Mortgage Roundup (6/16/20) – Recovery, Forbearance & GSEs

Good morning! Today is Tuesday, June 16. The Supreme Court ruled that LGBTQ workers are protected under federal civil rights law. Harvard won’t require SAT and ACT test scores for admission next year. Walmart is testing a store that will offer only self-checkout to protect against coronavirus spread. 

And in mortgage and housing news …

FORBEARANCE NUMBERS: The percentage of Fannie Mae and Freddie Mac loans in forbearancedecreased for the first time since the start of the COVID-19 pandemic, according to the weekly forbearance survey released by the Mortgage Bankers Association.

FHFA ELIGIBILITY: The Federal Housing Finance Agency announced that it will not implement new financial eligibility requirements for mortgage lenders that service or sell loans to Fannie Mae and Freddie Mac.

HOUSING RECOVERY: In an attempt to measure housing’s comeback from the coronavirus pandemic, realtor.com created the Housing Recovery Index – with the initial report showing the U.S. housing market is recovering even in the face of COVID and civil unrest across the country.

GSE ADVISOR: Banking giant J.P. Morgan Chase has been tapped by Freddie Mac to advise the government-backed mortgage behemoth on its recapitalization and planned exit from federal conservatorship, a status it and its sister entity Fannie Mae have been under since September 2008.

AFFORDABILITY: At the national level, housing affordability remained promising in April 2020 compared to a year ago and rose compared to March, according to NAR’s Housing Affordability Index.

MINORITY-OWNED BUSINESS PPP: Congress is looking into how many minority-owned businesses couldn’t access federal Paycheck Protection Program loans to aid in post-coronavirus economic recovery.  

RETIREMENT INVESTMENTS: Self-directed retirement accounts can help advisers offer their clients more opportunities to diversify their investments, especially in volatile markets.

FED CHAIRMAN TESTIFIES: Federal Reserve Chairman Jerome Powell returns to Congress today to testifyafter a four-month interval in which the central bank has redefined its role in supporting the U.S. economy.

CORPORATE BOND PURCHASING: The Federal Reserve said that it will begin purchasing corporate bonds as part of a previously announced plan to ensure companies can borrow through the bond market during the pandemic.

NEW YORK CITY: The housing market around New York City is booming

RENOVATIONS AND RESALE: Before you spend money on these renovations, consider the return on investment when you want to sell the property.