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.


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

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

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

The Fed Cut Rates by 1/4 Point And Mortgage Rates Fell Marginally

The Fed cut the Fed Funds Rate by 1/4 percent yesterday, and rates…actually fell after the announcement. I was almost disappointed to see that b/c it will again confuse people about the influence the Fed has on mortgage rates. Briefly and once again – the Fed cut “The Fed Funds Rate” which is a short […]Read More

Are Low Rates The “New Normal?” The Fed Is Irrelevant

For years I have been repeating the predictions of various market experts about how interest rates have to go up at some point. And for years, I have been dead wrong! My wrongness was only illuminated again with the recent dramatic drop in rates. All this only makes me think that low rates may now […]Read More

The Fed Halts Rate Increases; Good Or Bad?

Yesterday, the Fed announced that there will be no more rate hikes in 2019. And many people in the mortgage and real estate industries cheered. But a lot of economists and Fed-watchers are more worried than ever. Here is just one of many articles (from the WSJ) I read today illuminating serious concerns. The Fed […]Read More

Why Interest Rates Should Finally Increase This Year; Or Not

INTEREST RATES PLUMMET AFTER 2008 MELTDOWN After the 2008 meltdown, mortgage interest rates plummeted from the mid 6% range all the way down to the low 3% range at various times. More recently, mortgage rates have hovered in the 4% range. Over the last ten years, I have repeated pundit predictions of imminent rate increases […]Read More

Why Rates FELL After Fed RAISED Rates; Econ Data Trumps Fed Policy

The Fed raised its short term “Fed Funds Rate” again yesterday, but long term mortgage rates fell. Once again, the Fed Funds Rate is only a short term interest rate (the rate that banks charge other banks for overnight loans necessary to pad their required reserves). This short term rate does not always directly influence […]Read More

What the Heck Is Going On With Rates? They’re Rising, Right? Wrong

Interest rates fell again, surprising everyone (again) b/c rates are supposed to be going up, right? Wrong. Rates are supposed to being going up b/c the Federal Reserve has been increasing the short term Fed Funds Rate; b/c the economy is heating up; b/c Mr. Trump’s policies are potentially inflationary; and b/c the Fed is […]Read More

Rates Down After Fed Pushed Rates Up? Why?

The Fed raised the short-term Fed Funds rate yesterday by 1/4% to a range of 0.75% to 1.00%. And long term interest rates fell. Here are a few reasons why this happened. First of all, the markets anticipated the increase and had already accounted for it. Rates actually improved after the increase was announced, in […]Read More

What Moves Interest Rates? Will Rates Fall?

We get asked time and again if we think rates could fall again, and our answer is “maybe.” The Fed has indicated that they plan on raising short term rates a few more times in 2017. But, the Fed is not the only influence on rates. Other factors that influence rates include the following: 1. […]Read More

Interest Rate Increases – Effect, Likelihood and Perspective

There is a lot of talk once again about rates increasing, especially b/c the Fed is indicating they will try to push rates up in December. But here is some perspective. The Fed may not be able to push long-term rates up. When the Fed increased the short term Fed Funds rate last December, it […]Read More

Janet Yellen Speaks; Fed Backing Off on Bond Purchases; Good Thing?

Rates jumped yesterday after Janet Yellen (the new Fed Chairperson) spoke. She rattled the markets by implying that the Fed may push rates up sooner than expected. She also made it clear that the Fed will continue tapering (backing off on its bond purchases). Rates are heading up this year. We discussed this before but […]Read More

Fed Announces Continued Bond Purchases of $85 B. Per Month

In May, the Fed announced plans to taper bond buying, and this sent rates up almost a full percent over the last several months. The Fed announced plans to taper b/c the economy had been improving; Fed officials believed continued interest rate support would be less necessary. But, in recent weeks, unemployment and other economic […]Read More

Fed Pulling Out in 2013? Non-Borrower Becomes “Effective Owner”

The mere threat of the Fed pulling out of the market earlier than anticipated panicked the markets, sending rates up sharply. It was previously thought the Fed would continue buying mortgage-backed securities or treasury bonds well into 2014. Yesterday, we mentioned that we often see non-borrowers making payments on behalf of a borrower. If a […]Read More

How Does President Obama’s Re-Election Affect Rates/Industry?

Historically, there has been about a 50/50 chance that rates will fall prior to an election, as we have mentioned before (rates do not always fall before elections, as many believe). Similarly, rates can go in either direction after an election. Upon news that President Obama was reelected, rates fell for two reasons, according to […]Read More

“QE 3” Announced – Lowers Rates

QE 3 is short for Quantitative Easing, Round #3. This is a policy where the Fed buys up debt instruments or assets in an effort to push down long-term interest rates. The Fed’s hope is that lower long-term rates will stimulate the economy by giving consumers and businesses an incentive to borrow and invest more […]Read More

Brick Foundation OK for FHA; 2 Year BK Seasoning for FHA; 4 Years Seasoning for Short Pay-Off

The Fed’s Comments yesterday were not as “momentous” as investors had hoped, but rates did improve marginally. Warren Buffett made comments yesterday implying that we have a long way to go before the economy starts to grow again. Such comments from our most famous investor do not bode well for the economy overall, but they […]Read More

Fed Conveniently Spends Another Trillion Dollars

The Fed announced yesterday that they will buy up an additional $750 Billion in mortgage-backed securities, as well as $300 Billion in Treasuries or government bonds. The debt markets responded positively and within hours of the announcement, interest rates dropped a quarter percent. This will not only spark another refinance boom, but it will also […]Read More