting.

You can buy a multi-unit rental with a government-backed home loan (normally, these low- to no-down options are only available to borrowers who will live in the homes). That means you only need 3.5% down for an FHA loan or zero down if you’re VA-eligible.

You’ll have access to tax breaks that normal homeowners don’t get. At tax time, you may be able to deduct maintenance, depreciation, repairs, property taxes and utilities (check with a tax pro before buying).

Managing your rental units gets you legitimate landlord experience in a low-risk way.

What happens when you sell or move? You could convert the entire property to rentals and buy a new primary residence. Or execute a tax-deferred 1031 exchange with a 1031 exchange company to buy additional investment property. Many real estate empires started out as small investments that grew over time.

Qualifying for a mortgage, even as a first-timer, is not terribly difficult. Banks, mortgage companies, credit unions, and other vendors offer a variety of terms. Of course, having good credit and stable income will make the process easier. Some programs will allow you to use the rental income (or potential rental income) to qualify for the loan.

Convert unused rooms

Homeowners near colleges have been hacking their homes for decades. In some neighborhoods, almost every house has been converted into a mini apartment building to house students.

Garages and basements become additional units with separate entrances. Larger houses with many bedrooms can be divided between owners and renters. You might need little more than a locksmith to make these changes. Or you can go further and install apartment-style balconies, parking, and outside stairways.

Finished basements can make great living quarters if you brighten them up with windows, fresh paint on the walls and good lighting. You’ll also need to add kitchen and bathroom amenities to make it livable. Just a few thousand dollars can convert a basement, attic, bonus room or loft to a cash-generating rental.

You can finance these improvements with a personal loan, home equity loan, cash-out refinance, or even credit cards (for smaller jobs).

Buy or build an ADU

Guest houses, casitas and mother-in-law quarters are all accessory dwelling units (ADUs). These are legal, permitted dwellings on your property. Make sure that you comply with zoning laws and building codes. And if you buy a home that already has an ADU, make sure it’s permitted. If the ADU is illegal or unpermitted, you probably won’t be able to finance it or you may have trouble with your local government in the future.

Recently, many municipalities have modified their zoning to permit ADUs as a solution to housing shortages. ADUs can be bought or built. Many builders of manufactured homes can deliver and install a small unit within a few days or weeks. Or find a reputable local builder who specializes in smaller projects.

Park model homes and tiny houses

Tiny homes or park model homes that don’t exceed 400 square feet are not real estate. They usually have wheels and not permanent foundations. These units are legally defined as personal property. In many communities, you can buy them like cars or sheds and park them on your property.

Some people even choose to live in their tiny houses and rent out their main homes. Others rent out their tiny homes. In resort areas, tiny houses are very popular vacation rentals. You may be able to earn more with a cute Airbnb than a residential rental with a long-term tenant.

Tiny houses in picturesque places or tourist destinations lend themselves well to Airbnb or Vrbo. Just make sure that your community or homeowner’s association allows non-owners to occupy residences. Many locations have outlawed short-term rentals, so double check before investing in a pint-sized place.

You can finance a tiny home with a home equity loan or cash-out refinance against your main house. Alternatively, you can finance tiny houses with personal loans or sometimes dealer financing. And when you move, you can take your tiny house with you because it’s your personal property.

Good Real Estate Agents Are Crucial

Buying a house especially for hacking is more complicated than a typical home purchase. When you interview agents, tell them that you want a home to live in and also use for rental income. Enlist this person’s help in finding the best single- or multi-family homes for hacking.

Tips for New Landlords

If you want more rental income and fewer headaches, determine who your potential tenants are and what they want.

Will your renters be older folks seeking economical digs and quiet surroundings? Vacationers looking for something cute and convenient? Commuters desiring nearby public transportation? Students who want to walk to class and (naturally) bars, restaurants, and gyms? Local demographic information is widely available on sites such as areavibes.com and can tell you who your renters are likely to be.

If you’ve never been a landlord before, expect to do a lot more than putting up a sign and collecting checks.

Before hacking your existing home, make sure you’re allowed to have short- or long-term tenants. You’ll need adequate parking, safe entrances, rules for communal living, and you’ll need to cover maintenance and repairs.

Carefully screen your tenants to avoid damage, crime, nonpayment and lawsuits. Tenant screening services are inexpensive, and most landlords pass on their cost to applicants anyway. Adhere to local coronavirus guidelines when showing property.

Require satisfactory home inspections in the purchase contract. Experienced property managers might be okay with buying “as-is,” but beginners should not risk getting a bad roof or faulty wiring.

Consider requiring your tenants to carry renters insurance. It’s true that landlords are not normally legally responsible if tenant property is stolen or damaged. But that does not stop tenants from filing such suits. It’s just easier to require insurance, and policies are pretty cheap.

Finally, you can choose your level of involvement. Can you handle midnight maintenance calls, disputes between tenants or deadbeats? If not, consider hiring a property manager. You’d pay between 10% and 35% for this service (long-term rentals are cheaper while vacation rentals have higher management fees). Still, professional management can remove much of the risk and aggravation newbie landlords face. And that can be priceless.

The post What Is House Hacking? appeared first on Think Realty | A Real Estate of Mind.

from Real Estate Tips https://thinkrealty.com/what-is-house-hacking/

0 notes

anakinsbugs · 4 years ago

Text

Resources for homeowners affected by COVID19.

New Post has been published on https://walrusvideo.com/resources-for-homeowners-affected-by-covid19/

Resources for homeowners affected by COVID19.

Here’s a list of some high level resources where homeowners can find additional information and possibly help, regarding mortgage forbearance or other questions.

If you want to suggest other links that are not blogs or promotional, message me and I’ll add them here at the top.

List of lenders who may offer relief: https://www.aba.com/about-us/press-room/industry-response-coronavirus

https://www.hud.gov/ National relief information and resources

https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm if you want to talk to a housing counselor about avoiding foreclosure

If you have a Fannie Mae loan: https://www.knowyouroptions.com/covid19assistance

If you have a Freddie Mac loan: https://myhome.freddiemac.com/own/getting-help-disaster.html

General info on CFPB site: https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/

https://www.sba.gov/ Small Business Loans 800-827-5722.

https://www.nar.realtor/coronavirus-resources-for-property-owners

Press release from HUD explaining mortgage relief for FHA loans: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_048

submitted by /u/wamazing [link] [comments] Go to Source Author: /u/wamazing

0 notes

californiaplatinumloans · 4 years ago

Text

Will the Corona Virus COVID-19 Crisis Affect Your Home Buying Plans?

Will the Corona Virus COVID-19 Crisis Affect Your Home Buying Plans? California Governor Newsom issues Lockdown Notice, Trump may issue National Lockdown. Learn How Virtual Selling and Open Houses Can Keep You Safe

In response to the COVID-19 coronavirus pandemic, California governor Gavin Newsom announced that as of March 19, 2020, all Californians should stay at home except for essential activities like shopping for food and going to the pharmacy. Open houses don’t fit the criteria of “essential activities,” so how is the real estate industry handling the COVID-19 crisis?

Virtual open houses

Realtors have offered 360-degree virtual tours of homes for a long time, and now these services are more important than ever. You can continue looking for homes online and see everything without any need to leave your home. You can stay in touch with your realtor using online services as well.

Real estate does not have to come to a halt

Across the U.S., developers are worried that the coronavirus pandemic will halt their projects. Only VA home mortgages saw a slight decline in interest rates when the Federal Reserve lowered the prime interest rate to zero in mid-March. Conventional and FHA home loans saw a slight increase in interest rates in 30-year fixed-rate mortgages, 15-year fixed rate home loans, and adjustable rate mortgages (ARMs).

Deals are still going through, but new listings are slowing or coming to a halt. People still need to move for work or personal needs, but the majority of real estate experts are predicting that the usual spring housing market won’t be happening this year.

Get more information visit us:- https://californiaplatinumloans.com/will-the-corona-virus-covid-19-crisis-affect-your-home-buying-plans/

#COVID-19 Crisis Affect Your Home Buying Plans

0 notes

mfi-miami · 4 years ago

Text

FHFA Foreclosure Moratoriums Extended Until January 31st

FHFA Foreclosure Moratoriums Extended Until January 31st For All Fannie Mae And Freddie Mac Loans

The Federal Housing Finance Agency announced today that FHFA foreclosure moratoriums initiated in April are being extended until Jan. 31.

This marks the fourth time FHFA has extended the moratorium. It extends the latest extension deadline of December 31st.

FHFA director Mark Calabria…

View On WordPress

#Coronavirus #Coronavirus foreclosures #COVID-19 #COVID-19 foreclosure defense #COVID-19 Foreclosure Filings #COVID-19 Foreclosure Moratoriums #Covid-19 foreclosures #eviction moratorium #fannie mae #Fannie Mae Coronavirus response #Fannie Mae Foreclosure moratorium #FHA Coronavirus response #FHFA Foreclosure Moratorium

0 notes

bankrutcy0 · 4 years ago

Link

via Bankruptcy,

In today’s global and economic situation, financial hardships are becoming more and more commonplace due to hundreds of different factors, making homeowners need to defer a mortgage payment.

