Scared to go back into the world?
Quarantine life with kids at home going on SEVEN weeks, oil prices in the red, rising unemployment, the declining economy, forbearance payback terror, the corona virus crossing the one million cases mark, and the country is re-opening. Wow, that is more drama than all of Bravo’s Housewives…every city and all seasons combined.
The reaction to the country re-opening is all over the board. Some are excited, some are frightened. Wherever you lie on that spectrum, what you have learned is that your home is your safe haven. You have to take care of it. What we can tell you is that in this time of uncertainty, when it comes to your mortgage, we have you covered.
After 30 years in business, we’ve never really seen anything like this. Rates and prices for home loans no longer move in tandem with U.S. Treasury securities. Fortunately, we did see it coming, prepared accordingly, and remain very healthy. We have more than enough capital to fund our clients’ loans, and well-trained originators to answer every question. We’re continuing to offer a full slate of products tailored to help you find the right one.
In terms of the industry as a whole, let us fill you in:
Freddie Mac and Fannie Mae have put programs in place to help borrowers. The Federal Reserve has stepped in to add stability and enhance liquidity in the currency markets. The Fed is buying hundreds of billions of dollars of mortgages, and this helps to calm markets. However, in this type of market and economy, delinquencies and foreclosures start to be a concern. Jobless claims, which have hit record levels over this past month, normally take almost a year to normalize in a recession. Put another way, rates are great, but if a borrower can’t make their payment, what difference does it make?
LendUS has “sharpened our pencil” when it comes to loans that are underwritten to Freddie Mac, Fannie Mae, and Ginnie Mae guidelines. And these are the loans that fill the securities being purchased by the Federal Reserve, known as Agency Mortgage Backed Securities, to support the smooth functioning of the mortgage market. Prior to the Covid-19 crisis, about 80 percent of mortgage market was comprised of government-backed loans. Today it’s closer to 95 percent. And LendUS is doing a remarkable job for helping our clients obtain these loans!
As always, if you have questions, don’t hesitate to reach out and we’ll lead you to the right loan advisor to work with you diligently to review your options and make the right choice for you and your family.
Throughout all of this, LendUS management and staff wish that you and your family be safe and maintain your health: in the end that is all that matters.