Current Fixed Mortgages Rates, 30 Year Fixed Mortgage Rates

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As can be seen from Freddie Mac’s Mortgage Market Survey, last week, 30 Yr. Fixed Mortgage rates for conforming loans hit 3.90% with the rate falling 0.03% basis points from the previous week.Treasury Prices Rise and Yields Fall for U.S. 10 Yr. and 30 Yr. Treasuries.At the Chicago Board of Trade (CBOT): the US 10 Year Treasury Note futures Contract for September settlement closed at a price of 126’26 / 32nds; the 10 Year Note was up 8 basis points (bps) on the day, yielding 2.1888%.  The US 30 Year Treasury Bond futures Contract for Sept. settlement closed at a price of 155’15 / 32nds; the 30 Year Bond was up 4 basis points (bps) on the day, yielding 2.7855%.  Mortgage Rates have come off their 2017 lows and are down 0.03% bps from the previous Freddie Mac Survey last week.Thanks to ZeroHedge.com, Goldman Sachs, Bloomberg.com, and FreddieMac.com for Charts and Graphics. With the 30 year fixed rate mortgage, the interest rate remains the same from day one, meaning borrowers can depend on the same bill amount from month to month and year to year. For the 30-year term, borrowers pay down the principal, or actual loan amount, along with unchanging interest amount on the mortgage. Homeowners gradually increase equity in the home over time. A 30 year fixed-rate mortgage is often perfect for budgeting homeowners who wish to stay in the same house for a long time, but does have the drawback of paying more interest over the length of the loan compared with shorter-term loans.Freddie Mac Weekly Rate Summary30-year fixed-rate mortgage (FRM) averaged 3.59 percent with an average 0.5 point for the week ending April 7, 2016, down from last week when they averaged 3.71 percent. A year ago at this time, the 30-year FRM averaged 3.66 percent.15-year FRM this week averaged 2.88 percent with an average 0.4 point, down from last week when it averaged 2.98 percent. A year ago at this time, the 15-year FRM averaged 2.93 percent.5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week with an average 0.5 point, down from last week when it averaged 2.90 percent. A year ago, the 5-year ARM averaged 2.83 percent.ERATE’s Daily Rate SummaryAugust 11, 2017Mortgage Rates and Treasury Yields Fall.On Thursday, Treasury bond yields and Mortgage interest rates fell as Credit Market participants bet on volatility and interest rate moderation in ‘quiet’ period in August.  The September 10 Yr. U.S. Treasury Note stood at a yield of 2.1975% and the 30 Yr. U.S. Treasury Bond is yielding 2.7729%.  30 Year Mortgages according to Freddie Mac were around 3.90% for conforming and 4.10% for Jumbo products.The Commerce Department released Core Consumer Price Index and the reading came in at 1.7% below the hoped for 2.00% inflation target the Fed was expecting.  On the heels of ‘disappointing’ (to some) producer price data, consumer prices missed expectations for the 5th month in a row with a mere 0.1% rise MoM (0.2% exp). Year-over-year growth in core consumer prices also slowed for the 7th straight month dropping to just 1.7% – the slowest since Jan 2015. Amid this dismal report, there is a silver lining for Americans, the cost of shelter rose just 0.1% – the smallest rise since March.Core Consumer Price Index Falls to 1.70% (YoY)(Chart courtesy of Zerohedge.com).This is an unwelcome signpost for Central Planners trying desperately to conjure some inflationary ‘animal spirits’ to assist them in their interest rate raising & balance sheet normalization policy trip.30 Year U.S. Treasury Bond Yield fall to 2.7972% then steadies at 2.7729%(Chart courtesy of Zerohedge.com).The 30 Year U.S. Treasury Bond is now expanded its trading range between 2.80% and 2.94%; as market participants try to guess whether we get a manufacturing recovery this summer or we dip back into recession in the real-goods producing sector of the economy.30 Year U.S. Treasury Bond Yield Rangebound between 2.80% and 2.94%.(Chart courtesy of Zerohedge.com).At the extremes of this range buyers of long bonds can be counted on to appears in force when the 30 Year U.S. Treasury Yield moves to the top of this range around 2.94%; conversely, sellers come out when the yield falls to 2.80%.10 Year U.S. Treasury Note Yield Falls to 2.2212% then steadies at 2.1975%(Chart courtesy of Zerohedge.com).This gyration in bond yields looks like it wants to resolve itself by moving much lower into the gap that was formed post-election last November.  If so, we will get another run at historically low rates before the final blow-off in Credit Markets sends Mortgage Interest rates up for good.10 Year U.S. Treasury Note Yield Longer-term View back below 50-Day MA at 2.26%(Chart courtesy of Zerohedge.com).The above Chart does suggest that a constructive set-up is forming in the 10 Year Treasury Note with the potential to push the yield to around 2.00% over the next month.  It is crucial that Mortgage Rates stay at or below 4.00% or demand for mortgage loans will dry up.  T

Source: Current Fixed Mortgages Rates, 30 Year Fixed Mortgage Rates

‘A disastrous situation’: mountains of food wasted as coronavirus scrambles supply chain

Coronavirus outbreak

Farmers are seeing produce rot in fields and dairy wash down drains as they rush to find areas of demand and prevent closures

Susie Cagle

Thu 9 Apr 2020 06.00 EDT Last modified on Thu 9 Apr 2020 21.09 EDT

Jim Husk, farm manager, walks through a tomato field on DiMare farm in Homestead, Florida.
 Jim Husk, farm manager, walks through a tomato field on DiMare farm in Homestead, Florida. Photograph: Lynne Sladky/Associated Press

Billions of dollars worth of food is going to waste as growers and producers from California to Florida are facing a massive surplus of highly perishable items.