Some unfortunate and unexpected events that can lead to deferring a mortgage payment can vary from losing a job or income, a divorce, an accident that incurs higher medical bills than expected, or even predatory college loans.

Sadly, these types of stories are extremely common these days, and these kinds of financially difficult situations can happen to just about anyone. The good news is that you may be able to defer a mortgage payment, depending on your mortgage terms.

Check out these sources about late mortgage payments and payment deferrals:

Buying a home isn’t the only financial hurdle you’ll have to jump. Each month, you’ll have to make your payment on time. When financial storm clouds are gathering, you may find it difficult to pay your mortgage on time. In such a case, a mortgage deferral can keep you out of foreclosure while you get your finances together again. (budgeting.thenest.com)

26% of Americans have taken advantage of some type of payment deferral plan – CNBC (cnbc.com)

Summary:

even utility providers rolled out plans that allowed consumers to temporarily suspend payments.

About one in four Americans say they’ve taken advantage of some sort of payment deferral program because of the Covid-19 pandemic, according to the latest data released from Northwestern Mutual’s 2020 Planning & Progress Study .

The federal government, however, has put in place payment protections for student loan borrowers and renters through the end of the year.

“While there might be a temporary relief on current cash flow needs, any payment not being made today will have to be made at some point in the future,” Pepper says.

One of Unverzagt’s clients had her pay cut, but her job was secure, and she had money in the bank for emergencies.

The recently announced COVID-19 Payment Deferral solution returns a homeowner’s monthly mortgage payment to its pre-COVID amount by adding up to 12 months of missed payments to the end of their mortgage term without accruing any additional interest or late fees. (freddiemac.com)

The payment deferral option allows borrowers, who are able to return to making their normal monthly mortgage payment, the ability to repay their missed payments at the time the home is sold, refinanced, or at maturity. “For homeowners in forbearance due to COVID-19, payment deferral allows them to make up missed forbearance payments when they sell their home or refinance,” said FHFA Director Mark Calabria. “This new forbearance repayment solution responsibly simplifies options for homeowners while providing an additional tool for mortgage servicers. (fhfa.gov)

Mortgage Payment Deferral with Freddie Mac and Fannie Mae

How do I know if Fannie Mae or Freddie Mac owns my mortgage? (aarp.org)

For example, if you have a Fannie Mae, Freddie Mac, FHA, VA, or USDA loan, you won’t have to pay back the amount that was suspended all at once unless you are able to do so. (consumerfinance.gov)

In turn, Freddie and Fannie are requiring landlords not to evict tenants facing hardship based solely on nonpayment of rent during the forbearance period. (aarp.org)

What Does It Mean To Defer A Mortgage Payment?

A deferred payment is a financial term that is used when you put off making a mortgage payment and instead choose to pay it later. It is important to note that you can defer a mortgage payment for only a short period of time.Additionally, you will eventually need to pay the mortgage in full. Finally, you might be charged interest on a deferred payment. The interest charged will depend on your lender, and might put you further into debt or introduce other financial hardships down the road.

Tip: When you ask for forbearance, determine whether late fees and interest will accrue during the forbearance period. (cnn.com)

The deferred payments will be due at the end of the loan, such as when your loan is paid off, refinanced or your home is sold. (freddiemac.com)

Will A Mortgage Company Defer A Payment?

In most conventional cases, the mortgage company will usually agree to defer payments, but oftentimes the final decision is dependent on the lending company that signed off on the mortgage.

In a multitude of situations, the deferral can be an absolute win for both homeowner and lender, because it will ultimately keep you out of foreclosing on the property.

If you think that you’re going to need to defer a mortgage payment, it’s advisable to contact your lender as quickly as possible to avoid foreclosure proceedings, or even a deed in lieu of foreclosure.

In the case of financial hardship and proving financial hardship, many lenders will typically approve a deferral.

Payment deferral may be an option if you are: Behind on mortgage payments or at the end of a forbearance plan Able to resume your regular monthly payments (your financial hardship is resolved). (knowyouroptions.com)

It’s also highly recommended that you can provide hard data that your financial hardship is a temporary issue and not an ongoing problem.

Borrowers need to keep in mind: mortgage forbearance is not mortgage forgiveness. (cnn.com)

If you’re unable to provide proof that you’re capable of resolving your financial hardship in a prompt and timely manner, then the request to defer a mortgage payment may be denied by your lender.

Contact your mortgage lender: Payments may be deferred as coronavirus pandemic causes worker hardships – USA TODAY (usatoday.com)

Summary:

” The vast majority of mortgage borrowers have loans that fall under Fannie Mae, Freddie Mac and the U.S. Housing and Urban Development guidelines.

Representatives from the bank said help is available for Chase mortgage customers who have been affected by the virus.

The bank said it is providing assistance, including fee waivers, payment deferrals and other expanded assistance for credit card, auto, mortgage, small business and personal lending customers.

If you need assistance, customers can call 1-800-869-3557 to speak with a specialist to discuss options available for their consumer lending.

They have a mortgage and home equity program where they are offering a 90-day payment forbearance with no late fees.

Are You Trying To Negotiate A Deal In Your Favor?

There may be instances where you’d like to arrange a deal with your current lender. For example, some lenders will often agree to waiving your late fees once you’re caught up on missed payments, giving you a sweetheart of a deal, as those late fees can come with a hefty fine against you.

Regardless of what kind of financial hardship you’re currently experiencing, you’ll have to come up with a irrefutable case on how you’ll be able to continue making on time payments in the future, especially if they’re going to defer a mortgage payment or come to another arrangement with you.

By communicating with your lender as soon as you begin to experience financial hardship, you can typically make a stronger case for deferred payment. However, the decision will rest entirely in the hands of your lender, and in some cases, your request might be denied.

A Lump Sum Payment Option

If your mortgage is backed by Freddie Mac or Fannie Mae, you can request a specific repayment method beginning July 1, 2020 : Make one lump sum payment when your mortgage term ends. (businessinsider.com)

After making the lump-sum payment, Cwik opted to cancel the additional three-month mortgage relief program she says she agreed to be placed into earlier in the month. “I’m just a normal BofA mortgage account customer now,” Cwik says, but adds that she’s still concerned about the homeowners who don’t have the time, energy and fortitude to keep calling to make things right. “We have worked with the client and have resolved her issues,” Bank of America said in a statement to CNBC Make It. (cnbc.com)

Orchestrating A Repayment Plan

This can be done through a lump sum “reinstatement” payment, a repayment plan, or by rolling your missed payment into the mortgage balance so you can pay off the outstanding amount over the life of your mortgage. (homeguides.sfgate.com)

Requesting A Loan Modification

Another option is to apply for a loan modification, in which the loan company might add the deferred amount to the balance, increase the length of your loan or reduce the interest rate. (cnn.com)

California and the Trump administration issued protections this week that keep many tenants from losing their homes If after the forbearance period a borrower still can’t afford their original mortgage payment, loan modifications are available that would reduce monthly payments by extending the term of the loan. (latimes.com)

Skip The Stress Of A Deferred Payment By Selling Today

Have a late mortgage payment or having a late payment can lead to an increase in interest rates and even a higher level of debt, sometimes affecting your credit score.

If the lender is unwilling to help, a late payment won’t usually show up on your credit report unless you are 30 days or more late. (budgeting.thenest.com)

Many lenders have issued statements saying they won’t report forbearance, missed payments, or late payments to credit bureaus so your credit score can stay in tact. (businessinsider.com)

If you’re trying to pay down any outstanding debt, move on from this negative experience as quickly as possible and potentially avoid a foreclosure in the process, EveryHouse is here to help you through the process.

We can often make a same-day offer for your home, and in ideal situation, EveryHouse can close on your home in a few as 7 day.

We know that the current climate is more complex for people, and you don’t necessarily have the funds to go through with necessary repairs or renovations on your property. This is why we buy homes, to ultimately make life easier. Contact us today to see if we might be able to help with your situation.

from https://everyhouse.io/foreclosure/defer-a-mortgage-payment/?utm_source=EveryHouse.io%20News%20Feed&utm_medium=feed&utm_campaign=OneFeedSC

from EveryHouse https://everyhouse0.blogspot.com/2020/09/defer-mortgage-payment-19-resources-to.html via IFTTT

from Everyhouse https://everyhouse0.wordpress.com/2020/09/22/defer-a-mortgage-payment-19-resources-to-help-with-your-mortgage/ via IFTTT

from Short Sale https://shortsale2.blogspot.com/2020/09/defer-mortgage-payment-19-resources-to.html via IFTTT

from Short Sale https://shortsale6.wordpress.com/2020/09/22/defer-a-mortgage-payment-19-resources-to-help-with-your-mortgage/ via IFTTT

from Bankruptcy https://bankruptcy09.blogspot.com/2020/09/defer-mortgage-payment-19-resources-to.html via IFTTT

#Bankruptcy

0 notes

forelosure11 · 4 years ago

Link

via Foreclosure,

In today’s global and economic situation, financial hardships are becoming more and more commonplace due to hundreds of different factors, making homeowners need to defer a mortgage payment.

