ADVERTISING SUPPLEMENT 2.5 Million in Plans Owners in Forbearance Fall Under 5% Covid Update California Jobless Rate Below 9% The public health numbers continue to improve as more eco- nomic data begins to roll in. After stumbling late last year, the state resumed its labor market recovery in March. Unemployment is now below 9 percent for the first time since the recovery began and even as rates have continued to rise, all signs are that buyer demand remains robust heading into the Spring homebuying season. Stimulus checks should register as healthy increases in consum- er spending during the coming months and consumer sentiment reached its highest level since the recovery began as well. Still lots of healing ahead for California, but there was more progress in that direction last week. SOUTHLAND REGIONAL Southiand Regional Association of Reators By Dane Syoe, President, and Dvid Waer The number of home loans nationwide in forbearance decreased from 5.05 percent of loan servicers' portfolio volume AssoCIATION OF REALTORS", INCc. percent are forbearance re-entries. Total weekly forbearance requests to 4.96 percent as of March 21, as a percent of servicing portfolio decreased 20 basis points to 6.83 percent. Ginnie Mae provides liquidity and stability for the lending market, serving as the principal financing arm for government mortgage loans and the Mortgage Bankers Associa- volume remained flat relative to the tion reported recently. prior week at 0.05 percent, the lowest ievel since the week ending March PPP Deadline Extended Until May 31 According to MBA's estimate, 2.5 million homeowners are in forbearance ensur- Those who have ongoing hardship due to the pandemic and want to ex- tend ... need to contact their servicer." President Biden has signed a bill extending until May 31 the deadline for Paycheck Protection Program applications. The Small Business Administration program was scheduled to end March 31, which could have prevented some 190,000 small businesses who have pending PPP applications from securing a loan. The PPP Extension Act of 2021 also gives the SBA an additional 30 days beyond May 31 to process those loans. ing that mortgage lenders have the plans. By stage, 13.8 percent of total loans in forbear- necessary funds to provide loans to customers. "The share of loans in forbear- 15, 2020. The share of Fannie Mae and Freddie Mac loans in forbearance de- ance decreased for the fourth straight creased to 2.77 percent -a 6-basis- point improvement. Ginnie Mae loans in forbearance Eviction Moratorium Extended to June 30 ance are in the initial forbear- ance plan stage, while 83.4 percent are in a forbear- ance extension. The remaining 2.8 Realtor Diane Sydel, 2021 SRAR President The Centers for Disease Control Director Dr. Rochelle Walen- sky recently signed an extension to the eviction moratorium further preventing the eviction of tenants who are unable to make rental payments. The moratorium that was scheduled to expire on March 31 is now extended through June 30. week, dropping below 5 percent for the first time in a year. New forbear- ance requests remained at their lowest level since last March, and the pace of exits increased," said Mike Fratantoni, MBAS senior vice president and chief economist. "More than 17 percent of borrowers in forbearance extensions have now exceeded the 12-month mark." Many homeowners need the sup- port of forbearance "even as there are increasing signs that the pace of economic activity is picking up as the vaccine rollout continues,"he said. "Those who have an ongoing hard- ship due to the pandemic and want to extend their forbearance beyond the 12-month point need to contact their servicer," he said. "Servicers cannot au- tomatically extend forbearance terms without the borower's consent." 14% Exit Forbearance Without a Loss Plan in Place Here are the key findings of the Mortgage Brokers Associa- tion's most recent forbearance survey completed March 21. All-Cash Offers Boost a Buyer's Chances of Winning a Bidding War Total loans in forbearance decreased relative to the prior week from 5.05 percent to 4.96 percent. The share of Fannie Mae and Freddie Mac loans in forbear- ance decreased relative to the prior week from 2.83 percent to 2.77 percent. By stage, 13.8 percent of total loans in forbearance are in the initial forbearance plan stage, while 83.4 percent are in a forbear- ance extension. The remaining 2.8 percent are forbearance re- entries. Total weekly forbearance requests as a percent of servicing port- folio volume remained flat relative to the prior week at 0.05 percent, the lowest level since the week ending March 15, 2020. Of the cumulative forbearance exits for the period from June 1, 2020, through March 21, 2021: 26.9 percent represented borrowers who continued to make their monthly payments during their forbearance period. 26.5 percent resulted in a loan deferral/partial claim. 14.8 percent resulted in reinstatements, in which past-due amounts are paid back when exiting forbearance. 