Michael Kirk

Freddie Mac: Housing market is undersupplied by 3.7 million homes and it's "the root cause of decreased housing affordability" Housing shortage, according to Freddie Mac economists 👇 2018 -> 2.5 million 2020 -> 3.8 million 2024 -> 3.7 million According to a report published last week by Freddie Mac economists... The U.S. housing stock (147.0 million units) is 3.7 million units below the group’s estimate for how many housing units the market needs given demographics (150.7 million units) “The root cause of decreased housing affordability is the fact that housing supply has not increased enough to match demand. Inadequate housing supply leads homeowners and renters to bid up the sale price and rent of available housing, which puts a squeeze on affordability,” wrote Freddie Mac economists in their report. To stay updated on the U.S. housing market—including regional market variations, buyer/seller dynamics, and different perspectives—subscribe to the ResiClub newsletter: https://lnkd.in/gc6XNqfW

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HUD has announced draft rule changes that introduce significant revisions to multifamily financing terms aimed at enhancing housing production and responding to current market demands. Key changes include: Market Rate 221(d)(4) and 223(f) transactions: o Reduced Debt Service Coverage Ratio from 1.176x to 1.15x o Increased from 85% to 87% LTC/LTV Affordable 221(d)(4) and 223(f) transactions: o Reduced Debt Service Coverage Ratio from 1.15x to 1.11x o Increased from 87% to 90% LTC/LTV Middle Income Housing 221(d)(4) transactions (projects with 50% of units at 60%-120% AMI): o Reduced Debt Service Coverage Ratio from 1.176x to 1.11x o Increased from 85% to 90% LTC These adjustments, if and when enacted, will enable borrowers to access higher financing capabilities, facilitating the development of both affordable and market-rate housing. HUD emphasizes that these changes are a strategic response to current real estate and financing conditions, reinforcing FHA’s role in promoting housing stability and production. Please note, this guidance is not yet in effect and will undergo a mandatory review period before implementation.   This review is estimated to be completed on or about December 2024, and these changes will apply to all projects that have not yet closed. For more information on the changes and how they can benefit you, contact the Bravo Capital team or Elan Goldberg ([email protected]) to start a conversation.

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Trending News! 📰 U.S. housing turnover rate hits a 30-year low, while HousingWire questions if mortgage rates could sink below 6% by year’s end. Anywhere joins Compass’ Robert Reffkin in the push to reform NAR’s Clear Cooperation Policy. Catch the full story on The Real Look Podcast! 🎧 Tune in on Spotify, Apple Podcasts, or Google Podcasts ➡️ https://bit.ly/4eqMyz3 . #RealEstateNews #TrendingNews #MortgageRates #NARReform #TheRealLookPodcast

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Yes, mortgage rates are still over 6%. But for many consumers, especially those that recently got a loan, they are low enough to start considering refinancing. Prepay speeds were up 1% month-to-month for Fannie loans, but 10% for Ginnie MBS, according to KBW. But much of the market is still at least 250 basis points out of the money for refinancing.

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How are Fannie Mae & Freddie Mac lending guidelines impacting your condo? Let CAI know here: bit.ly/3LUKoeA

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SBA 7(a) & 504 Real Estate Purchase Loan Application From Start To Funding The most frequently asked question I receive by far is how long does the loan application process take to complete from start to finish. The quick answer is 45 - 60 days. The honest answer is it takes as long as necessary to complete all steps in the process. The next logical question is what are the steps. Here is a list of each step in order with an explanation. Before I begin, I want to emphasize the timeline starts from the day the lender receives the monetary Deposit, usually $2,500 or $5,000 and the signed Letter of Interest or Term Sheet. Step 1: Loan Application Needs List. This needs list is sent to the Applicant by the Lender in preparation for underwriting. Included are General Application Forms and SBA Forms 1919, 413 and 912 if necessary. It typically takes 2 - 4 days for the lender to generate this needs list from receipt of the monetary Deposit and signed Letter of Interest. Step 2: Underwriting. The amount of time to underwrite the loan is 1 - 3 weeks depending on the lender's pipeline density, available underwriters and support resources and outstanding information required by the underwriter to render a decision. Step 3: Credit Decision. The credit decision is announced upon completion of underwriting or the conclusion of ”loan committee.” Some lenders shepherd loan requests through individual underwriters in an underwriting loan center. Other lenders maintain a decision making body referred to as “loan committee.” It takes 5 - 10 days for an underwriter to review a loan application and either return to the applicant with questions or a credit decision, meaning the loan is either approved or declined. Loan committees decide a loan in the committee meeting which is typically held one day per week or every other week. SBA 504 loan requests require a separate SBA Approval called an Authorization which may add an additional 5 - 10 days to the entire application process. Step 4: Commitment Letter. The commitment Letter outlines conditions required to close the loan and is sent to the Applicant 2 - 4 days after loan approval. This step begins the process of ordering third party reports and the collection of closing documents. Step 5: Third Party Reports & Closing Documents. A real estate appraisal is ordered by the lender to be performed by an SBA approved third party appraisal company. The appraisal may take 2 - 3 weeks to complete with an additional 2 - 5 days for lender review. If a business acquisition is included with the real estate purchase, a business valuation is also ordered which also takes 2 - 3 weeks with an additional 2 - 5 days for lender review.