Check out these sources about late mortgage payments and payment deferrals:

26% of Americans have taken advantage of some type of payment deferral plan – CNBC (cnbc.com)

Summary:

even utility providers rolled out plans that allowed consumers to temporarily suspend payments.

The federal government, however, has put in place payment protections for student loan borrowers and renters through the end of the year.

“While there might be a temporary relief on current cash flow needs, any payment not being made today will have to be made at some point in the future,” Pepper says.

One of Unverzagt’s clients had her pay cut, but her job was secure, and she had money in the bank for emergencies.

Mortgage Payment Deferral with Freddie Mac and Fannie Mae

How do I know if Fannie Mae or Freddie Mac owns my mortgage? (aarp.org)

For example, if you have a Fannie Mae, Freddie Mac, FHA, VA, or USDA loan, you won’t have to pay back the amount that was suspended all at once unless you are able to do so. (consumerfinance.gov)

In turn, Freddie and Fannie are requiring landlords not to evict tenants facing hardship based solely on nonpayment of rent during the forbearance period. (aarp.org)

What Does It Mean To Defer A Mortgage Payment?

Tip: When you ask for forbearance, determine whether late fees and interest will accrue during the forbearance period. (cnn.com)

The deferred payments will be due at the end of the loan, such as when your loan is paid off, refinanced or your home is sold. (freddiemac.com)

Will A Mortgage Company Defer A Payment?

In most conventional cases, the mortgage company will usually agree to defer payments, but oftentimes the final decision is dependent on the lending company that signed off on the mortgage.

In a multitude of situations, the deferral can be an absolute win for both homeowner and lender, because it will ultimately keep you out of foreclosing on the property.

In the case of financial hardship and proving financial hardship, many lenders will typically approve a deferral.

It’s also highly recommended that you can provide hard data that your financial hardship is a temporary issue and not an ongoing problem.

Borrowers need to keep in mind: mortgage forbearance is not mortgage forgiveness. (cnn.com)

Contact your mortgage lender: Payments may be deferred as coronavirus pandemic causes worker hardships – USA TODAY (usatoday.com)

Summary:

” The vast majority of mortgage borrowers have loans that fall under Fannie Mae, Freddie Mac and the U.S. Housing and Urban Development guidelines.

Representatives from the bank said help is available for Chase mortgage customers who have been affected by the virus.

The bank said it is providing assistance, including fee waivers, payment deferrals and other expanded assistance for credit card, auto, mortgage, small business and personal lending customers.

If you need assistance, customers can call 1-800-869-3557 to speak with a specialist to discuss options available for their consumer lending.

They have a mortgage and home equity program where they are offering a 90-day payment forbearance with no late fees.

Are You Trying To Negotiate A Deal In Your Favor?

A Lump Sum Payment Option

Orchestrating A Repayment Plan

Requesting A Loan Modification

Another option is to apply for a loan modification, in which the loan company might add the deferred amount to the balance, increase the length of your loan or reduce the interest rate. (cnn.com)

Skip The Stress Of A Deferred Payment By Selling Today

Have a late mortgage payment or having a late payment can lead to an increase in interest rates and even a higher level of debt, sometimes affecting your credit score.

If the lender is unwilling to help, a late payment won’t usually show up on your credit report unless you are 30 days or more late. (budgeting.thenest.com)

Many lenders have issued statements saying they won’t report forbearance, missed payments, or late payments to credit bureaus so your credit score can stay in tact. (businessinsider.com)

We can often make a same-day offer for your home, and in ideal situation, EveryHouse can close on your home in a few as 7 day.

from https://everyhouse.io/foreclosure/defer-a-mortgage-payment/?utm_source=EveryHouse.io%20News%20Feed&utm_medium=feed&utm_campaign=OneFeedSC

from EveryHouse https://everyhouse0.blogspot.com/2020/09/defer-mortgage-payment-19-resources-to.html via IFTTT

from Everyhouse https://everyhouse0.wordpress.com/2020/09/22/defer-a-mortgage-payment-19-resources-to-help-with-your-mortgage/ via IFTTT

from Real Estate https://realestate005.blogspot.com/2020/09/defer-mortgage-payment-19-resources-to.html via IFTTT

from Real Estate https://realestate005.wordpress.com/2020/09/22/defer-a-mortgage-payment-19-resources-to-help-with-your-mortgage/ via IFTTT

from Foreclosure https://foreclosure11.blogspot.com/2020/09/defer-mortgage-payment-19-resources-to.html via IFTTT

#Foreclosure

0 notes

nightmare-afton-cosplay · 4 years ago

Text

Mortgage Refinancings Boom, Even as Coronavirus Hits Economy

Bing Guan/Bloomberg via Getty Images

The mortgage market recorded its best quarter in years this spring, a reflection of how the housing market is booming in 2020 even as much of the economy stumbles.

Lenders issued $1.1 trillion in home loans between April and June, according to mortgage-data firm Black Knight Inc. That was the biggest quarter in the company’s records, which date to 2000. Lenders extended roughly $2.5 trillion in home loans in all of 2019.

Refinancings, up more than 200% from a year ago, drove the increase. Mortgage rates hit new lows multiple times this year, falling below 3% for the first time in July. The low rates have made millions more Americans eligible to save money on their monthly payments. Purchase mortgages, though, fell 8% from a year earlier.

Dena and Patrick Driscoll closed on their refinance in April, trading in their Federal Housing Administration loan for a conventional one. That got them a rate of about 3%, more than 1 percentage point lower than their previous one, and they no longer had to pay FHA mortgage insurance. That slashed the monthly payment on their Philadelphia home from about $2,000 to roughly $1,500.

The Driscolls, who have kept their jobs during the coronavirus pandemic, are using some of the difference to cover the cost of activities for their two elementary-school children, who just started a fully remote learning program.

The money “gives us a little extra cushion, but it gets eaten up by having to pay for these extra things—making sure they have care at times when I can’t provide it,” Mrs. Driscoll said.

The mortgage market’s response to the pandemic is the latest in a series of seemingly opposing indicators of Americans’ financial health.

Many renters are worried about getting evicted after losing jobs or taking pay cuts. Many out-of-work homeowners are staying afloat for now—but only because lenders are letting them temporarily skip mortgage payments.

Meanwhile, many wealthier Americans with steady jobs, stuck at home with fewer places to spend money, are faring well. The pandemic and record-low rates have nudged many of them to buy second homes in more-rural areas or to shop for houses with more space.

Home sales jumped almost 25% in July, the strongest monthly gain on record. Home prices have continued to rise even during the pandemic, pushing homeownership further out of reach for many Americans.

“This boom in mortgage originations isn’t necessarily going to be that awesome for the broader economy,” said Ralph McLaughlin, chief economist at Haus, a home-finance startup. “There is less of a multiplier effect in the economy when somebody refinances versus buying a house.”

What’s more, the catalyst for low rates, a limp U.S. economy, is the same force that has caused millions of Americans to lose jobs or even go hungry. The Federal Reserve, worried about the economy’s fallout, cut interest rates to near zero earlier this year and said it would buy an essentially unlimited amount of mortgage-backed securities.

Nervous investors are also driving the low mortgage rates. Mortgage rates tend to move in the same direction as the yield on the 10-year Treasury note. Yields fall when anxious investors clamor for safe-haven assets like Treasury bonds.

The mortgage market had been on a tear before the pandemic. Originations last year reached their highest level since 2006, according to industry research group Inside Mortgage Finance.

Then, early this spring, home sales fell sharply as the pandemic pummeled the U.S. Many would-be buyers were too uncertain about their job prospects to commit to buying a home, and stay-at-home orders prevented some real-estate agents from showing homes in person.

Soon after, though, many mortgage lenders were overwhelmed by a deluge of refinance and purchase applications from those with the means to take advantage of low rates. Many lenders have since increased capacity, expecting the lending boom to last until at least the end of the year. Mortgage lender Draper and Kramer Mortgage Corp. has grown its staff, said Matt Patterson, executive vice president of business development.

The housing market has remained one of the most resilient sectors of the economy through the pandemic, positioning itself to play an important role in an eventual recovery. But that isn’t likely to happen soon, economists said.

Lance and Jennifer Haun closed on their Vancouver, Wash., home in May, locking in a rate of 3.125%. They had rented in the area for about a year after moving from the San Francisco area. Low rates helped persuade them to put down an offer.

“It was the perfect time to pull the trigger,” said Mr. Haun, a marketing consultant.

