Mortgage Loan News – RR Reading Fri, 24 Jun 2022 03:31:50 +0000 en-US hourly 1 Mortgage Loan News – RR Reading 32 32 Wayne Hendley joins ServisFirst Bank | Local News Fri, 24 Jun 2022 00:40:00 +0000


ServisFirst Bank, a subsidiary of ServisFirst Bancshares (NYSE: SFBS), announces the addition of Wayne Hendley to ServisFirst Bank as Branch Manager of the Dothan Cottonwood Corners branch.

“Wayne will be a tremendous asset to our team at Cottonwood Corners,” said Michael Smith, commercial lender and banking center administrator ServisFirst Bank Dothan. “He is a dedicated and hardworking professional and will be a great addition to ServisFirst Bank and our customers in the Dothan community.”

Hendley joins ServisFirst Bank as Branch Manager of the Dothan Cottonwood Corners Branch with over 15 years of industry experience. Known for his servant leadership style, Hendley is an innovative professional skilled in strategic management and banking principles.

Prior to joining ServisFirst Bank, Hendley was a Mortgage Originator and Loan Officer at Fairway Independent Mortgage for the past two years. Previously, Hendley spent 14 years at SunSouth Bank where he managed special assets and held various positions which complemented his extensive banking experience. He was also instrumental in starting Banco Del Sol, a subsidiary of SunSouth Bank, in Dothan in 2005. Hendley served as Director of Branch Operations and Security and then Mortgage Loan Officer/Vice President.

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Hendley is a graduate of Troy State University and Alabama Banking School. He has also participated in the Dothan Region Chamber of Commerce’s Leadership Dothan program. Additionally, Hendley helped coach the Houston Academy college basketball team in their impressive run to the 3A State Semifinals last season.

Commercial originations jumped 72% in the first quarter of 2022 Wed, 22 Jun 2022 08:38:55 +0000

Those of the first three months of the year were 39% lower than those of the previous fourth quarter, according to MBA.

Source: Mortgage Bankers Association

The strong momentum in commercial and multifamily borrowing and lending at the end of 2021 continued into the first quarter of this year.

According to the Mortgage Bankers Association (MBA) Quarterly Survey of Origins of Commercial/Multifamily Mortgage Bankers. In line with seasonality trends, creations in the first three months of 2022 were 39% lower than in the fourth quarter of 2021.

By property type, industrial grew 145%, healthcare properties grew 81%, and office grew 30%. Among investor types, dollar volume of loans to custodians increased 194% year-over-year. Life insurance portfolios increased 81%, investor-focused lenders increased 77%, CMBS increased 56%, and GSEs (Fannie Mae and Freddie Mac) increased 1%.

The continued growth in lending activity is the result of continued strong demand for certain property types such as industrial and multi-family properties, as well as renewed interest in other property types which have seen declines more spectacular during the early stages of the pandemic, such as hotels and retail. .

An important thing to highlight for the next quarters? Higher interest rates. Rising interest rates are likely to slow borrowing, but strong market fundamentals, real estate values ​​and investor interest should continue to support the market.

Jamie Woodwell is the Mortgage Bankers Association’s Vice President of Commercial Real Estate Research.

Reviews | A Generation of Owners Meets a Strange New Market Mon, 20 Jun 2022 15:00:00 +0000
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As recently as March, a 30-year fixed mortgage seemed like a pretty good deal. The average interest rate was below 4%, even though inflation was more than double.

This divergence could not last forever, and it did not. Just last week, mortgage rates jumped more than half a percentage point, ending at 5.78%. This is the biggest one-week increase in more than three decades, and it will push the housing market into uncharted territory. Buyers, sellers and the Federal Reserve are all going to have to learn to navigate this strange new landscape.

Most American homeowners have only known a world where mortgage rates were generally steadily falling — rising slightly when markets crashed or the Fed got choppy, but still falling over time. Rates hit an all-time high in the early 1980s, when Fed Chairman Paul Volcker dramatically reduced the money supply to bring America last great inflation to a standstill. After that, however, came a long downtrend that accelerated after the financial crisis, thanks to ultra-loose monetary policy that the Fed never really unwound even after the economy recovered.

Now suddenly we’re seeing the kind of push that hasn’t been seen since the 1970s. Rates are thankfully still lower than they were then, but they’re rising fast – they’ve more than doubled since January 2021. The last time mortgage rates were this high it was late 2008which means that nearly 15 years of homebuyers probably got a better deal than what’s currently available.

Some of these people would no doubt like to move – to downsize or increase in size, to bring growing kids to a bigger yard or better school district, to shorten their commute, or to add an actual home office. But mortgage rates complicate this decision.

