Category Archives: Mortgage

Handing out a business card

How To Tips for Business Card Etiquette

“It’s nice to meet you! May I give you my business card?”

Knowing the proper way to treat and hand out your business card says a lot about you, the respect you have for yourself, and the person you are giving it to. Always be courteous and ask permission before giving out your business card, and only give it to someone who asks for it or after you ask permission to give it.

How to offer a business card

  • Always have cards on hand. Card exchanges and business socializing often take place at unlikely times and places.
  • Be courteous when offering your card and attempt to limit distribution to qualified leads. Handing out 200 cards to everyone at a trade show will not be as productive as taking the time to find 10 qualified leads at the same seminar.
  • Always give your card to someone who asks for it — and be sure to ask for theirs in return.
  • Hand out pristine cards. Your card should adequately represent who you are and the pride you take in your profession. Throw away old, torn, or worn-out cards.
  • Use a business card case that properly represents your professionalism. Keeping your cards in your billfold or floating around in your purse makes for a disorganized impression. It also gives the message that you don’t really take the business card exchange ritual seriously.
  • If appropriate, take the time to write a quick note on the card to help the recipient remember you, what you talked about, and why your card was given.
  • Don’t hand out more than one card per contact unless more is asked for. If the person you are giving the card to does not have a card of their own, offer two of your cards and ask them to write their contact information on the backside of one and then return the card to you.
  • In meetings, don’t slide your card across the conference table. Instead, stand up and hand your card to each individual as introductions are made.
  • If you offer one person a card in a group, offer your card to everyone in the group.

How to accept a business card

  • Always accept an offered business card.
  • If you give a card, ask for a card.
  • Say Thank You! as soon the card touches your hand.
  • Look at the card for a few seconds as if digesting the information and then compliment the card, font, or logo, if appropriate.
  • Put the card in your business card case. Don’t disrespect the card or giver by putting it in your back pocket or other places that say you don’t really care it was given.
  • Follow up within one or two days from receiving a business card. Let the giver know you appreciated meeting them, your conversation, or information exchange.
  • It’s okay to request a business card, but if the person you are requesting it from maintains a higher position than you, wait for them to offer a card. For example, you wouldn’t ask the CEO of major companies or politicians, such as your state senator or the President of the United States, for a personal business card.f

How to design a business card

  • Avoid having too much information on your business card; don’t clutter it up with too many trade or professional designations that won’t mean anything to the public.*
  • Use professional paper and printing.
  • Use a graphic designer or online business card templates to help you design your card.
  • Include your essential contact details, including your name, company name, email address, and telephone number.
  • Avoid trade designation initials that might confuse your prospects. ABR, SFR, GRI mean nothing to a potential real estate client.*
  • Make sure your colors, font, and other information are easily readable by business card scanners or when converted to other types of electronic format.

* Design separate cards for giving out to your associates. These cards should include your trade or professional designations or designation initials.

Your business card will maximize your chances of successfully making qualified contacts. Remember, your card should represent you as a professional and convey how you think about yourself and conduct business. Don’t skimp and keep it professional.

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OnlineEd is a provider of pre-licensing, post-licensing, and continuing education for real estate and mortgage brokers. For more information about OnlineEd, please visit www.OnlineEd.com.

Differences Between Mortgage Prequalification Letter and Preapproval Letter

Typically, when the buyer uses financing to purchase a house, the buyer will get evidence from their lender to show the seller they do indeed qualify for that financing. This evidence will take the form of either a lender prequalification letter or a preapproval letter. The letter is given with the buyer’s offer to the seller in hopes that the seller’s acceptance of the offer is not delayed by checking the buyer’s financial status. While the prequalification and preapproval letters may sound similar, they are not. Let’s look at how these two letters differ and why a seller might insist on one over the other.

Lender Prequalification Letter

With a prequalification letter, the lender relies on information provided only from the buyer, such as income, credit score, debt and assets. A lender usually obtains this information in a telephone interview or by the buyer providing general information on the lender’s website. The lender or software then returns an estimate of how much mortgage a buyer can afford. However, a preapproval is only an estimate of what the buyer can afford, provided everything they have told the lender is true. In short, a prequalification letter won’t mean much to a seller since it relies on unverified information given by the buyer in exchange for the letter.

