Mortgage Roundup (4/30/20) – Watchdogs, Home Sales & Tight Credit

Good morning! Today is Thursday, April 30. States are struggling with a surge in unemployment benefit claims. California Gov. Newsom is expected to close all beaches and state parks to prevent coronavirus spread. Disney is releasing two summer movies ahead of schedule to keep audiences watching during the pandemic.

And in mortgage and housing news …

FORBEARANCE ACCUSATIONS: The watchdog at the U.S. Department of Housing and Urban Development is accusing mortgage lenders of providing “incomplete, inconsistent, dated and unclear guidance” to borrowers seeking relief from mortgage payments during the coronavirus pandemic.

BUYERS RETURN: The number of new mortgage applications dropped slightly last week, though purchase applications increased and homeowners are taking advantage of low interest rates to refinance at a much higher rate than a year ago.

MORTGAGE CREDIT SQUEEZE: Historically low interest rates may not benefit many would-be homebuyers as the credit market is tightening considerably during the coronavirus pandemic.

PENDING HOME SALES: Pending home sales fell precipitously in March after the coronavirus pandemic fully took hold in the middle of the month, a new analysis released by the National of Association of Realtors shows.

WHOLESALE MORTGAGE EXIT: Mr. Cooper is leaving the wholesale mortgage business.

NEW NORMAL: Travel, saving and spending habits will likely change once the rebound from the COVID-19 crisis begins.

NAR PREDICTIONS: Many Americans still want to buy a home in the midst of a pandemic and economic decline, and here’s what buyers should know

GSE ESCAPE PLAN: Wall Street will get its first look at the pandemic’s impact on Fannie and Freddie when they report first quarter results later this week.

MANGLED MESSAGING: Consumer Reports details how mortgage relief is supposed to work. 

SUBSIDIZED HOUSING: The impact of the coronavirus on affordable housing will be minimal.