The post Mortgage Refinancings Boom, Even as Coronavirus Hits Economy appeared first on Real Estate News & Insights | realtor.com®.

from https://www.realtor.com/news/real-estate-news/mortgage-refinancings-boom-even-as-coronavirus-hits-economy/

0 notes

traciedemars · 5 years ago

Photo

Let's talk about CLOSING COSTS! Upcoming Free (& non-promotional) Home Buyer & Seller Classes: Until further notice, all classes are going to be held virtually due to the Coronavirus. Please email [email protected], or [email protected] for a link & password to the classes. Thank you! Home Buyer Classes: Saturday, May 9th, from 9am-11am Saturday, May 16th, from 12pm-2pm Tuesday, May 19th, from 5pm-7pm Saturday, May 30th, from 11am-1pm Seller Classes: Saturday, May 16th, from 9am-11am Thursday May 21st, from 5pm-7pm If these class dates and/or times don't work for you, please let us know. We understand that you have lives, and families, and work. We will work something out that works better with your schedule. Just let us know.... Good morning... or afternoon? I have lost all sense of time, and dates. It's a weird time in our lives right now. A few weeks ago when I wrote up the 'Forbearance and what it really means' blog, I thought that we would all be back to 'normal' by now...whatever 'normal' is... However, I think we can all agree that 2020 is the year that time forgot, and here we were all excited about holidays falling on weekend days... Chris & I are getting used to the virtual classes, and people seem to like them. It is a shorter time frame though so there are things we simply do not have time to cover, and that's why I need to step these up again to at least every other week instead of just once a month as I've been doing. Please, if you have any questions, send them over to me, and I will be happy to help! Chris and I are both still working. I am still showing homes, and writing up offers, but showing homes is a bit trickier right now as we do want everyone to be safe, and we have to work within the guidelines that we have been given. Who says an old dog can't learn new tricks??? Just a quick message... usually about now we would be having our Client Appreciation Event where we THANK YOU for your friendship, your referrals, your continued business & support...and well, just for being part of our lives! We LOVE YOU. Let's be honest...that's not happening this year, so be on the lookout for a little something-something from me and Chris Berg in your mailbox in the next few weeks. When you get it you just have to tag us on the social media of your choice...Facebook? Instagram? ...and maybe leave us a glowing review somewhere?? We miss you!! I want to go over Closing costs this time, and 'hopefully' I will be able to get a short video out on this too. I am working on that one... Let me know what you think! Closing costs are an important part of the home buying (or selling) process, but no one really knows what they are, are often how much they're going to be....and why is that? Well, first you need to know that there are 28 people involved in the purchase/sale of a home. You will most likely only ever see four of them.... your lender, your agent, your inspector, and your title officer at the end. You'll hear a lot about appraisers, and underwriters, but that is a different blog. Everyone has a job to do in the transfer of the property from the seller to the buyer....and everyone needs to get paid. Your buyers agent is FREE (don't get caught by 'buyers agency fees' as those are not common), but that may be the only free thing you get. Seriously... you don't have to pay for a buyers agent! There is your good news. :-D So what the heck is closing costs then? Lots of people talk about closing costs, but most people don't understand what they are...or how they're paid. Closing costs have two separate parts really...1....the part associated with your loan, and 2...the part associated with the title company and changing the ownership of the home to you.. One thing you need to know is that closing costs are not set...in other words...one persons closing costs will not be the same as another persons closing costs. Why? Because ...1....every person has a different loan based on their credit scores, type of loan, amount of home buying, amount (if any) of downpayment, what day they're closing (keys) on, interest rate, APR rate, lender they're using (some have more fees than others), etc... See how complicated that can get? So what about the second part? Well, that can differ as well based on the title company since not every title company charges exactly the same for their individual costs. Then there is also the costs for the property taxes of the home, time of year you are buying based on when the taxes are due/have been paid, cost of your home owners insurance, amount of loan interest, and more. Even more confusing, yes? Ok...now I know you are thinking that this weeks post is pointless then, but really, I have a point! :-) My point is that closing costs are variable based on you, your loan, your lender, your (soon to be) new home, and on the title company. So how do you figure that out? Well, really no one can figure out HOW much your closing costs are going to be until you have an accepted offer on a home...then we can figure out what your closing costs will be because you will have a home to base numbers off of, a loan chosen, a lender, and the title company picked out. Most numbers in real estate are a guesstimate until you have all the pieces in place...all the ducks in order...so to speak. When you are getting pre-approved, your lender will base all your numbers on a guesstimate...what we think your costs are going to be. Most times lenders, etc will guess high so that the numbers will come in smaller and more affordable for you. It is always better to look like a hero than a zero! :-) I know, I know...still not very helpful is it? I am sorry. Closing costs are as individual as you are. However, 98% of buyers will request the seller to pay for 2%-3% of their closing costs. Where does that number come from though as even this number changes depending on the person, their loan, the home involved, etc. Well, to start... a FHA loan requires 3.5% downpayment. FHA is the most common loan type for buyers as it is very forgiving, and easier for the majority of folks to get pre-approved for. There are some loans, and yes, grants too, that can take care of that down payment for you....meaning a ZERO down loan for you, the buyer. There are some additional fees to using these down payment assistance programs that is part of your closing costs. There is also a zero down USDA loan that has other fees associated with it. On average, the costs between title, loan, lender, taxes, interest, insurance, etc....run about 2%-3% of the homes purchase price....rarely does it run more. When listing a home, I (and many other agents) include at least some seller paid closing costs to the sales price of the home. This is done because so many buyers request those from the seller, and this way it isn't a surprise to the seller. So, yes, some sellers will pay for your closing costs when buying a home...of course, that depends on if there are other offers involved. In a multiple offer situation the seller may not pay any closing costs. One thing you need to know though is that if you ask for 3% in closing costs, and the lender only needs 2%, you don't get that other 1%....it goes back to the seller. You can't get cash back from buying a home....unless you are having your earnest money &/or appraisal fee returned to you...this happens if you are using a loan that covers your costs and fees. Usually your appraisal is part of your closing costs (but paid for at time of appraisal), and your earnest money is applied toward your down payment, or your closing costs. Again, 85% of the time a buyer will request some of the closing costs to be paid for by the seller. The other 15% of the time a buyer will pay their own closing costs so they don't have to finance them. Right there is the REALITY of closing costs. The seller never actually 'pays' for your closing costs... the buyer is financing them into the purchase price of the home...adding the closing costs to their loan. The seller is merely accepting less than the purchase price so that the buyer can do this. If you remember ANYTHING about this email...that is what you should remember.So, if a buyer has their own down payment, the lender can also help pay closing costs, and this can be done a couple of different ways. If a buyer is using one of the down payment assistance loans or grants, or the USDA loan, the lender can't help pay those closing costs. The buyer can use their earnest money towards these though. Not asking a seller for help with closing costs does make for a 'stronger' offer, but let's be honest...that isn't always an option for a lot of people. However, if able to do so, sometimes people will use the zero down loan or the down payment assistance loans, and use the money they have for their own closing costs, but asking the seller for help with closing costs is quite common. Really it depends on many things. In short....buyers responsibility for closing costs are:* Lender's Title Insurance Policy* Half of the escrow fee* Home Inspection (paid for at time of inspection)* Recording fees* First year Homeowners Insurance Premium* First year Flood Insurance (if applies)* Pro-rated property taxes* Appraisal fee (paid for when appraisal is ordered)* Survey fee (if required)* HOA fees (if applies)* Pro-rated HOA fees (if applies)* Lender fees; appraisal fee (see above), credit report, loan origination fee, pre-paid interest, private mortgage insurance All of these fees can change depending on the title company, the lender you've hired (closing costs can differ between lenders as some charge more & some charge less), the home insurance company you are using, the home inspector you've hired, the appraisers and what they're charging (and if you need a rush), etc.. Let me see if I can't make that part a bit easier... I am going to give you 2 loans to choose from, and we are going to PRETEND that I am loaning you $1,000 for a year First loan is 0% interest. Second loan is 5% interest. What loan do you want? The 0% one, right? Most people (in the class) always choose this one, but frankly, there's not enough detail here for you choose a loan, so let's take it a step further.... I have to charge you (the buyer) closing costs. Closing costs is to pay for all those 28 people that are involved in the purchase/sale of a home. The seller has their own portion of closing costs to pay as well. On 'average', the closing costs for the seller are going to be about 8%-9% of the purchase price. Yep... there's a cost to buy a home, and a cost to sell a home too. First loan at 0% Second loan at 5% Remember...closing costs.... Bank one charges $200 Bank two charges $100 So, what happens a year from now? How much of your money do I have a year from now when you come back and pay me back my $1000 that I loaned to you? Well....let's break that down... Remember that the original $1000 doesn't count because it was already my money. I loaned it to you, and now you are paying it back to me... First loan at 0% Second loan at 5% Closing costs.... Bank one charges $200 Bank two charges $100 Interest... Bank one has 0% Bank two has $50 ---------- ------------ How much of your money do I have? With Bank one I have $200 Wit h Bank two I have $150