As US food banks handle record demand and grocery stores struggle to keep shelves stocked, farmers are dumping fresh milk and plowing vegetables back into the dirt as the shutdown of the food service industry has scrambled the supply chain. Roughly half the food grown in the US was previously destined for restaurants, schools, stadiums, theme parks and cruise ships.

The impact could be up to $1.32bn from March to May in farm losses alone, according to a National Sustainable Agriculture Coalition report.

Agriculture officials insist that the supply itself is not in question, but matching that supply with demand and getting it to where it’s needed most is a new and urgent problem.

A pile of ripe squash sits in a field in Homestead, Florida.
 A pile of ripe squash sits in a field in Homestead, Florida. Photograph: Lynne Sladky/Associated Press

‘A disconnect’ in the food chain

This time last year, half of Paul Allen’s green bean and cabbage crops at RC Hatton farms in Pahokee, Florida, would have been destined for food service. Now he’s plowing 5m to 6m pounds of vegetables back into his fields.Advertisement

“Retail cannot absorb it,” he said. “Whatever else you’ve got just goes unharvested and you’ve got to mulch it back into the ground.”

Allen is far from alone. He laments the circumstances his tomato-growing friends find themselves in, with 80% or more of their crops previously bound for food service. “Everybody’s in the same situation.”

South Florida is a major producer of vegetables for US consumers, especially in the winter and early spring. Now, for many farmers, the cost to pick and pack that produce is higher than the market price.

“It’s all combined to just be a disastrous situation for south Florida growers, who actually had a bumper crop coming into the harvest season,” said Lisa Lochridge, director of public affairs for the Florida Fruit and Vegetable Association.

“This is really having a disproportionate effect on warm-weather states and smaller farms,” said Kara Heckert, California regional director for the American Farmland Trust. “It was kind of an overnight shift to at least a significant portion of the food system.”

A fruit and vegetable stand, normally open in spring, sits shuttered in the Salinas Valley, California.
 A fruit and vegetable stand, normally open in spring, sits shuttered in the Salinas Valley, California. Photograph: Shannon Stapleton/Reuters

Strawberries on the California coast and lettuce in the Salinas Valley “salad bowl” – which grows roughly 70% of the nation’s lettuce crop – have been hit particularly hard. And efforts to keep farmworkers safe and socially distanced in the fields mean even slower harvesting.

“There’s still a lot being left on the field, and a lot is being tilled underground,” said Heckert. More still is sitting in storage facilities.

Dairy producers in Wisconsin, Vermont and other states have taken to dumping excess milk en masse, flooding their fields or pouring it down drains in production facilities. The loss of food service business, particularly schools systems that are large buyers of dairy products, has left producers with a highly perishable glut that they can’t easily resolve.

Preparing and packaging food for retail as opposed to wholesale, and getting it packed and shipped on trucks, is an entirely new and expensive problem. And spring is an especially productive season for dairy cows, leading to even more supply in a time with even less demand. Over the last six weeks, US dairy futures prices have nosedived.

Still, said Heckert, there’s confusion over where the pipeline is facing the most stress. “A lot of the grocery stores are limiting how much milk people can buy, thinking it’s going to run out. There’s a disconnect there.”

Ryan and Chris Eble stand by while fresh milk gushes down a drain at the family’s Golden E Dairy farm near West Bend, Wisconsin.
 Ryan and Chris Eble stand by while fresh milk gushes down a drain at the family’s Golden E Dairy farm near West Bend, Wisconsin. Photograph: Usa Today Uspw/Reuters

Farmers filling the gaps

For farmers with direct-to-consumer produce box services, the chaos has been a boon. In the northern San Francisco Bay area, every farm delivery program is full, some with waiting lists in the hundreds.

“We’re using this as an opportunity to encourage collaboration and farmers working together to try to fill the gaps in this disruption,” said Evan Wiig, membership director at the Community Alliance with Family Farmers, which is working to pair farms that previously sold direct to schools and restaurants with already established delivery logistics.

“It’s been kind of a mad rush to figure out supply and demand and who needs what, who has what,” he said. “This is usually something that you do carefully over the course of an entire year. And here we are trying to do it in a matter of a week in order to prevent the closure of the farms, and also a lot of food waste.”

Before the coronavirus, nearly all of Brothers Produce business was food service and school delivery. In March, Brent Erenwert, CEO of the Houston, Texas, food distributor, created an entirely new model to keep his employees in business and his company afloat: selling produce boxes with fruits, vegetables, eggs and milk through co-ops in the region, and direct to customers online.