Lender Preapproval Letter

A preapproval letter is when the lender verifies the borrower’s information and reviews supporting documentation to determine how much they are willing to lend to that borrower. The lender’s required documents for their preapproval letter are the same as needed when applying for a mortgage. These documents include pay stubs, W-2s, federal tax returns, bank and other financial account statements, and a credit report. Because it is based on verified information, the preapproval letter is by far the better choice for the seller when analyzing the financial ability of a would-be buyer.

Note: A preapproval is not an approval or loan commitment. Preapproval does, however, speed up the loan underwriting and approval processes. Preapproval also gives the seller a reasonable assurance that the buyer can get financing and close the transaction. When choosing between similar offers, most sellers will prefer the preapproved buyer.

Prequalification is the easiest way for a buyer to estimate how much home they can afford. Preapproval is better than the prequalification estimate because it verifies the buyer’s financial information. Buyers who are serious about their house hunting should contact a qualified mortgage professional to find out how much they can afford, and so sellers will take them seriously when they make an offer.

FAQs About Oregon’s Mask Mandate and Real Estate Offices

Oregon mask mandateWe know it’s been confusing keeping up with the mask mandates and changes going on in Oregon, so we reached out to our HR partner, HR Annie Consulting for the latest. When you reach the end of this FAQ for Oregon’s latest mask mandate and how it affects indoor public spaces, just click on the link to be transported to their complete blog post for additional information.

 

  • Question: How long do we have to wear masks in the workplace?
  • Answer: Masks will be required in all Oregon indoor public spaces until February 2022.

 

  • Question: Since I’m a private business and my team is vaccinated, do we still have to wear masks?
  • Answer: Yes. “Public spaces” include private businesses. The mask mandate pertains to everyone regardless of vaccination status.

 

  • Question: So, what is considered an “indoor public space” where masks are required?
  • Answer: According to the Oregon Health Authority (OHA), “Indoor spaces” is defined broadly as anywhere indoors, including but not limited to public and private workplaces, businesses, indoor areas open to the public, building lobbies, common or shared spaces, classrooms, elevators, bathrooms, transportation services and other indoor space where people may gather for any purpose. An indoor space does not include a private residence or a private automobile that is not used for ride-sharing.

 

  • Question: If I have an office in Oregon and an office in another state without a mask mandate, what should I do?
  • Answer: The mask mandate in Oregon requires everyone in indoor public spaces to wear a mask, but this wouldn’t apply to your office in a state without a mask mandate. In the office in another state, we advise you to do what will keep your team the safest from severe harm.

 

  • Question: If my employees are in an open area and their workstations are more than 6 feet apart, do they still have to wear masks?
  • Answer: Yes. Masks are required at individual workstations, unless it is private and has 4 walls and a door.

 

  • Question: Are there any exceptions to this Oregon mask mandate?
  • Answer: Yes. According to the OHA, masks are not required if an individual:
    • Is under five years of age or is under two years of age and using public transportation.
      Is sleeping.
    • Is actively eating or drinking.
      Is involved in an activity that makes wearing a face covering or face shield impossible or not feasible (swimming, playing a competitive sport, performing, playing music, or giving a speech)
    • Is in a private, individual workspace.
    • Is needing to reveal one’s identity for visual comparison for legal reasons (at a bank or for law enforcement)

Wanting to learn more about other Oregon workplace face masks and vaccine updates? Read HR Annie Consulting’s latest blog for more info:  OR Workplace Masks & Vaccine Blog

technology and the realtor

2020 Saw Highest Number of Home Sales Since 2006 Says REALTOR® Annual Survey

Realtors® cited a lack of inventory as the leading reason limiting potential clients from completing a transaction, according to the National Association of Realtors®’ (NAR) 2021 Member Profile, an annual report analyzing members’ business activity and demographics from the prior year. However, in spite of a global pandemic, its drastic impacts on how business was conducted, and a dwindling housing supply, 2020 saw the highest number of homes sold since 2006 (5.64 million) and NAR’s membership increased from the previous year (1.48 million at the end of 2020, up from 1.4 million at the end of 2019).

“Realtors® continued to serve clients’ needs despite the challenges 2020 brought to the real estate market,” said Jessica Lautz, NAR vice president of demographics and behavioral insights. “Economic lockdowns and historically-low inventory coupled with surging home buying demand only showed the resilience of our members and industry.”

