• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

Home lending in the time of corona: “Underwriting is really difficult right now”

How do you underwrite a home mortgage when the economy is in flux and everyone is forced to stay indoors?

Alan Rosenbaum, CEO and founder of GuardHill Financial Corp.; Ace Watanasuparp, senior vice president and national director of strategic sales at Citizens Bank; and Mark Favaloro, president of the New York Association of Mortgage Brokers joined editor James Kleimann for a TRD Talks Live discussion Monday, where the panelists addressed the challenges — and bright spots — in securing a mortgage for homes in a time when most Americans cannot leave their house.

The experts on the panel noted that they have yet to see home valuations drop, but because governments around the country have mandated that nonessential workers stay home, it has become difficult to undertake some of the due diligence needed to close on mortgages.

Mortgage applications are still rolling in and rates are dropping, but employment situations are changing rapidly, Favaloro said. Scores of companies across the country have laid off millions of workers because of government-imposed closures aimed at preventing the spread of the coronavirus.

“Underwriting is really difficult right now because we want to make sure we’re providing people mortgage loans, but at the same time we have to make sure that people are employed,” Favaloro said.

There also are stop orders on some property appraisals — or sellers do not want appraisers in their homes — in some cases slowing down that portion of the lending process.

“We are at a little bit of a pause in some of those cases, where the appraisers can’t get to the property,” Favaloro said. “What we’ll do is we’ll continue to keep the documents up to date, continue to keep the file going, move in every direction that we can move in.”

Watanasuparp said in situations where sellers do not want appraisers entering their homes, Citizens Bank is allowing “desktop appraisal” or an exterior appraisal — but such steps could impact property values.

“The show must go on, so we will continue to do the appraisals,” he said.

And while realtors and home buyers also may be unable to physically access homes on the market, there is still “quite a lot of refinancing activity right now,” Favaloro said.

“At least we have that business going,” he said.

Closings also are happening remotely, Watanasuparp said, with bank attorneys and title companies still being able to close. Loans can too, but he noted that “it takes more of a village to get the deals done.”

Read more

  • Cuomo orders real estate agents to stop showing homes
  • Fannie, Freddie offer multifamily landlords a break — strings attached
  • “It’s going to be a liquidity tsunami:” Mortgage firms gear up for missed payments

In the New York City real estate world, e-closings have hit a hurdle, trying to secure the green light from co-op’s managing agents and co-op boards, who still have to sign off on refinancings remotely — which would put more money in people’s pockets, Rosenbaum said.

“I think a huge thing that we could all do … in the New York City area is [have] co-op board members, shareholders, real estate companies come together and make an easier process to get these rate-and-term refinances,” Rosenbaum said.

And while the number of deals getting done has slowed as people are forced to stay inside, there may be one benefit on the horizon.

“People have been cooped up for awhile,” Rosenbaum said. “They’re going to analyze their housing situation.”

“I think you’re going to see pent-up demand and I think you’re going to see a huge late spring buying market,” he added. “There’s going to be a lot of euphoria out here and I think things are going to get back to normal.”

Write to Mary Diduch at md@therealdeal.com

The post Home lending in the time of corona: “Underwriting is really difficult right now” appeared first on The Real Deal Los Angeles.

Powered by WPeMatico

  • 31 March 2020
  • The Real Deal
  • Uncategorized
  •  Like
Former LA Galaxy superstar David Beckham buys Miami pad →← Redondo Beach Power plant sale could make way for redevelopment
  • Recent Posts

    • LA County greenlights self-certification for Altadena rebuilding May 8, 2025
    • Irvine Company aims to transform golf course into village of 3K homes May 8, 2025
    • Former LA police commissioner, prominent attorney to list Bel-Air estate for $24M May 8, 2025
    • Movers: Gambino Group nabs LA, NY agents May 8, 2025
    • Sacramento investor lists 270K sf DTLA office park leasehold May 8, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM