HousingWire Daily

In today’s Daily Download episode, HW+ Managing Editor Brena Nath examines if right now is a good time for Americans to purchase homes.For some background on the story, here’s a brief summary of the article:This spring home-buying season is anything but normal. What traditionally has been known as the busiest season for buying and selling homes has been upended by COVID-19. The pandemic has spurred concerns about people entering homes and job security, all while potential buyers are hearing that interest rates are lower than ever but are being met with extremely tight credit restrictions. At the same time, a growing number of borrowers are filing forbearance requests.Despite the list of evolving challenges, one thing that is still true this buying season is that there’s a lot of pent-up demand. Although some of the conventional thinking on what makes now a good time to buy still remains true, there are new factors for home shoppers to consider, especially since the last recession was drastically different than this one.Following the main story, HousingWire Digital Producer Alcynna Lloyd covers a new relief bill introduced by House Speaker Nancy Pelosi (D-CA), a forbearance announcement from Fannie Mae and Freddie Mac, and a report from LendingTree that claims Google searches for “homes for sale” have rebounded.The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode: Is now a good time to buy a home? House set to pass $3 trillion relief bill as Fed chairman urges Congress to spend Fannie Mae, Freddie Mac: Borrowers in forbearance can defer all missed payments until the end of their loan Searches for “homes for sale” rebound 54%

In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses why forbearance has become a scarlet letter on consumer credit reports.For some background on the story, here’s a brief summary of the article:Mortgages in forbearance as a result of COVID-19 have to be reported as “current” on credit reports.That’s the law, as laid out in Section 4021 of the CARES Act passed by Congress at the end of March. It says servicers “shall report the credit obligation or account as current.”But, it turns out there’s a workaround that can make it difficult for people with mortgages in forbearance to get another home loan after the COVID-19 crisis is over – for as long as a year after the forbearance period ends. That can impact their ability to refinance or buy a home when times are better.The CARES Act doesn’t mention the comments section of credit reports, and that’s where forbearance notations are going. Any reference to forbearance on a credit report, including in the comments section, can be a “scarlet letter” for an applicant hoping to get a new mortgage, said David Stevens, the former head of the Mortgage Bankers Association who is now CEO of Mountain Lake Consulting.Following the main story, HousingWire Digital Producer Alcynna Lloyd covers a report from Realtor.com that claims the housing market will bounce back this year, data from Avail that indicates the number of incomplete rent payments has risen 93% during the COVID-19 pandemic, and the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, which reports an uptick in purchase demand.The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode: Forbearance becomes a ‘Scarlet Letter’ on credit reports Realtor.com: Housing market will bounce back this year, but the rebound will be short-lived Number of incomplete rent payments rise 93% during pandemic Mortgage applications for home purchases increase

In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses the housing industry’s catch-22. Currently, mortgage interest rates are lower than ever, but millions of U.S. borrowers still can’t receive a home loan.For some background on the story, here’s a brief summary of the article:Despite the fact that mortgage rates have been at or near record lows for more than a month, millions of potential borrowers are facing a situation where it’s simultaneously never been a better time to buy a home and never been harder to get a mortgage; a true mortgage catch-22.Ironically, the cause of both the record low-interest rates and certain borrowers’ powerlessness to take advantage of those rates is the same thing: the coronavirus. Even as the impact of COVID-19 has driven mortgage rates down, the virus has also crippled the U.S. economy, sent unemployment skyrocketing, and altered the mortgage lending landscape so deeply that it may take years to recover.That’s leading to millions of would-be borrowers being left behind thanks to a brutal combination of factors that’s making it nearly impossible for them to get a loan, even if they want and could get one otherwise.Following the main story, HousingWire Digital Producer Alcynna Lloyd covers the Mortgage Bankers Association report that claims almost 4 million mortgages are now in forbearance, housing market research from Amherst that claims government resources are leaving renters behind and MBA data that indicates the mortgage delinquency rate jumped in the first quarter of 2020.HousingWire articles covered in this episode: Mortgage catch-22: Interest rates are lower than ever, but millions of borrowers can’t get a loan Almost 4 million mortgages are in forbearance, MBA says Government resources are leaving renters behind Mortgage delinquency rate jumps with forbearances tallied as overdue

In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses the housing industry’s role in reviving the U.S. economy.For some background on the story, here’s a brief summary of the article:The housing industry got a bad reputation the last time the American economy tanked.Not the houses themselves – most of them are still in place, perhaps painted a time or two since 2008, now being used to home-school children and provide families with shelter from the worst pandemic in more than a century.It was, specifically, a risky sub-sector of home financing – subprime loans – that got packaged into bonds, stamped with Triple-A ratings and sold at huge profits to investors including pension funds and Wall Street banks. When banks started failing, it pushed the nation’s financial system to the brink.Now, the housing industry has a chance to redeem its reputation by rescuing the American economy, said Frank Nothaft, chief economist of CoreLogic. Nothaft was the chief economist of Freddie Mac for 28 years, including the time of the housing crash and three years into the recovery.It’s a familiar role for the nation’s largest asset class: In every recession before the 2008 financial crisis, housing supported GDP as other industries faltered.Following the main story, HousingWire Digital Producer Alcynna Lloyd covers The Treasury Department’s Financial Crimes Enforcement Network’s investigation into money laundering in the real estate industry, the National Multifamily Housing Council’s latest report that indicates 80% of U.S. renters were able to make a rent payment in May and an announcement from New York Governor Andrew Cuomo to extend the state’s eviction moratorium through August.The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode: Look for housing to rescue the economy, Nothaft says Federal government expands investigation into money laundering in real estate About 80% of renters were still able to make a rent payment this month New York extends eviction moratorium

