Mortgage Roundup (4/7/20) – Liquidity, Lending & Legal Issues

Good morning! Today is Tuesday, April 7. Just weeks after a $2 trillion stimulus bill is signed into law, Congress is already preparing for more economic aid for small businesses and individual Americans as the economy suffers from coronavirus devastation. Wisconsin’s primary is set to go ahead today after courts block attempts to delay voting. 

And in mortgage and housing news …

JOURNALISM: In a glowing profile, the Detroit Free Press is oddly silent about new United Wholesale Mortgage leadership coach Mateen Cleaves’ recent legal challenges. 

FIRST BANK FAILS: The Federal Deposit Insurance Corporation announced the first failure of a bank during the coronavirus pandemic, though the bank was struggling before economic challenges began.

LIQUIDITY: An array of mortgage, real estate and housing organizations called on federal regulators to ensure cash is available to mortgage lenders who may financial support as they help homeowners and renters during the coronavirus pandemic.

LENDING PAUSE: Wells Fargo, the largest U.S. mortgage lender, is offering fewer home loan products during the coronavirus-fueled economic downturn.

EUROPEAN BANKS: Before European bank regulators could begin their planned stress test, a real one began. More than the United States, the European economy depends on banks to function.

BORROWING TIPS: How potential mortgage borrowers can cope with a virus-struck market. 

PENNYBACK BUYBACK: With the housing industry raising alarms about mortgage servicers’ desperate need for liquidity, the nation’s largest mortgage aggregator is now warning originators that it could force them to buy back loans that go into forbearance.

SMALL BANKS: Fintechs and small banks do their part to serve consumers amid the coronavirus pandemic, despite risks. 

CRISIS BREWING: Many mortgage payments are on pause because of coronavirus, but the resulting domino effect of that could be disastrous.

ECONOMIC DISTRESS: The nation’s former top central banker called the damage “absolutely shocking.” The head of America’s largest bank said he’s preparing for financial dysfunction similar to 2008. And a gauge of consumer sentiment showed soaring angst across the economy.