Take an average middle-class household with a $240,000 mortgage on a $300,000 home they bought in 2018. If homeowners have decent credit and refinance at 3% during the pandemic, they would have a payment of approximately $1,000 per month. If that family is now moving to a house at roughly the same price, their new monthly payment will likely be just over $1,400.

Those who have money to spend will move anyway, as will those who really need it; if your new job requires you to be in California, you’ll sell the New Jersey house and take the damage. But many who come want to moving will likely choose to stay put, instead.

A by economists Fernando Ferreira, Joseph Gyourko, and Joseph Tracy estimated that “for every additional $1,000 of mortgage debt servicing costs, mobility was about 12% lower.” The homeowners in the example above would see an increase in their debt service of nearly $5,000 per year.

Now, not all households will find themselves in this position. Older households often paid off their mortgage as a down payment or a refund; others will have adjustable rate mortgages or older loans at higher rates that they weren’t able to refinance for one reason or another. Still, the effect is likely to be large – and that means we face not just falling house prices, but falling homeowner mobility.

The last time the United States faced this kind of “lockdown” dynamic, in the 1970s, the effect was mitigated by a feature few mortgages have now: the possibility for a buyer to “assume” the current owner’s loan, by taking over the payments with the property. Since buyers would pay a premium for a property with a low-interest loan, owners could monetize their lower rate and use that money to help finance a new purchase.

The banks, of course, didn’t like to sit on those old low-rate loans when inflation rose. the rates they had to pay on savings accounts, so that they started inserting “due to sale” clauses which practically put an end to the assumable mortgage. Government loans made through Veterans Affairs, the Federal Housing Administration and the United States Department of Agriculture still offer this option, but they represent a relatively small fraction outstanding loans.

This will make life difficult for owners, of course, and for employers trying to attract desirable employees from distant locations. But it will also complicate the life of policy makers, who cannot easily predict the effects of their interventions on a key sector like housing. This will make it more difficult for the Fed to stage the soft landing we all hope for.

And this, in turn, is just one example of a broader challenge for policy makers and ordinary citizens. The best comparison we have for where we are today is to the 1970s, but the economy has changed in all sorts of ways since then.

Taxes and government benefits are indexed to inflation, which exacerbates inflationary pressures. More people now work in services, fewer in capital-intensive and heavily indebted manufacturing. Larger parts of the economy are exposed to trade, which means being subject to the actions of other governments and central banks. And as noted above, we are now over a decade into an unprecedented Fed balance sheet expansion, which has undoubtedly contributed to inflation – and will limit the Fed’s options if we end up in a recession.

So, as familiar as this may sound to those of us with memories of the 1970s, we are actually on new ground. And unfortunately, no one has a good roadmap telling us exactly what’s next.

]]> Live updates on finances and payments in the United States: cost of living, inflation, mortgage, interest rates, SS benefits Sat, 18 Jun 2022 22:55:30 +0000

Featured: June 18, 2022

– The average price of a gallon of gasoline in the United States plunges below $5 for the first time in a week.

– 30-year fixed rate mortgage interest rates reached 5.78%at their highest since the end of 2008. When will mortgage rates fall?

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Real wages fell by 0.6% while inflation led to an average price increase of one percent on the market in May

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Mortgage-Free Home Donated to Local Army Veteran | Greene County Fri, 17 Jun 2022 04:15:00 +0000

OAK HILL — Bank of America partnered with the Veterans Association of Real Estate Professionals to donate a mortgage-free home to a local U.S. Army veteran on Thursday.

SPC. Antonio Lorenzo was given a mortgage-free home in a ceremony on Thursday. Lorenzo joined the army when he was 19 years old. During Lorenzo’s service he went to Iraq and Afghanistan. Now 36, married with children, Lorenzo applied to Bank of America and the association’s home ownership program.

“I’m speechless,” Lorenzo said during the presentation. “I want to thank everyone.”

Benita and Mark Gilsinger, Lorenzo’s mother and stepfather, traveled from Buffalo to celebrate their son’s new home.

“Antonio didn’t get the address of his new house until this morning,” Benita Gilsinger said. “Last night Antonio and his family stayed at a hotel. It was only this morning that we found out where and what the house looked like. I am very proud of my son.

Typically, 10 veterans apply. The Association of Veterans of Real Estate Professionals has a Board of Directors consisting of five members. Ultimately, the board decides which candidate is the best fit for the house. Since the association’s primary goal is to help veterans improve their financial literacy, factors such as applicants’ ability to maintain property are important.

