Current News: Updates in the Mortgage Biz This Week

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Filed under: Market Comentary

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It’s been another crazy week with a lot of changes going on in the mortgage and real estate industries. I wanted to share a few things that are brand new since the last time we talked:

What You Need to Know about Forbearances

I’m getting a lot of questions about forbearances. The reality about forbearances is that they are in the “Wild West.” Walter, the owner of Franklin Loan Center, said this week that there are no experts right now on this topic.

Everything is moving and changing so quickly, which means that you are going to get a little different answer from everyone. Questions are coming up regarding how the account will be handled if it goes into forbearance, how it will affect your credit, how payments will be managed, and more.

People are saying that forbearance won’t affect credit, and I hope that is the case. But we don’t know at this point. Fanny Mae came out already and said that people currently in the process of refinancing, if they are in forbearance on any other mortgage – then Fanny Mae won’t buy that mortgage.

A lot of people have lost their jobs and aren’t in position to make their payment, which is what forbearance is for. But, as I said last week, I think there are too many wildcards – which is why I recommend that you make the payment if possible. It could have a longer-lasting effect than what you can anticipating.

Direct Loan Services

Here at Franklin Loan Center, we are now going to be selling loans directly and will start servicing those loans. Why? We’ve been running into logjams and pricing discrepancies with the servicers out there right now. We are going to start going direct, which gave us an immediate 1% savings in pricing by cutting out the middlemen.

If you know of anyone who is running into financing problems because of jacked up rates or loans falling apart, then we might be able to pull things back together. There are big changes for FHA and VA loans, so you need to be sure that you are getting good, current information on your loan.

As always, I’ll keep you updated with another follow-up video next week. Feel free to reach out if you have questions or need information about mortgages during these unprecedented circumstances.

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