14.1 percent represented borrowers who did not make all of their monthly payments and exited forbearance without a loss mitiga- tion plan in place yet. 8.3 percent resulted in a loan modification or trial loan modifica- tion. 7.6 percent resulted in loans paid off through either a refinance or by selling the home. The remaining 1.8 percent resulted in repayment plans, short sales, deed-in-lieu's, or other reasons. Buyers who enter the market prepared to give a seller an all-cash offer dramatically improve their chances of winning in today's com- petitive market with too few listings and too many multiple offers. Waiving the financing contingency is the second-best way to seal the deal. Indeed a recent study conducted by Redfin found that prospective homebuyers who offer all cash nearly quadruple their chances of win- ning a bidding war, making it the most effective strategy to win a home in a competitive situation. That comes as no surprise to prospective buyers throughout the San Fernando Valley where homes sell on average within 31 days and with 79.7 percent selling at list price or higher, according to the Southland Regional Association of Realtors reported. The study found that 56 percent of sales nationwide faced bidding wars in January, the ninth consecutive month in which more than half of home offers faced competition. That percentage undoubtedly is higher here in Southern California. Waiving the financing contingency, as part of the bidding-war strat- egy, improved homebuyers'odds of winning by 66 percent. Including an escalation clause, where a buyer offers a specific amount more than the next highest offer, waiving the inspection contingency and conducting a pre-inspection - meaning the buyer conducted an inspection before making an offer - had no significant impact on whether a prospective buyer wins a bidding war, according to the report. The Southland Regional Association of Real tors is a local trade association with more than 10,300 members serving the San Fer- nando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation. Interest Rate Update National averoge as reported by Freddie Mac on: March 25 30-Yr FRM - 3.17 percent 15 Yr FRM -- 2.45 percent March 18 30-Yr FRM -3.09 percent 15-Yr FRM 2.4 percent THE VOICE OF REAL ESTATE IN THE SAN FERNANDO AND SANTA CLARITA VALLEYS www.SRAR.com | Real Estate Questions? E-mail Diane Sydell, SRAR 2021 President, c/o DavidW@SRAR.com REALTORS is a federally registered collective membership mark which identifies a real estate professional who is a Member of the NATIONAL ASSOCIATION OF REALTORSe and subscribes to its strict Code of Ethies. ADVERTISING SUPPLEMENT 2.5 Million in Plans Owners in Forbearance Fall Under 5% Covid Update California Jobless Rate Below 9% The public health numbers continue to improve as more eco- nomic data begins to roll in. After stumbling late last year, the state resumed its labor market recovery in March. Unemployment is now below 9 percent for the first time since the recovery began and even as rates have continued to rise, all signs are that buyer demand remains robust heading into the Spring homebuying season. Stimulus checks should register as healthy increases in consum- er spending during the coming months and consumer sentiment reached its highest level since the recovery began as well. Still lots of healing ahead for California, but there was more progress in that direction last week. SOUTHLAND REGIONAL Southiand Regional Association of Reators By Dane Syoe, President, and Dvid Waer The number of home loans nationwide in forbearance decreased from 5.05 percent of loan servicers' portfolio volume AssoCIATION OF REALTORS", INCc. percent are forbearance re-entries. Total weekly forbearance requests to 4.96 percent as of March 21, as a percent of servicing portfolio decreased 20 basis points to 6.83 percent. Ginnie Mae provides liquidity and stability for the lending market, serving as the principal financing arm for government mortgage loans and the Mortgage Bankers Associa- volume remained flat relative to the tion reported recently. prior week at 0.05 percent, the lowest ievel since the week ending March PPP Deadline Extended Until May 31 According to MBA's estimate, 2.5 million homeowners are in forbearance ensur- Those who have ongoing hardship due to the pandemic and want to ex- tend ... need to contact their servicer." President Biden has signed a bill extending until May 31 the deadline for Paycheck Protection Program applications. The Small Business Administration program was scheduled to end March 31, which could have prevented some 190,000 small businesses who have pending PPP applications from securing a loan. The PPP Extension Act of 2021 also gives the SBA an additional 30 days beyond May 31 to process those loans. ing that mortgage lenders have the plans. By stage, 13.8 percent of total loans in forbear- necessary funds to provide loans to customers. "The share of loans in forbear- 15, 2020. The share of Fannie Mae and Freddie Mac loans in forbearance de- ance decreased for the fourth straight creased to 2.77 percent -a 6-basis- point improvement. Ginnie Mae loans in forbearance Eviction Moratorium Extended to June 30 