Key Survey Takeaways

real estate business

(c) Can Stock Photo / ferli

Business Characteristics

The majority of Realtors® – 68% – hold sales agent licenses, which is up from 65% last year. Twenty percent hold broker licenses and 13% hold broker associate licenses. Seventy-three percent of members specialize in residential brokerage. Relocation, residential property management and commercial brokerage are members’ most common secondary specialty areas.

Members typically have eight years of real estate experience, down from nine years in 2019. Eighteen percent of those surveyed have one year or less experience – nearly identical to 17% last year – while 15% of Realtors® have more than 25 years of experience, down from 17% a year ago. Appraisers, broker-owners, and managers had the most experience, while sales agents were typically the newest to the field with five years of experience. Consistent with recent surveys, nearly four out of five members – 79% – were certain they’ll remain in the real estate industry for at least two more years.

Business Activity

The typical member had a slightly lower sales volume ($2.1 million vs. $2.3 million) and fewer transactions (10 vs. 12) in 2020 compared to 2019.

The typical Realtor® earned 15% of their business from previous clients and customers, unchanged from last year. The most experienced members – those with 16 or more years of experience – reported a greater share of repeat business from clients or referrals (a median of 37%), compared to no repeat business for those with two years of experience or less. Overall, Realtors® earned a median of 19% of their business from referrals, a slight drop from 20% in 2019. Referrals were also more common among members with more experience, with a median of 27% for those with 16 or more years of experience compared to no referrals for those with two years of experience or less.

Income and Expenses

The median gross income for Realtors® was $43,330 in 2020, down from $49,700 in 2019. Realtors® with 16 years or more experience had a median gross income of $75,000, a decrease from $86,500 last year, as income was typically commensurate with experience. One out of four Realtors® earned $100,000 or more. Total median business expenses for members were $5,330 in 2020, a decline from $6,290 in 2019.

Realtor demographics

(c) Can Stock Photo

Demographic Characteristics

Seventy-eight percent of Realtors® were White, down slightly from 80% last year. Hispanics/Latinos accounted for 9% of Realtors®, followed by Black/African Americans (7%) and Asian/Pacific Islanders (6%). New members tended to be more diverse than experienced members. Among those who had two years or less of experience, 34% were minorities.

Sixty-five percent of Realtors® were women, a minor increase from 64% last year. The median age of Realtors® was 54, down slightly from 55 last year. A third of members were over 60 years old and 5% were age 30 or younger.

More than nine in 10 members – 93% – had some post-secondary education, with a third completing a bachelor’s degree, 6% having some graduate school education, and 13% completing a graduate degree.

The marital status of Realtors® remained nearly unchanged from 2019. Sixty-nine percent of Realtors® were married, 15% were divorced, and 11% were single or never married. The typical Realtor® household had two adults and no children.

Two-thirds of members – 66% – reported volunteering in their community. Volunteering was most common among members aged 40 to 49 years.

“Realtors® come from all walks of life and serve as pillars in their respective communities,” said NAR President Charlie Oppler, a Realtor® from Franklin Lakes, N.J., and the CEO of Prominent Properties Sotheby’s International Realty. “As champions for consumers, Realtors® combine hard work, dedication and trusted expertise to help individuals and families achieve the dream of property ownership.”

technology and the realtor

(c) Can Stock Photo

Technology and Realtors®

The coronavirus pandemic has forced businesses of all types to rely heavily on technology for communicating with consumers and remaining competitive in the marketplace. On a daily basis, the strong majority of Realtors® use a smartphone with wireless email and internet capability (96%) and a laptop or desktop computer (92%). The smartphone features that members use most frequently on a daily basis are email (95%) and social media apps (57%). Text messaging (93%) is the top method of communication for members with their clients, followed by phone calls (90%) and email (89%). Nearly seven in 10 members – 69% – have their own website.

“Realtors® used emerging technologies in 2020 to bridge the gap when pandemic precautions were in place,” Lautz said. “Members have now pivoted and embraced these tools to showcase listings and help buyers strategically find and secure the limited number of properties available.”