So with bank one it's going to cost you 20% to borrow that money for a year, & with bank two it's going to be 15%... which one is better now? This is a very simplified example, but you get it. There is a lot more to closing costs & buying a home than just interest rate. You could have an amazing, unheard of interest rate, but the costs to get that rate could end up being astronomical, and not worth it over the length of your ownership. Remember that interest rates are NOT controlled or governed by the lenders....it is by the GOVERNMENT. All lenders are very close to each other because the interest rate is not in their control. Realistically speaking it is how much they are going to CHARGE you for the loan and the interest rate that is going to matter. as always....I am available for questions...as is Chris Berg with Cardinal Financial ([email protected] or [email protected] & 503-320-0925 cell) One last thing you need to remember is that a real estate agent is not a sales person. It is not our job to 'sell' you anything. We are assistants, advisers, guidance, and help. You should not feel as if your agent is trying to sell you a home, or anything else, our job should be to help you in getting the home you want. This being said remember that you do not get T-Bone steaks for the price of hamburger...Look ONLY at homes within your budget. ALWAYS ask questions, and expect answers without a lot of lingo. I was always told that if you can't explain something in a way that the other person can understand clearly, it is because you don't understand it yourself. :-) Information is power, and I hope that I am able to help you. Good luck, and as always...May the odds be ever in your favor out there.... AND If you are looking for a real estate agent, I would love to be able to help you. As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one. Real Estate is not really about houses, it is about relationships. Your agent, and your lender work for YOU. You drive the bus...we are merely GPS to help you get to your goals. Like the classes, this weekly blog email is to help you with your home adventure. The goal is to be informative and non-promotional. :-) We are, however, hoping you will call and want us to help with your adventure. If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email, text, or facebook me anytime. I am, as always, happy to help! Thank you again for your business and your referrals!! ...and thank you for referring these classes to your friends, family, and co-workers. . ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... Upcoming Topics: Can you buy a home with ZERO out of pocket??What are the costs of buying a home? ALL of them??Buyers Agency...what are they really, and do you have to sign one? Last Month: What does forbearance really mean? Have a great day, and I will talk to you soon, ;-D Tracie DeMars Real Estate broker Re/Max - Van Mall 360/ 903-3504 cell 360/ 882-3600 fax www.traciedemars.com [email protected] “Interested in free and non promotional home education classes? Go to www.learningtobuyahome.com or www.freesellerclasses.com, for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.” "Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be." - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

#realestate #traciedemars #traciedemarsrealestate #traciedemarsrealtor #traciedemarsremax #remax #closingcosts #traciedemarspnwrealtor #homebuyereducation #learningtobuyahome #learningtobuyahomedotcom #sellingahome #buyersagent #sellersagent

0 notes

ericvick · 5 years ago

Photo

Digital, Customer Service Products; FHA COVID News; 1st Quarter GDP Takes a Big Hit

While in captivity it is important to observe the impact of your words during meal times. (Warning: Rated R for language.) Measuring the financial impact of the government-instituted changes is now a focus. Credit-card payments are one of the first places where the effects will show up, and are often the first loans people stop paying when money is tight. They are usually unsecured, so lenders have little recourse if a borrower stops paying. Many large card issuers are letting borrowers pause their credit-card payments for a month or longer. Some are lowering or waiving late fees and interest charges, or even forgiving portions of customers’ balances. And lenders disappointed in purchase times and what aggregators are paying them (mostly due to low servicing values) who think retaining and servicing their own loans is a breeze, think again. Modeling out how much cash you will need to cover is critical. The focus has been on principal and interest, but what about taxes & insurance if your borrower isn’t paying? Compass Analytics’ “Retaining Servicing – Part III: Forecasting Cash Needs for High Forbearance Servicing” is available (the password is ServicingPart3). (If you would like to request access to the Servicing Advance Calculator that was demonstrated in the webinar, click here; questions can be addressed to Rob Kessel.)

Lender Services and Products

Free Webinar: Use Digital Closings to Keep Your Loans Moving. Register for a complimentary webinar on Wednesday, April 29 to learn how digital closings can keep your loans on track during the COVID-19 crisis. Hear from John Ralston, Black Knight’s Director of eLending Strategy, as he provides an update on digital closings in light of the GSEs’ guidance and the availability of remote online notarizations. John will also demo Expedite Close, Black Knight’s proven, easy-to-use digital closing solution that can be implemented in a few weeks. Register for this complimentary webinar today.

From Service 1st (SRV1st.com): Old risks are rapidly emerging as growing threats for originators. The current refinance market has enhanced early borrower payoff risk. Additionally, as industry has quickly transitioned to a near fully remote model, enhanced vulnerabilities now exist for one of the fastest growing cybercrimes in housing finance, wire fraud. Service 1st is a leader in cohesive risk strategies. Our Mortgage Payoff Watch solution alerts originating lenders should your borrower shop for a new mortgage within the first year of closing– with no monthly minimums! Mitigate growing wire fraud concerns due to enhanced exposures. Wire fraud financial losses are surpassing a likely underreported $150mm in 2018. S1’s fully integrated verification of participant certification and ID plus bank account verification dampens this business risk. Visit SRV1st.com for industry insights, newsletter registration and scheduling opportunities with members of S1. Stay safe!

This spring has presented us with an unanticipated, new normal. With so many lenders now working remotely, it makes sense to use mobile apps to access necessary files. GetConnexions is a mobile app that lets you access Connexions functionality remotely to better manage real estate valuations, right from the palm of your hands. With an easy-to-navigate dashboard and integrated search tools, GetConnexions lets you obtain workflows, track orders, reference current and past requests, set-up push alerts, and find appraisal locations. It’s the perfect way to bridge the gap between lenders, appraisers and AMCs while honoring current social distancing requirements. Connexions’ premier Appraisal Management platform delivers best-in-class automation, reporting, data analytics and integration to real estate valuations. It works with over 150 AMCs and over 13,000 independent appraisers nationwide. Want to learn more? Set up a demo or download the app from the App Store or Google Play today!

How are mortgage originators supposed to bring borrowers and Realtors together when we can’t, well, come together? Just ask LendUS. As a brand that was born when two well-established mortgage companies joined forces, they know a thing or two about collaboration. Before any of us had even heard of coronavirus, 90% of LendUS loan officers were using SimpleNexus to connect borrowers, real estate agents and loan officers in one place. And not just for the initial application, but all the way through loan disclosures. Read firsthand why LendUs considers SimpleNexus such a “powerful tool for moving loans forward.”

COVID-19 Changes

After years of low delinquency, stable servicing values, and a very liquid servicing market, mortgage servicers are facing a host of issues not seen since the 2008 financial crisis. It took courage and perseverance to survive the fallout from that time: How are servicers going to handle today’s virus-driven crisis? In the April issue of STRATMOR Group’s Insights Report, STRATMOR Senior Partners Michael Grad and Garth Graham, Senior Partner and CEO Lisa Springer and Principal Seth Sprague, CMB discuss the steps servicers need to take to proactively manage current issues and prevent a repeat of the past. “We can and will survive the time of COVID-19 by being smarter, more proactive and more disciplined with our response to the change in market conditions,” says Springer. “We owe it to our borrowers to apply the lessons of the past as we shape a better future for them.” Don’t miss “Walking the Tightrope: Servicing Through COVID-19” in the April Insights Report.

The Federal Housing Administration (FHA) announced the availability of a new Default Reason Code in the Single-Family Default Monitoring System (SFDMS) to ensure that loss mitigation actions that result from the COVID-19 National Emergency are accurately recorded. Mortgagees must follow the loss mitigation guidance in Mortgagee Letter 2020-06 (FHA’s Loss Mitigation Options for Single Family Borrowers Affected by the Presidentially-Declared COVID-19 National Emergency in Accordance with the CARES Act) and should also adjust their default reporting as described below. Mortgagees are asked to begin using the new Default Reason Code 055 – Related to National Emergency Declaration, as soon as possible. This new Default Reason code is available beginning May 1, 2020, for the April 2020 reporting cycle. Mortgagees unable to use Code 055 should, instead, report using Code 010 – Neighborhood Problem, for the April cycle. In addition, if the mortgage is newly defaulted (i.e., no open default episode), mortgagees are reminded to report Status Code 42 – Delinquent, and then Status Code 06 – Formal Forbearance.

Don’t forget that Flagstar issued a bulletin outlining the temporary suspension of certain products.

Due to the continued closure of Internal Revenue Service (IRS) offices responsible for providing tax return transcripts, Wells Fargo Funding updated its temporary tax return transcript requirements that were previously published. For conventional Conforming Loans not receiving full income validation through Fannie Mae Desktop Underwriter (DU) validation service or Freddie Mac Loan Prospector (LPA) asset and income modeler*: Delegated – if all income information used to decision the Loan is made up exclusively of wage-earner income reported on a W-2 and/or fixed income reported on a 1099 (e.g., Social Security or VA benefits), and the automated underwriting system (AUS) does not require income documentation other than a paystub, W-2, or 1099, IRS tax return transcripts are not required. For all other transactions, the Seller must provide a verification of deposit (VOD) verifying the assets used in underwriting. Prior Approval — Seller must provide one of the following: VOD verifying the assets used in underwriting, Verification of the borrower’s income directly from their employer or The Work Number database. Verbal verification of income is acceptable. Under its published policy, IRS tax return transcripts are not required for borrowers whose qualifying income was fully validated using DU validation service or LPA asset and income modeler.

