Mortgage Roundup (9/1/20) – Lawsuit, Demand & Loans

Good morning! Today is Tuesday, September 1. American and Delta joined United in removing the change fees on most domestic flights. Amazon received approval for a fleet of delivery drones. Future NASA astronauts may rely on electron beams to clean their spacesuits.

And in mortgage and housing news …

FORBEARANCE STEADY: The share of mortgages in forbearance hasn’t budged in recent weeks, with 3.6 million homeowners in the United States still having their loan payments paused during the coronavirus pandemic, the Mortgage Bankers Association announced.

WELLS FARGO LAWSUIT: Some borrowers are suing Wells Fargo, alleging the bank placed mortgages into forbearance without their consent, damaging credit reports.

BUYER DEMAND: More sellers are making their way onto the market, but it’s still not enough to offset a supply shortage

FORECLOSURES: Why the coming foreclosure crisis will look nothing like the last one.

LOAN ESTIMATES: The average home buyer can save $1,500 over the life of their mortgage simply by getting a second mortgage quote, according to a Freddie Mac study.

BIDDING WAR RISKS: In today’s market, borrowers have more motivation to misrepresent information on a loan application in order to qualify for the bigger mortgage necessary to win the bidding war for a home.

NOT FLEEING CITIES: Despite the headlines and hype, a mass migration to the suburbs isn’t happening.

OPPORTUNITY ZONES: A National Community Reinvestment Coalition study found that gentrification of once struggling neighborhoods was highly concentrated. Most low-income neighborhoods, and the vast majority of cities, continue to deal with a chronic lack of investment.

LANDLORDS SQUEEZED: Financial burden grows for mom-and-pop landlords several months into the pandemic. Many say they’re being unfairly harmed by policies protecting tenants while leaving owners on a financial cliff.

REALTOR LICENSING: Data suggests a slowdown in realtors entering the field, though the overall agent count remains flat.

“UNPRECEDENTED STEP”: Fannie Mae and Freddie Mac officially said they oppose the capital rule proposed by the Federal Housing Finance Agency, which oversees them.

ROCKET INVESTORS: Rocket Mortgage analysts issued reports on the mortgage lender, lauding its revenue growth while staying cautious on its valuation.