 

© Can Stock Photo / EyeMark

Office and Firm Affiliation

Despite an ever-changing housing market, Realtor® office and firm affiliation remained stable compared to a year ago. A slight majority of Realtors® – 53% – worked with an independent company and 88% were independent contractors at their firms. Forty-two percent of members worked at a firm with one office and 26% worked at a firm with two to four offices. The typical Realtor® had a median tenure of five years with their current firm, up from a median of four years in 2019. Eight percent of members reported working for a firm that was bought or merged. Errors and omissions insurance is the most common benefit provided by members’ firms.

Survey Methodology

In March 2021, NAR emailed a 93-question survey to a random sample of 161,155 Realtors®. Using this method, a total of 10,643 responses were received. The survey had an adjusted response rate of 6.6%. The confidence interval at a 95% level of confidence is +/- 0.95% based on a population of 1.4 million members. Survey responses were weighted to be representative of state level NAR membership. Information about compensation, earnings, sales volume and number of transactions are characteristics of calendar year 2020, while all other data are representative of member characteristics in early 2021.

For more information from NAR’s 2021 Member Profile, visit https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-nar-member-profile.

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

[Source: NAR’s 2021 Member Profile, visit https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-nar-member-profile.]

 

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, please visit www.OnlineEd.com.

OnlineEd® is a Registered Trademark.

Justice Withdraws from Settlement with National Association of Realtors

 

Settlement will not adequately protect the department’s rights to further investigate Realtors

 

Realtors settlement with justice stalled

National Association of Realtors (NAR) policies affect millions of real estate agents and real estate consumers. Data shows consumers paid over $85 billion in real estate commissions last year. The Justice Department

previously filed a complaint and proposed settlement alleging that the National Association of Realtors established and enforced policies that illegally restrained competition in real estate services

. The settlement sought to remedy those alleged practices and encourage competition among Realtors®. However, it also prevented the department from pursuing other antitrust claims against NAR. The justice department settlement is now being withdrawn.

On July 1, 2021, the Justice Department’s Antitrust Division filed to withdraw the proposed settlement with NAR. In addition, the department is voluntarily dismissing its complaint without prejudice. It was determined that the settlement will not protect the department’s rights to investigate other conduct by NAR that could potentially affect competition and harm consumers. The justice department wants to allow for a broader investigation of NAR’s rules and conduct.

“The proposed settlement will not sufficiently protect the Antitrust Division’s ability to pursue future claims against NAR,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Real estate is central to the American economy, and consumers pay billions of dollars in real estate commissions every year. We cannot be bound by a settlement that prevents our ability to protect competition in a market that profoundly affects Americans’ financial well-being.”

Under a stipulation entered by the court and signed by the parties, the department has sole discretion to withdraw its consent to the proposed settlement. The proposed settlement may also be modified with consent from the department and from NAR. The department sought NAR’s agreement to modify the settlement to adequately protect and preserve the department’s rights to investigate and challenge other conduct by NAR. Still, the department and NAR could not reach an agreement.

According to the complaint, NAR’s anti-competitive rules, policies, and practices include prohibiting MLSs that are affiliated with NAR from disclosing to prospective buyers the commission that the buyer broker will earn; allowing buyer brokers to misrepresent to buyers that a buyer broker’s services are free; enabling buyer brokers to filter MLS listings based on the level of buyer broker commissions offered; and limiting access to the lockboxes that provide licensed brokers with access to homes for sale to brokers who work for a NAR-affiliated MLS. These NAR rules, policies, practices have been widely adopted by NAR-affiliated MLSs resulting in decreased competition among real estate brokers.

The National Association of Realtors is a trade association of more than 1.4 million-member REALTORS® in real estate brokerages across the United States. There arRealtor key box accesse over 1,400 local REALTOR® associations (called “Member Boards”) organized as Multiple Listing Services through which REALTORS® share information about homes for sale in their areas. Among other activities, the National Association of Realtors establishes and enforces rules, policies, and practices for its Realtor Member Boards and their affiliated Multiple Listing Services.

The Justice Department hopes to increase competition to benefit consumers and allow for more innovation in markets by having the National Association of Realtors repeal and modify its rules for greater transparency to homebuyers about the commissions when representing homebuyers, cease misrepresenting that buyer broker services are free, eliminate rules that prohibit filtering multiple listing services listings based on buyer broker commissions, and change rules limiting access to lockboxes to only REALTOR-affiliated real estate brokers.

