ADVERTISING SUPPLEMENT www.HousinglsKey.com Millions of homeowners expected to exit forbearance Mortgage Servicing Changes Proposed to Prevent Wave of COVID-19 Foreclosures Landlords Could Recoup 80% of Unpaid Rent The Consumer Financial Protection Bureau on April 5 proposed a set of rule changes intended to help prevent avoidable foreclo- sures as the emergency federal foreclosure protections expire. Due to the COVID-19 pandemic and ensuing economic crisis, millions of families nationwide have suffered a loss of income and nearly 3 million home- owners are behind on their mortgages. The CFPB's proposal seeks to ensure that both servicers and borrowers have the tools and time they need to work together to prevent avoidable foreclosures. "Servicers need to be prepared for a high volume of borrowers exiting forbearance," said CFPB Acting Director Dave Uejio. "We will do everything in our power to ensure servicers work with struggling families to find solutions that prevent avoidable foreclosures." Six percent of mortgages were delinquent as of December 2020. More homeowners are behind on their mortgages than at any time since 2010, which was the peak of the Great Recession. Industry data suggest nearly 1.7 million borrowers will exit forbearance programs in September and the fol- lowing months; many are a year or more behind on mortgage payments. The CFPBS proposal, if finalized, would: Give borrowers time-Every borrower should have a chance to explore ways to resume making payments and avoid foreclosure. The proposed rule Would provide a special pre-foreclosure review period that would generally prohibit servicers from starting foreclosure until after Dec. 31, 2021. The CFPB is seeking public input on that date and if there are more limited ways to achieve the same purpose. For example, the CFPB is considering whether to permit earlier foreclosures if the servicer has taken ocertain steps to evaluate the borrower for loss mitigation or made efforts to contact an unresponsive borower. This provision, like the rest of the proposal, would only apply to loans secured by a borrower's principal residence. Give servicers options -The proposed rule would permit servicers to offer certain streamlined loan modification options to borowers with COVID- 19-related hardships based on the evaluation of an incomplete application. Normally, with certain exceptions, Regulation X requires servicers to review a borrower for all available options at once, which can mean borrowers have to submit more documents before a servicer can make a decision. Allowing this flexibility could allow servicers to get borrowers into an affordable mortgage payment faster, with less paperwork for both the servicer and the borrower. This provision would only be available for modifications that do not increase a borrower's monthly payment and that extend the loan's term by no more than 40 years from the modification's effective date. Keep borrowers informed of their options-The CFPB also proposes tem- porary changes to certain required servicer communications to make sure that, during this crisis, borrowers receive key information about their options at the appropriate time. SOUTHLAND REGIONAL Southiand Regiona Association of Reators By Dane Syde, President, and David Waer Senate Bill 91, known as the CO- VID-19 Tenant Relief Act, primar- ily offers assistance to renters impacted by the pandemic, but tucked away in the bill is a provi- sion that could help landlords, many of whom arguably have been hit harder than renters. Tens of thousands of local renters kost income and the ability to pay rent due to ihe pandemie- induced collapse of the local ASSOCIATION OF REALTORS", INC. they could get a grant of 80 percent" of the lost rent. The measure protects renters from eviction, plus government aid helps pay some of their bills. But landlords generally are stuck in a hor- rible place, Block said. "Tve never seen anything like this. It's an assault on income property owners and so unfair,"he said. "Every person on the planet has been effected by the pan- demic, but income property owners are being forced to support the problems of others... It's a taking of resources from one segment of society and giving to another." Details of the aid available via SB 91 to renters and some owners impacted by the pandemic can be found at www. HousinglsKey.com. Landlords who participate in the COVID-19 Rent Relief Property owners are being forced to support the problems of others.' "The landlord has to keep the door open, continmue giving services, even though no income is coming in." Block said he's aware of plenty of landkords who have gone for 16 months"without receiving any rent. "But property owners still have to pay mortgage, property tax, utilities, and make repairs, "he said. "If you don't economy. "SB 91 did one good thing for owners," said Realtor Diane Sydel, 2021 SRAR President Dennis P. Block, an attorney whose firm repair something, you could be hit with specializes in evictions. Block updated 96 San Fermando and Santa Clarita val- ley real estate owners and brokers who attended a recent Zoom call organized by the Southland Regional Associa- tion of Realtors. "If the owner agrees to give up 20 percent of the rent due, a misdemeanor." He said that in his 45 years experi- ence providing legal courisel on more than 200,000 evictions, he has never encountered anything as dire as what transpired through the course of the pandemic. program may get reimbursed for 80 percent of an cligible renter's un- paid rent between April 1, 2020, and March 31, 2021, if they agree to waive Dennis P. Block, Ese the remaining 20 percent. Eligible renters whose landlords choose not to participate in the program may apply on their own and receive 25 percent of unpaid rent between April 1, 2020, and March 31, 2021. Paying this 25 percent by June 30 can help keep a renter in a home under the extended eviction protections in SB 91. Eligible renters can receive future assistance cqual to 25 percent of their monthly rent. Combined with the as- sistance available for unpaid rent, future assistance will help renters stay housed once the eviction protections