This week's call was about the current state of mortgages and what's happening.
Our guest speaker was George Souto who is a veteran in this industry and has been doing residential mortgages for about 16 years.
We started out with his introduction and then moved onto the different loans that he can do, which is most and what he likes to do, which includes working with First Time Homebuyers and most people that have their stuff together.
Much of his business stems from past referrals from other Realtors. This is because they know that he can deliver.
He is licensed in numerous states, which include Conneticut (where he resides), Rhode Island, Massachussets, New Hampshire and even Florida.
He spoke very eloquently about the fact that people during this time don't like to let appraisers in their home and that they are doing drive by appraisals along with some of their research online.
Also, he spoke a lot about current underwriting conditions and how they are being more automated now, taking out much of the human element. Standards, in general are much tighter now.
Even though closings are happening, attorneys are having a difficult time with courthouses because many of them are closed at the current time.
Verification Of Employment (VOE) has taken a turn too. It used to be that when someone applied for a loan, that person's employment was checked about 7 days before to make sure they were still working and could qualify for the loan. Now, the checks of employment are about 48 hours and sometimes less to make sure that person is currently still working because of all the job losses and furloughs.
He did say that if they got a furlough, that it would only extend things a little bit for that person until about a month of paychecks came their way.
It appears that credit scores did get higher and LTV did get smaller, though it's still possible to get close to what loans used to be. Close, but not the same.
He did say that forbearance was a serious no-no at one time, but is not as much an issue today. It still causes concern, but not as much as it used to.
Many great questions were asked and answered.