In today’s Daily Download episode, HW+ Managing Editor Brena Nath interviews HousingWire’s Ben Lane on how one month nearly broke the U.S. housing ecosystem as the coronavirus pandemic rocked the mortgage industry. Lane has been closely following the pandemic’s impact on the mortgage ecosystem, breaking down some of the landmark moments that led to where the industry stands today. He also shares his thoughts on what lies ahead for the mortgages industry since the challenges born out of the COVID-19 pandemic are far from over. Here’s a quick preview of today’s interview.What were some of the first signs that the virus was impacting the mortgage lending market?As the virus  began spreading, outside of China and then into the European countries and then eventually to the U.S., global investors sought refuge from that kind of carnage in US bonds, which are generally thought of as safer than other financial instruments, and that drove mortgage rates down to record lows, which have since been broken. That drove mortgage rates down to lows that had never been seen before, under 3.3% for a 30-year fixed rate, and that led to a refinance boom that just exploded.He goes on to explain the consequences that this had on the market, along with the biggest pain points that it created. The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode:How one month nearly broke the housing ecosystem

In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses the Housing industry’s scramble to receive loans from the  Payroll Protection Program.For some background on the story, here’s what has happened in the industry so far:From April 3 to April 13, about 14% of real estate companies in the U.S. – including sales, leasing and maintenance firms – got funding in the first round of the Payroll Protection Program created by Congress to rescue small businesses, according to loan data from the Small Business Administration.The loans are intended to help companies keep employees on their payrolls amid the worst public health crisis in more than a century. But the program was beset with complications from the beginning, with lenders unable to process initial requests to provide the loans, small businesses unable to properly request PPP funding, and some banks even reportedly favoring their own clients over non-clients.On April 9, Senate Majority Leader Mitch McConnell attempted to add $250 billion to the program using a legislative technique known as unanimous consent. In the end, the bill approved by the Senate on April 22 had $320 billion of additional funding for PPP, with $60 billion earmarked for community banks and small lenders.        But because of the way the loan distributions were initially handled, the industry-share numbers could change and for many small businesses trying to get a loan, the experience has felt a bit like being in a mosh pit – those areas at heavy metal concerts where body slamming is the rule.Following the main story, HousingWire Digital Producer Alcynna Lloyd covers a Fannie Mae forecast that projects U.S. refinance volume hitting a 7-year high, The Labor Department’s data that shows another 3 million Americans have now filed jobless claims, and Freddie Mac’s Primary Mortgage Market survey that indicates the average mortgage rate is 3 basis points away from another all-time low.The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode: Housing joins mosh-pit scramble for PPP loans Refinancings may hit a 7-year high Another 3 million Americans file jobless claims Average mortgage rate is 3 basis points from all-time low

In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses former Vice President and current Democratic Party presumptive nominee Joe Biden’s plans to support black businesses and homeownership.On Tuesday, Biden urged voters to support his plans to boost the economic prospects of black Americans, including an increase in homeownership.Biden reiterated the proposal he made during the heat of the primary campaign to create a new public credit reporting agency within the Consumer Financial Protection Bureau that would replace for-profit credit reporting companies like Experian.Biden also proposed establishing national standards for housing appraisals aimed at ending “the undervaluing of homes in African American neighborhoods,” without providing specifics.Additionally, he urged Congress to reserve half of all new relief funds for small businesses with 50 or fewer employees, a category he said includes 98% of all minority- and women-owned businesses.Following the main story, HousingWire Digital Producer Alcynna Lloyd covers a report from the Mortgage Bankers Association that indicates the nation’s banks now have the largest share of mortgages in forbearance, Zillow’s housing forecast that predicts home price declines throughout the rest of 2020, and the MBAs weekly applications survey, which reports an uptick in U.S. mortgage applications.The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode: Biden urges support for black businesses and homeownership Banks have the biggest share of mortgages in forbearance Zillow predicts small home price drop through rest of 2020 Americans are buying homes again, mortgage data shows