in SB 91 expire on June 30. The Southland Regional Association of Realtors is a local trade association with Consumers See Housing as a Safe, High-Potential Investment The pandemic so far has contributed to historically low mort- gage rates, higher savings for many households, and stronger demand for homes relative to supply, as many households searched for homes with additional features, including more space, home offices, and the ability to safely "nest" with their families, Fannie Mae reported recently. Even in the years prior to the Fannie Mae pandemic, consumers reported that they believed housing, as an asset class, was a safe ivestment with high potential, a perception which, if it persists, will likely further support demand even as pandemic-related fac- Realtors Urge Reduction of Mortgage Insurance Premiums The California Association of Realtors recently issued the following statement in response to the Department of Housing and Urban Development's announcement on the state of the Federal Housing Administration Mutual Mortgage Insurance Fund: "CAR. continues to support the steps that HUD and the FHA have taken during the COVID-19 crisis to help housing and struggling homeowners during the pandemic," said C.A.R. President Dave Walsh. "Recognizing that the FHA plays a pivotal role in providing housing opportunities for families throughout California, CA.R., for years, has asked the FHA to kower the mortgage insurance premium. Doing so will provide greater homeownership opportunities and ensure that homecbuyers using FHA loans are not overpay- ing for their mortgages. As the nation moves beyond this crisis, C.A.R. will continue to ask HUD and the FHA to reduce the mortgage insurance pre- mium so that the recovery is equitable for all who want to attain homeowner- ship while interest rates continue to hover at historic lows." tors recede. The single-family housing market was particularly strong in 2020. Home prices appreciated 10.8 percent year over year, according to the FHEA Home Price Index, and the National Association of Realtors reported that monthly sales of existing homes were more than 20 percent higher than 2019. Fannie Mae attribute much of housing's strength to the response of policy makers and consumers to the truly unique circum- stances of the COVID-19 pandemic. In its 4th quarter survey, Fannie Mae asked consumers about various investment types, including stocks, bonds, homes, and savings accounts. Seventy-five percent of respondents indicated that homes are a "safe" investment, ranking in safety just slightly below a savings/money market account. Additionally, 73 percent of con- sumers felt that investing in a home has "a lot of potential"-by compari- son, 63 percent of consumers believe that stocks have "a lot of potential." more than 10,300 members serving the San Fernando and Santa Clarita Valleys. Interest Rate Update National average as reported by Freddie Mac onc April 8 30-Yr FRM - 3.13 percent 15 Yr FRM -2.42 percent April 1 30 Yr FRM - 3.18 percent 15-Yr FRM - 2.45 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 www.HousinglsKey.com Millions of homeowners expected to exit forbearance Mortgage Servicing Changes Proposed to Prevent Wave of COVID-19 Foreclosures Landlords Could Recoup 80% of Unpaid Rent The Consumer Financial Protection Bureau on April 5 proposed a set of rule changes intended to help prevent avoidable foreclo- sures as the emergency federal foreclosure protections expire. Due to the COVID-19 pandemic and ensuing economic crisis, millions of families nationwide have suffered a loss of income and nearly 3 million home- owners are behind on their mortgages. The CFPB's proposal seeks to ensure that both servicers and borrowers have the tools and time they need to work together to prevent avoidable foreclosures. "Servicers need to be prepared for a high volume of borrowers exiting forbearance," said CFPB Acting Director Dave Uejio. "We will do everything in our power to ensure servicers work with struggling families to find solutions that prevent avoidable foreclosures." Six percent of mortgages were delinquent as of December 2020. More homeowners are behind on their mortgages than at any time since 2010, which was the peak of the Great Recession. Industry data suggest nearly 1.7 million borrowers will exit forbearance programs in September and the fol- lowing months; many are a year or more behind on mortgage payments. The CFPBS proposal, if finalized, would: Give borrowers time-Every borrower should have a chance to explore ways to resume making payments and avoid foreclosure. The proposed rule Would provide a special pre-foreclosure review period that would generally prohibit servicers from starting foreclosure until after Dec. 31, 2021. The CFPB is seeking public input on that date and if there are more limited ways to achieve the same purpose. For example, the CFPB is considering whether to permit earlier foreclosures if the servicer has taken ocertain steps to evaluate the borrower for loss mitigation or made efforts to contact an unresponsive borower. This provision, like the rest of the proposal, would only apply to loans secured by a borrower's principal residence. Give servicers options -The proposed rule would permit servicers to offer certain streamlined loan modification options to borowers with COVID- 19-related hardships based on the evaluation of an incomplete application. Normally, with certain exceptions, Regulation X requires servicers to review a borrower for all available options at once, which can mean borrowers have to submit more documents before a servicer can make a decision. Allowing this flexibility could allow servicers to get borrowers into an affordable mortgage payment faster, with less paperwork for both the servicer and the borrower. This provision would only be available for modifications that do not increase a borrower's monthly payment and that extend the loan's term by no more than 40 years from the modification's effective date. Keep borrowers informed of their options-The CFPB also proposes tem- porary changes to certain required servicer communications to make sure that, during this