“Some consumers don’t feel safe going to the grocery store, unfortunately, because of too many people being there. I know how to get that product safely to a consumer’s hand,” said Erenwert. “The biggest thing was to keep my employees’ jobs and keep the supply chain moving – because if people see the supply chain stop, they go into even more of a panic.”

Casondra Myers and Ellen Henslee pack produce delivery boxes at Front 9 Farm.
 Casondra Myers and Ellen Henslee pack produce delivery boxes at Front 9 Farm. Photograph: Dane Rhys/Reuters

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But that supply chain is missing a crucial link, bridging the gap between food that would be wasted and a growing need in food banks nationwide.

Many growers already reeling from huge losses in sales aren’t able to further eat the cost of harvesting, packing and transporting crops to needy food banks without any financial aid. Florida growers have asked the US Department of Agriculture to buy the surplus produce so it could be donated to people in need without further hurting farm finances. The California department of food and agriculture is partnering with the California Association of Food Banks to provide funding and resources for farm donations to feeding programs across the state.

Still,there’s only so much that food banks can take.

“What’s really weird right now in the supply chain is the grocery stores seem to be pretty heavy on product, farmers are throwing away stuff, and food banks are full. We don’t know where the demand lies,” said Erenwert.

“We’re working with the state to try to get it to charities. But quite frankly, a lot of those avenues are full,” said Paul Allen, a Florida vegetable grower. “They can’t absorb it all, no way.”

Food banks aren’t set up to be warehouses for such vast quantities of stranded and highly perishable food.

Members of the California national guard help pack boxes of fruits and vegetables at Second Harvest food bank in San Jose, California.
 Members of the California national guard help pack boxes of fruits and vegetables at Second Harvest food bank in San Jose, California. Photograph: Justin Sullivan/Getty Images

“Everything under the sun produce-wise is showing up. We’re getting the cream of the crop,” said Brian Greene, CEO of Houston Food Bank. “We have a potential bonanza – now we’re working on the ability to capitalize on it. All the food banks have to solve this puzzle. What are the partnerships we set up so we can utilize this? Because we’re not going to get the other things.”

With shelf-stable staple goods selling out at markets nationwide, food banks are finding it difficult to secure surplus dry and frozen goods. This influx of produce could help shore up a dip in donations, but it requires more workers and volunteers to sort and package the food when charities are in short supply of helping hands. There’s no doubt, said Greene, that much of this food will unfortunately still go to waste.

“The reality is what makes the food chain work normally is there are just tens of thousands of arrangements that have been developed over time in order to match supply and demand. Then you just suddenly break all that and you’re trying to, with voluntary relationships, piece something together in a very short timeframe,” he said. “There’s going to be a lot of failure.”

America faces an epic choice…

… in the coming year, and the results will define the country for a generation. These are perilous times. Over the last three years, much of what the Guardian holds dear has been threatened – democracy, civility, truth. This US administration is establishing new norms of behaviour. Anger and cruelty disfigure public discourse and lying is commonplace. Truth is being chased away. But with your help we can continue to put it center stage.

Americans Could Start Receiving Stimulus Check April 15th

Much-awaited stimulus cash will begin flooding into millions of bank accounts next week in the first wave of payouts to shore up the nation’s wallets.

Millions of taxpayers will begin receiving the extra money to pay rent, groceries and other bills next week, or possibly as early as Thursday or Friday, some say.

The first group – estimated to cover 50 million to 60 million Americans – would include people who have already given their bank account information to the Internal Revenue Service.

The first group also would include Social Security beneficiaries who filed federal tax returns that included direct deposit information, according to an alert put out today by U.S. Rep. Debbie Dingell, D-Mich. Dingell’s announcement said the expectation is that the first direct deposits would hit in mid-April, likely the week beginning April 13. 

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But other sources say many bank accounts could see the money as soon as Thursday or Friday. 

Here’s something you need to know: “For security reasons, the IRS plans to mail a letter about the economic impact payment to the taxpayer’s last known address within 15 days after the payment is paid. The letter will provide information on how the payment was made and how to report any failure to receive the payment. If a taxpayer is unsure, they’re receiving a legitimate letter, the IRS urges taxpayers to visit IRS.gov first to protect against scam artists.”

If you filed your 2019 tax return, for example, the IRS is going to use the same bank account information that you might have supplied for the direct deposit for your income tax refund. You’d want to check your account to verify whether the money has arrived. 

If you did not yet file a 2019 return, the IRS is using information from your 2018 tax filing to calculate the payment. And the money would be deposited directly into the same banking account reflected on the return.

The next wave of money could begin as early as the week of April 20 for a group of people who receive Social Security benefits via direct deposit but may not make enough money to be required to file a federal income tax return in 2018 or 2019. You will not need to file any extra forms to receive this money. 

“The estimates are that nearly 99% of Social Security beneficiaries who do not file a return receive their benefits through direct deposit,” according to Dingell’s alert.

Stimulus check: Calculate how much money you could get

Your money questions, answered: Can I postpone my mortgage payments? Will retirees receive a stimulus check?

