Mortgage Roundup (7/7/20) – Denials, Moving & Evictions

Good morning! Today is Tuesday, July 7. The Treasury Department released the list of companies that received most money from small business bailout loans. Florida orders schools to reopen in August. Harvard and Princeton will reopen with many undergrads barred from campus housing. 

And in mortgage and housing news …

LOANS DENIED: Black and Hispanic borrowers were denied approval for mortgages at a considerably higher rate than non-Hispanic White and Asian borrowers in 2019, according to a report released by the Consumer Financial Protection Bureau.

PANDEMIC PACKING: A survey conducted by Morning Consult found that more than one in four workers say they would consider moving to a new state if their employer allows them to work remotely going forward.

SUMMER EVICTIONS: Eviction moratoriums and unemployment benefits are expiring, which will have a bigger effect on Black neighborhoods, experts say.

PRE-APPROVAL REQUIRED: Sellers are only admitting buyers who have been pre-approved for a mortgage to tour their homes.

COMMERCIAL DELINQUENCIES: Commercial mortgage delinquencies surged to a record monthly rate in June.

AFFORDABLE HOUSING: Manufactured housing community operators have been reporting rent collections above 90 percent for MHCs and mobile home parks for April and May.

INTEREST-ONLY RISKS: “Interest-only” mortgages might make sense in some situations, but beware of the risks.

AUTODIAL COLLECTIONS ELIMINATED: A new Supreme Court ruling eliminates the use of autodialing for FHA, VA mortgage collections.

DEVELOPERS ADAPT: Commercial and residential companies are finding new, safe ways to attract real estate brokers to their projects.

REAL ESTATE INVESTING: From flipping homes to obtaining passive income off of rentals, there’s always money to be made in adding real estate to a growing investment portfolio.