Pandemic Creates Challenges in Mortgage Loan Process
NEW YORK – Final loan approval relies on documents and approvals from different offices, both private and government, and the spread of COVID-19 has created problems – but some recent changes should help.
The National Association of Realtors® (NAR) created a document of frequently asked questions (FAQs) that should help Realtors navigate some of the more common problems. The full FAQ – broken down by homebuyer, homeowner/landlord and personal finance questions – is available online.
- What if my work office is closed, and I can’t provide employment verification?
- What if my lender can’t get docs that only the IRS can generate, and the IRS is shut down?
- Have the FHA, Fannie Mae and Freddie Mac raised rates and fees on borrowers with lower credit scores or smaller down payments?
- Do all loans backed by Fannie Mae and Freddie Mac require a “wet signature”?
- Appraisers have stopped appraising – now what?
- Are “no-QM” loans – those with alternative income verification – now impossible to get?
- Are lenders making it harder to get a loan?
- I’ve lost incomes due to COVID-19. How can I avoid falling behind on my mortgage?
- It will be challenging to pay student loan debt. What can I do?
- What will happen to my credit score if I start to miss some debt payments?
For homeowners/landlords, the FAQ has only one question: Does the HUD/FHFA moratorium on evictions and foreclosures cover everyone in the country?
© 2020 Florida Realtors®