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) loans, and not for any jumbo or nonconforming loans.
In addition, for refis, the new loans cannot be cash out, and the existing loans (getting paid off) must be held by Fannie or Freddie in most cases.
For purchases, however, that are associated with Fannie/Freddie financing, the appraisal relief is proving to be fairly effective – great news for agents in areas with mostly conforming loan amounts.
We are also expecting some continued expansion of appraisal waiver guidelines that should help things a bit more but we won’t see these new guidelines in place until next week.
PURCHASE APPRAISALS GOING WELL
We have been having great luck getting appraisers to pick up purchase appraisals in any case, as many properties are vacant and our appraisers are all following strict, self-imposed safety standards that include careful symptom monitoring, latex gloves, masks and maximum social distancing (to protect both appraisers and homeowners).
INTEREST RATES – LOWER BUT STILL 3/8% HIGHER THAN EARLY MARCH
Rates fell significantly yesterday after the Fed stepped in to buy mortgage-backed securities.
Interest rates are about the same today and they remain about 3/8% percent HIGHER than where they were in early March.
PURCHASE CONTRACTS STILL ROLLING IN
We expected to see a steep drop off in purchase contracts after the COVID-19 crisis manifested.
We have seen a slight drop-off but so far they continue to roll in, indicating that many buyers remain confident in the housing market and/or their own job prospects.
STILL FUNDING LOANS – BUT DELAYS ARE STILL PREVALENT
Once again, we are still 100% operational and funding loans. We are, however, still experiencing numerous delays that are beyond our control b/c of our reliance on third parties who are delayed themselves b/c of COVID-19-related issues.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167