Even though the house doesn’t have a mortgage, Lorenzo is responsible for property taxes, utilities and home insurance. The association works with veterans in setting financial goals. Lorenzo will meet with a financial advisor over the next three years to learn more about homeownership, how to save money, and ways to improve his credit rating.

The Real Estate Professionals Veterans Association was founded by Dustin Luce and Son Nguyen in 2011. Nguyen is a Navy veteran, but Luce is a civilian. The organization has 7,000 members nationwide. Some members are veterans, but like Luce, others are civilians who simply want to support and help provide services to veterans.

Both founders have a background in real estate. They said they believe veterans could benefit the most from efforts to develop financial literacy. Since the inception of the association, the organization has grown in membership and has 30 chapters.

Bank of America and the Veterans Association of Realtors were inspired to help veterans in this way because typically realtors and lenders have the perception that VA loans are too expensive. For this reason, many veterans have been deterred from using their VA loans.

Over the past few years, significant changes have been made to the Veterans Association loan delivery. A significant change was the amount of the loan. There is no maximum VA loan size. Borrowers can get a loan with no down payment. If applicants are approved, VA borrowers can apply for a loan for any amount.

The association is based in Corona, California, but the organization serves upstate New York, New Hampshire, Massachusetts, and Maine. Bank of America launched a home donation program for veterans in 2012. Since the program began, Bank of America has donated 6,000 homes. Over 2,200 of the homes were donated to veterans.

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Risky loans resurface – NMP Wed, 15 Jun 2022 14:43:50 +0000

In the aftermath of the Great Recession, protections were put in place to eliminate bad mortgages. Lenders became much more demanding of who could qualify for loans, and laws were passed to ensure that the global economy would never again collapse due to dangerous lending.

However, fears are growing over the return of riskier loans.

House prices continue to reach new levels and mortgage interest rates are also rising rapidly. According to, this is causing some loan officers to relax their lending standards — albeit a little — to keep their pipelines nice and fat. Buyers are already outdoing themselves financially to win bidding wars, and more and more borrowers are choosing mortgages that start out cheap but get more expensive over time.

It is a strange echo of the mounting financial crisis.

“Lending standards in today’s housing market are up and down compared to the housing boom of the mid-2000s, in part because of the regulations put in place after the stock market crash,” said Ali Wolf, chief economist of the Zonda construction consultancy. “While tougher lending rules are in place, the combination of rising house prices, rising mortgage interest rates and rising inflation is straining home buyers in today. Anecdotally, we hear from some loan officers that homebuyers are starting to stretch out just to be able to secure a home.

Homebuyers are facing mortgage payments that are about 50% higher per month than a year ago for the same home, due to the double whammy of rising house prices and rising mortgage rates.

Buyers have reacted by pushing their budgets to the limit, which can be dangerous if they don’t leave themselves a cushion for rising costs, savings for emergencies and a little extra money to go out or take a vacation. . Inflation also drives up the cost of basic necessities, ranging from a gallon of milk to a gallon of gasoline.

That’s why more and more borrowers are considering adjustable rate mortgages, or ARMs. These loans initially offer cheaper payments with a lower interest rate that can increase over time. About 8.2% of all mortgage applications were for ARMs in the week ending June 3, according to the Mortgage Bankers Association. This is more than double the 3.9% of all applications in the week ending June 4, 2021.

“Anytime people consider adjustable rate mortgages…there’s a risk involved,” said Sarah Mancini, an attorney at the National Consumer Law Center. “Most people’s income does not fluctuate with interest rates. … [And] people are not good at reading these very complicated things [lending] documents. »

These rising rates are also causing lenders to scramble to find new business. More and more buyers are being shut out of the market and many homeowners aren’t as eager to refinance their existing loans now that rates have jumped. Mortgage applications fell 53.6% from a year ago in the week ending June 3, according to the MBA. As a result, lenders give loans to applicants with lower credit scores and more debt.

Lenders are stressed by income, said David Stephens, CEO of Mountain Lake Consulting, who is also a former CEO of the MBA and Commissioner of the Federal Housing Administration during the Obama administration. “They just need more loans in the hopper to stay alive,” he said.

In April, borrowers had a median FICO score of 735, according to data provided by the Urban Institute. Although this is considered a “good” score, it is down from the “very good” score of 761. The debt-to-income ratio increased to 39% in April 2022 from 35% in April 2021.

Most lenders want borrowers to have a FICO score of 580 or higher and a debt-to-income ratio no higher than 43%. Unlike the mid-2000s, they require full documentation to verify that borrowers are making as much money as they claim to be in order to prevent borrowers from being unable to repay their loans.

