Mortgage Roundup (5/11/20) – Underwater Loans, IMBs & Flipping Houses

Good morning! Today is Monday, May 11. Treasury Secretary Steven Mnuchin warns that employment numbers will get worse before they get better. All passengers on Amtrak will be required to wear a mask. Shanghai’s Disney park will reopen, but visitors can’t hug Mickey. 

And in mortgage and housing news …

UNDERWATER MORTGAGES: There were 3.6 million houses – or 6.6 percent of homes with mortgages – that were seriously underwater at the end of March, according to a new report from ATTOM Data Solutions.

FORBEARANCE INCREASE: While the number of mortgages in forbearance continues to climb, the rate of increase is slowing down. 

NONBANK MORTGAGES: The mortgage market was never fixed after the 2008 economic crash. Now it is breaking again.  Many mortgage companies are nonbanks that don’t have deposits or other business lines to cushion them amid the coronavirus pandemic.

HOME SALES IMPACT ECONOMY: Nationwide, the National Association of Realtors estimates that each home sale at the median added $88,500 to the economy in 2019. NAR features a state-by-state breakdown of how home sales impact the local economy. 

LENDERS & FURLOUGHS: As the economic slowdown shines a light on credit risk, lenders are taking a hard-nosed view of any loss of income, whether the cause is a furlough or a layoff. 

MORTGAGE HEALTH 101: What you need to know about and take action on for your mortgage in the time of COVID-19. 

HOUSE FLIPPING RESUMES: Zillow and Redfin will start flipping houses again as homebuying demand rebounds from coronavirus slump.

MORE SCRUTINY: How the coronavirus pandemic is reshaping the economics of home buying

REAL ESTATING: Agents, buyers and sellers learn to adapt to real estate transactions during the coronavirus pandemic.  

HOMEBUYING TRAPS: The 7 biggest mistakes to avoid when buying a house.