Mortgage Update: What Agents Should Know
To Our Agents,
We want to touch base to share the latest info on how the mortgage side is evolving during this time. We’re covering a lot of info in this post, so if anything is confusing, please don’t hesitate to give your mortgage specialist a call. We’re happy to talk through any of this with you or a concerned client you may have.
How We’re Navigating This
We are continuing to use our John Adams/Front Street online applications to keep business rolling while practicing social distancing.
In the event that a client is being temporarily laid off due to COVID-19, we can be flexible in the ability to close that loan. Ask me for further details about this if you have a client in this situation.
If a closing is delayed due to unforeseen circumstances, John Adams will waive extension fees whenever needed.
We’ve been getting appraisal waivers, even on purchases. But for appraisals that are needed, they have adopted a high standard of sanitary protocol recommended by medical professionals.
Looking Ahead
John Adams is working closely with Capital Title to roll out hybrid e-closings for purchases. We are testing our process with refi’s next week and if all goes well, we’ll be offering it to our buyers in the next 2-4 weeks.
With this practice, almost all documents can be e-signed at home, though must be e-signed on the day of the closing.
There will only be 3 wet signed documents on the mortgage, note and 1 authorization form.
I will keep you up to date as this moves forward, as we are still in the development stages of this.
What’s Going On Overall
On Sunday night, the Fed reduced short term rates to almost zero, this means home equity lines of credit, car loans and some credit card debt will see lower interest rates.
Long term rates (30, 20, 15 and 10 year rates) are not directly effected by this.
They also agreed to purchase Mortgage Backed Securities. Because of this, chances are long term rates will stay closer to the low end for a longer period of time.
We are going to continue to see the rates move up and down based on world news, economic data, jobs, etc. and we can’t predict what they will do on a daily basis.
What to Share with Clients
Despite the impact of COVID-19, the current interest rates still make it a great time to buy or sell.
We’re here and ready to assess any situation. At John Adams, we have a lot of resources that will assist our borrowers. So please reach out if you or your client are needing support or a better understanding about the current conditions.
Thank you for reviewing all of this. Our Insurance One team also shared that insurance isn’t currently impacted by this event. We can all be reached by phone and have what we need to get the job done. We also know Capital Title is working to get the latest information to you, too.
Once again, we’re here for anything you may need to make your next transaction a solid one.