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COVID-19 Relief Programs For Homeowners

April 7, 2020 by Shelly Ragan

, Blog, NextHome Signature Real Estate, NextHome Signature Real Estate Federal housing agencies and government-sponsored enterprises Fannie Mae and Freddie Mac are responding to the COVID-19 outbreak with multiple relief programs for homeowners experiencing hardship due to illness and job loss.

60-Days Forbearance on Home Mortgages Owned or Backed by Fannie Mae or Freddie Mac

Many U.S. home loans are owned or guaranteed by Fannie Mae or Freddie Mac. Homeowners can determine if your loan is connected with Fannie Mae here.here. Please check here to check if your mortgage is affiliated with Freddie Mac.

CARES Act Provide Relief for Eligible Homeowners

The federal Coronavirus Aid, Relief and Economic Security Act provides two protections for homeowners:

Payment forbearance for homeowners impacted by the COVID-19 emergency. Forbearance periods up to 12 months may be approved based on individual hardship.
Foreclosure and other legal actions are stopped for 60-days.

Forbearance may require a lump sum payment of deferred payments after the forbearance period or deferred payments may be added to the back of a mortgage, but fees may not be added to the loan balance.

Loan Modifications

Mortgage servicers may provide modification of loan terms to assist homeowners impacted by COVID-19. Modification terms can include:

Reduction of mortgage interest rate
Extension of the loan repayment term.
Capitalization of unpaid principal and/ or interest to principal balance; this means adding unpaid amounts to the mortgage balance.

Contact your mortgage servicing company as soon as you know you will miss a mortgage payment or payments Relief programs usually require documentation verifying financial hardship. Mortgage servicers are experiencing high volumes of calls; you may need to call multiple times for assistance.

Mortgage Assistance for Non-Government Owned Loans

If you have a conventional mortgage that is not owned or backed by a government agency, please call your loan servicing company and ask about mortgage relief provisions. If your loan is covered by private mortgage insurance (PMI), ask your loan servicer if that company can help with relief options.

State and local agencies may offer housing relief options to homeowners and renters. Certified credit counseling agencies can also help with determining budgeting needs and local resources in addition to working with unsecured creditors toward reducing payments on credit card debt and personal loans.

What’s Ahead For Mortgage Rates This Week – April 6th, 2020

April 6, 2020 by Shelly Ragan

, Blog, NextHome Signature Real Estate, NextHome Signature Real Estate Last week’s economic reporting included readings on pending home sales, Case-Shiller Home Price Indices, and Bureau of Labor Statistics reports on national unemployment. Weekly readings on mortgage rates and first-time jobless claims were also released.

Pending Home Sales Slow in February Before Coronavirus Took Hold

The National Association of Realtors® reported fewer pending home sales in February as the coronavirus gained traction. Pending sales rose by 2.40 percent in February as compared to January’s growth rate of 5.30 percent. Before the outbreak, pending home sales gained momentum in all U.S. regions.

Pending home sales are sales for which signed purchase contracts were signed, but sales were not completed. Nationally, year-over-year pending sales in February were 9.40 percent higher than in 2019. Regional pending home sales all posted higher growth; The West reported 4.60 percent growth in February.

Pending home sales rose 4.50 percent in the Midwest and 2.80 percent in the Northeast. The South posted 0.10 percent growth in pending home sales.

Pending home sales typically indicate future completed sales, but the coronavirus pandemic was expected to suppress home sales as state and local authorities implemented “shelter in place” rules and all but essential business operations shut down.

Mortgage Rates Mixed as New Jobless Claims Skyrocket

Freddie Mac reported lower fixed mortgage rates last week. Rates for 30-year fixed-rate mortgages averaged 3.33 percent and were 17 basis points lower. Mortgage rates for 15-year fixed-rate mortgages averaged 2.82 percent and were 10 basis points higher. Rates for 5/1 adjustable rate mortgages averaged 3.40 percent and were six basis points higher.

New jobless claims were unprecedented at 6.60 million first-time claims filed. Analysts expected 4 million new claims as compared to the prior week’s reading of 3.30 million initial jobless claims. The coronavirus pandemic negatively impacted job growth with the government’s Non-Farm Payrolls reporting 701,000 fewer public and private-sector jobs in March as compared to 214,000 jobs added in February.

ADP reported 27,000 fewer private-sector jobs in March as compared to 179,000 private-sector jobs added in February. The national unemployment rate rose from 3.50 percent in February to 4.40 percent in March. Analysts expect new jobless claims to rise in months ahead as the coronavirus spreads and more employers close their doors.

What’s Ahead

This week’s scheduled economic news includes readings on job openings, inflation, and consumer sentiment. Weekly readings on mortgage rates and new jobless claims will also be released. Please note that reporting may not appear as scheduled due to work stoppages caused by the pandemic.

The Department Of Veterans Affairs Is Allowing Drive-by Appraisals Because Of COVID-19

April 3, 2020 by Shelly Ragan

, Blog, NextHome Signature Real Estate, NextHome Signature Real Estate The COVID-19 (Coronavirus) pandemic has impacted every industry across the country. Many people are being asked to shelter in place and everyone has been asked to practice social distancing to try to curtail the spread of this deadly virus.

The Federal Housing Finance Agency (FHFA) has asked both Freddie Mac and Fannie Mae to make some changes in the manner they conduct property appraisals and employment verification.

Shortly after the move by the FHFA, The Veteran’s Administration (VA) and Federal Housing Administration (FHA) followed suit by relaxing property appraisal requirements. Due to the unusual circumstances that are facing the country right now, these changes are necessary to keep people safe while minimizing the blow to the economy.

Exterior Inspection Appraisals

One of the critical parts that must happen during the purchase of a home is something called an appraisal. Typically, these appraisals involve an on-site inspection of the home, taking a close look at everything inside to try to make sure the price is as accurate as possible. Now, appraisals can be done on something that is called an exterior-only or “drive-by” basis. This means that appraisers might drive by to confirm that the property exists, but will not physically inspect it.

In some cases, they might just use the computer, find comparable properties, and appraise it in this manner. This is normally referred to as a “desktop appraisal”. This is important for everyone, including those who are Department of Veterans Affairs (VA) home loan borrowers.

Why Appraisals Are Needed Now

Even though fewer people may be currently looking at houses, there are other reasons why an appraisal might be necessary. Many people are looking for sources of emergency funding, particularly as hours get cut and people get laid off.

There are still bills that need to be paid, including utility bills and mortgages. Therefore, many people are looking at taking out a second mortgage as a source of immediate liquidity. Sometimes, an appraisal might be needed to make this happen.

Other Measures Are Being Taken By The FHFA

In addition to the notice about drive-by appraisals, the FHFA has also suspended any foreclosures and evictions in many cases. People who are facing hardship due to the pandemic can also apply for forbearance, which can take a lot of stress off of the shoulders of individuals and families.

If you have questions about your mortgage and financing options available to you during the Coronavirus pandemic, contact your trusted mortgage professional. They will be best able to analyze your personal situation and provide the most accurate feedback.