Can I Sign Massachusetts Banking Forbearance Agreement

How can i industry sign banking massachusetts forbearance agreement

hey everyone Shana down to a mortgage loan originator I wanted to touch base with you on some temporary changes that are going on in the mortgage industry as well as answer a couple of questions that I've been asked by many of you and I figure if one person is asking this question then probably many of you have the same question also if there's if I'm not answering the question that you may have make sure that how you reach out to me after this video all right let's get started due to the increase in unemployment and the concern for a rapid increase in forbearance mortgages mortgage programs are making temporary changes to their program guidelines to better preserve the health of the housing market and to promote a faster economic recovery some of these changes are to FHA VA and USDA credit scores the government programs now require a higher credit score due to the concern for the high number of forbearance more loans and also because this limits the risk of potential homeowners defaulting on their home another change that's been put into effect is that there are now allowing exterior appraisals only when necessary though so if you if you have a home that the seller is no longer living in it if it's empty then they're going to do a full appraisal they're only going to do a exterior appraisal if if there is an issue with maybe the appraiser being able to get into the home so something to keep in mind also just want to make mention that appraisals are taking a bit longer so you want to make sure that your allotting for enough time to get those appraisals back because you want to make sure that you don't miss those those commitment dates and those dates that are in your purchase and sales contract it protects you protects your money and then another change that we're seeing right now is in your pre-approval as far as you know some of you have asked me hey I'm still working at my job but employers keeping me on but I'm no longer guaranteed forty hours you know maybe you're guaranteed thirty hours and so what we need to do is go back and redo your pre-approval to reflect the 30 hours a week as opposed to the 40 hours and this will have to be implemented until you go back to a full you know full normal hour work week and so just keep that in mind this is real important and we'll have to qualify you as well off of those reduced hours and then if you have been temporarily lop laid off you will need to wait until you begin employment again all right mass housing downpayment assistance so mass housing downpayment assistance has suspended their FHA insured loans and that's was effective April the 7th and then you can still utilize this down payment assistance program with conventional financing and all standard guidelines still apply at this time so keep in mind if you are getting downpayment assistance the minimum credit score for the conventional financing is 680 so if you've already received a pre-approval through mass housing downpayment assistance then we need to make sure that we are updating that and checking those credit scores and making sure that you still qualify all right and then a question I've been getting asked a lot and that is why am I not getting a 0% interest rate so before codes 19 the housing and economy was strong with both new construction and with existing home sales at 13-year highs so you've probably heard the Federal Reserve cut the interest rates to zero on the Fed Funds rate there is a difference between the Fed Funds rate which can change daily and a mortgage rate that stays in place for 30 years which I believe is the misconception here also with the turmoil in the financial market you know going on right now the rates have risen a bit and even though the feds had cut the rates so even though they've they've risen you know not to worry they're actually still very low and it's still a good time to purchase a home and we do expect the strength to resume when things get better and I just want to encourage you that things are going to get better another question I've been getting a lot is about forbearances so I even if you already own a home or if you're purchasing a home I think this is helpful information that you should know but forbearance does not mean forgiveness so if you clearly own a home and you've been adversely affected by covered 19 you may be eligible for a for mortgage forbearance forbearance means that the mortgage payments would be suspended for a period of time possibly up to six months I've seen it anywhere from three to six months but you'll need to get caught up when the forbearance period is over so there's no financial benefit to exercising forbearance as you'll either have to pay a lump sum modify your loan or oh the balance when you refinance or sell your home and what you need to do is when you're speaking to your servicer about the setting up the forbearance you need to make sure that you find out when do you have to pay those that money back when does that have to be Pig is it at the end of the forbearance is it at the end of the loan these are this is a very important question and you need to know ahead of time I actually had someone asked me yesterday about this and I said you need to ask the servicer because it's really important that you know how this is set up and what the expectation is and then you still have to make your monthly payments until you are until you notify the mortgage servicer and agree to the forbearance terms so don't just stop making your mortgage payments thinking that you're just gonna go into forbearance you have to set up the terms ahead of time so these are just a few of the changes that are going on in the mortgage industry as well as a couple of questions that I wanted to make sure that I was answering for you but again if you have any additional questions that you want to ask me then please reach out to me at any time I'm here as a resource for you I want everyone to stay healthy stay well and I look forward to working with you in the future