In today’s Daily Download episode, HousingWire Digital Producer Alcynna Lloyd interviews Housing Policy Council President and former Federal Housing Finance Agency Acting Director Ed DeMarco on how COVID-19 has impacted the housing ecosystem, as well as what issues the housing industry will need to tackle once the pandemic passes.For some background on the interview, here's what has happened in the industry so far.In April, despite growing calls from the housing industry for a federally backed liquidity facility for servicers to address the increase in forbearance requests due to the coronavirus, Federal Housing Finance Agency Director Mark Calabria told HousingWire that no such facility was coming.This prompted David Stevens, the former head of the Federal Housing Administration and CEO of the Mortgage Bankers Association, to write that the mortgage industry was “standing on the precipice” of widespread havoc due to a potential deluge of forbearance requests from borrowers.Stevens’ sentiment differed greatly from Calabria, who told HousingWire that he did not believe the industry was facing the calamity that Stevens and others predicted, especially on the nonbank side. In fact, despite the industry’s concerns of growing forbearance requests, Calabria said he expected approximately 1 million GSE mortgages to be in forbearance by May.In response, more than 20 Republican members of the House of Representatives sent a letter to the Department of the Treasury, urging Treasury Secretary Steve Mnuchin to create a liquidity facility for servicers that might find themselves in financial distress due to advancing principal and interest payments to investors on loans that are in forbearance.They were later joined by two of the top Democrats in Congress and The Conference of State Bank Supervisors, in their plea to have the government step in and help servicers. However, their calls were unanswered and the nation’s forbearance request kept climbing.By late April, Fannie Mae revealed that they had approximately 1 million GSE mortgages in forbearance at the GSE alone and they didn’t expect the figure to stop growing any time soon.As a means of combating this uptick, the GSEs recently offered other solutions, such as allowing servicers who collect payments on mortgages backed by Fannie Mae and Freddie Mac to only have to cover four months of missed payments on loans in forbearance.However, the big question now is what happens when that four-month period is over? Well, as it turns out, the GSEs themselves are preparing to cover any remaining advances for as long as those loans remain in forbearance.The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode:

In today’s Daily Download episode, HW+ Managing Editor Brena Nath covers a PULSE article from former Mortgage Bankers Association President David Stevens on his thoughts on how the Federal Housing Finance Agency’s actions have resulted in significant credit contraction for the mortgage industry.In his HousingWire PULSE article, Stevens says:It is now over one month since the CARES Act was passed, creating a blanket forbearance option for all borrowers in a GSE, FHFA, VA, or USDA loan to skip six to 12 months of payments. Legislation established by Congress with the intent of calming concerns of homeowners across the country has thrust an entirely new credit availability contraction over the entire nation.Because of the rush to pass legislation, the unforeseen adverse impacts could not have been fully vetted in advance. As a result, we found a multitude of challenges, but it really came down to these two: How would mortgage servicers come up with the tens of billions in needed advances to bond holders of loans in forbearance? What about borrowers who went into forbearance after settlement and before the loans were sold to the GSEs or into GNMA securities? Unfortunately, the FHFA director made some unwelcome judgmental comments and policy decisions that have resulted in an unprecedented tightening of credit across the entire mortgage industry, threatening to impair a key sector of the economy that some economists were expecting would help lead us back to recovery.Following the main story, HousingWire Digital Producer Alcynna Lloyd covers Fannie Mae’s announcement that more than 1 million of its borrowers are already in forbearance, plans by the nation’s top GSEs to make payments directly to investors for loans that stay in forbearance longer than four months, and a report from OJO Labs that details how COVID-19 has changed the mindset of U.S. potential homebuyers.The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode: [PULSE] David Stevens: FHFA actions resulted in unprecedented tightening of credit Fannie Mae already has 1 million mortgages in forbearance, but thinks that number may double Fannie Mae, Freddie Mac are preparing to cover servicers’ advances on loans in forbearance

In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses whether or not COVID-19 will derail the U.S. housing market.In an HW+ PULSE article, contributor Rick Sharga says:Like most of the news surrounding the COVID-19 global pandemic, reports about the U.S. housing market have been discouraging. Year-over-year listings of homes for sale have plummeted – in the worst-hit markets like New York City, listings are down 80% compared to April 2019. Home sales began to slow down dramatically in the last half of March, and are expected to drop even more drastically in April and May, which are usually two of the months with the highest volume of home sales. Pending home sales are off over 30%. And over 3 million homeowners have applied for mortgage payment forbearance, causing at least some concern about a large number of potential defaults at the end of the forbearance period. None of this should be surprising, under the circumstances. With almost every state in the country implementing some form of shelter-in-place order and shutting down most non-essential businesses, more than 25 million citizens filed for first-time unemployment benefits over the past four weeks. Given all of this, anything other than bad news in the housing market would be a huge surprise. The question isn’t whether housing numbers will continue to suffer until the pandemic recedes and the economy has a chance to begin its recovery. It’s what happens after that.Following the main story, HousingWire Digital Producer Alcynna Lloyd spotlights Michigan’s resilient housing ecosystem, the Department of Housing and Urban Development’s Office of the Inspector General’s report that indicates some of the nation’s largest mortgage servicers are providing borrowers with inadequate forbearance information, and Wells Fargo’s announcement that they will no longer accept applications for new HELOCs.The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode: [PULSE] Learning from past pandemics: Will COVID-19 derail the housing market? Under tight state restrictions, Michigan’s housing market perseveres HUD watchdog: Some servicers are providing wrong information about forbearance