Finally, the last wave of money would involve the mailing of actual stimulus checks at a later date. The paper checks themselves would be staggered over several weeks. 

The first paper checks are expected to go out to families who have the lowest incomes, possibly those who make less than $10,000 a year, but do not have direct deposit information on file with the IRS. 

The idea is to get money to those who need it the most but may be the least likely to have bank accounts. 

The first round of checks could be sent out sometime after April 24, according to experts, into the first week of May. Dingell’s announcement said first group of checks are expected to be go out to families the week of May 4. 

But if you’re stuck getting a check, experts say, you may need to wait into May, June and July – depending on how many physical checks the IRS actually ends up mailing.

Your best bet, if you have a bank account, is to make sure that the IRS has your bank account information for direct deposit. 

The Treasury Department is expected to launch a web-based portal system sometime late next week that would allow people to provide their own direct deposit information in order to speed the delivery of money and avoid the checks altogether. See http://www.irs.gov/coronavirus for updates and information on the portal. 

The goal is to make the process smoother so people can receive money more quickly by making sure that stimulus money goes directly into bank accounts.

Waiting around for a check could take months. And who’s going to be watching your mailbox if you’re battling the coronavirus in the hospital? 

Birmingham Alabama

Here’s what to do if you can’t pay your mortgage

Janna Herron and Dhara SinghApril 2, 2020, 4:06 PM CDT

As many Americans face joblessness or reduced hours due to measures to stem the coronavirus outbreak, some may be wondering how they will meet their mortgage payment this month and longer.

Fortunately, many banks and lenders have been preparing for the possibility that borrowers will need extra help and have created hardship programs to address the need.

Fannie Mae and Freddie Mac, the government-sponsored enterprises that guarantee millions of mortgages, also told loan servicers that they could suspend payments for up to 12 months for homeowners experiencing a loss of income due to the outbreak of COVID-19.

But getting a break from your mortgage payment requires communication and action on your part, said Bruce McClary, spokesman for the National Foundation of Credit Counseling, a nonprofit.

“If you just stop paying, it’s not going to work,” McClary said. “Don’t assume that will automatically qualify you if you stop paying.”

Here’s what to do.

Homeowners have different options available to them if they experience a financial hardship from the coronavirus and can't pay their mortgage payment. (Photo: Getty Creative)
Homeowners have different options available to them if they experience a financial hardship from the coronavirus and can’t pay their mortgage payment. (Photo: Getty Creative)

Call your lender

Your lender doesn’t know what you’re facing unless you tell them. While it’s a hard call to make, you won’t be the only needing help.

“If you are facing financial hardship due to an interruption in your income, let your mortgage provider know as soon as possible so that you can understand what your options are,” said Glenn Brunker, a mortgage executive for Ally Home.

Gather documentation

You may need to provide some documentation that shows you’re no longer employed. “Most people receive official notices,” from their employer, McClary said. Lenders may ask for the name and contact information for your employer to verify themselves.

Still, it may be harder for gig workers and freelancers to get that specific information, but your lender should work with you on what will suffice, McClary said.

“Be prepared to have some record of your situation that you’re not working,” he said. “Be ready to provide that.”

Also have your account number handy, according to the Consumer Financial Protection Bureau. Be prepared to offer the following:

  • Why you can’t make your payment
  • Whether the hardship is permanent or temporary
  • Your income, expenses, and assets
If you can't pay your mortgage because of a coronavirus-related hardship, you have options to get you through. (Photo: Getty Creative)
If you can’t pay your mortgage because of a coronavirus-related hardship, you have options to get you through. (Photo: Getty Creative)

Get the details

Make sure you understand the ins and outs of a hardship plan and get those detail in writing.

  • Will interest continue to accrue while the payments are deferred?
  • Will you be charged any penalties or late payment fees?
  • How will the lender report these deferred payments to the credit reporting bureaus?
  • Will you owe all missed payments at one time or will additional payments be tacked onto the mortgage?

Knowing the answers to these questions will protect you and your finances down the road when you get back on your feet.

Know the new rules

Fannie Mae and Freddie Mac

If you have a mortgage backed by Fannie Mae and Freddie Mac, there are guidelines that mortgage lenders and their loan servicers must follow.

“For federally-backed mortgage relief, additional documentation is not required to qualify beyond your request to have a COVID-19 related financial hardship,” McClary said.

Any forbearance program on Fannie or Freddie home loans can’t accrue late fees and the program can last up to 12 months. There’s no negative credit reporting during the forbearance period. These programs can suspend payments altogether or lower the required monthly payment. Any foreclosure or other legal proceeding will be suspended.

You can find out if your mortgage is backed by Fannie Mae or Freddie Mac here and here.

Other federally backed mortgages

Under the recently passed CARES Act, you can request a 180-day forbearance program followed by an extension of another 180 days if you experience a coronavirus-related hardship and your mortgage is guaranteed by the following federal entities:

  • U.S. Department of Housing and Urban Development (HUD)
  • U.S. Department of Agriculture
  • Federal Housing Administration (FHA)
  • U.S. Department of Veterans Affairs (VA)

There are no additional fees, penalties or extra interest added to your account.