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❗Freddie Mac’s mortgage repurchase requests spiked 29.1% in Q2, reaching a staggering $430 million.❗ With rising buyback demands and declining loan volumes, you may be feeling some serious financial pressure. But there’s a way to protect your portfolio! We have some top strategies to prevent costly buybacks and safeguard your profits. Read our full article to learn how Certified Credit can help you avoid repurchase demands: https://okt.to/pc0vEy #MortgageBuybacks #LendingSolutions #PortfolioProtection #MortgageIndustry

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New Loan Limits Released for Fannie Mae & Freddie Mac The maximum baseline conforming loan limits and high-cost area loan limit values will be effective January 1, 2025. For a 1-unit property in most areas in the U.S., the 2025 maximum baseline conforming loan limit value will be $806,500. The maximum loan limit value for a super-conforming mortgage secured by a 1-unit property will be $1,209,750. Full Details and loan limits for all counties can be found here: https://lnkd.in/e3SyskZg Keeping You Smarter Than the Competition www.mortgageguidelines.com Simplifying the Complicated

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The upcoming election will impact mortgage, real estate and housing policies. VP Harris has pushed 2 major housing proposals, while the GOP ticket has called for more executive influence with the Federal Reserve. Read more about housing and the election here. #Election2024

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After weeks of cuts, mortgage rate hikes are now on the horizon as strong U.S. job numbers push bond yields higher. What does this mean for borrowers? Read Ryan Sims’ latest column: #MortgageRates #BondYields #RealEstate

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Following an average expectation for national home price growth of 5.2% in 2024, a panel of more than 100 housing experts forecasts price growth to decelerate to 3.8% in 2025 and 3.6% in 2026, according to the Q4 2024 Fannie Mae Home Price Expectations Survey, produced in partnership with Pulsenomics, LLC. The panel’s latest estimates of national home price growth represent an upward revision from last quarter’s expectations. Mark Palim #cre #finance

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Following a 40 basis point decline in mortgage rates, Ivy Zelman joined Becky Quick on CNBC to discuss August homebuilding trends, rates, affordability and the supply versus demand gap. Watch the full interview here: https://lnkd.in/eNCW6kMc #MarketRates #MortageRates #HousingMarket #WeAreWD

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Mortgage rates declined to their lowest level since early February. Expectations of a Fed rate cut coupled with signs of cooling inflation bode well for the market, but apprehension in consumer confidence may prevent an immediate uptick as affordability challenges remain top of mind. Despite this, a recent moderation in home price growth and increases in housing inventory are a welcoming sign for potential homebuyers. -> The 30-year FRM averaged 6.73% as of August 1, 2024, down from last week when it averaged 6.78%. A year ago at this time, the 30-year FRM averaged 6.90%. -> The 15-year FRM averaged 5.99%, down from last week when it averaged 6.07%. A year ago at this time, the 15-year FRM averaged 6.25%. #mortgage #interestrates #refinance #mortgages #personalfinance #realestate

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SBA 7(a) & 504 Real Estate Purchase Loan Application From Start To Funding The most frequently asked question I receive by far is how long does the loan application process take to complete from start to finish. The quick answer is 45 - 60 days. The honest answer is it takes as long as necessary to complete all steps in the process. The next logical question is what are the steps. Here is a list of each step in order with an explanation. Before I begin, I want to emphasize the timeline starts from the day the lender receives the monetary Deposit, usually $2,500 or $5,000 and the signed Letter of Interest or Term Sheet. Step 1: Loan Application Needs List. This needs list is sent to the Applicant by the Lender in preparation for underwriting. Included are General Application Forms and SBA Forms 1919, 413 and 912 if necessary. It typically takes 2 - 4 days for the lender to generate this needs list from receipt of the monetary Deposit and signed Letter of Interest. Step 2: Underwriting. The amount of time to underwrite the loan is 1 - 3 weeks depending on the lender's pipeline density, available underwriters and support resources and outstanding information required by the underwriter to render a decision. Step 3: Credit Decision. The credit decision is announced upon completion of underwriting or the conclusion of ”loan committee.” Some lenders shepherd loan requests through individual underwriters in an underwriting loan center. Other lenders maintain a decision making body referred to as “loan committee.” It takes 5 - 10 days for an underwriter to review a loan application and either return to the applicant with questions or a credit decision, meaning the loan is either approved or declined. Loan committees decide a loan in the committee meeting which is typically held one day per week or every other week. SBA 504 loan requests require a separate SBA Approval called an Authorization which may add an additional 5 - 10 days to the entire application process. Step 4: Commitment Letter. The commitment Letter outlines conditions required to close the loan and is sent to the Applicant 2 - 4 days after loan approval. This step begins the process of ordering third party reports and the collection of closing documents. Step 5: Third Party Reports & Closing Documents. A real estate appraisal is ordered by the lender to be performed by an SBA approved third party appraisal company. The appraisal may take 2 - 3 weeks to complete with an additional 2 - 5 days for lender review. If a business acquisition is included with the real estate purchase, a business valuation is also ordered which also takes 2 - 3 weeks with an additional 2 - 5 days for lender review.