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Dec 9, 2020

MBA: Forbearance rate holds, but exits are slowing

After two weeks of slight increases, the U.S. forbearance rate, measuring the share of mortgages with suspended payments, remained unchanged from the week prior at 5.54%, according to the Mortgage Bankers Association. The MBA estimates there are still 2.8 million homeowners in some form of mortgage forbearance.
Fannie Mae and Freddie Mac loans in forbearance gained for the first time in 25 weeks on Dec. 1, however, they fell once again last week to 3.34% – a 2-basis-point improvement. The GSE’s forbearance rate overall has improved immensely, now down by more than 50% since its peak in late May.
Mike Fratantoni, MBA’s senior vice president and chief economist, noted that while new forbearance requests declined this week, exits slowed to a new low for the series

Sundae raises $36 million in Series B funding

Company pairs sellers of distressed properties with potential buyers
Sellers go to Sundae’s marketplace to request an offer, then a member of the company sets up a brief home visit, or virtual walk-through, and makes an offer on the home. If the seller accepts the offer and an inspection is completed, Sundae offers a $10,000 cash advance prior to closing to help homeowners with moving costs and other expenses. The property is then offered on its marketplace for investors to bid on.
Sundae doesn’t charge closing costs or agent fees, but charges buyers in its investor marketplace a fee when it “assigns” them a property.
Residential real estate marketplace Sundae has announced it closed $36 million in Series B funding on Tuesday, led by QED Investors and with additional participation from Founders FundSusa VenturesNavitas CapitalPrudence Holdings and General Global Capital.

FHA raises loan limit by nearly $25,000 for 2021

Given massive year-over-year gains in home prices, the Federal Housing Administration (FHA) is increasing its 2021 loan limit in most of the U.S. to $356,362, an increase of nearly $25,000 over 2020’s loan limit of $331,760.
That loan limit figure is determined as a percentage of the national conforming loan limit for Fannie Mae and Freddie Mac, which is increasing in 2021 to $548,250.
FHA’s 2020 minimum national loan limit, or “floor,” of $356,362 is 65% of the national conforming loan limit of $548,250. This floor applies to low-cost areas, which are counties where 115% of the median home price is less than the floor limit.
In approximately 65 high-cost U.S. counties where the median home price far exceeds the FHA’s loan limit floor, the FHA is increasing its 2021 loan limit to $822,375, close to a whopping $57,000 increase over 2020’s total of $765,600.