“Some protections have been put in place following the last foreclosure crisis, but they are not a silver bullet,” Mancini says. “Everyone thought subprime lending wouldn’t come back, [but] there’s no reason to think he can’t or won’t. Perhaps it is market conditions that lead to this.

How mortgage rates have changed since 1972 | national news Mon, 13 Jun 2022 23:00:00 +0000

Unless you plan to buy real estate with an all-cash offer, you’ll likely take out a mortgage. It’s never a bad idea to be aware of mortgage rates, which can be constantly changing due to various factors—inflation, economic growth, Federal Reserve policies, bond market and relevant housing market conditions, among others.

Extra space storagea real estate storage owner and operator in the United States, reviewed the federal loan buyer’s historical mortgage data Freddie Mac to find the average annual rate for a 30-year fixed-rate home loan, with data going back to 1972.

A fixed rate mortgage is a home loan with a fixed interest rate for the life of the loan. Typically, you’ll see 30- or 15-year fixed mortgages; older mortgages are the most common type, with around 90% of home buyers using one in their home purchase.

Mortgage rates were highest in the 1980s when the Fed raised interest rates to fight inflation. Today, economic uncertainty and inflation are driving up mortgage rates. From May 2022, 30-year-olds fixed mortgage rate stands at 5.25% while the average 15-year fixed mortgage rate is 4.43%. So what did they look like 5-10 years ago? Keep reading to see how mortgage rates have changed since the early 1970s.

Newrez launches new partnership with rising golf star and Air Force veteran Kyle Westmoreland Thu, 09 Jun 2022 20:30:00 +0000

FORT WASHINGTON, Pa.–(BUSINESS WIRE)–Newrez LLC (“Newrez”, the “Company”), the national mortgage lending and servicing organization, today proudly announced its first professional golf partnership with the rising golf star and veteran of the US Air Force, Kyle Westmoreland.

Newrez’s partnership with Westmoreland signifies the company’s first sponsorship deal with a professional athlete. Westmoreland will proudly display the Newrez logo on the chest of their golf apparel while playing on the Korn Ferry Tour, although the partnership actually goes far beyond cross-promotion. While Westmoreland’s talent as a rising star certainly sparked Newrez’s interest in sponsorship, it was Westmoreland’s commitment and service to his country that solidified the company’s decision to pursue the partnership. .

“Having an extremely talented professional athlete and decorated Air Force veteran like Kyle represent Newrez is an incredible honor,” said Baron Silverstein, President of Newrez. “As a company, we view this partnership as a hole-in-one and look forward to the new opportunities this partnership will create for Newrez to continue its commitment to supporting our nation’s brave service members and veterans in new ways. ”

Newrez, as a lender and national service agent, is committed to supporting veterans and active military personnel through a variety of avenues, including career recruitment efforts, employee resource groups, military loan education and VA loan offerings as well as the mainstay of the company’s restitution initiatives through Newrez NOW, its employee-focused community investment program.

“We couldn’t be happier to be part of the Newrez team. Their dedication to serving both military and civilians fits perfectly with what we try to accomplish through the game of golf,” Westmoreland said. “Golf is great, but having a positive impact on the lives of others means so much more. Thank you, now let’s bring this partnership to the PGA TOUR!”

During his collegiate golf career at the U.S. Air Force Academy, Westmoreland won four varsity tournaments, earned full honors, and was named the 2014 U.S. Air Force Academy Male Athlete of the Year. To pursue his career as a professional golfer, Westmoreland completed his five-year military service commitment.

After five years of active duty as a captain in the U.S. Air Force, Westmoreland hit the green professionally, making history as the first U.S. Air Force Academy graduate to qualify for the U.S. Open in 2021. After passing through the Korn Ferry Tour Qualifying School on his first try, he joins the Korn Ferry Tour full time in 2022.

Westmoreland is set to represent Newrez at several Korn Ferry Tour events this summer, including the BMW Charity Pro-Am (June 9-12), Wichita Open (June 16-19), Live and Work in Maine Open (June 23-26) . ) and TPC Colorado Championship at Heron Lakes (June 30-July 3).

To learn more about Newrez’s commitment to making homeownership affordable and meeting the specific mortgage needs of military members, veterans and their families, visit

About Newrez

Newrez is a leading mortgage company that combines mortgage origination and servicing to deliver a priority customer journey and help our customers take smart action throughout the life of their mortgages. Differentiated by its origination platform, the Company offers its clients unparalleled lending options for purchase and refinancing. Its business services service on behalf of Newrez clients and includes a third-party service brand, Shellpoint Mortgage Servicing. Founded in 2008, Newrez is headquartered in Fort Washington, Pennsylvania and is a member of the New Residential Investment Corp family.