Other mortgages

If your mortgage isn’t backed by the government, ask your servicer what options you have to address your circumstances. The CFPB and other regulatory bodies are encouraging lenders to work with struggling borrowers.

Get help

If it’s too daunting or emotionally draining to contact your lender yourself, you can turn to a HUD-approved housing counselor to help walk you through the process. You can find a counselor near you through the National Foundation for Credit Counseling or through the Housing and Urban Development Department.

What Do You Think?

As COVID-19 (or the coronavirus) spreads and Americans prepare for potential quarantines, public health officials have recommended some advice for U.S. households: Namely, stock up two weeks of supplies, avoid crowds, and stay in your homes.

And that advice is fine for middle-class suburbanites with white-collar jobs. Sure, hop in the SUV and drive to the nearest Costco. Stash extra cases of canned beans in the pantry and frozen veggies in the basement freezer. Kids can hang out in their separate bedrooms or play in the backyard while parents conduct conference calls from the home office.

Of course, for people who lack these residential resources—especially those with unstable, crowded, or poor-quality housing—this situation is impossible. Not to mention the fact that workers in fields such as food service, retail, and hospitality can’t conduct their work remotely. In the face of a global pandemic, what are these Americans supposed to do?

Workers in fields such as food service, retail, and hospitality can’t conduct their work remotely. In the face of a global pandemic, what are these Americans supposed to do?

“SHELTERING AT HOME” REQUIRES GOOD HOUSING

The people who will have trouble “sheltering at home” are already among the most vulnerable populations. Estimating how many people will be affected is tricky, because these are also the most difficult populations for the Census Bureau to count. But we can predict which types of housing situations will create the greatest barriers.

Homeless persons. More than 500,000 people across the U.S. are homeless, roughly 40% of whom are unsheltered (living on streets, parks, and other open spaces). The remaining 60% live in temporary homes, including cars, shelters, or doubled-up with family. In a recent Curbed piece, Alissa Walker described the many challenges that homeless individuals face in trying to protect themselves from COVID-19, including hand-washing and storing food, which are critical obstacles.

Unaffordable or unstable housing. The poorest 20% of U.S. households spend more than half their monthly income on rent. Any loss of income—say, food service workers having their hours reduced as fewer people patronize restaurants—will put these households behind on their rent, increasing their risk of becoming homeless.

Group quarters. Some of the first U.S. fatalities from COVID-19 occurred in a nursing home outside Seattle. Contagious diseases spread rapidly in these types of group quarters, with residents living in close contact, sharing bathrooms, and eating together. Nearly 4 million Americans live in institutional group quarters such as nursing homes and correctional facilities. Another 4 million live in noninstitutional facilities, including college dorms, military barracks, and group foster homes. While colleges and universities can close dorms to prevent the spread of the coronavirus, that’s not an option for nursing homes or prisons.

Overcrowded households. Keeping the recommended 6-foot distance between people is tough for households with too many people crammed into too small of a space. Nationally, a very small share of households are overcrowded (more than two persons per bedroom). But the incidence varies substantially across population groups and cities: Nearly 15% of households with children living in high-cost metro areas are overcrowded. And even single-person households in small studio apartments or “tiny homes” will have difficulty storing extra supplies.

Unsafe, unhealthy housing. Even in the absence of contagious diseases, low-income households are more likely to live in housing that damages their health: mold and pest infestations that exacerbate asthma, for example, or lead paint and other toxic substances that harm children’s neurological development. We have virtually no data on how many people live in informal, unregulated housing, which is often ignored by local governments until disaster strikes.

TO PREPARE, PEOPLE NEED MONEY, WELL-STOCKED STORES, AND RELIABLE TRANSPORTATION

Low-wage workers who live paycheck to paycheck will be hard pressed to come up with the funds to buy two weeks of supplies in advance. Neighborhood resources matter too: Low-income urban neighborhoods have few large supermarkets or big box stores within easy reach. The corner stores and bodegas that many people rely on for supplies only carry small portions, and bulk buying from these stores isn’t just less convenient, it’s more expensive: The per-unit cost of one toilet paper roll is higher than buying a large package. Riding the bus home with a few days’ worth of groceries is one thing. Lugging home two weeks’ worth of rice, dried beans, and canned goods is another.

GIVING PEOPLE MONEY—QUICKLY—WOULD HELP. BUT IT’S NOT THE WHOLE SOLUTION.

For households who lack resources, giving people money as quickly and directly as possible would help. Short-term financial assistance would help poor families continue paying rent and buying food until the broader economy stabilizes. It would be more effective than a temporary moratorium on evictions (as some jurisdictions have enacted), since landlords also need money to pay their mortgages, property taxes, and utilities. Banks offering to allow borrowers more time on their mortgages could help homeowners as well as landlords—but the bigger concern is renter households, who have lower incomes and smaller savings.

For far too long, policymakers at all levels of government have failed to provide decent-quality, stable, and affordable housing to millions of Americans. In COVID-19, we’re only starting to see the devastating consequences of that failure.

