- Sep 24, 2007
- Reaction score
Current locking status
Trump knows real estate and I don’t think he will sit idly by and let the industry get destroyed.Hi Scott,
Curious as to your thoughts on this article. Is this accurate? Are you seeing this happening? When the Fed did this, I wondered why? Are we in danger of losing control of our Capital Markets to the Fed? I am dismayed at the Debt to GDP ratio threshold we have already crossed. I don't underestimate the level of stupidity that The Powers that Be are capable of, But. Still. I smell a Rat. Thanks.
Well Done! WE! Score. Thanks Guys. Appreciate that Pronstar. I am hopeful that cooler heads will prevail. I reached out earlier to Scott, he replied back promptly, I appreciate his Input, and value all the informed honest opinion and information here on RDP.I am scheduled to sign refi papers this Friday - my guy here in AZ got us done in 2 weeks! (not typical) Very fast closing - didn't require an appraisal - 3.5% 30 year (we'll pre-pay to reduce it to 18-20 years but have flexibility with a lower monthly payment)
Forbearance does NOT appear negatively on your credit report. There will be a note under your mortgage reporting and it will state "forbearance". Most lenders do not like to see this. All forbearance payments must be brought current prior to closing a new loan.Trump will pass the negative credit reporting bill i believe!
Cash-strapped Americans — even those who lost their jobs — can’t expect to catch a break on their credit report if they miss a loan, rent or mortgage payment because of the coronavirus pandemic, a …nypost.com
Forbearance. Good idea? Not if you can still afford your payments. Be cautious, forbearance shown on a credit report has never been favorable for qualifications in the eyes of an underwriter. While it may seem like deferring your loan payments could be a mark against you in the eyes of the credit bureaus, in reality, forbearance does not affect your credit score. It does however, affect your ability to qualify for future loans and other forms of credit, and can lead to getting charged much higher interest rates. In short, in the eyes of an underwriter, this means you cannot make your payments in good faith. It may be harsh especially for those that need the forbearance, but it's reality.
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My best guess is that there will be future backlash from unnecessary forbearances. I am strongly suggesting to those of you that CAN make the payments to do so. If you are taking advantage of the forbearance with the ability to make the payments, you are going to be partly responsible for damaging the mortgage industry. Mortgage lenders do not have much liquidity right now and the forbearance agreements will further damage this position. The more unnecessary claims that are made, the longer we will have to wait for rates to come back (if they come back). In my opinion, taking free handouts that are not needed is one of the major issues in this country. The non-banking lenders or wholesale lenders are not slated to receive ANY bailout like the banks did and may receive again. The head of FHFA Mark Calabria has stated that there are no non-banking companies "too big to fail". He is a fan of banks, not wholesale lenders. If he gets his way, he will put all mortgage brokers out of business. That means all of you will be paying higher bank rates instead of getting deals from guys like me. This guy Mark Calabria is very dangerous to our market. Because of his actions, lenders are tightening underwriting guidelines a great deal and this will not ease up until this pandemic is over. At this point, we are not sure how long these restrictions will continue. I do not see any light at the end of the tunnel yet. Stay tuned.Not to make light, but Forebearance has escalated quickly... Inquiring minds want Scotty's take? Sir?
CNBC is running a segment on the high volume of Forebearance applications flooding into Mortgage Servicers, who are then left holding the bag, with no financial backstop to cover their obligations.