COVID-19 Updates and Forbearance Info

As a designated “essential business,” JVM Lending is open and funding mortgage loans during the COVID-19 crisis. Most types of mortgage financing remain available for qualified borrowers. If you are looking for information relating to payment forbearance, please see JVM's Forbearance Resource Center.

Posts

Home Values – This Ain’t 2008! WHY? Inventory and Demographics

I was interviewed yesterday by a prominent financial reporter who is, for obvious reasons, mired in the very “news” I suggested avoiding in my Wednesday Blog. B/c she is so caught up in all of the negative news, she seems convinced that the housing market could easily see a repeat of 2008 when values dropped […]Read More

“Non-Bank” Mortgage Lenders vs. Banks; Who Are The Players? Why It Matters

Most Americans have never heard of PennyMac, United Wholesale Mortgage, loanDepot, and Freedom Mortgage. These are just a few of the huge “non-bank” mortgage lenders that funded almost 60% of all mortgages last year. The only “non-bank” player that most Americans have heard of is Quicken Loans, and that is b/c of its massive amount […]Read More

Obtaining Mortgage Financing After A Forbearance

RULES FOR QUALIFYING POST-FORBEARANCE With millions of future borrowers in either mortgage or rental forbearance, many people are wondering how forbearances will impact a borrower’s ability to qualify for mortgage financing down the road (when they are out of forbearance). Credit: The jury is still out on this, as borrowers with authorized forbearances were not […]Read More

Qualifying The Self-Employed – The Good, The Bad, & The Ugly

Self-employed borrowers can still qualify for mortgage financing, and in some ways they actually have advantages. THE GOOD Self-employed borrowers qualify with previous years’ tax returns, which fortunately will not reflect any slowdowns which might have occurred b/c of the COVID-19 crisis. Self-employed borrowers can qualify with 2018 and 2019 tax returns, or with 2017 […]Read More

Please Share Our Content; How Fast Will The Economy Recover?

We love it when readers share our content – so please feel free to continue doing so. We only ask for a credit and a “linkback” to our website whenever content is shared – something like the below: Content Source: Jay Voorhees of JVM Lending – “#1 Reason We’re Not In A Housing Bubble; Life […]Read More

Interest Rates/Mortgage Industry Update; When NOT to File Taxes

Interest rates have come back down but they are still about 1/4% to 3/8% higher than where they were when they bottomed out on March 9th. This is because the mortgage industry is still trying to fend off excess volume brought on by low rates and a surge of refis. And – it is also […]Read More

Qualifying After Returning to Work

Many people are wondering how soon laid off and furloughed borrowers will qualify for mortgage financing once they return to work. EMPLOYMENT GAP UNDER SIX MONTHS If the layoff or furlough lasts less than six months, lenders will be able to fund most loans as soon as borrowers return to work (for conforming, FHA and […]Read More

Goldman Sachs Loves Housing Still; COVID-19 Will Push People Away From Cities

In October, I blogged about my millennial nephew paying $4,250 per month in rent in San Francisco. I pointed out that the property he was renting was worth about $2 million and that he was probably better off renting – IF he stayed in San Francisco. His financial planner and I, however, both told him […]Read More

Elephant In Room: Housing Prices; HELOCs Too

Chase stopped accepting applications for home equity lines of credit (HELOCs). I mentioned this previously, but in 2008, HELOC lenders not only stopped taking applications but they also froze existing HELOCs. Given the trends, HELOC borrowers in need of cash might consider drawing on their HELOCs now before they are frozen (as I mentioned in a […]Read More

COVID-19 Mortgage Updates; Interest Rates; Jumbo; Guidelines; Appraisals

Below are a series of important COVID-19 updates as they relate to the mortgage industry. INTEREST RATES Jumbo interest rates are now about 1% higher than conforming rates. This is in sharp contrast to the previous few years when jumbo rates were almost always lower than conforming rates for strong borrowers. Low balance (under $510,400) […]Read More

5 Bold Predictions For The Post COVID-19 World; COVID-19 Updates; Reason to Refi

Forbes Publisher, Rich Karlgaard, published 5 Bold Predictions for the Post COVID-19 World. He imagined what we might see by the Spring of 2021 and predicted the following: A rebounding world economy with a fantastic global growth rate of 4%. Fully resumed global travel b/c human nature makes people want to travel no matter what. […]Read More

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

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

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

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

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

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

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

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

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

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

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

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

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

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