ance are in the initial forbear- ance plan stage, while 83.4 percent are in a forbear- ance extension. The remaining 2.8 Realtor Diane Sydel, 2021 SRAR President The Centers for Disease Control Director Dr. Rochelle Walen- sky recently signed an extension to the eviction moratorium further preventing the eviction of tenants who are unable to make rental payments. The moratorium that was scheduled to expire on March 31 is now extended through June 30. week, dropping below 5 percent for the first time in a year. New forbear- ance requests remained at their lowest level since last March, and the pace of exits increased," said Mike Fratantoni, MBAS senior vice president and chief economist. "More than 17 percent of borrowers in forbearance extensions have now exceeded the 12-month mark." Many homeowners need the sup- port of forbearance "even as there are increasing signs that the pace of economic activity is picking up as the vaccine rollout continues,"he said. "Those who have an ongoing hard- ship due to the pandemic and want to extend their forbearance beyond the 12-month point need to contact their servicer," he said. "Servicers cannot au- tomatically extend forbearance terms without the borower's consent." 14% Exit Forbearance Without a Loss Plan in Place Here are the key findings of the Mortgage Brokers Associa- tion's most recent forbearance survey completed March 21. All-Cash Offers Boost a Buyer's Chances of Winning a Bidding War Total loans in forbearance decreased relative to the prior week from 5.05 percent to 4.96 percent. The share of Fannie Mae and Freddie Mac loans in forbear- ance decreased relative to the prior week from 2.83 percent to 2.77 percent. By stage, 13.8 percent of total loans in forbearance are in the initial forbearance plan stage, while 83.4 percent are in a forbear- ance extension. The remaining 2.8 percent are forbearance re- entries. Total weekly forbearance requests as a percent of servicing port- folio volume remained flat relative to the prior week at 0.05 percent, the lowest level since the week ending March 15, 2020. Of the cumulative forbearance exits for the period from June 1, 2020, through March 21, 2021: 26.9 percent represented borrowers who continued to make their monthly payments during their forbearance period. 26.5 percent resulted in a loan deferral/partial claim. 14.8 percent resulted in reinstatements, in which past-due amounts are paid back when exiting forbearance. 14.1 percent represented borrowers who did not make all of their monthly payments and exited forbearance without a loss mitiga- tion plan in place yet. 8.3 percent resulted in a loan modification or trial loan modifica- tion. 7.6 percent resulted in loans paid off through either a refinance or by selling the home. The remaining 1.8 percent resulted in repayment plans, short sales, deed-in-lieu's, or other reasons. Buyers who enter the market prepared to give a seller an all-cash offer dramatically improve their chances of winning in today's com- petitive market with too few listings and too many multiple offers. Waiving the financing contingency is the second-best way to seal the deal. Indeed a recent study conducted by Redfin found that prospective homebuyers who offer all cash nearly quadruple their chances of win- ning a bidding war, making it the most effective strategy to win a home in a competitive situation. That comes as no surprise to prospective buyers throughout the San Fernando Valley where homes sell on average within 31 days and with 79.7 percent selling at list price or higher, according to the Southland Regional Association of Realtors reported. The study found that 56 percent of sales nationwide faced bidding wars in January, the ninth consecutive month in which more than half of home offers faced competition. That percentage undoubtedly is higher here in Southern California. Waiving the financing contingency, as part of the bidding-war strat- egy, improved homebuyers'odds of winning by 66 percent. Including an escalation clause, where a buyer offers a specific amount more than the next highest offer, waiving the inspection contingency and conducting a pre-inspection - meaning the buyer conducted an inspection before making an offer - had no significant impact on whether a prospective buyer wins a bidding war, according to the report. The Southland Regional Association of Real tors is a local trade association with more than 10,300 members serving the San Fer- nando and Santa Clarita Valleys. SRAR is one of the largest local associations in the nation. Interest Rate Update National averoge as reported by Freddie Mac on: March 25 30-Yr FRM - 3.17 percent 15 Yr FRM -- 2.45 percent March 18 30-Yr FRM -3.09 percent 15-Yr FRM 2.4 percent THE VOICE OF REAL ESTATE IN THE SAN FERNANDO AND SANTA CLARITA VALLEYS www.SRAR.com | Real Estate Questions? E-mail Diane Sydell, SRAR 2021 President, c/o DavidW@SRAR.com REALTORS is a federally registered collective membership mark which identifies a real estate professional who is a Member of the NATIONAL ASSOCIATION OF REALTORSe and subscribes to its strict Code of Ethies.