April 5, 2020

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Articles Published in: March 2020

FHA and HUD Change Loan Approval Requirements For Coronavirus

FHA and HUD Change Loan Approval Requirements For Coronavirus

The FHA and HUD have announced short-term alterations to appraisal and approval policies for single-family forward mortgages during the coronavirus outbreak. The changes, originally set to expire on May 17, 2020, address issues involving how appraisers review their properties, and how lenders must reverify borrower financial data before closing time. The changes to appraisal requirements (exterior-only inspections allowing the appraiser to work without being at risk of infection) were a big part of that, but not the whole substance of the policy changes. Reducing the risk to appraisers is one thing, but some of the measures are intended to streamline loan approval in a time of crisis. The FHA/HUD official site press release explains that certain measures were needed to, “maintain the stability” of the FHA Single-Family Home Loan program, | more...

 
FHA Announces Modified Appraisal Rules During Coronavirus Outbreak

FHA Announces Modified Appraisal Rules During Coronavirus Outbreak

The FHA and HUD have modified certain FHA appraisal requirements in response to the coronavirus outbreak and the need for social distancing. Since the outbreak of coronavirus and the worldwide pandemic that followed, government agencies began issuing policies to accommodate the need to prevent gatherings of people which potentially spreads the virus farther and wider. In the home loan industry, many are at risk including appraisers who must (under normal conditions) enter the homes of strangers and potentially expose themselves to infection. At the end of March, the FHA and HUD issued a press release announcing changes in FHA appraisal policy to address the needs to get appraisals done without exposing people to additional risks. That announcement including a set of temporary modifications to FHA appraisal requirements for single-family home | more...

 
Mortgage Loan Approval During Coronavirus

Mortgage Loan Approval During The Coronavirus

Buying a home is more complicated in the era of the coronavirus. Borrowers face social lockdowns, restricted movement, and fears of infection. And the economy is feeling the effects of this, making markets more volatile, interest rates fluctuating daily (far more than usual), and other issues. There is a lot of speculation about the future of the mortgage industry, not so much a question of how it will survive (it will), but more about how the industry will look going forward. How hard will it be to qualify for a home loan or any major line of credit. Will FHA borrowers of the future need to bring higher credit scores and more dependable-looking credit history to the loan application process? To quote the old Magic 8-Ball toy, “Signs point to | more...

 
Mortgage Industry Seeks Federal Relief For Borrowers

Mortgage Industry Seeks Federal Relief For Borrowers

The coronavirus pandemic created financial chaos across the globe; America is on the verge of a massive financial bailout for consumers and industry to the tune of $2 trillion or more. States, lenders, and the federal government all have a keen interest in helping homeowners avoid financial crises, loan default, and foreclosure. And now the mortgage industry has rallied to petition the White House for funds to assist homeowners. On March 24, 2020, HousingWire.com ran a press release discussing a letter sent to the White House asking for mortgage relief for borrowers including delayed payments and interest. The proposal includes the following benefits: A 90-day delayed payment option for mortgage payments; A proposed one-year loan forbearance period; Payment forbearance protections such as no negative credit reporting or collections; Introducing reduced | more...

 
Refinance Loan Options You Should Know

Refinance Loan Options You Should Know

At one point during the coronavirus crisis, refinance applications spiked. Some sources report that spike hitting over 100% at the height of the application surge; people rushed to take advantage of sub-three-percent mortgage loan interest rates. Part of the surge may also have been due (this is speculation) to a misconception that when the Fed performed emergency interest rate cuts, it directly cut mortgage rates. The Fed doesn’t function that way, but the misunderstanding of how the Fed works may have contributed to the overall impression that refinance loan rates were going still lower. In the news, talk of an economic recession puts fear in the minds of some homeowners; what can you do to protect your bottom line in a time when many businesses are temporarily closed and paychecks | more...

 
Mortgage Rate Trends

Mortgage Rate Trends: The Three Percent Range

Mortgage loan rates have been on a wild ride since the advent of the COVID-19 coronavirus outbreak; for a time FHA mortgage loan rates dipped below the three percent threshold. How wild has the ride been? FHA mortgage rates hit a 52-week range of rates between the lowest at 2.75% at the low point during the outbreak and just over 4% at its highest moment in the 52-week range. What does that mean going forward? For the average consumer, not much. It is pure speculation to say we may or may not see rates dip below the three percent range but borrowers should likely assume that those rock-bottom rates are gone and proceed without the temptation to float rather than lock in a mortgage rate commitment with the lender in | more...

 
How To Avoid Mortgage Default And Foreclosure During The Coronavirus

Don’t Fall Victim To Mortgage Default And Foreclosure During The Coronavirus

Are you worried about losing your home during the financial trouble caused by COVID-19 and the global coronavirus outbreak? There are some important steps you can take to save your home and avoid foreclosure. FHA borrowers should know that the FHA and HUD have issued a 60-day moratorium for eviction and foreclosure action associated with FHA mortgages. But that is a TEMPORARY delay and borrowers should not expect to avoid foreclosure without making arrangements with their lender. If you are in trouble with your mortgage, there are important steps you can take to avoid foreclosure after the 60-day delay in FHA loan foreclosure action has expired. What are they? Contact your lender as soon as you know you are having financial trouble. Make arrangements with your loan officer and see | more...

 
How To Avoid Foreclosure During The Coronavirus

How To Avoid Foreclosure During The Coronavirus

Are you afraid of losing your home due to diminished income or a lack of income related to closures, furloughs, and layoffs due to coronavirus prevention? The global pandemic caused by the coronavirus has created major financial problems and governments worldwide struggle to control the damage. Mortgage rates have fluctuated wildly between incredible lows and one-year highs, the Fed has made emergency interest rate cuts, and hundreds of companies have been forced to endure waves of closures or reduced hours. Affording your mortgage payment in times like these is difficult; it’s easy to fall behind on your financial obligations. Do you know what to do if you are in danger of being late or missing a mortgage payment on your FHA home loan? Act Now To Avoid More Financial Damage | more...

 
HUD Begins Foreclosure Relief For FHA Borrowers Affected By The Coronavirus Outbreak

HUD Begins Foreclosure Relief For FHA Borrowers Affected By The Coronavirus Outbreak

The Department of Housing and Urban Development is providing FHA borrowers a 60-day foreclosure moratorium described as “immediate relief” for those who may be struggling to make FHA mortgage loan payments during the health crisis. Details From HUD The HUD official site has published details of the HUD-mandated moratorium on all foreclosures on FHA Single-Family home loans and Reverse Mortgages, a move similar to what happens to borrowers in federally-declared disaster areas after a natural disaster such as a hurricane, flood, forest fire, landslide, etc. FHA Mortgage Foreclosure Evictions Also Suspended The HUD foreclosure moratorium announcement includes a suspension of evictions related to those foreclosures, also for sixty days. The eviction process suspension is a critical part of foreclosure relief for some borrowers. The HUD official site’s press release addresses | more...

 
Planning Your Home Loan

Planning Your Home Loan

The planning stage of your home loan is extremely important. This is where you will determine what kind of home you might want, the price range you can afford, and how much down payment you need to save up to make. One big choice you face in the planning process? Decisions about issues related to long-term occupancy of the home, whether you plan to sell within a short or long amount of time and how you should arrange your financing to accommodate those needs. What kind of arrangements? Some borrowers don’t apply for a fixed-rate mortgage. They know they are not keeping the home for the long-term and choose to take advantage of lower interest rates offered in the introductory period of an FHA Adjustable Rate Mortgage (ARM) instead of | more...