Mortgage Update June 1 2020

No Negative News for Mortgage Industry • Non - Qualified Mortgage is back • Fannie & Freddie Overlays set to expire 6/30

Purchase Mortgage Applications are still on a roll Mortgage applications increased 2.7% from one week earlier, as purchase volume is now outpacing the prior year’s activity, according to the Mortgage Bankers Association.

What Determines Rates?

• Major stock indexes • Gold prices • Oil prices • 10-year Treasury

Rates at ALL TIME LOW The 30-year fixed-rate mortgage has again hit the lowest level in our survey’s nearly 50-year history, breaking the record for the third time in just the last few months. A broader base of borrowers are taking advantage of the record low rate environment.

With inventory shortage, buyers need a strong preapproval

• Loan process is more streamlined and efficient with William Raveis Mortgage

• Borrowers are happy with the quick turn time and save time with reduced documentation

• Buyers are willing to overpay

Desktop Appraisals For purchase money transactions ONLY, when an interior and exterior appraisal is not available, lenders are encouraged to obtain a desktop appraisal rather than an exterior-only appraisal.

Each desktop appraisal report must include the following exhibits

• A location map indicating the location of the subject and comps • Photographs of the subject property. Although this may be challenging in some instances, it is expected that the appraiser utilize available means to obtain relevant pictures of the subject property.

Desktop Appraisals Conventional and FHA appraisals for purchases allow for “Desktop Appraisals”, when the property qualifies.

Some examples of non, qualifying transactions:

• New Construction • Sale of an REO Property • 2nd home purchases with a LTV ratio in excess of 85% • Purchases via the FHA 203k Program

Information needed for condominiums

• Management company name and contact information.

• HOA contact information • Total # of phases within the project (typically provided by Management company or HOA).

• Total # of units within the project (typically provided by Management company or HOA).

Desktop Appraisals

• Ratio of owner occupied to tenant occupied units (typically provided by Management company or HOA).

• Common Areas associated with the project/complex.

• HOA fee and what it covers.

2-4 Unit Dwellings:

• Rental information on the units, including monthly rent, lease dates

(if any), utilities included in rent and if the rents are deemed market representative.