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For more information about OnlineEd and their education or learning management systems for real estate brokers, principal brokers, property managers, and mortgage brokers, please visit www.OnlineEd.com.

CFPB Warns Loan Servicers to Prepare for Wave of Mortgage Foreclosures This Fall

By Jeff Sorg, OnlineEd Blog

(April 1, 2021)

“There is a tidal wave of distressed homeowners who will need help from their mortgage servicers in the coming months.”

WASHINGTON, D.C. –The Consumer Financial Protection Bureau (CFPB) today warned mortgage servicers to take all necessary steps now to prevent a wave of avoidable foreclosures this fall. Millions of homeowners currently in forbearance will need help from their servicers when the pandemic-related federal emergency mortgage protections expire this summer and fall. Servicers should dedicate sufficient resources and staff now to ensure they are prepared for a surge in borrowers needing help. The CFPB will closely monitor how servicers engage with borrowers, respond to borrower requests, and process applications for loss mitigation. The CFPB will consider a servicer’s overall effectiveness in helping consumers when using its discretion to address compliance issues that arise.

“There is a tidal wave of distressed homeowners who will need help from their mortgage servicers in the coming months. Responsible servicers should be preparing now. There is no time to waste, and no excuse for inaction. No one should be surprised by what is coming,” said CFPB Acting Director Dave Uejio. “Our first priority is ensuring struggling families get the assistance they need. Servicers who put struggling families first have nothing to fear from our oversight, but we will hold accountable those who cause harm to homeowners and families.” The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides borrowers with federally-backed mortgages with access to forbearance, and private lenders have also provided similar assistance. As of January 2021, approximately 2.7 million borrowers remained in such programs, with 2.1 million borrowers in forbearance and at least 90 days delinquent on their mortgage payments. Another 242,000 mortgages not in forbearance programs were at least 90 days delinquent. Industry data suggest that nearly 1.7 million borrowers will exit forbearance programs in September and the following months, with many of them a year or more behind on their mortgage payments. Beginning with the expiration of the federal foreclosure moratoriums at the end of June 2021, mortgage servicers will need ramped-up capacity to reach out and respond to the large number of homeowners likely to need loss mitigation assistance. To meet this surge, servicers will need to plan now. In its oversight of mortgage servicers, the CFPB is focused on preventing avoidable foreclosures. The CFPB will pay particular attention to how well servicers are:

  • Being proactive. Servicers should contact borrowers in forbearance before the end of the forbearance period so they have time to apply for help.
  • Working with borrowers. Servicers should work to ensure borrowers have all necessary information and should help borrowers in obtaining documents and other information needed to evaluate the borrowers for assistance.
  • Addressing language access. The CFPB will look carefully at how servicers manage communications with borrowers with limited English proficiency and maintain compliance with the Equal Credit Opportunity Act and other laws.
  • Evaluating income fairly. Where servicers use income in determining eligibility for loss mitigation options, servicers should evaluate borrowers’ income from public assistance, child-support, alimony or other sources in accordance with the Equal Credit Opportunity Act’s anti-discrimination protections.
  • Handling inquiries promptly. The CFPB will closely examine servicer conduct where hold times are longer than industry averages.
  • Preventing avoidable foreclosures. The CFPB will expect servicers to comply with foreclosure restrictions in Regulation X and other federal and state restrictions in order to ensure that all homeowners have an opportunity to save their homes before foreclosure is initiated.

Provided that servicers are demonstrating effectiveness in helping consumers, in accord with today’s compliance bulletin, the CFPB will continue to evaluate servicer activity consistent with the Joint Statement on Supervisory and Enforcement Practices Regarding the Mortgage Servicing Rules in Response to the COVID-19 Emergency and the CARES Act on April 3, 2020, which provides flexibility on certain timing requirements in the regulations.

[Source: CFPB Media Release]

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of publication date but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices, and all other information may or may not be correct in the future and should be verified if cited, shared, or otherwise republished.

OnlineEd® is a Registered Trademark.

