As human beings we’re all currently tasked with a new challenge as we prepare for post-quarantine life. I do not want to use this blog as a political platform to discuss my beliefs… but saying nothing is doing nothing and I refuse to sit idle while social injustice continues in this country. I also do not believe that simply just posting your support is enough. We need to sign petitions that call for justice. We need to donate to organizations that fight discrimination, provide legal assistance for individuals whose civil liberties are at risk… and most importantly we need to VOTE. If you’d like, please visit a few of the links at the bottom of the page to show your support and help make a change.
Alright… so what’s happening around the mortgage industry?
First and foremost, it’s time to get back out there and start grabbing purchase transactions. There is a massive pent up demand to purchase homes right now and if you miss out in June, I think you’ll miss out for the entire summer. Applications for purchase transactions are 20% higher than they were a year ago… and we were technically in a “purchase market” in 2019. So… go for a run, grab yourself a protein shake and start burning off that COVID-19 you gained from 3 months of quarantine… because you’re going to need to squeeze back into your nice pants and start getting purchase contracts before the Howard Hanna’s of the world box you out for the rest of the year.
Okay, what else… oh, Freddie Mac is gearing up for their exit from conservatorship as the mortgage buying giant appointed a new CFO this week. Fannie and Freddie have been gearing up for an exit from government oversite since 2018, but like a spoiled college kid returning from a “Gap Year” … it’s been hard to get them out of the house. The slow exit starts with both GSE’s (Government Sponsored Enterprise) being able to hold over $200 billion in combined capital but could also make things more expensive for lenders to deliver loans to them by increasing the guarantee fee by 10 basis points. You can check out the proposal here to get a better understanding of the true effects of the new “proposed” capital requirements.
Look I know 2020 has been off to a bumpy start and as our country starts the healing process… please be kind to one another. We’re all dealing with these situations in different ways and as human beings we need to be tolerant of that.
Stay safe. Stay healthy.
Talk to you soon,
MJ
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Photo by Jason Mowry on Unsplash