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Industry Updates

Mar 27, 2020

With so much going on in the world today, it can be hard to keep up with it all. We are not only committed to giving you the same great service but fervently working to provide you with helpful updates as it relates to the mortgage industry. It’s so important to stay up-to-date as things are swiftly changing.

The Economy

The Federal Reserve announced this week that they are taking aggressive measures to stabilize our economy. One of the most recent ways they are implementing this plan is the House passing the $2 Trillion Coronavirus Stimulus Package.

Now the bill must be signed off by the president. This is the largest economic-relief package in U.S. history alleviating many struggling Americans through direct payments and expanded unemployment insurance, which also covers freelance and gig workers. It will provide loans and grants to businesses, augment drained state coffers and send additional resources to sapped health-care providers.

Areas of Opportunity

Being prepared is so important during this uncertain time. If you don't have money saved in checking and savings right now, consider a cash-out refinance as soon as possible as a way to secure emergency funds while rates are low.

Mortgage Payment Deferment

Fannie Mae and Freddie Mac plan to initiate a mortgage forbearance program allowing some borrowers relief of up to 12 months of mortgage payments. The plan will reduce, or delay payments, and will depend on the borrower's loss of income during the COVID - 19 outbreak. This plan will not affect the borrower’s credit.

It is important to note that this does not eliminate the debt payments - it only defers them. Do not stop making payments.

Appraisals

Fannie Mae and Freddie Mac are changing the requirements for physical inspections for some appraisals. If an appraiser cannot go inside the home, for any reason, they will allow desktop and exterior-only appraisals on primary residence purchases and second homes/investment purchases with 15% down or more.

We are committed to keeping you up-to-date with information. Check back or reach out to a mortgage professional if you have any questions or concerns.