SHIFT Magazine SHIFT Q2 Final Edition - Page 29

Karen Buelterman The number of forbearances is putting extreme pressure on servicers, and since servicers need to make the payment even if they do not receive the payment from the borrower, and this putting pressure on their financial situation and was exacerbated by margin calls. The FHFA reduced some of the pressure on servicers but it is still a real issue. This is also affecting rates. After the 2008 housing crisis, lenders eliminated the exotic loans that were so plentiful and contributed to the crisis. This hit self-employed borrowers the most but thankfully they brought back many of these products. However there is a big difference- the lenders that offer these products must require the borrower to show they have the ability to repay the loan. These products are called non-qualified mortgages or Non-QM. Qualified mortgages are Fannie Mae, Freddie Mac, FHA or VA. During this Covid period, they sidelined Non-QM products completely or if they are still available, are susceptible to additional temporary guidelines. Jumbo, down payment assistance programs, cross collateralization, land loans, construction loans and other loans have all been sidelined or have their guidelines affected. We are looking forward to getting them back into the fold so we can help more people! SHIFT: How do you let your audience know what is going on in your industry? Every Friday I send out an email to real estate agents letting them know in a short but informative format what is going on with rates and our industry. Everyone is so busy it can be difficult to know quickly how their business is being affected by not only Covid, but with the US and world economic issues. I also use social media to relay current information and I use Facebook Live, LinkedIn and YouTube. 31