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Californians rise as Coronavirus spreads Corona scare creates the perfect storm for mortgage lenders
CORONA SCARE CREATES THE PERFECT STORM FOR MORTGAGE LENDERS
Should you go house hunting during this pandemic? Probably not. But whatever is happening to the world right now hasn’t hit the housing market yet. So far, the stock markets have fallen and industries are putting themselves on a pause while all other small businesses are taking blows. So far, we cannot speculate about the fate of the next few months. But what we can tell is that the economic impact of the coronavirus will have far-reaching effects, affecting everything from the employment rates to buyers and agent’s willingness to attend open houses, whether on selling the business or just pulling listings.
Last month, Quicken Loans- one of the largest loan lenders in the country- said that it had no current plans to change the underwriting which leaves a huge possibility that it and others might in the future.
Long before the onset of the outbreak, lenders were having trouble with their staffing but now, it’s even worse creating a perfect storm; record refinancing demand, long credit checks and a lot of questions about the workouts for the existing loans that could be jeopardized. But, troubles in the lending market began long, in fact, soon after the mortgage rates began dropping. Low-interest rates pulled a lot of borrowers into the market leading to a stampede of borrowers seeking the refinancing option. The emergency action by the Federal Reserve has dropped the rates to nearly zero.
Now, homeowners see this as an opportunity to lower their mortgage payments as businesses. Some banks have moved employees to help process a backlog of loan applications. These employees will have no option but to reverify the income and employment during a time when many borrowers are not working.
“The resource constraints are phenomenal — it’s going to be a lot more difficult than just moving bodies around,” said Ted Tozer, a senior fellow at the Milken Institute and former president of Ginnie Mae. “It’s not only crazy as far as staffing, but what makes this very difficult is that lenders have to go back and revalidate every loan they have in their pipeline. The question also is how much of this they can do remotely and whether there is any slack to move to servicing.”
Currently, refinancing makes up about 75% of all the mortgage applications and they have been resilient since Q2 of 2019. The same crisis that fed the refinance, could be the one killing it, Tozer warned. “If one in five people have income disruption, then they can’t refinance,” he said. Lenders are now forced to ask for waivers from Fannie Mae and Freddie Mac as it has been difficult verifying the borrower incomes. Also, lenders are now going to the FHFA to allow verbal verifications of employment. The non-bank lenders are also seeking appraisal waivers. Many of the independent mortgage bankers are having a hard time selling nonagency loans that normally would be purchased
by the big-bank aggregators.
“Lending is in a bottleneck,” said Larry Goldstone, president, and CEO of Aventur Partners, a Santa Fe, N.M., nonbank lender specializing in jumbo loans. “Most of our correspondent buyers and wholesale buyers are discouraging new loans. They are bloated with loans in process and cannot take on any more.”
Large regions of the country could be shut down, with the residents being asked to shelter in place. It is already happening in San Francisco and six other neighboring counties. Lenders have asked the counties to give exemptions to continue processing the loans even as the nonbank lenders grow increasingly concerned about the liquidity and the potential for severe disruptions in the financial markets.
For the big banks, it is even worse. Operations are now much more difficult, thanks to the social distancing. The Bank of America, for instance, is tapping into the existing workforce to handle the uptick in the purchase applications and demand for home equity loans. While there’s no slowdown in applications, yet, the closing time for all the loans will be delayed.
Wells Fargo, on the other hand, is continuing to hire more loan officers, underwriters, processors, and closers. Currently, all banks are dealing with a massive inflow of calls from the current borrowers asking for forbearance on April mortgage payment due to job losses.
Martin Griffith, president of Bank on Buffalo said that the bank is lowering rates for the existing customers rather than having them refinance which most of the banks are currently doing.
“If a customer is in good standing with us, we provide them with a [interest] rate modification versus taking them through the entire application and processing and underwriting process,” Griffith said. “It relieves us in large part from handling the increased [refinance] volume.”
Sources & Works Cited https://www.nationalmortgagenews.com/news/virus-scarecreates-perfect-storm-for-mortgage-lenders https://www.nytimes.com/2020/03/13/business/buying-ahome-coronavirus.html
YOU DESERVE TO LIVE SAFE FROM SEXUAL HARASSMENT.
Sexual harassment by a landlord or anyone related to your housing violates the Fair Housing Act. If you receive unwelcome sexual advances or are threatened with eviction because you refuse to provide sexual favors, you may fi le a fair housing complaint.
If you fear for your safety, call 911.
