Shelter Six:  Federal Reserve Doing What It Takes to Keep Rates Low

The key takeaway from last week’s Federal Reserve meeting is that the Fed is going to do whatever it takes to keep rates low and stable during the pandemic.

Shelter is proud to roll out a new “hybrid” eClosing process that will enable buyers to electronically sign 90% of closing docs prior to closing.

Only the Mortgage, Note, and a few other docs will have to be signed in front of the Closing Attorney.  This is a huge technological upgrade that should shorten closings dramatically.

Cash-out Refinances are now more costly and harder to obtain, thanks to Fannie Mae / Freddie Mac announcing they will not buy these types of loans that are in forbearance.

Investment Property purchases now require greater cash reserves and the rental income from the subject property can no longer be used to qualify the borrower.

Self-employed borrowers now need to provide a YTD Profit-and-Loss Statement within 30 days of closing that supports their previous level of income.

Rate Update

Thanks to the Federal Reserve’s ongoing mortgage bond purchases, mortgage rates continue to remain stable and in the low-to-mid 3’s.

This Week

The ISM National Services Index will be released on Tuesday and Employment figures on Friday. Information surrounding the coronavirus will continued to be closely monitored.

May 4, 2020 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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