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
Fund, Susa
Ventures, Navitas
Capital, Prudence
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.