Mortgage market nearly collapsed in early days of COVID-19 – San Bernardino Sun

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I think the recent experience of the liquidity crunch during the Great Recession was a quick reminder of what was possible when COVID-19 blamed the United States in March 2020.

The Federal Reserve Board issued a press release at 5:00 pm on Sunday to inform everyone that the coronavirus outbreak has disrupted economic activity. The federal funds rate has been lowered to a range of 0 to 1/4%.

We got it the way the Fed calmed America down. We are monitoring the situation.

Certainly.

At 9 p.m. Saturday, March 21, the Federal Reserve Board is slated to launch the Federal Reserve Board with Jerome Powell, then Chairman of the Federal Reserve Board and then Treasury Secretary Stephen Manyutin. If we have not announced, we have sent an email warning that the mortgage market will close next Monday. Purchase of mortgage-backed securities.

The following Monday morning, the Fed announced that it would buy enough mortgage-backed securities to keep the market working. The market did not crash.

It was one of the interesting stories that emerged at the California Mortgage Bankers’ Association meeting last Tuesday through Thursday, August 24-26, in Dana Point.

While there, I surveyed many of the 650 registered members and asked, among other things, what the mortgage industry has done in recent years to make the world a better place for consumers. Below are some of their responses.

  • Shea Pallante, President of Sprout Mortgage, is committed to incredible transparency, consumer accessibility and consumer-friendly technology. He cited two of the country’s top lenders, Rocket Mortgage and United Wholesale Mortgage.
  • Joe Dalin, director of strategy at HomeScout, focused on a wide range of technological advances. “The mortgage lender and mortgage lender have both had a record volume of business from home last year and this year.”
  • John Hedlund, chief operating officer and managing director of AmeriHome Mortgage, quoted the exemption from the valuation. And he pointed out that consumers save money and time because mortgages are processed faster and cheaper.
  • Paul Bloom, regional vice president of Certified Credit, believes that in the online survey, consumers have a much higher level of trust in mortgage lenders. “Consumers can do more with their fingertips,” Bloom said.
  • Carissa Orozco, director of business development at Reverse Vision, cited a clause on reverse mortgages that requires seniors to demonstrate their ability to pay taxes and insurance. Nobody wants a borrower to go bankrupt and get arrested.

Question 2: What are the disadvantages of the mortgage industry that need to be improved from a consumer perspective?

  • Lenox Financial Mortgage Corp. Wesley Hoglund, CEO of the company, thinks it is very difficult to get a mortgage and the process is very slow. “Why can you go to a Porsche dealer and buy a Targa for $ 165,000 in 30 minutes, but you never have a mortgage,” Hoglund asked.
  • Alex Kutsishin, CEO of Boomerang, said the lender is spamming customers after the close of the mortgage deal, repeatedly sending pointless and unnecessary sales of items that are clearly no longer needed. I was complaining.
  • Brooksmith believes the industry needs to address the gap in home ownership between whites and minorities.
  • According to Paranthe, consumers need to be more aware of the mortgage process and the wide variety of mortgages available. It all starts with training an ignorant loan officer who often rejects qualified borrowers.

Freddie Mac News: The 30-year fixed rate averages 2.87%, one basis point higher than last week. The 15-year fixed rate averaged 2.17%, one basis point higher than last week.

The Mortgage Bankers Association reported that the number of applications for mortgages increased by 1.6% over the previous week.

Conclusion: Assuming the borrower receives an average 30-year fixed rate loan of $ 548,250, last year’s payments were $ 12 more than this week’s $ 2,273.

What do I see: Locally qualified borrowers can obtain the following fixed rate mortgage loan at a cost of 1 point: 30 years FHA – 2.25%, 15 years – 1.875%, 30 years – 2.5%, 15 year traditional high balance (from 548 251 to $ 822,375) is 2.125%, the 30-year traditional high balance is 2.75%, the 30-year fixed large balance is 2.875%.

This week’s attention grabber loan: 30 year flat rate with 2.625% at 2 points.

Jeff Lazerson is a mortgage broker. He can be reached at 949-334-2424 or jlazerson@mortgagegrader.com. His website www.mortgagegrader.com..

Mortgage market nearly collapsed in early days of COVID-19 – San Bernardino Sun Link to source Mortgage market nearly collapsed in early days of COVID-19 – San Bernardino Sun

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