Many of the other problems will be harder to address. To reach homeless populations, local governments will need not just money but trained staff, portable bathrooms, and modular housing. The short-term housing solutions we often use in the aftermath of natural disasters—gathering displaced people into large facilities such as gyms or convention centers—are not advisable during contagious disease outbreaks.

For far too long, policymakers at all levels of government have failed to provide decent-quality, stable, and affordable housing to millions of Americans. In COVID-19, we’re only starting to see the devastating consequences of that failure.

Sarah Crump provided excellent research assistance for this post.

Michael Gould
©2020 Michaelgouldgroup.com

Cares Act Provides Additional Loss Mitigation

 TO: All FHA-Approved Mortgagees and Servicers;

        All Other Interested Stakeholders in FHA Transactions

NEWS AND UPDATES

CARES Act Provides Additional Loss Mitigation Options for FHA-Insured Homeowners

Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2020-06, FHA’s Loss Mitigation Options for Single Family Borrowers Affected by the Presidentially-Declared COVID-19 National Emergency in Accordance with the CARES Act. This ML implements the mortgage forbearance provisions provided in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that President Trump signed into law on March 27, 2020. Read today’s Press Release.

The loss mitigation options for borrowers experiencing a financial hardship negatively impacting their ability to make on-time mortgage payments due to the COVID-19 national emergency include:

  • Availability of up to six-months of mortgage payment forbearance for affected borrowers and an additional six-month period, if needed.
  • New COVID-19 national emergency stand-alone partial claim for eligible borrowers.
  • Extends certain due and payable, foreclosure, and claim timeframes for Home Equity Conversion Mortgages (HECM) affected by the COVID-19 national emergency.

Today’s Mortgagee Letter also informs servicers of the use of the new COVID-19 loss mitigation tools for borrowers impacted by the national emergency in place of the guidance on Presidentially-Declared Major Disaster Areas in FHA’s Single Family Housing Policy Handbook 4000.1.

This guidance applies to all FHA Title II Single Family mortgage programs. Mortgagees are strongly encouraged to read ML 2020-06 in its entirety.

In addition to the COVID-19-related loss mitigation options announced in today’s ML, FHA will continue to review its policies in its efforts to provide servicers with the tools needed to assist homeowners with FHA-insured mortgages with even more flexibilities/relief efforts during this national emergency.

Information for Mortgagees and Borrowers

The FHA Single Family COVID-19 Q&A for mortgagees and other interested parties in FHA has been updated and is available on the Single Family main page on hud.gov.

FHA has launched a new consumer-oriented Q&A to help homeowners better understand what loss mitigation options are available to them during this national emergency. It is available on the Loss Mitigation Services for FHA Homeowners page on hud.gov.

Industry Webinar

FHA’s Office of Single Family Housing plans to develop a webinar that focuses on the COVID-19-related loss mitigation options available to assist borrowers since the CARES Act became effective. Details about the upcoming webinar will be communicated at a future date.

Quick Links (You should use a different web browser if you encounter issues opening documents in Internet Explorer)

Resources

Contact the FHA Resource Center:

  • Visit our online knowledge base to obtain answers to frequently asked questions 24/7 at: www.hud.gov/answers.
  • E-mail the FHA Resource Center at: answers@hud.gov. Emails and phone messages will be responded to during normal hours of operation, 8:00 AM to 8:00 PM (Eastern), Monday through Friday on all non-Federal holidays.
  • Call 1-800-CALLFHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at 1-800-877-8339.
 FHA INFO Archives:Visit the FHA INFO Archives to access FHA INFO messages issued from 2012 to the present.
Subscribe/Unsubscribe Instructions:To subscribe to the Single Family FHA INFO mailing list you can use this link: FHA INFO or send a request by email to: answers@hud.gov
Bulk subscriptions: To sign up your entire office or a large group, send the list of email addresses (in the format below) to: answers@hud.gov
aaa@xyz.com
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ccc@xyz.com To Unsubscribe follow the unsubscribe instructions on that page.
Resource Links:FHA Archived WebinarsForeclosure Assistance
Career OpportunitiesGrant Opportunities
Contracting OpportunitiesHUD Homes – Property Listings
Events & TrainingHUD.gov
FHA FormsMaking Home Affordable
FHA Homeownership CentersPresidentially-Declared Major Disaster Areas
FHA Mortgagee LettersVisit our Single Family Home Page

Name Discrepancies On ID?

How To Handle Name Discrepancies

name-discrepancies-resized.jpg“What do I do if the signer’s name on the document doesn’t match the name on the ID?”

People commonly change their names legally due to marriage, divorce or other reasons. Some also use casual or formal variations of their names in different circumstances. In cases where the document name and ID name do not agree, Notaries can use this information as a guide to resolve name discrepancies.

This is one of the most common questions Notaries ask our NNA Hotline Team — but it’s also one of the toughest to get a clear answer for, because most states don’t address it in their statutes.

At best, a law will say the signer’s ID must be on a list of acceptable IDs or must contain certain core elements such as a photograph, signature, serial number, and physical description. While you always must follow these rules, they don’t address some of the real practical issues that arise when a name on a document and the name on the ID don’t match exactly.

