COVID-19 Mortgage Market Update from Laith Daik
Like almost all industries, COVID-19 has had an adverse effect on the mortgage industry. The changes have been happening daily and at a rapid pace. The changes include new processes, procedures, and verification’s required. Some of the major changes have included the appraisal required in some circumstances has been changed to allow an exterior only inspection or a desk review. There are additional verification’s required to confirm the borrower is gainfully employed. The verification’s apply to both W2 wage earners and self-employed individuals. The federal stimulus has both helped and hurt the mortgage business. The Federal government is working closely with industry leaders to help resolve unintended consequences resulting from the stimulus. Many mortgage companies have tightened credit standards making it more difficult to qualify for a mortgage loan. Just this week, Chase Bank one of the largest originators and servicers of mortgage loans implemented an underwriting overlay requiring a minimum credit score of 700 and minimum down payment of 20%. We are hopeful that the market settles and we can start focusing exclusively on assisting our customers.
Our team at Texas Loan Star has been working tirelessly to adapt new processes and procedures with goal of continuing to serve our customers and business partners- realtors, bankers, builders, financial planners, and CPA’s to name a few. Thankfully, all loan products that Texas Loan Star provides are still available at this time. Conventional, FHA, VA, Jumbo, Portfolio, Renovation, Refinance, Cash-Out and Construction loans. Rates are still at an all-time low. Our average close time for purchases is 30 days and for refinances are averaging 45 days. Lending requirements are changing daily but we are keeping up and informing our borrowers so they are aware and have clear expectations. We are anticipating low rates for the foreseeable future which should help keep buyers in the market. If anyone has other questions, don’t hesitate to reach out. We are all in this together! We are #YourHomeTeam.
President of Texas Loan Star