Centers for Disease Control and Prevention Announces Extension of Moratorium on Residential Evictions

The CFPB and FTC are working with CDC to make renters aware of their rights

By Jeff Sorg, OnlineEd Blog

(March 30, 2021)

 

WASHINGTON, D.C. – The COVID-19 pandemic has created a financial crisis that threatens the ability of millions to stay in their homes. Renters and homeowners experiencing pandemic-related unemployment or wage reduction are struggling to make monthly payments. A recent CFPB report found that over 11 million families are behind on their rent or mortgage payments: 2.1 million families are behind at least three months on mortgage payments, while 8.8 million are behind on rent.

Today, the Centers for Disease Control and Prevention announced an extension of its moratorium on residential evictions to keep people in their homes, out of shelters, and to stop the spread of COVID-19. Renters have struggled to exercise their rights under the CDC’s eviction moratorium, and news reports indicate many renters have been forced out of their homes despite federal protections.

CFPB Acting Director Dave Uejio and FTC Acting Chairwoman Rebecca Slaughter:

“We have directed our staff to investigate eviction practices, particularly by major multistate landlords, eviction management services, and private equity firms, to ensure that they are complying with the law. Evicting tenants in violation of the CDC, state, or local moratoria, or evicting or threatening to evict them without apprising them of their legal rights under such moratoria, may violate prohibitions against deceptive and unfair practices, including under the Fair Debt Collection Practices Act and the Federal Trade Commission Act. We will not tolerate illegal practices that displace families and expose them—and by extension all of us—to grave health risks.”

The CFPB and FTC are working with CDC to make renters aware of their rights under the eviction moratorium and to help them to understand how to complete declarations needed to stop evictions. Renters can learn about their eviction and debt collection rights and how to get help with housing costs at www.consumerfinance.gov/renters.

The CFPB is also regularly providing updated information on a wide range of mortgage relief options and rental protections available to consumers. These updates can be found here: www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/

[Source: CFPB Media Release]

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of publication date but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices, and all other information may or may not be correct in the future and should be verified if cited, shared, or otherwise republished.

OnlineEd® is a Registered Trademark.

Over 11 Million Families at Risk of Losing Housing

Federal foreclosure moratorium slated to end June 30, 2021

By Jeff Sorg, OnlineEd Blog

(March 1, 2021)

CFPB, WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued a report that warns of widespread evictions and foreclosures once federal, state, and local pandemic protections come to an end, absent additional public and private action. Over 11 million families are behind on their rent or mortgage payments: 2.1 million families are behind at least three months on mortgage payments, while 8.8 million are behind on rent. Homeowners alone are estimated to owe almost $90 billion in missed payments. The last time this many families were behind on their mortgages was during the Great Recession.

According to the CFPB report:

  • Black and Hispanic families are more than twice as likely to report being behind on housing payments than white families.
  • While mortgage forbearance – the option to pause or reduce payments temporarily – has dropped foreclosures to historic lows, 1 million homeowners are more than 90 days behind on payments and are likely to experience severe financial hardship when payments resume. Of these families, an estimated 263,000 families are seriously behind on their mortgages and not in forbearance, putting them at higher risk of foreclosure once federal and state moratoria end.
  • 9 percent of renters, who do not have the same protections or options as homeowners, report that they are likely to be evicted.
  • Black and Hispanic households are more likely to report being at risk.
  • 28 percent of manufactured home residents reported being behind on their housing payments, compared to 12 percent of single-family home residents and 18 percent of residents in small-to-mid-sized multi-unit buildings.

The CFPB report, “Housing Insecurity and the COVID-19 Pandemic,” can be found here: Housing insecurity and the COVID-19 pandemic.

 

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OnlineEd® is a Registered Trademark. For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

OnlineEd blog postings are the opinion of the author. Nothing posted in this or any other article is intended as legal or any other type of professional advice. Be sure to consult an appropriate professional when professional advice is needed. Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the author’s sole property; no permission to reprint articles or portions thereof not arising from this blog but reprinted here is given or implied. Information in this posting is deemed correct as of the date of publication. Still, the author does not guarantee articles to be accurate, and information may have been obtained from third-party sources and cannot be further verified for correctness. Due to the subject matter’s fluid nature, information may or may not be correct after the publication date and should be verified.

