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Friday, December 3, 2021

Calculate your pandemic-related mortgage blessings

Time for the holiday season—celebrations, with the Thanksgiving kickoff festivities, with all its decorations and blessings. Hanukkah lights it with the first candle on Saturday night earlier this year. A fast month later, Christmas and the Kwanzaa calendar up.

This is when we stop to reflect, appreciate and congratulate ourselves, our communities, the mortgage lending industry and government leaders for good things as it is your home, your family’s shelter, your sanctuary. is related to.

Here is my list of the top mortgage blessings to be thankful for:

1) The 2020 CARES Act: The US government got the COVID-19 job decline and the threat of foreclosure right.

CARES brought much needed liquidity to mortgage markets so borrowers could lower their mortgage rates and payments and withdraw cash. Congress and President Trump, learning from the missteps of the crushed Great Recession government, waived mortgage payments for all needy borrowers with government-backed mortgages.

About 7.8 million foreclosures during the Great Recession and mortgage recession never materialized in the pandemic.

“How can you lose 22 million jobs in a recession and not have a huge wave of foreclosures?” asked Rick Sharga, executive vice president of RealtyTrac. “Government intervention and a rapid recovery in the economy prevented 4 to 5 million unnecessary foreclosures.”

2) The number of borrowers getting back on their feet — that is, sheltering in place and redoing their mortgage payments — is a relief. The CARES Act and the amended Allowances allow up to 18 months of forbearance of payments. According to the Mortgage Bankers Association, as of October 31, loans in forbearance reduced to 2.06% of all mortgages, or about 1 million homeowners. Pledge exemption was at a high of 8.55% on June 22, 2020. That’s 4.3 million homeowners.

3) Late mortgage payments of 30 days or more fell to 4.88% at the end of the third quarter of 2021, compared to 7.65% a year ago, the MBA reported. According to RealtyTrack, for Q3 2021, there were just 45,517 US properties with foreclosure filings — default notices, scheduled auctions or bank repossession.

4) Sandra Thompson, executive director of the Federal Housing Finance Agency (custodian and regulator for Fannie and Freddy’s), removed the one-half point unfavorable market refinance fee to nonsense. For example, a $2,500 charge on a $500,000 mortgage. Former director Mark Calabria imposed fees on almost all Fannie and Freddie refinances on December 1. According to the FHFA Inspector General’s report, Fannie and Freddie made $5.3 billion from this money grab.

5) Mortgage rates remain low and stable despite inflationary pressures. Yesterday, the 10-year Treasury, which is closely tracking mortgage rates, closed at 1.67%. The average 30-year fixed rate averaged 3.1%, Freddie Mac reported this week. Last time we saw 10 years at 1.67% was on April 8th. Freddy’s rates were 3.13% at the time.

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6) Around the start of the pandemic, when self-employed borrowers were most in need of mortgage giants Fannie Mae and Freddie Mac, the FHFA mandated that Fannie and Freddie’s for most of America’s self-employed borrowers be ridiculously high and hard. Approvals add standards.

But the so-called non-QM or non-qualified “foreign mortgage” menu (formerly known as B-Paper or Subprime) was a blessing when it came to answering the Fannie, Freddie self-employed zero, albeit high rates and charges.

Non-QM qualification standards are safer and better than before. Generally, all you need is good credit and a 20% or more down payment (also known as “skin in the game”). Non-QM goes outside the wheelhouse of F&F — especially when it comes to self-employed borrowers. If you can smudge a mirror, you can get a mortgage. No work necessary. Or you can get a mortgage by liquidating your bitcoins immediately. Not so with F&F marijuana-related business owners, come on down.

7) There is no doubt that the unsung hero of the COVID-19 pandemic is the very short list of America’s remaining appraisers, who exposed themselves to infection by conducting internal inspections. By most accounts, the median age is north of 60 years old. But for them, most purchase and refinance transactions across the US cannot happen.

Freddie Mac Rate News: The 30-year fixed rate averaged 3.1%, unchanged from the previous week. The 15-year fixed rate averaged 2.42%, which is 3 basis points higher than the previous week.

The Mortgage Bankers Association reports a 1.8% increase in mortgage application volume over the previous week.

ground level: Assuming that a borrower receives an average 30-year fixed rate on a loan corresponding to $625,000, last year’s payment was $127 less than this week’s payment of $2,669.

I’m looking for: Locally, well-qualified borrowers can obtain the following fixed-rate mortgages without points: a 30-year FHA at 2.625%, a 15-year conventional at 2.5%, a 30-year conventional at 3.125%, a 15-year The traditional high-balance ($625,000 to $822,375) at 2.75%, the 30-year traditional high-balance at 3.25% and the 30-year fixed jumbo at 3.125%.

Eye catching loan of the week: Non-digit 30-year mortgage with an interest-only adjustable rate for the first 10 years at 2.875%.

Jeff Lazerson is a mortgage broker. He can be contacted at 949-334-2424 or [email protected] His website is www.mortgagegrader.com.

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