Mortgage rates have plummeted after a federal agency announced it would postpone a fee on refinance loans that was sprung on lenders a couple of weeks ago.
The coronavirus “adverse market” fee will now take effect Dec. 1, instead of Sept. 1 — and the relief for borrowers has been immediate. Average 30-year rates have sunk to their lowest level since before the new surcharge first became news.
TD Bank will pay a $25 million fine and $97 million in restitution to more than 1.4 million customers, as a result of a settlement with the Consumer Financial Protection Bureau (CFPB) over “deceptive” overdraft enrollment practices that took place from 2014 to 2018, the bureau said Thursday.
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I talked yesterday about rates “reconnecting with the bond market,” and that’s an assertion that needs some more clarification on several levels. By way of background, the original disconnection refers to rates remaining much higher than MBS or Treasuries suggested they should be in the wake of March’s massive market volatility. At the time, I said mortgages would only slowly return to a healthier spread versus bonds, and that the spread had likely sustained some semi-permanent damage due to covid-related mortgage market issues.
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Mortgage rates are still coping with the after-effects of last week’s surprise implementation of a new fee on refinances. The fee in question is technically an LLPA (Loan-Leve-Price-Adjustment). LLPAs are a normal part of the mortgage pricing process and they help lenders account for different risk factors (credit score, equity, occupancy, etc.). The new refi LLPA is a bit different in that it’s in a sub-category known as an “adverse market fee.” This is the agencies’ way of collecting extra money to compensate for extra risks–hopefully transitory ones.
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The average closing costs required to buy a home in the US were $5,749 including taxes, and $3,339 excluding taxes in 2019, according to data from mortgage technology company ClosingCorp.
Closing costs are another expense to consider when shopping for a mortgage, or considering buying a house. Your closing costs can add significantly to the amount you need to buy a home, and in an expense that’s separate from your down payment.
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Delaware is going to spend $40 million to help residents who are struggling to pay rent or mortgages during the coronavirus pandemic.
Eligible renters and homeowners can get up to $5,000 in aid. The money would be paid directly to the property owner or mortgage servicer.
Gov. John Carney and the Delaware State Housing Authority announced Monday that the state is resurrecting the Delaware Housing Assistance Program to help people who are missing payments because they lost income due to the coronavirus pandemic.
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It’s always been a little tougher for self-employed borrowers to get home loans than it is for regular W-2 employees. Now mortgage lenders are hiking income verification standards for self-employed borrowers.
The coronavirus continues to rock the economy, albeit unevenly.
Fewer homeowners overall are seeking mortgage forbearance, which allows borrowers to temporarily pause their monthly mortgage payments if they are facing financial difficulties. Homeowners will eventually have to make up the missed payments, but relief could give them time to improve their finances. As of July 28, some 7.7% of mortgages were in forbearance, a decline of 17,000 from the previous week. Conventional mortgages saw the biggest forbearance decline among home loan types.
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