Blog - JVM Lending

Jumbo Market Gets Even Tighter as Wells Fargo Pulls Out; Forbearances Again

April 3, 2020/in Homebuying, Mortgage Industry, Our Blog

WELLS FARGO PULLS OUT OF JUMBO MARKET Wells Fargo announced yesterday that it is pulling out of the jumbo mortgage market, sending shock waves through the industry (b/c Wells is such a force). Many other jumbo lenders and investors (that buy jumbo loans) are following suit or tightening up their own internal policies in response […]Read More

Contingency Periods During COVID-19 Crisis; Which Loans Are Safe; Employment Is a Huge Concern

April 2, 2020/in Interest Rates, Mortgage Industry, Our Blog

I mentioned yesterday that we are still getting purchase contracts and agents are still making offers, and asking us about contingency periods in light of the COVID-19 crisis. We obviously can’t close in 14 days now b/c of COVID-19-related delays, so below are some contingency/closing periods we are requesting until the crisis ebbs. We do […]Read More

Forbearance Confusion; Refis Dominate Market; Purchases Still; Mortgage Industry Remains Alive

April 1, 2020/in Mortgage Industry, Our Blog

FORBEARANCE CLARITY The mortgage industry, terrified of a mass onslaught of payment forbearances, was alarmed by a misleading report by CNBC. Reporter Diana Olick said that borrowers obtaining a forbearance could tack the missed payments on to the end of the mortgage. This is not true, however, as most servicers will try to recoup the […]Read More

Jumbo Loans Stall; IRS & India Shutdowns Slam Industry; Still Funding Loans; Vanilla Loans Only

March 31, 2020/in Mortgage Industry, Our Blog

STIMULUS AND FED ALMOST CRASHED MORTGAGE/HOUSING INDUSTRY Here is a great article that partially explains what happened. Long story short: many major lenders face bankruptcy b/c servicing values are now close to zero (b/c of the risk of missed payments) and b/c lenders face massive margin calls b/c of the Fed’s bond-buying. STILL FUNDING LOANS/VANILLA […]Read More

FED & Industry Updates; Loans Disappearing; What Agents Should Do; Deferments Not Free Money

March 30, 2020/in Mortgage Industry, Our Blog

THE FED, RATES, & MORTGAGE COMPANIES The Fed has purchased over $250 billion of mortgage-backed securities (MBS) over the last two weeks – an unprecedented record by far. This has pushed MBS yields down significantly for investors in the secondary market, but mortgage rates at the consumer level are still not moving for reasons we […]Read More

Forbearances Explained; ≠ Free Lunch; Mortgage Industry In Panic Mode

March 27, 2020/in Mortgage Industry, Our Blog

The entire Mortgage Industry is in a state of panic right now. This is b/c so many potential borrowers could skip or miss payments, and b/c the Fed is pushing mortgage rates down too quickly and putting enormous financial pressure on mortgage lenders. Mortgage lenders and servicers are both facing enormous losses for a variety […]Read More

3.3 Million Unemployment Claims & Rates UP! Why? Lenders Misleading Borrowers

March 26, 2020/in Interest Rates, Our Blog

3.3 million people filed for unemployment last week, shattering the previous record of 700,000 set in 1982. Normally, such news would send rates into a massive downward spiral – but not in today’s world. Rates remain higher primarily b/c of the extra risks involved with mortgages now. These risks are enormous and include job losses […]Read More

Job Losses & Qualifying for Mortgages; Terror In Mortgage Industry

March 25, 2020/in Mortgage Industry, Our Blog

A seasoned agent called me yesterday to ask if her buyer could still close on a transaction even though he had just been laid off (the buyer still wanted to close despite not having a job). My answer was of course “no,” so she then asked when he could get a loan again, prompting today’s […]Read More

Appraisal Relief’s Here, But Limited; Purchase Appraisals Going Well; Interest Rate Updates

March 24, 2020/in Mortgage Industry, Our Blog

Fannie and Freddie released “Appraisal Relief” guidelines yesterday that consisted primarily of waiving interior inspection requirements. They agreed to accept “exterior inspection” and/or “desktop appraisals” in lieu of full, traditional appraisals. But, the relief is turning out to be more limited than we hoped. LIMITATIONS Appraisal relief is only available for conforming (Fannie and Freddie) […]Read More

Fed Rescues Mortgage Market; Mortgage & Appraisal Relief Measures

March 23, 2020/in Mortgage Industry, Our Blog

On Friday, there were three major factors pushing up mortgage rates: (1) too much business – lenders are pushing up rates to stem excess volume; (2) too little liquidity – too few buyers of mortgage-backed securities in the marketplace forced lenders to offer higher yields to attract more buyers; and (3) RISK (a new factor) […]Read More