Wells Fargo Funding has aligned its appraisal requirements for FHA and Guaranteed Rural Housing (GRH) Loans with the temporary, COVID-19-related, appraisal flexibilities announced by FHA and USDA Rural Development on March 27, 2020. Effective date for FHA Loans with appraisal inspections completed on or before May 17, 2020 and GRH Loans through May 26, 2020.

Freedom Mortgage posted credit policy updates which include clarification on Conventional loans with “Final Approval” status and new VA appraisal guidance.

Earlier this month Redwood Trust announced it is suspending the issuance of Purchase Price and Terms Letters (PPTLs) and the acquisition of residential mortgage loans delivered for purchase review.

Capital Markets

Around the world, economies are dealing with the record-breaking financial impacts caused by the coronavirus. In the Eurozone, Japan, and Australia, PMI indexes hit record lows in April. U.S. durable goods orders fell 14.4 percent and shipments fell 4.5 percent as shelter in place orders disrupt supply chains and demand for many goods evaporates. The housing market slowed in March, but it did not come to a complete halt, with existing home sales fell 8.5 percent and new home sales fell 15.4 percent. There is cautious optimism that the current slowness is creating some pent-up demand that will show up once people are comfortable to move again. It is no surprise that mortgage purchase applications are down 30.6 percent from one year ago and refinances are up 180 percent from a year ago given the current rates environment. The government continues to try on prop up the economy, passing the fourth major piece of legislation aimed at bringing financial relief to people and businesses. To date, the total fiscal response to the economic upheaval is $2.8 trillion.

What happened in the markets yesterday? Wall Street lost some momentum, oil had another turbulent day, and U.S. coronavirus cases topped 1 million, though NYC hospital admissions dropped. U.S. Treasuries rallied ahead of today’s FOMC decision, largely attributable to April Consumer Confidence posting its lowest reading since June 2014. Consumers are positive about the economy reopening, but less optimistic about their financial prospects, which could be a headwind for spending activity during the recovery phase. The 10-year closed the day -5 bps to 0.61 percent.

Today’s main economic event will be the latest FOMC statement, at 2:00pm ET, followed by Chair Powell’s press conference at 2:30pm where there is potential for talk of inflation targeting as well as a tweak in the IOER rate. The calendar is underway, with MBA mortgage applications for the week ending April 24 posting a 3.3 percent decline from one week prior. We’ve also had Advance Q1 GDP (-4.8 percent). Later this morning brings March Pending Home Sales and Weekly crude oil inventories for the week ending April 24. The NY Fed will conduct two FedTrade purchase operations totaling up to $8.213 billion, like Monday. We begin the day with agency MBS prices better by a few ticks and the 10-year yielding .6 percent after the GDP news.

Employment

A profitable, well-capitalized and fast-growing top-100 retail mortgage company headquartered in Northern California is looking for opportunities to acquire assets of companies with demonstrated record of success in retail production while maintaining excellent loan quality. “We are a FHLMC and FNMA, seller/servicer as well as, a Ginnie Mae servicer, with a very comprehensive set of loan programs. We are a storied, employee-owned company with a culture of honesty, collegiality and respect. Our management team has decades of experience and our operational and technological capabilities are second to none. We are recognized for our excellent service to our loan officers and their borrowers and we provide transparency and unlimited upside in compensation for our sales and operations teams. Third party advisors are welcome. All inquiries will be completely confidential.” If interested, please send resumes to Anjelica Nixt.

“What’s your next career move? Online home refi and purchase loan applications are forecast to accelerate from where they are now, and working from home is the new normal, indefinitely. It’s time to re-envision and re-define your day and grow your business on your terms. Interfirst’s exclusive LO[+R] position – remote Mortgage Loan Originator – puts the call center resources on your kitchen table. We are expanding to support growing demand across the U.S. Make Interfirst your first move. We are providing our sales professionals with the resources and financial stability that they deserve. All of our LO[+R] are paid an aggressive salary with the opportunity for significant bonuses. Our low-rate no-lender fee combination makes us highly competitive with anything advertised online by any lender in any state. We provide inside purchase and refi leads to you. Goodbye cold calling. Our leadership team has over 100 years of mortgage, sales/marketing, and consumer-related experience, with a 2020 business objective to grow our Retail production, on top of the $35B we have originated. Apply today.”

Parkside Lending is grateful for our Partnership with Class Valuation AMC who has enthusiastically joined in helping our Community Heroes through the “COVID Community Heroes Loan Program” where Parkside will waive the fees paid to Parkside and provide 45-day locks for the price of a 30 day. And now, when you select Class as your AMC in Parkside’s easy to use broker portal, you will get a $100 credit towards the cost of the appraisal applied at closing. Parkside is continuing to grow market share in a measured manner. Are you an Underwriter or Client Service Representative (CSR) that wants to “Experience the Power of Caring”? Then we invite you to join our team. Parkside offers a competitive salary, benefits and a bonus plan, in addition to a great team and culture. Please apply at Parksidelending.com or send your resume to [email protected].

What does commitment mean to you? Stearns has been committed to the Broker and Non-Delegated Correspondent community for over 30 years and is gearing up for the next 30. The fabric of Stearns has always been our people and our investment in them continues into 2020. In order to support our team members, partners, and borrowers, there has been a large amount of initiatives centered around technology, resources, digital experience, and fulfillment infrastructure. Monthly technology releases allow for consistent and consumable enrichment to our team and our clients. In 2020 alone, Wholesale has expanded by 40 new team members and is just getting started. Join us in gearing up for growth this year, click HERE to be contacted by our recruiting team today.

Do you want to be the Deputy Director, Office of Single-Family Program Development, at FHA and make $140-170k a year? Here you go: 20-HUD-857-P.

0 notes

asfeedin · 5 years ago

Text

Suspend Your Mortgage Payment And Keep Your Home With COVID-19 Forbearance

Getty

If you have lost your job, received a layoff notice or are otherwise struggling to pay your mortgage, it’s critical that you reach out to your creditors and mortgage servicer immediately and request assistance. Most lenders, especially mortgage companies, have developed a thoughtful COVID-19 response that includes offering customers a way to suspend their mortgage payments, keep their homes, avoid late fees and not suffer any negative reporting to the credit bureaus. Most also provide you an option to add the past due payments to the end of your loan instead having to figure out how to pay back a huge lump sum after three or six months of payment suspensions.

As of today, Johns Hopkins is reporting that approximately 835,316 people have tested positive for coronavirus in the United States, and 45,950 people have died from it. The coronavirus is tragically taking lives, and COVID-19 is killing jobs. In the past month, it wiped out a decade of job gains causing 22 million—and counting—to file unemployment claims. Consequently, many of you are understandably anxious. And when you aren’t busy doing all you can to stay coronavirus free, you might find yourself spending an inordinate amount of time wondering whether you’ll even have a job from week to week. Then, there’s still just regular life—your locked-down life that you are impatiently waiting to get back to normal (whatever that will be).

Things are dire for millions of people as the public health crisis has created an outright financial crisis. While you work through your employment—or unemployment—struggles, here’s an outline of what’s available to save your mortgage. Below are options for government-backed loans as well as conventional loans via three of largest private mortgage lenders in the United States.

Government-backed mortgages.

If you have an FHA, VA or USDA loan, you have a government-insured mortgage loan. These loans are backed by the Federal Housing Authority (FHA), the U.S. Department of Veterans Affairs (VA) or the U.S. Department of Agriculture (USDA). It states here that you can also apply if you have a Fannie Mae or Freddie Mac loan. The new law known as the CARES Act provides mortgage relief protection for those who have government-backed loans. As such, immediate help is available for you if you find yourself struggling to make your mortgage payments.

The first thing you need to do is contact your mortgage service provider. If you have a government-backed loan and find yourself either directly or indirectly impacted by COVID-19 such that you are experiencing a financial hardship, make this call immediately. All you need to do is explain that you want to apply for the COVID-19 mortgage forbearance program. You will then be instructed how to apply. The best part is that the program stipulates that your mortgage lender will not require you to provide documents.

To get started just call your lender. You can also review this document for more details. It’s been put together by the FHA, but the process is applicable for all government-backed loans.

Conventional mortgages.

Even if you don’t have a government-insured loan, immediately call your mortgage servicer. Due to COVID-19, most all major lenders have put together programs to address the pressing needs of customers experiencing a financial hardship during this time. Here’s what three of the largest private lenders are doing.