However, two states — California and Florida — have language in their statutes that can be helpful. Both state’s laws specifically say that satisfactory evidence of identity means “reasonable reliance on the presentation” of any one acceptable ID listed in the law. And reasonable reliance is a good standard for Notaries everywhere to use when dealing with signer name discrepancies.

The ‘Reasonable Reliance’ Standard

The words “reasonable reliance on the presentation” are key.  When identifying any signer, your task is to reasonably determine from the identification presented that the individual is who he or she claims to be. This means no hard-and-fast rule can be applied to every situation. Identifying signers may require you to exercise some judgment.

Imagine a signer hands you an ID identifying him as “Walt,” but he signs the document with the name “Walter.”

The name discrepancy should not automatically cause you to reject the ID. Instead, first ask yourself if you can reasonably rely on the other elements of the ID to identify “Walt.” If, for example, the picture and physical description clearly match your signer, a reasonable person would likely say that “Walt” and “Walter” are the same person.

However, if “Walt” is 75 pounds heavier and sports a shaved head, a beard and glasses, it’s much harder to be sure if he’s the same person in the ID photo or not. While it’s still possible that he’s simply gained weight and changed his appearance since the ID card was issued, it’s still reasonable for the Notary to be concerned that “Walt” might not be the same person shown on the ID. Taken together, the name and description differences could make it hard for you to reasonably rely on the ID to identify Walt.

Last Name Suffix Discrepancy

One of the more common issues arises when Notaries are presented with documents in which the signer’s name appears with the last name suffix “Jr.” or “Sr.”, but the suffix is missing on the signer’s ID. It’s important to be careful in these situations, as there have been cases where dishonest sons with the same name as their father have tried to fool Notaries by signing using their father’s name instead of their own.

If you encounter this situation, here are some steps you can take:

1. Check to confirm that the physical description and photo on the ID matches the signer appearing before you. If you spot an inconsistency or error (such as a driver’s license presented by an obviously elderly signer that lists his age as 22), stop the notarization.

2. While you are not expected to examine a signer’s document except to provide information for your journal entry, be careful if you notice an obvious discrepancy. For example, if the document lists a “John Doe, Sr.,” applying for retirement benefits, but the signer appears to be in their early 20s, that’s a warning sign something may be amiss. If you have reasonable concerns the signer isn’t who they claim to be, don’t proceed.

3. If a signer asks you to proceed with a notarization despite a discrepancy with the name as it appears on the document (“Oh, they put my father’s name on the document by mistake. Can you just notarize it anyway?”), don’t do it. Tell the signer you can’t complete the notarization until the error is corrected.

4. Ask if signer has an alternate, acceptable form of ID with the correct name and suffix.

Misspelled Name On A Document

If the spelling of the signer’s name on the ID does not match the spelling of the name on the document, take the following steps before you notarize:

1. If the discrepancy is a shortened form or nickname of the signer’s full name (such as “Walt” for “Walter” or “Ed” for “Edward”), confirm that other information on the ID allows you to reasonably verify the signer’s claimed identity.

2. However, if the name difference is significant enough to call the signer’s identity into question (such as the name “Jeremy” appearing on the document while the signer’s name is listed as “Jermaine” on the ID), then ask the signer to explain the discrepancy. If the signer says the misspelling is due to an error on the document, postpone the notarization until the signer can have the document corrected. If the signer claims there’s an issue with the name on the ID, ask the signer to produce an alternate, acceptable form of written identification with the name in question. Or, depending upon state law, the signer may be able to present one or more credible identifying witnesses who can vouch for the signer’s identity in the name as it appears on the document.

3. If the signer cannot explain or remedy the name discrepancy to your satisfaction, stop the notarization.  

Multiple Forms Of Last Names

In some cases, a signer’s last name may appear differently on different documents for reasons such as marriage, divorce, cultural custom or professional identity. For example, a married woman’s full name might appear as “Maria Cortez-Nelson,” but at her job she regularly signs documents as “Maria Nelson.” Similarly, individuals of certain nationalities may have multiple names.

If a signer has a hyphenated or multi-part last name on their ID, but only part of the name appears on the document (or vice versa), here are some options:

1. Ask the signer for an alternate, acceptable form of written ID that matches the name as it appears on the document. If the signer lacks such ID (for example, a signer who has recently changed her name due to marriage or divorce may not have changed her name on her ID), some states may permit the signer to be identified using one or more credible witnesses.

2. The signer can ask the agency issuing or receiving the document if it’s OK to sign using an “also known as” or “AKA” signature. If so, the signer would sign the document using a format such as:

“(Name appearing on the ID), also known as (name appearing on the document)”

Or

“(Name appearing on the ID), AKA (name appearing on the document)”

You then could complete the notarization by writing the name appearing on the ID in the notarial certificate, since that is the only name for which the Notary has satisfactory evidence. However, remember that a Notary should never instruct a signer to sign using an “AKA” signature — the signer must ask the appropriate agency to confirm if this is acceptable.

Rent is Due?!?!

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What Do You Think?

