News & Media
Blocks spell out loan and sit on top of change
Nora Carol Photography, Getty Images

Pandemic Creates Challenges in Mortgage Loan Process

Final loan approval relies on documents and approvals from different offices, and the spread of COVID-19 has created problems – but some recent changes should help.

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.

Homeowners topics

  1. What if my work office is closed, and I can’t provide employment verification?
  2. What if my lender can’t get docs that only the IRS can generate, and the IRS is shut down?
  3. Have the FHA, Fannie Mae and Freddie Mac raised rates and fees on borrowers with lower credit scores or smaller down payments?
  4. Do all loans backed by Fannie Mae and Freddie Mac require a “wet signature”?
  5. Appraisers have stopped appraising – now what?
  6. Are “no-QM” loans – those with alternative income verification – now impossible to get?
  7. Are lenders making it harder to get a loan?

Personal finance

  • 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®