Eviction and Foreclosure Moratoriums on Federally-backed Single-family Mortgages Extended Through March 31, 2021

HUD has implemented President Biden’s requests to immediately extend eviction and foreclosure moratoriums

By Jeff Sorg, OnlineEd Blog

(January 25, 2021)

US Dept. of HUD – Acting U.S. Housing and Urban Development (HUD) Secretary Matthew E. Ammon today announced that the Department has implemented President Biden’s requests to immediately extend eviction and foreclosure moratoriums on federally-backed single-family mortgages through March 31, 2021, to provide meaningful support to homeowners struggling financially as a result of the COVID-19 pandemic:

“President Biden asked the Department of Housing and Urban Development (HUD) to consider an immediate extension of eviction and foreclosure moratoriums on federally-backed single-family mortgages. To provide much-needed economic relief and support to working families, HUD has implemented the President’s requests.

“Millions of Americans are at risk of eviction or foreclosure because of the COVID-19 pandemic and corresponding economic crisis, and the Biden Administration is pursuing a comprehensive strategy to prevent widespread housing loss. As we have seen throughout the pandemic, this looming wave of evictions and foreclosures disproportionately impacts communities of color. These executive actions are a critical first step to ensure that families hit hard by the economic crisis will not be forced from their homes during their time of need.

“Specifically, HUD has extended the Federal Housing Administration (FHA) eviction and foreclosure moratorium until March 31, 2021 and extended the Public and Indian Housing (PIH) eviction and foreclosure moratorium until March 31, 2021.

“Failing to prevent widespread evictions and foreclosures would lead to untold hardship for families and overwhelmed emergency shelter capacity, increasing the likelihood of COVID-19 spread in our communities. The Biden Administration is committed to using the tools at its disposal and working with Congress to help struggling households keep a roof over their heads. These agency actions support the Administration’s broader strategy by immediately extending nationwide restrictions on evictions and foreclosures.”

 

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OnlineEd® is a Registered Trademark. For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

OnlineEd blog postings are the opinion of the author. Nothing posted in this or any other article is intended as legal or any other type of professional advice. Be sure to consult an appropriate professional when professional advice is needed. Excerpts from articles not originating with Jeff Sorg/OnlineEd are reprinted with permission; remain the author’s sole property; no permission to reprint articles or portions thereof not arising from this blog but reprinted here is given or implied. Information in this posting is deemed correct as of the date of publication. Still, the author does not guarantee articles to be accurate, and information may have been obtained from third-party sources and cannot be further verified for correctness. Due to the subject matter’s fluid nature, information may or may not be correct after the publication date and should be verified.

Fannie and Freddie Baseline Limit Increases to $548,250 in 2021

FHFA Announces Conforming Loan Limits for 2021

By Jeff Sorg, OnlineEd Blog

(November 30, 2020)

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2021.  In most of the U.S., the 2021 maximum conforming loan limit (CLL) for one-unit properties will be $548,250, an increase from $510,400 in 2020.

Baseline limit – The Housing and Economic Recovery Act (HERA) requires that the baseline CLL be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.  Earlier today, FHFA published its third-quarter 2020 FHFA House Price Index® (FHFA HPI®) report, which includes estimates for the increase in the average U.S. home value over the last four quarters.  According to the seasonally adjusted, expanded-data FHFA HPI, house prices increased 7.42 percent, on average, between the third quarters of 2019 and 2020.  Therefore, the baseline maximum CLL it in 2021 will increase by the same percentage.

High-cost area limits – For areas in which 115 percent of the local median home value exceeds the baseline CLL, the maximum loan limit will be higher than the baseline loan limit.  HERA establishes the maximum loan limit in those areas as a multiple of the area median home value, while setting a “ceiling” on that limit of 150 percent of the baseline loan limit.  Median home values generally increased in high-cost areas in 2020, driving up the maximum loan limits in many areas.  The new ceiling loan limit for one-unit properties in most high-cost areas will be $822,375 — or 150 percent of $548,250.

Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands.  In these areas, the baseline loan limit will be $822,375 for one-unit properties.

As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum CLL will be higher in 2021 in all but 18 counties or county equivalents in the U.S.

Questions about the 2021 CLLs can be addressed to LoanLimitQuestions@fhfa.gov and more information is available at https://www.fhfa.gov/CLLs.

Other Resources

[Source: Federal Housing Finance Agency news release]

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