Wells Fargo

Wells Fargo has announced that you can request a payment suspension for an initial three-month period, and then (based on your circumstances), you can apply for a longer payment suspension period. Wells Fargo also informs that they will not be charging any late fees while your payments are in suspension, and they won’t report any negative information to the credit bureaus about your account being in past-due status.

Even more, to help you get back on your feet once you can start making your mortgage payments again, Wells Fargo is offering a variety of options to repay the suspended payments, including a loan modification where you can roll your suspended payments to the end of your loan instead of being required to make the full deferred payment directly after the suspension is lifted.

On their website they go on to state that they are prepared to suspend residential foreclosures, evictions and even automobile repossessions. Customers can also apply for financial assistance with credit cards as well.

Bank of America

Bank of America has announced that you can request to have your payment suspended for up to three months or longer via two options (1) payment deferral and (2) payment forbearance. With Bank of America, and depending on your specific circumstances, your payments might either be suspended (delayed) or completely erased, and they won’t apply any late charges for past-due payments.

When you speak with them, they will determine which option is best for you. It also appears that once you start making payments again, the past-due amounts could be added to the end of your loan if you make that request. Learn more by checking out their website.

Quicken Loans

Quicken Loans has announced that you can request to have your mortgage payment suspended. If you are experiencing financial hardship due to COVID-19, Quicken is offering an initial three-month forbearance option which will place your mortgage in pause status. After the crisis is over, they will work with you to determine how best to move forward and get you back on track.

The late payments would never be reported to the credit bureaus, and you wouldn’t be required to pay late fees. Call your mortgage servicer, or check out their website for more details.

Take immediate action.

COVID-19 is wreaking havoc on our entire lives. If you are struggling financially right now and having trouble paying your mortgage, don’t wait to take action. Get on these opportunities immediately. Contact your lender today, explain your situation and get the help you need. Finally, if your lender wasn’t listed here, chances are it has a similar kind of COVID-19 program in place, but you still have to take the first step and reach out.

Source link

Tags: Careers, COVID-19 Forbearance, COVID19, credit, employees, Employers, financial hardships, forbearance, foreclosures, home, Layoffs, loans, mortgage, Payment, Suspend, unemployed

from WordPress https://ift.tt/2znZ0Be via IFTTT

#IFTTT #WordPress #Asfeed.in #asfeed #asfeedin #asfeed blog

0 notes

oliveratlanta · 5 years ago

Text

What Atlanta renters need to know during the coronavirus pandemic

Midtown’s 1930s Winnwood Apartments. | Photo courtesy of City Realty Advisors

Will I be evicted? Can I move May 1? What if my rent goes up? Can that even happen? Here are answers

We’re a month into the novel coronavirus’s impact on life in Atlanta, and by appearances, we have at least another month of disruption ahead. Which means that Atlanta’s rental market, and the city’s renters, are dealing with a unique and unexpected reality. This leaves a lot of questions to be answered, even if we think we’re weary of talking about COVID-19.

The hopefully temporary shutdown of myriad businesses around the city has led to large-scale unemployment—and anxiety about paying rent that renters may not have felt prior to the pandemic. Whether they were able to fork over rent at the beginning of April or not.

Then there’s moving into a new housing situation, which many Atlantans start doing when the weather breaks into spring. Is that even safe or legal anymore? Have they Lysoled?

Atlantans are worried, and concerns about what’s healthy and feasible are justified. The National Multifamily Housing Council and RentPage recently released a rent payment tracker showing that Atlanta experienced a 9.4-percent drop in the share of apartment homes that paid rent through April 5. That’s not as high as other cities, such as New Orleans, but things are definitely real.

Below are a few real answers that are hopefully helpful to residents of Atlanta and its surrounding municipalities who rent in these complex times.

I’m supposed to move May 1. Am I still allowed to do that?

The law doesn’t say you can’t. And moving-van rental companies such as U-Haul and Ryder are still leasing vehicles.

Among other exemptions listed when Georgia Gov. Brian Kemp first announced the statewide shelter-in-place order on April 2 was this: A person is allowed to de-shelter if “performing necessary travel,” and engaged in the performance of, or travel to and from, the performance of Minimum Basic Operations for a business, establishment, corporation, nonprofit corporation, or organization not classified as Critical Infrastructure.”

That sounds like everybody who works, whether your job makes you part of what the Department of Homeland Security defines as the “essential critical infrastructure workforce,” can move around for work. Gov. Kemp’s updated order extended the original order from its April 13 expiration date to the end of April.

Bellhops, the app-based moving company that operates in Atlanta, Kennesaw, Alpharetta, and Marietta, says moving has been deemed an essential service, but the company is also waiving cancellation fees over COVID-19-related issues. Their FAQ answers questions about revised safety precautions and makes suggestions for anyone interested in assisting your hired movers with your move (spoiler: don’t).

Still, it’s not a bad idea to contact your preferred moving company and ask if they’re open for business right now and how they’re operating. Just as Georgia isn’t forcing them to stop working, it also isn’t subsidizing U-Haul.

Among the shelter-in-place exceptions are “workers who support moving and storage services.” So moving companies are still moving—but it’s at the discretion of individual firms.

I can’t make rent May 1. Will I be evicted?

It’s not likely, but technically not impossible. The national CARES Act prohibits eviction proceedings, fees, penalties “and other charges” for 120 days, starting March 27, but that only covers rental units in properties that participate in federal assistance programs, or are subject to federally backed mortgage loans, including multifamily mortgage loans. So if your landlord receives any sort of federal subsidies or has a loan owned or ensured by Fannie Mae, Freddie Mac, the FHA, the VA, or USDA, you’re covered.

The CARES Act supplements the powers of state and city governments. In Atlanta, Mayor Keisha Lance Bottoms, alongside Atlanta Housing CEO Eugene Jones Jr., have announced a number of relief efforts for anyone who has lost income due to COVID-19 and is currently renting a unit owned or subsidized by Atlanta Housing, including seniors and families. Housing Choice Voucher Program participants are included. More details are available at the housing authority’s online resource guide, and updates are being distributed on its social media channels.

Bottoms also issued an executive order in March asking the City of Atlanta’s Department of Grants and Community Development, Invest Atlanta, Atlanta Beltline Inc., Partners for Home, and Fulton County / City of Atlanta Land Bank Authority, to institute a 60-day moratorium on residential evictions and filings.

Of course, asking doesn’t mean getting. As GeorgiaLegalAid.org points out, “Georgia has not entered a statewide order blocking foreclosure sales.” And if your eviction case was filed before March 27, it is not covered by the CARES Act. But there’s also the chance that courts are not hearing eviction cases, or any case for that matter, during the pandemic. Check on that before you consider eviction imminent.

Plus, surely there are better ways to become famous as an Atlanta landlord than being publicly criticized for evicting someone during an unforeseeable (and hopefully temporary) global economic crisis. Heck, if things improve soon, you know reality TV cameras will be filming up a storm all over town this summer.

Remember, delaying evictions and honoring moratoriums doesn’t mean an eviction can’t happen later. And evictions due to reasons other than nonpayment of rent or fees, such as crimes, are still allowed under the CARES Act. Read this summary and analysis from the National Housing Law Project, published March 28, for more.

And don’t forget: It takes a while to be evicted anyway. Brush up on the Georgia Landlord Tenant Handbook for more details on the state’s rental laws.

What if my lease is expiring at the end of April?

Now would be a good time to talk to your landlord and negotiate staying past the end of the month, if that’s your intention. The Georgia Landlord Tenant Handbook states that any “tenant-at-will”—which you are, if you either never had a written lease or it expired but your landlord has been allowing you to stay—must be given 60 days notice before the “lease” can be terminated. That usually doesn’t allow for situations in which you’re being evicted because you haven’t paid, but again, that’s what moratoriums are for.

What if I have an issue with my apartment—something breaks or I need an urgent repair?

Because Gov. Kemp’s order exempted mostly everyone who is working, you not only have the right to call for repair, you should expect it. Be sure to get a written response to your repair requests, in case you ever need to come before a judge.

If the landlord doesn’t respond, you can file a lawsuit; hire your own repairs person and request what’s known as a “repair-and-deduct”; notify a city, county, or local housing code enforcer; or just move out. But if that last option is really not an option at all, consider the ones before.

Can I break my lease early?

If you agreed to have the right to break your lease, you and your landlord are subject to the agreement terms. That could mean fees you’ve already said yes to paying.

Can my landlord raise the rent?

Yes. In America, your landlord can always raise the rent. They cannot do this during the term of the lease, unless they were allowed in the rental agreement you both signed, so always read carefully.

Can my landlord evict me if I contract COVID-19?

No. Fair Housing laws mean that you cannot be discriminated against due to a disability. Coronavirus is definitely a disability.

Are short-term rentals still available?

No. Starting April 9 and not ending until May 1, Gov. Kemp has banned all short-term rentals.

source https://atlanta.curbed.com/2020/4/14/21220270/renter-coronavirus-atlanta-rent-evictions-moving-pandemic

#OliverAtlanta

0 notes

mfi-miami · 5 years ago

Text

CORONAVIRUS MORTGAGE FORBEARANCE WARNING!

