NEWS FLASH

NEWS FLASH

MORTGAGES TOP CFPB’S COMPLAINT LIST

The Consumer Financial Protection Bureau received 42,774 complaints in April, the highest number in the history of the bureau’s complaint system. That April number was 15% higher than the amount received in March. Unfortunately, mortgage concerns and credit cards complaints were the top issues, as folks continue to struggle to understand the details of mortgage forbearance

Consumers were typically concerned about their ability to pay a lump sum once their mortgage forbearance ends, according to the report.

REPORT: BUYERS, SELLERS RETURNING

Home prices are going to drop less than expected through October. That’s the consensus of new Zillow research that shows more evidence of buyers and sellers returning to the market.

Newly pending sales and new listings are up, according to Zillow research. Inventory continues to be incredibly tight—one reason list prices are growing faster than they were in April. Partly on the strength of that rebound, Zillow’s forecast now shows an expected 1.8% drop in home prices through October, better than the 2.7% drop expected just weeks ago.

Year-over-year new sales listings are down 23.3%, according to the data.

REMOTE WORK MEANS SUBURBAN BOOM

The COVID-19 pandemic has given over 50% of Americans the opportunity to work from home due to stay-at-home orders. A new study asserts that this could cause a suburban housing boom, as people may no longer need to work full-time in busier, crowded and more expensive metros.

Zillow’s survey found that 75% of Americans working from home due to COVID-19 would prefer to continue that at least half the time, if the option was presented when the pandemic subsides. The survey also showed that 66% of employees working from home would somewhat likely consider moving if they had the flexibility to work from home as often as they want.

“Many employed Americans are trying to square the desire to work remotely with the functionality and size of their existing homes,” according to the report. “Among employees who would be likely to consider moving, If given the flexibility to work from home when they want, nearly one-third say they would consider moving in order to live in a home with a dedicated office space (31%), to live in a larger home (30%), and to live in a home with more rooms (29%).”

MORTGAGE STANDARDS GET TOUGHER

Chances are that potential homebuyers trying to secure a mortgage are finding things nearly impossible, unless they have a FICO credit score of at least 660, according to the Pittsburgh Post-Gazette. With unemployment numbers continuing to rise, banks and lending institutions are tightening standards to prevent future mortgage defaults or late payments.

“It’s almost impossible to do an FHA [Federal Housing Administration] loan with a credit score of less than 660 right now,” said Justin Rosenal, senior sales vice president at Union Savings Bank, a federally chartered lender, according to the report. Rosenal said one institutional investor informed the bank that, until further notice, it will require borrowers to have a minimum 740 FICO score for approval of any cash-out refinance mortgage applications for conventional loans.

‘STAY-IN-PLACE’ BRINGS HOME IMPROVEMENTS RISE

Homeowners spent a lot more time at their residences after stay-at-home orders were enacted due to the COVID-19 pandemic. With many looking for ways to keep busy, they sought to make some improvements to their domiciles. A LendingTree report found that folks with the means used home equity loans for improvements during the pandemic period.

The report revealed that across 50 metros, 45.9% of home equity loans were used for home improvements. Out of these metros, Milwaukee, Louisville, and Columbus are the locales with the largest share of home equity being used for improvements. San Jose, Hartford and Raleigh are the three on the lowest end of the spectrum.

The report does note that since January, home equity loan applications have fallen. However, those who did apply for these loans largely allocated them to home improvement.

Your turn

National Mortgage Professional magazine invites you to submit any information on regulatory changes, legislative updates, human interest stories or any other newsworthy items pertaining to the mortgage industry to the attention of

editorial@ambizmedia.com.

Note: Submissions sent via e-mail are preferred. The deadline for submissions is the 1st of the month prior to the target issue.