What’s Inside The Senate’s $2 Trillion Coronavirus Aid Package

March 26, 20205:34 PM ET

Kelsey Snell in 2018.

KELSEY SNELLTwitter

The Senate has passed a roughly $2 trillion coronavirus response bill intended to speed relief across the American economy. This is the third aid package from Congress and is meant to keep businesses and individuals afloat during an unprecedented freeze on the majority of American life.

Senate Majority Leader Mitch McConnell, R-Ky., described the legislation, known as the CARES Act, as necessary emergency relief and vowed to put partisanship aside to get it done.

“No economic policy can fully end the hardship so long as the public health requires that we put so much of our commerce on ice,” McConnell said in a speech on the Senate floor on Wednesday. “This isn’t even a stimulus package. It is emergency relief. Emergency relief. That’s what this is.”

THE CORONAVIRUS CRISIS

READ: $2 Trillion Coronavirus Relief Bill

There are six main groups that would see the widest-reaching impacts: individuals, small businesses, big corporations, hospitals and public health, federal safety net, state and local governments, and education.

Here’s what each group can expect if this bill becomes law.

Note: The legislation was released late Wednesday night and official cost estimates have not yet been completed. In some cases, Congress allocated dollar figures for specific programs. The official expected costs of other programs are not yet available. This story includes some figures that are based on administration and congressional estimates.

The bill includes severalelements aimed at helping keep people engaged in the economy. That means direct cash for many families plus expanded unemployment benefits, new rules for things like filing your taxes and making retirement contributions.

Cash payments: Estimated to total $300 billion.Most individuals earning less than $75,000 can expect a one-time cash payment of $1,200. Married couples would each receive a check and families would get $500 per child. That means a family of four earning less than $150,000 can expect $3,400.

The checks start to phase down after that and disappear completely for people making more than$99,000 and couples making more than $198,000.

The cash payments are based on either your 2018 or 2019 tax filings. People who receive Social Security benefits but don’t file tax return are still eligible, too. They don’t need to file taxes; their checks will be based on information provided by the Social Security Administration.

Extra unemployment payments: The $260 billion estimated cost is subject to change based on the number of people filing for unemployment.

The bill makes major changes to unemployment assistance, increasing the benefits and broadening who is eligible. States will still continue to pay unemployment to people who qualify. That amount varies state by state. So does the amount of time people are allowed to claim it.

THE CORONAVIRUS CRISIS

What’s In It For You? $1,200 Checks, 13 Weeks Of Unemployment Payments And More

This bill adds $600 per week from the federal government on top of whatever base amount a worker receives from the state. That boosted payment will last for four months.

For example, if an out-of-work person is receiving the national average of about $340 per week, under the new federal program their take-home pay will be $940.

The legislation also adds 13 weeks of additional unemployment insurance. People nearing the maximum number of weeks allowed by their state would get an extension. New filers would also be allowed to collect the benefits for the longer period.

THE CORONAVIRUS CRISIS

3.3 Million File For Unemployment Claims, Shattering Records

Gig workers and freelancers: Typically, self-employed people, freelancers and contractors can’t apply for unemployment. This bill creates a new, temporary Pandemic Unemployment Assistance program through the end of this year to help people who lose work as a direct result of the public health emergency.

Tax returns: Some people have not filed their 2019 tax returns, but that’s OK. The filing deadline has been extended to July 15. The IRS also says that people who have filed or plan to can still expect to receive a refund if they are owed one.

Student loans: Employers can provide up to $5,250 in tax-free student loan repayment benefits. That means an employer could contribute to loan payments and workers wouldn’t have to include that money as income.

Insurance coverage: The bill requires all private insurance plans to cover COVID-19 treatments and vaccine and makes all coronavirus tests free.

Covid19 What Do You Think?

U.S. Tops 100,000 Coronavirus Cases, Testing Kits, Equipment Still In Short Supply

  • March 27, 20207:51 PM ET
Vanessa Romo

VANESSA ROMOTwitter

The United States on Friday surpassed more than 100,000 confirmed COVID-19 cases, doubling the number of known infections counted just three days ago.

Data from Johns Hopkins University, which has been tracking the global spread of the disease, shows 101,657 people have been diagnosed in the U.S. as of Friday evening. More than 1,560 people have died.

The troubling milestone comes a day after the U.S. infection toll rose above that of Italy and China, where the virus was first detected.

It also comes amid warnings from health officials that the pandemic will continue to accelerate in coming weeks.

During the Coronavirus Task Force briefing on Friday, Vice President Pence said more than 685,000 tests for the virus had been performed as of earlier in the day.

He also addressed the cry for more testing kits, ventilators and personal protective gear from health care workers and state leaders, saying there would be an airlift of supplies from around the world.

FEMA administrator Pete Gaynor will also be speaking to all state emergency administrators to advise them to have a plan to use the National Guard to move equipment from stockpiles to hospitals.

The highly contagious respiratory disease appears to be concentrated in a handful of so-called hot spots, with nearly half — more than 44,600 — in New York state. California has the second highest number of cases with 4,000 and Washington has more than 3,200.

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