Are you keeping up to date with what is going on with forbearance, interest rates, housing starts and lending guidelines? In this video, I give a “quick” recap of what happened this week in the Real Estate and Mortgage world.
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Some of the trending topics for this week include Forbearance Data, Housing Starts Data, Information on a new Housing Coalition and Updates to Chase Bank Lending Guidelines.
This past week data was released on forbearance requests and 3 Million borrowers have been granted mortgage relief. That equates to 5.5% of all active mortgages or 651 Billion in unpaid principal. That’s a lot of people actively in forbearance and I would imagine that number will likely double by the end.
Due to the staggering number of active forbearance requests, there is now a Housing coalition that is fighting for federal liquidity for servicers/lenders to help keep them afloat during this covid-19 epidemic. While this is still in the works some of the key points they wanted include are:
Servicers must agree to offer uniform forbearance terms to all borrowers in their book, regardless of the investor to whom the payments are owed.
Servicers must be required to offer a path to sustainable reinstatement at the conclusion of the forbearance period for borrowers willing and able to pay, so that no borrower is left worse off because of the forbearance.
What is a mortgage forbearance?
A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.
Interest Rate Update
Also this week we got news that interest rates have dropped to a 30 year low. If you are considering buying a home or refinancing (refinance) then now could be a good time to take advantage of super low interest rates.
Lending Guideline Updates
Chase Stop Accepting Heloc Applications due to the uncertainty in the market. They will still allow anyone who has a home equity line of credit to continue drawing from it but will not allow any new heloc loans.
Housing Starts posted biggest monthly drop in 36 years due to covid-19. A housing start is when they break ground on new construction.
If you have additional questions about anything that happened this week, please comment below or reach out directly.
Thank you for watching.
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