Mortgage Roundup (5/6/20) – Credit Grows, Home Prices & Flexibility

Good morning! Today is Wednesday, May 6. The White House coronavirus task force will wind down and move into phase two to re-open the country. The American Academy of Pediatrics issued guidance for school reopenings. Disney, the world’s largest entertainment company, said the pandemic cost it $1.4 billion in the last quarter. 

And in mortgage and housing news …

HOUSEHOLD CREDIT: Household credit levels jumped in the first quarter, driven by mortgages.

HOME PRICE ANALYSIS: After a surge in sales the first two months of the year, home prices jumped in March before the coronavirus took hold in the United States. An analysis of the rest of the year projects modest to minimal growth in prices. 

FLEXIBLE LOAN ORIGINATION: Appraisals, employment verification are among the issues covered in new FHFA loan origination policy.

RECOVERY: Mortgage rates are doing something we haven’t seen since the financial crisis. But this spooky echo to 2009 won’t cripple the housing market

VETERAN HOMEOWNERS: Homeowners with Veterans Affairs-backed loans can get flexible repayment plans – and cannot be required to make lump-sum payments – if they fall behind on their mortgages due to the pandemic. 

CREDIT UNIONS: Credit Union Association President/CEO Jim Nussle discussed how credit unions are serving members during the pandemic, and what the Federal Housing Finance Agency could do to help.

NEW NORMAL: Borrowers and lenders will face three new and unfamiliar ways of doing business as the economy re-opens and tries to recover from coronavirus pandemic damage. 

RISK AVERSE: Mortgage standards are getting tougher as banks face greater risk. 

Q2 INSIGHTS: How the real estate broker’s job is changing in the wake of the coronavirus pandemic. 

CFPB RULEMAKING: Two Urban Institute analysts are warning about changes to federal regulations that could limit access to important mortgage data for low-income and rural populations.