Shelter Six:  Most Believe Job Loss to be Temporary

May 11, 2020 by · Leave a Comment 

Last week’s Employment figures were very bad (20.5M jobs lost in April), but the very important silver lining is that 78% believe their job loss to be temporary.

It is refreshing to see some mortgage guidelines loosen back up slightly. The maximum Debt Ratio on Shelter’s FHA/VA loans expanded from 45% to 50% last week.

More lenient employment verifications and exterior-only appraisals have been extended on Conforming loans from May 17 to June 30.

Governor Kemp also extended virtual “Zoom” closings through June 12. At Shelter, we are pleased to offer both virtual closings as well as a new streamlined eClosing process.

Self-employed or commissioned employees who missed work due to COVID-19 may need to be back on the job for a month to prove their income hasn’t slowed before qualifying for a mortgage.

The latest figures show 7.3% of all mortgages (4.1M borrowers) are now in forbearance, as of May 7 according to Black Knight.

Rate Update

The Federal Reserve continues to buy mortgage bonds, and this continues to keep 30-year rates super-low and in the low-to-mid 3’s.

This Week

The Consumer Price Index (CPI) is due out on Tuesday with Retail Sales due out on Friday.