crisis, borrowers receive key information about their options at the appropriate time. SOUTHLAND REGIONAL Southiand Regiona Association of Reators By Dane Syde, President, and David Waer Senate Bill 91, known as the CO- VID-19 Tenant Relief Act, primar- ily offers assistance to renters impacted by the pandemic, but tucked away in the bill is a provi- sion that could help landlords, many of whom arguably have been hit harder than renters. Tens of thousands of local renters kost income and the ability to pay rent due to ihe pandemie- induced collapse of the local ASSOCIATION OF REALTORS", INC. they could get a grant of 80 percent" of the lost rent. The measure protects renters from eviction, plus government aid helps pay some of their bills. But landlords generally are stuck in a hor- rible place, Block said. "Tve never seen anything like this. It's an assault on income property owners and so unfair,"he said. "Every person on the planet has been effected by the pan- demic, but income property owners are being forced to support the problems of others... It's a taking of resources from one segment of society and giving to another." Details of the aid available via SB 91 to renters and some owners impacted by the pandemic can be found at www. HousinglsKey.com. Landlords who participate in the COVID-19 Rent Relief Property owners are being forced to support the problems of others.' "The landlord has to keep the door open, continmue giving services, even though no income is coming in." Block said he's aware of plenty of landkords who have gone for 16 months"without receiving any rent. "But property owners still have to pay mortgage, property tax, utilities, and make repairs, "he said. "If you don't economy. "SB 91 did one good thing for owners," said Realtor Diane Sydel, 2021 SRAR President Dennis P. Block, an attorney whose firm repair something, you could be hit with specializes in evictions. Block updated 96 San Fermando and Santa Clarita val- ley real estate owners and brokers who attended a recent Zoom call organized by the Southland Regional Associa- tion of Realtors. "If the owner agrees to give up 20 percent of the rent due, a misdemeanor." He said that in his 45 years experi- ence providing legal courisel on more than 200,000 evictions, he has never encountered anything as dire as what transpired through the course of the pandemic. program may get reimbursed for 80 percent of an cligible renter's un- paid rent between April 1, 2020, and March 31, 2021, if they agree to waive Dennis P. Block, Ese the remaining 20 percent. Eligible renters whose landlords choose not to participate in the program may apply on their own and receive 25 percent of unpaid rent between April 1, 2020, and March 31, 2021. Paying this 25 percent by June 30 can help keep a renter in a home under the extended eviction protections in SB 91. Eligible renters can receive future assistance cqual to 25 percent of their monthly rent. Combined with the as- sistance available for unpaid rent, future assistance will help renters stay housed once the eviction protections in SB 91 expire on June 30. The Southland Regional Association of Realtors is a local trade association with Consumers See Housing as a Safe, High-Potential Investment The pandemic so far has contributed to historically low mort- gage rates, higher savings for many households, and stronger demand for homes relative to supply, as many households searched for homes with additional features, including more space, home offices, and the ability to safely "nest" with their families, Fannie Mae reported recently. Even in the years prior to the Fannie Mae pandemic, consumers reported that they believed housing, as an asset class, was a safe ivestment with high potential, a perception which, if it persists, will likely further support demand even as pandemic-related fac- Realtors Urge Reduction of Mortgage Insurance Premiums The California Association of Realtors recently issued the following statement in response to the Department of Housing and Urban Development's announcement on the state of the Federal Housing Administration Mutual Mortgage Insurance Fund: "CAR. continues to support the steps that HUD and the FHA have taken during the COVID-19 crisis to help housing and struggling homeowners during the pandemic," said C.A.R. President Dave Walsh. "Recognizing that the FHA plays a pivotal role in providing housing opportunities for families throughout California, CA.R., for years, has asked the FHA to kower the mortgage insurance premium. Doing so will provide greater homeownership opportunities and ensure that homecbuyers using FHA loans are not overpay- ing for their mortgages. As the nation moves beyond this crisis, C.A.R. will continue to ask HUD and the FHA to reduce the mortgage insurance pre- mium so that the recovery is equitable for all who want to attain homeowner- ship while interest rates continue to hover at historic lows." tors recede. The single-family housing market was particularly strong in 2020. Home prices appreciated 10.8 percent year over year, according to the FHEA Home Price Index, and the National Association of Realtors reported that monthly sales of existing homes were more than 20 percent higher than 2019. Fannie Mae attribute much of housing's strength to the response of policy makers and consumers to the truly unique circum- stances of the COVID-19 pandemic. In its 4th quarter survey, Fannie Mae asked consumers about various investment types, including stocks, bonds, homes, and savings accounts. Seventy-five percent of respondents indicated that homes are a "safe" investment, ranking in safety just slightly below a savings/money market account. Additionally, 73 percent of con- sumers felt that investing in a home has "a lot of potential"-by compari- son, 63 percent of consumers believe that stocks have "a lot of potential." more than 10,300 members serving the San Fernando and Santa Clarita Valleys. Interest Rate Update National average as reported by Freddie Mac onc April 8 30-Yr FRM - 3.13 percent 15 Yr FRM -2.42 percent April 1 30 Yr FRM - 3.18 percent 15-Yr FRM - 2.45 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.