Liquidity Crisis; Non-QM Shuts Down; Extreme Market Volatility; Higher Rates

March 20, 2020/in Interest Rates, Our Blog

LIQUIDITY CRISIS One of the biggest issues facing our economy right now is a massive “liquidity crisis.” In simple terms this means there is far too little cash in our economy. The reasons are many and very complicated, and I list a few below. Investors are selling off assets in mass to avoid losses and […]Read More

Rates Way Up! Liquidity Crisis; Refi Later for Free; Buy Takeout Food :)

March 19, 2020/in Interest Rates, Our Blog

INTEREST RATES SHOT UP AGAIN YESTERDAY Rates shot up 1/4 percent yesterday over about a 30 minute period – something we have not seen for years. Rates came back a bit this morning, but then shot up again over the last hour in an extremely volatile market. Rates are now about 3/4 percent higher than […]Read More

COVID-19/Mortgage Industry Update

March 18, 2020/in Appraisals, Interest Rates, Mortgage Industry, Our Blog

Here are a few reminders and key updates that are warranted (despite some repetition) b/c the overall situation remains so fluid and b/c we are still getting so many questions. MORTGAGE INDUSTRY REMAINS OPEN Most lenders remain open and fully operational and are still funding and recording loans (with most team members working remotely), as […]Read More

Bay Area Shutdown; COVID-19 Update; Delays; Appraiser Shortage; Rates Not Falling

March 17, 2020/in Interest Rates, Our Blog

As everyone in the Bay Area now knows, the entire Bay Area is subject to a mass “Shelter in Place” order by local health authorities in an effort to combat the spread of COVID-19. I won’t go into all of the details here, but it restricts all large gatherings and major events, and only “essential […]Read More

Mortgage Rates Barely Move; Hell Actually Breaks Loose; Fed Cuts Rates to Zero

March 16, 2020/in Interest Rates, Our Blog

FED CUTS FED FUNDS RATE TO ZERO; $700 BILLION IN QUANTITATIVE EASING In a shocking and surprise weekend move, the Fed cut the Fed Funds Rate to 0% yesterday – which may or may not have moved mortgage rates for reasons I explain often (cuts in short-term interbank borrowing rates don’t often translate to cuts […]Read More

Stocks Down; Rates Up; DELAYS Caused by Coronavirus and Refi Boom

March 13, 2020/in Interest Rates, Our Blog

NORMALLY – WHEN STOCKS FALL, RATES FALL (BUT NOT THIS WEEK) The Dow Jones stock market index peaked at 29,551 only 1 month ago (on Feb 12th). As I type this on March 13th, the index has fallen to 21,362 – a staggering 27% drop. Initially, as everyone knows, mortgage interest rates plummeted along with […]Read More

Rates 1/2 Percent HIGHER Than On Monday; Early Pay-Off Penalties

March 12, 2020/in Our Blog, Refinance

Mortgage Interest Rates remain a full 1/2% higher than where they were on Monday, and 5/8% higher than where they were last week. So, while the 10-Year Treasury Bond (government debt) remains in record-low territory, mortgage rates are up considerably as the industry tries to stem excess volume. EARLY PAY-OFF PENALTIES – HOLDING ON TO […]Read More

What Happens When Entire World Wants to Refi? RATES WAY UP; Turmoil; Service Way Down

March 11, 2020/in Interest Rates, Our Blog

In January and February, interest rates dropped as much as 1/2 percent over the course of a few weeks and the mortgage industry experienced a refinance boom like it has never seen before. The result is now higher rates, confusion, turmoil and utterly inadequate capacity. Lenders are not even close to being able to handle […]Read More

Rates Keep Falling; 15-Year vs. 30-Year Fixed-Rate Mortgages

March 9, 2020/in Our Blog, Refinance

Rates continue to fall in response to coronavirus concerns. They hit all-time record lows again today, as the entire mortgage industry scrambles to handle the influx of refinances. Don’t take the 15-Year Fixed! Take the 30-Year Fixed – Please! When rates move this low, borrowers often ask if they should opt for a 15-year mortgage […]Read More

Interest Rates Hit Record Low; Closing Cost Tricks Big Banks Play

March 6, 2020/in Homebuying, Our Blog

CLOSING COSTS ARE ALMOST THE SAME FOR ALL LENDERS A buyer said this to me yesterday: “Both of the banks I visited offered to match your rate and give me $4,000 less in closing costs; I only went with you b/c you could close on time and the banks could not…” Both of those banks […]Read More

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