Coronavirus poses new threat to mortgage industry

By | March 31, 2020

A flood of missed home-loan payments caused by the coronavirus outbreak is threatening to bankrupt U.S. mortgage lenders and deepen the economic toll of the pandemic. Grueling business closures and social restrictions imposed to slow the pandemic have left millions of homeowners jobless and short on their mortgages… Fratantoni projected that if one-quarter of U.S. homeowners — about… Read More »

US pending home sales trended higher before virus outbreak

By | March 30, 2020

Americans signed more contracts in February to buy homes, but the gains are likely relics of a moment before the coronavirus outbreak sent the U.S. economy spiraling into a likely recession. The National Association of Realtors said Monday that its pending home sales index, which measures the numbers of purchase contracts signed, rose 2.4% in February from the… Read More »

Mortgage bankers warn Fed mortgage purchases unbalanced market, forcing margin calls

By | March 30, 2020

The Fed bought $183 billion of purchases last week of mortgage-backed securities, in an effort to drive down rates, and they did. But the Fed’s actions, amid a volatile market environment, helped add further strains that resulted in blowing up a widespread hedge that mortgage bankers use to protect themselves against rate increases, and now some lenders are… Read More »

FHA, VA join Fannie, Freddie in relaxing some standards

By | March 30, 2020

The FHA and VA both announced late Friday that would allow for appraisal and income verification alternatives as appraising homes and verifying employment are more difficult right now than they were just a few weeks ago. On the appraisal front, the FHA and VA will allow exterior-only appraisals (known as drive-by appraisals) or in some cases, desktop appraisals,… Read More »

Home Loan Defaults Could Decimate Mortgage Servicers

By | March 29, 2020

“MBA firmly believes that further action by Treasury and the Federal Reserve is needed to ensure the orderly functioning of the housing finance market. Specifically, Treasury and the Federal Reserve should: increase the scale and scope of agency mortgage-backed security (MBS) asset purchase operations; and develop a liquidity facility to support the mortgage servicing sector in anticipation of… Read More »

U.S Mortgage Rates Hit Reverse as Applications Fall and the FED Delivers Stability

By | March 29, 2020

Mortgage rates fell for the 1st time in 3-weeks in the week ending 26th March, with the downside coming from FED support. Despite the continued spread of the coronavirus across the U.S and risk aversion, 30-year fixed rates had risen ahead of last week’s pullback. Over the previous 2-weeks, lenders had raised rates to combat a surge in applications. Freddie… Read More »

Bank of America’s Race to Avoid Public Shaming Underscores the Perils of the Crisis

By | March 28, 2020

For 93 uncomfortable minutes, Bank of America Corp. rushed to escape infamy this week, before it was saved by the grace of James Corden, the affable talk show host known for crooning in cars with stars. The drama began when California Governor Gavin Newsom called out the bank for not offering 90-day grace periods to mortgage borrowers affected… Read More »

Fannie Mae, Freddie Mac to roll out new mortgage-payment deferral option for homeowners facing financial trouble

By | March 28, 2020

At the direction of the Federal Housing Finance Agency, the two mortgage companies are rolling out payment deferrals, which will serve as an alternative to forbearance and loan modifications for borrowers who are struggling to remain current on their home loans. Fannie Mae and Freddie Mac accounted for upward of 46% of all mortgages originated as of 2018,… Read More »

Mortgage rates fall sharply as the Federal Reserve brings stability to the mortgage market

By | March 26, 2020

Mortgage rates seesawed lower this week after the Federal Reserve stepped in to provide some assurance to lenders who were at a loss as to how to price home loans amid the disruptions caused by the coronavirus emergency. “It was so disruptive to the point that last week, lenders were really having trouble determining how to price loans… Read More »