FHFA Refinance Fee Update
The Federal Housing Finance Agency has been considering a surcharge of 0.5% to refinance mortgages otherwise known as the Adverse Market Refinance Fee. This fee was planned in order to offset projected COVID-19 losses of at least $6 billion at the Enterprises (Fannie Mae and Freddie Mac). The money spent at the Enterprises includes $4 billion in losses due to projected forbearance defaults, $1 billion in foreclosure moratorium losses, and $1 billion in servicer compensation and other forbearance expenses. On August 25th, The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to delay the implementation of this refinance fee until December 1st, 2020. The fee was originally scheduled to take effect on September 1st, 2020. FHFA also announced that refinance loans with a balance below $125,000 will be exempt, along with Home Ready and Home Possible refinance...Mortgage Applications Fall for the Third Consecutive Week
Home mortgage loan applications fell 2% in the last week according to the newest report from the Mortgage Bankers Association, marking the third consecutive week of declines. The refinance index fell 3% last week, but remained 40% higher year-over-year. Purchase applications for home mortgages fell 0.2% from last week, but still saw a 28% year-over-year increase from last year marking the 15th week in a row of year-over-year gains. The FHA’s share of mortgage applications fell from 10.5% to 10.2%. The VA share of applications fell to 11.4% from...What to Know About Buying a Home Virtually
The process of home buying is ever changing as time passes and technology grows. One way the process has differed in recent years is buying homes essentially “sight unseen”. According to a study by Redfin, nearly 45% of people bought a home in the past year by making an offer on a home they had not toured in person. The amount of people buying a home without touring it in person is up 28% year-to-year from 2019. Below are some things to consider in regards to today’s new home buying process. Picking the right agent is even more important now. Having an agent who understands your tastes, preferences, and needs makes finding the right property easier for you. They will act as your eyes and ears in the buying process, so they need to understand what is important to you! Request the most in-depth video tour possible. In addition, having the measurements and floor plan available to you during the video tour will help you get a better feel for each room. Sellers may be biased against buyers who haven’t toured in person. When it comes time to make an offer, it’s important a buyer who never toured the home in person puts their best foot forward. Choosing a local mortgage lender, confirms the loan officer or client should be easily accessible by the seller’s agent should any questions...Home Mortgage Applications fall as Interest Rates See Small Rise
Home mortgage application volume fell 3.3% last week after seeing a small spike in interest rates according to a report from the Mortgage Bankers Association. The refinance application volume fell 5% from the previous week also. Year-to-year the refinance application volume was still 38% higher than last year marking the thirteenth straight week of year-over-year gains. According to this report, the refinance share made up 64.6% of the mortgage activity in the last week. Overall the housing market remains a bright spot in the current economic activity. Housing supply could be increasing as well to better meet the strong demand for buying a...Fannie Mae, Freddie Mac Forbearance Rate Drops Below 5%
The forbearance rate for mortgages backed by Fannie Mae and Freddie Mac dropped 4.94% in the first week of August. The forbearance rate is now at 7.21%, representing 3.6 million mortgages in forbearance. Economists are watching to see what impact the July 31st expiration of the $600 a week enhanced unemployment benefits will have on the forbearance numbers. Although short term forbearance numbers may be lowering, with more time we should see a clearer picture of the true forbearance levels without the aid of the CARES...Connect With Us