CORONAVIRUS MORTGAGE FORBEARANCE WARNING! FHA-OIG Busts Mortgage Servicers Deceiving Homeowners

MFI-Miami has issued a Coronavirus Mortgage Forbearance Warning! The FHA-OIG has issued a scathing report saying mortgage servicers are deceiving homeowners about Coronavirus Mortgage forbearance programs.

HUD and FHA refused to publicly say which mortgage servicers were deceiving…

View On WordPress

#Coronavirus #Coronavirus foreclosures #Coronavirus mortgage bailouts #COVID-19 #Covid-19 foreclosures #COVID-19 mortgage bailouts #FHA #FHA Coronavirus response #FHA Foreclosure Defense

0 notes

plusorminuscongress · 5 years ago

Text

New story in Politics from Time: Most Renters Won’t Be Protected From Eviction Under White House Plan, Despite President Trump’s Promise

(NEW YORK) — Most Americans who rent their home, many of whom have lost their jobs in the sudden economic slowdown caused by the coronavirus outbreak, will not be eligible for eviction protections, despite what President Donald Trump said this week.

Under the Department of Housing and Urban Development’s plan released Wednesday, foreclosures and evictions would stop for 60 days on single-family homes with loans through the Federal Housing Administration. That would apply to roughly 8 million units, according to HUD. Only FHA homes lived in for at least a year can be rented out.

That’s compared with the roughly 43 million households who rented in 2019, according to the U.S. Census. Roughly half of renters rent their home from an individual investor, while the other half rent from a business or multi-unit property owner. The ones renting from a business will not receive any protections according to HUD’s proposal.

“That’s the problem with (HUD’s proposal). It only impacts a very small amount of people. We need big-scale solutions,” said Andrea Shapiro of the Metropolitan Council on Housing, a New York-based housing advocacy organization.

Furthermore, HUD has no power to protect renters in public housing authorities located across the country. HUD Secretary Ben Carson said this week on Twitter that the agency is working with Congress to get that authority to protect renters in public housing authorities.

“HUD has been in contact with every Public Housing Agency in the country to ensure the millions of low-income Americans we serve continue to have a roof over their head,” Carson said.

The rules are in contrast to comments made by Trump this week, who said renters would get “immediate relief” as part of his administration’s plan.

Housing advocates called the White House’s proposal a “important first step,” but said there are limitations to the policy that need to be addressed.

“America’s lowest-income renters were already struggling to pay rent and make ends meet before this latest disaster, and people were experiencing homelessness. Congress must implement a national moratorium on all evictions and foreclosures,” said Diane Yentel, president and CEO of the National Low Income Housing Coalition.

Renters tend to be more economically vulnerable than their homeowner counterparts. They have generally lower incomes and cannot tap into the equity in their homes as a line of credit in case of an emergency. A disproportionate number of renters are black, Hispanic and other minorities.

Some cities and states, including San Francisco and Los Angeles, New York state and Kentucky, have imposed their own eviction and foreclosure moratoriums in response to the coronavirus. But the majority of states and localities have yet to step in to stop people from losing their homes.

Shapiro said the best solution at the moment would be a national moratorium on both rental payments and mortgage payments.

“Everyone needs protections right now,” she said.

___

AP Race and Ethnicity Writer Aaron Morrison contributed to this report from New York.

By Ken Sweet / AP on March 19, 2020 at 10:58PM

#Time #politics #PlusOrMinusCongress #±Congress #Indega±#IndegaPlusOrMinus #TimeMag #TimeMagazine

0 notes

chrisvarneyus · 5 years ago

Text

Coronavirus & Its Impact on the Multifamily Industry

I want to start off by saying that this is just an opinion piece. I am not a doctor nor an economist and am far more of a generalist than a specialist in many areas. It is also worth mentioning that this content is far from evergreen. It’s quite tied to the next 24 hours (today is March 16th, 2020), since the pace of change, i.e. changes in the data we receive, political responses and central bank policy, is currently unimaginably fast.

The spread of COVID-19, along with the related panic and rapid economic contraction, has created an air of fear (and subsequent volatility) rarely seen in public markets. If you’re reading this though, you probably aren’t looking for advice or opinions on the stock market or math around how quickly an infectious disease could spread, i.e. what happens if you double a penny every day for 30 days.

I’m going to break this down into something succinct and tangible while trying to steer clear of the pandemic itself (including the health, supply-chain, and broader macro-economic repercussions) and instead just focus on the way it touches those in the multifamily sector.

The Pros

10 year treasury yields are unbelievably low.

The Federal Reserve cut its benchmark interest rate to almost 0%.

Debt in some cases is meaningfully cheaper than it was a month ago.

Sustained low rates may create downward pressure on cap rates.

The Cons

Tenants may fall behind on their rent. Employees of all types, particularly those touched by the trickle-down effect of travel restrictions are at risk of shouldering a substantial economic burden reflective of reduced hours, or worse, terminated employment. Lost wages coupled with the precipitous drop in equity values (a metric tightly correlated with consumer savings) creates a significant risk to multifamily property net operating income and therefore, from an income capitalization approach, value. A second order outcome could be a fracture in the implied security of what has historically been perceived as a recession-proof asset. This is not to say that multifamily, as an asset class, will not be incredibly resilient but the effects of declining occupancy and net operating income directly impact valuations and can easily snowball to affect capital markets, as less owners would qualify for conventional financing and the risk of defaults would loom.

Agencies are pushing up floors and spreads to hedge against volatility and potentially fear of blowing through their caps because of the knee-jerk inundation of loan applications when 10-year treasury yields broke below 1.00%. Today, March 16th, 2020, Fannie and Freddie pushed up baseline spreads while Fannie held its 90bp treasury floor and Freddie remains at the greater of 75bps or -15 from the treasury at time of quote. Freddie SBL increased coupons by 25bps across the board this morning as well.

Multifamily property buyers may get spooked, we’ve already seen this, which could create a widening between asking prices and bids and a (temporary) reduction in market liquidity and transaction velocity possibly leading to price reductions.

The Unknown

The biggest issue in my opinion is the unknown. It is the element of uncertainty that is driving up the price of sovereign debt and driving down yield. It’s what’s causing a flight from equities. It’s what pushes out credit spreads and it's what keeps everyone on self- or government-imposed quarantine. As the great minds of our generation put their heads together and aggregate data, this uncertainty will inevitably pass. This is not to say that we will not have a big problem on our hands. It is to say that as we continue to aggregate and translate the data, we will know better what we are dealing with and have sufficient evidence to create an actionable plan. As we become more informed, panic will be replaced by prudent precaution.

What are the repercussions of continued QE (quantitative easing)? I floated this in a LinkedIn and email post recently: is this next round of QE sufficient to help us through this sudden, worldwide economic bottleneck? I can’t imagine it is. What are the long term impacts of the continued printing of money and throwing it at our problems? We don’t really have a reference point. This sovereign debt bubble is a new thing. The word bubble is quite intentionally chosen here. Again, I’m not an economist, but I feel like more than a few countries in South America have tried printing their way out of economic cycles… How did that go? I am not saying this is an apples to apples comparison, but it feels like oranges and tangerines? Botanists, forgive the crude metaphor.

The Fed is out of bullets. That 100BP drop was our last piece of likely meaningful ammunition in the face of a recession. Now what can the Fed and the US government do if we face a real, long term recession? I don’t necessarily fault them (or not fault them) for this QE and rate-cutting decision but I do wonder if it’s the use of a sledge hammer in lieu of a scalpel, or as I’ve mentioned in other posts and articles, pushing a string. Will we be forced to negative interest rates in the future? Negative interest rates did not have the desired effect in Japan.

What Now

Well, for starters, wash your hands and don’t sneeze on anyone, right? I don’t want to give any direct advice but I’d like to share some anecdotal notes. Markets run in cycles, irrational exuberance is often followed by similarly irrational panic. If you’re in equity markets, the bulk of us normal humans have this weird tenancy to buy tops and sell bottoms. Over time (and I certainly can’t say how long it will take) this too shall pass. If you’re thinking about refinancing multifamily or commercial real estate debt, rates may be higher than they were a month or two ago with agencies, and lower with FHA and banks. They may be static. The primary thing right now that is static though is the very non-static nature of credit markets. I’d probably be pulling the trigger on something if there is a looming maturity afoot. We don’t know how long this will last or the medium-term repercussions on capital markets. If you have a good deal and you’re waiting for the best rate ever, you may just want to go ahead with it because if tomorrow is unknowable, so is Q2… and Q3. Finally, be responsible but don’t panic.

Was this helpful? If so, please share with colleagues. Do you have suggestions or comments? Email me at [email protected] and I’ll do my best to be as responsive as possible. Wishing everyone a safe and hand-sanitized Monday.

from Loan News https://www.multifamily.loans/apartment-finance-blog/coronavirus-and-its-impact-on-the-multifamily-industry

0 notes