Mortgage Roundup (8/3/20) – Housing, Ownership & Losses

Good morning! Today is Monday, August 3. White House coronavirus task force coordinator Dr. Deborah Birx said the U.S. is in a new phase in its fight against the coronavirus pandemic, warning that the virus is more widespread than it has been. NASA SpaceX astronauts made a splash down in the Gulf of Mexico after a successful mission to the International Space station. Two passengers were removed from a Delta flight for refusing to wear a mask. 

And in mortgage and housing news …

EXTENDED ASSISTANCE: The Federal Housing Finance Agency announced it is extending a policy that allows Fannie Mae and Freddie Mac to purchase some single-family mortgages in forbearance in an attempt to support the liquidity of mortgage lenders during the coronavirus pandemic.

HOUSING LANDSCAPE: How will shifting policies, a changing homebuyer outlook, and the results of the November elections change the face of the housing industry landscape.

WALL STREET SOCIAL JUSTICE: Former Fannie Mae CEO Franklin Raines is prodding Wall Street to do more about racial discrimination.  

AFFORDABLE HOUSING: People pushed into poverty by the coronavirus pandemic could face years of increased dependence on government help, experts say, and greater housing insecurity and homelessness.

HOME OWNERSHIP: According to the U.S. Census Bureau, the homeownership rate increased to 67.9 percent by nearly 4 percentage points compared to a year earlier.

THREE COVID TRENDS: Mortgage applications for suburban homes are surging as buyers try to escape the coronavirus pandemic, and work from home in more space. 

LOAN LOSSES: Four banks that did a poor job forecasting loan loss projections. 

SMALL BANKS GAIN: These businesses broke up with their banks when their Paycheck Protection Program loans did not come through. 

HOUSING CRISIS: There’s a simple reason for this recession’s uneven effect on the housing market.

IS CREDIT TOO TIGHT? One element contributing to tightened credit requirements is lenders’ reluctance to originate loans offered towards the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. 

COMMERCIAL REAL ESTATE: Bank of America Corp. has deferred $7.7 billion of loans for commercial clients in response to the coronavirus pandemic.