Outwest Marketing Meeting

Through the years (decades) there have been several incarnations of the MRES website. My last one had some issues with mobile access and missing a few functionalities I’ve been wanting to add, so it was time. The new MRES site is now up and running.

All Area Zoom Meeting New Link & Password Go to Outwest site https://www.outwestmarketing.com/

Join us for a ZOOM Area Network Meeting this coming Friday May 22! They will welcome our very own 2020 SRAR President, Nancy Troxell Carnahan who will be sharin...g insights, procedures and a fundamental building block in creating an environment for Realtors & Brokers to thrive in!!! And, that first legal & fundamental piece is Clear Cooperation. If you are interested in joining the Networking Meeting please contact Filip Crispino at [email protected] for the zoom link #SRAR #REALTORS #ClearCooperationPolicy #LARealtors

We knew the real estate market statistics were going to be rough in April, and they were. I blogged last week on the San Fernando Valley numbers, but it was a d...ifficult month throughout the state. Generally real estate is local. In this case, the COVID-19 malfunction is having its way with the entire country. It’s still difficult dealing with the marketing (no open houses) and showing limitations, but sales activity is building. By the time we get to June, the numbers should look better. Statistically, the April numbers should be the lows for this cycle.(more)

The moving target (like many mortgage elements right now). Another change to getting a new mortgage post forbearance.

Ron Henderson President/Broker Multi Real estate Services, Inc Los Angeles gives an overview of how there are unintended consequences in doing a COVID-19 mortga...ge forbearance. The mortgage forbearance program is a moving target, and changing constantly. This is as of 5/13/20. There are unintended consequences on taking a mortgage forbearance. If you’re in a financially distressed position because of COVID, us it. If you can afford to make the payments, pay it. There will be opportunities in the future that you won’t be able to take advantage of, if you have the forbearance on your record. See more

We knew the statistics for residential real estate in April were going to be rough. It was the first full month the Stay at Home order would have been in plac...e. They were. 2020 started as very strong real estate market, but hit a wall in the middle of March when the COVID-19 economic limitations of the lockdown kicked in. Instead of comparing April San Fernando Valley statistics against March, a better example of the change in the market is to compare April 2020 to April 2019...

Like it wasn’t difficult enough showing and selling properties with the Stay at Home order in place. Cal/OSHA just added another layer of complexity. Now a prop...erty must have a through cleaning and disinfection of a property before and after each showing. That means regardless of meeting the pre-existing parameters of physical distancing, hand washing, wearing personal protective equipment, limiting showings to two occupying buyers with one agent, no seller in attendance the property has to be disinfected after a seller leaves the property, before a showing, after and between showings, and before a seller comes home. (More) See more

No need to dig into specific numbers, but by looking at the chart of single family dwelling newly opened sales in the San Fernando Valley, you can see how the s...ales after the Safer at Home order was initiated dropped off. The order was only put in place March 24th, so the April sales numbers will be worse. The closed sales weren’t as bad, as those transactions were already in a position to close, before the order was put in place. See more

Reminder All Area Cyber Meetings Friday Mornings Till Stay at Home Order is Lifted and we can meet physically again 8:45am- 10:00am https://zoom.us/j/432729464

When the Federal Reserve first came into the bond market and applied their new Quantitative Easing purchasing bonds and mortgage backed securities adding liquid...ity to the financial market to counter COVID economic issues, it had an unintended consequence of disrupting the mortgage market. In a nutshell, the Fed was buying to many bonds. When lenders lock a loan for a borrower, they’re promising a specific rate and point structure for a specific time in the future. To guard themselves financially against market volatility, they hedge the funds they locked, by shorting the mortgage backed securities. Unfortunately the Fed was buying more bonds than were being generated, forcing the pricing down so fast, the lenders were realizing margin calls on their short holdings. The result, this added to lender’s financial strain, that they were already realizing. Lenders minimized the ability to lock loans, many loan programs suspended, and some lenders at the point of bankruptcy. The upside, after the major volatility for a few weeks (circled on the chart), the Fed has adjusted their quantity of purchases of bonds so we’ve now are in a more stable market (reflected in the chart). The mortgage market is still stressed because of forbearances, etc, but we are starting to see lenders open up locking capabilities, interest rates stabilizing, and some non-QM loan programs coming back.

Real estate transactions, mortgage underwriting and loan program availability has been affected substantially by a combination of the local health orders attemp...ting to fight the populations exposure to COVID-19, and the economic fallout caused by the Stay in Place lockdown. This a moving target, but this is the most recent overview on what’s transpiring. (MORE) See more

The attached chart of the rate spread between the 30 year fixed rate mortgage and the 10 year treasury note is a prefect visual and mathematic illustration on h...ow today’s low mortgage rates are still high relative to where they should be historically, given other economic considerations.(more) See more

Not all lenders are offering "mortgage payment forbearance", regardless if you've heard it from the politicians, or the media. Not all lenders are offering the ...same terms. Also just because you can, doesn't mean you should. Some lenders are offering multiple options in delaying mortgage payments. Note: all lenders require the borrower to request help, or submit an application. They won't do it unilaterally. A borrower's unilateral non-payment of a monthly payment will bring on credit issues, and penalties. This is not free money! (more)

Generally the population can access a free credit report once per year from each of the three main credit reporting agencies: Equifax, Experian and TransUnion. ...But now according to the companies, they are making free weekly credit reports available to help people protect their financial health during the sudden and unprecedented hardship caused by COVID-19. (More..) See more

CNBC is now reporting some of the problems the mortgage industry is now having because of the virus, and Federal Reserve actions. This is a moving target. As I'...ve been blogging about, this is much deeper than just an overabundance of refinances hitting the system at once, there are systematic problems that can disrupt mortgages well after the COVID-19 scenario is resolved, and bankrupt lenders. See more

This is a good explaination of how the backend of the mortgage industry, especially the non-QM and private lending space is affected by, and dealing with the ec...onomic issues created by the COVID-19 malfunction. Helps to know the complexities of what’s transpiring. This especially appropriate for those in the mortgage origination or real estate industries, that should know what technically is transpiring, and why. See more

The gov’t actions to force interest rates down to help the consumer, are having major unintended consequences in the mortgage origination and servicing systems.... I’m attaching below an article from MBS Highway on how the mortgage system works (that 99% of the real estate professionals and governmental powers that be are unaware of), and how it’s being negatively affected by the Fed’s actions. This is a moving target, and things are changing at the speed of light. Hopefully the government realizes how they need to modify what they’re doing, before there is permanent damage to the systems. I’m still getting loans closed, but you have to know what landmines to avoid along the way. (more) https://mres.com//mortgage-system-issues-created-by-the-c/ See more

Outwest Marketing Real Estate Education Meeting - All Area Cyber Meeting Fridays (Till Safer at Home is lifted)

Join the All Area Real Estate Network ZOOM Meeting Friday 8:45AM

There are several elements of real estate sales and finance being changed or affected by the Coronavirus https://mres.com//covid-19-real-estate-sales-and-temporar/