Monica Hill About
Black women are surely making significant moves in entrepreneurship. Many of their interests in the field are geared towards giving back to the community and individuals from disenfranchised groups. The last several years have generated interest and public curiosity in real estate, and surely, as expected, women are taking their chances. Breaking the stereotypes and making an impact with the small that we have is a remarkable feat in life, and today, we bring you a woman who has been instrumental in changing lives through property ownership. Even in an industry still very much characterized by inequity and a severe shortage of diversity, she continually proves that women are the future and a force to be reckoned with.
Monica Hill
Although Women have been in real estate ever since its early days as a legitimate business back in the 1840s. The National Association of Realtors, one of the most significant associations in the country has also come a long way since its inception in 1908 when the membership was entirely male, but now, we see women climbing up the ladder and setting up their own pace. Some like Monica Hill have gone a mile further to set up their real estate firms. With that, Monica Hill is not your typical woman.
Monica is the broker and owner of MVP Real estate and Investment LLC. With a vision of being the recognized performance leader of HUD/REO management and liquidation company, MVP Real Estate and Investment LLC has grown to be one of the topmost real estate company, not just in California, but nationally. The company has delivered operational excellence in every aspect to exceed its commitment.
It takes a strong leader to achieve the initiatives, the vision, long-term and short-term strategies such as the ones set by the company. Honesty, integrity, and determination, along with dedication, are the gears that Monica strives to achieve in all aspects of her life. The critical initiatives required in making MVP’s vision are molded by a set of core values that are shared by every MVP Real Estate and Investment employee.
The company offers services that are tailored and customized to exceed the specific and ever-changing financial risk exposures facing its clients. MVP Real Estate and Investment LLC builds its value for its investors through the strength of its client satisfaction and by consistently producing superior operating results. The company knows that Client satisfaction, constant communication, and “Going The Extra Mile” are the Most Vital Parts of its success.
Licensed Realtor
Monica has been licensed in California for more than 20 years. She runs a highly successful team of Certified, Licensed Commercial and Residential full-service Real Estate Professionals known as “The Dream Team.” Monica
has been one of Southern California’s Top Residential and Commercial Investment Real Estate Brokers, with her company completing over 1 Billion in Residential and Commercial sales.
Regardless of the situation that life has put Monica through, she has always known that it is not possible doing all things by herself, and the Dream Team was her prodigy way of achieving and performing as expected of her by her clients.
Clients choose to work with Monica for her fullservice firm, ethics, experience, and expertise. Her more than 30 years of community service and outreach, a strong base of loyal repeat customers, the ability to satisfy clients, and her extensive knowledge of the Southern California Real Estate Market are the reasons for her longstanding success.
Leadership Roles
Apart from leading her team at MVP Real Estate and Investment LLC, Monica served four years as the President of the National Association of Real Estate Brokers Inland Empire Chapter and one year as the 3rd VicePresident The California Association of Real Estate Brokers over Education where she was instrumental in composing and conducting numerous Educational Training Seminars to enhance the knowledge of the ever-changing Real Estate Market to Real Estate and Financial Professionals Nationwide. And she is currently the 2nd Vice-President of The California Association of Real Estate Brokers over Membership.
She has assisted hundreds of individuals within the community with Home-ownership, Home Retention, and Real-World Financial Education and assistance programs through Mission Excel and her H.E.L.P Counseling. Assets. As well as being awarded as a #1 BPO Brokerage by a National Asset Management company for completing more than 3000 of their BPO’s with 98.99 percent accuracy.
She has been instrumental in composing and conducting numerous Educational Training Seminars to enhance the knowledge of the ever-changing Real Estate Market, to Real Estate and Financial Professionals Nationwide. She has assisted hundreds of individuals within the community with Homeownership, Home Retention, and Real-World Financial Education and assistance programs through Mission Excel and her H.E.L.P Counseling.
Organizations and Affiliations
• National Association of Real Estate Brokers (NAREB)
President Inland Empire Association of Realtist (IEAOR)
California Association of Real Estate Brokers (CAREB)
3rd Vice President over Education (CAREB)
2nd Vice President over Membership (CAREB)
Mission Excel Non-profit 501(c)(3) CEO
National Association of Realtors
California Association of Realtors
WCR
H.E.L.P Certified Counselor
Education and Training
California Real Estate Broker
BRE Number 01201175
Achievements
Some of her accomplishments were being named as “A Top Producer” for marketing and disposing of more than 400 Non-performing
Sources https://www.linkedin.com/in/monica-hill-01ab0616/ https://www.realtor.com/realestateagents/monicahill_menifee_ca_2026329_103694608
THE FAIR HOUSING ACT PROTECTS ALL OF US.
The Fair Housing Act became law in 1968. It prohibits discrimination in the lease, sale, rental and fi nancing of housing based on race, color, religion, national origin, sex, familial status or disability. If you believe you’ve experienced housing discrimination, the Act can help you.