Information contained on, or accessible through, any website included in this press release is not incorporated by reference into, and should not be considered a part of, this press release.

]]> Assistance for Owners Affected by the COVID-19 Pandemic – NBC 5 Dallas-Fort Worth Tue, 07 Jun 2022 22:49:11 +0000

With a prize pool totaling nearly $700 million, the state is accepting applications for funds aimed at helping homeowners who have been impacted by the COVID-19 pandemic.

Read on to learn more about the program and how to apply if you need help staying at home.


So far, the Texas Homeowner Assistance Fund has distributed nearly $39 million to about 5,000 households. According to publicly available information online dashboardthe average household received about $7,000 in assistance.

Texas Department of Housing and Community Affairs executive director Bobby Wilkinson said the program could cover up to $40,000 in delinquent mortgage payments and up to $25,000 in property taxes, home insurance and late HOA fees.

“It’s there to help people keep their homes,” Wilkinson said.

Congress allocated the money to homeowners as part of the American Rescue Plan Act signed by President Biden last March.

Payments are released to the mortgage agent or tax office, insurance company, or HOA after the homeowner’s application is approved.


From eligibility criteria: the owner must be at the origin of at least one payment and the accommodation must be his main residence.

Owners must have experienced financial hardship such as loss of income or increased expenses due to the pandemic. The owner must show that he could meet future payments after receiving assistance.

“You also need to be able to show that we wouldn’t just give the money and you’ll still be seized the following month. You need to be able to show that you could, in the future, pay the mortgage of the following month,” Wilkinson explained.

There is an income requirement. You can check the threshold here.

Some of you may have entered into a forbearance agreement with your loan servicer to suspend mortgage payments during the pandemic.

Wilkinson said the program can help people coming out of forbearance who need help catching up: “If you just had to make four months of mortgage payments all at once, that’s not reasonable for the household. middle income.

If you’re still out, Wilkinson said you’ll need to make arrangements to go out to apply.


Applications are taken online via this portal.

Some applicants may have difficulty completing the application on a mobile device. If you don’t have a computer, try your local public library to use a computer there.

Wilkinson said the program works to enroll local nonprofits to serve as drop-in centers, helping landlords submit applications in person.

NBC 5 Responses asked how long it might take for eligible contestants to see the payouts. Wilkinson said it would depend on several factors, including whether the state is already working with your mortgage agent.

You can call this toll-free number if you have any questions: 1-833-651-3874. The call center takes calls from 8:00 a.m. to 6:00 p.m., Monday through Friday. Help is available in multiple languages.

NBC 5 Responds recently called and found there was no wait to speak to someone.

Depending on the program, applicants should be sure to provide an email address that they check frequently and a good phone number so that the person reviewing the application can get back in touch.

TDHCA also administered the Texas Rent Relief program until applications closed last November. Wilkinson said the new funding round is specifically for landlords and cannot be redirected to reopen the Texas Rent Relief program.

NBC 5 Responds is committed to finding your concerns and getting your money back. Our goal is to provide you with answers and, where possible, solutions and resolution. Call us at 844-5RESPND (844-573-7763) or fill out our customer complaint form.

Kilmer urges Department of Veterans Affairs to improve VA mortgage process – The Suburban Times Sun, 05 Jun 2022 15:08:00 +0000

Announcement from the office of Representative Derek Kilmer.

Tacoma, WA – On Thursday, U.S. Representatives Derek Kilmer (WA-06) and Guy Reschenthaler (PA-14) led a bipartisan meeting letter signed by more than 60 of their colleagues to US Department of Veterans Affairs (VA) Secretary Denis McDonough urging the VA to improve its mortgage to make home ownership more accessible to US veterans. Specifically, lawmakers asked the secretary to explore how VA mortgages can be competitive in today’s market and ensure veterans have bargaining power throughout the home buying process.

“If you serve this country, the federal government should support you. This means that every veteran should receive the benefits they have earned and deserve, including housing,” Rep. Kilmer said. “I believe every veteran should have a home, and it shouldn’t be under a highway overpass. That’s why I’m helping lead the bipartisan effort to make homeownership more accessible to our country’s veterans and improve the VA mortgage process. We need to make progress to ensure that every veteran has a fair chance.

“Our nation’s proud and deserving veterans are struggling to secure a home in today’s market using their VA mortgage benefits,” said. representing Reschenthal. “As a Navy veteran, I believe the VA needs to review its mortgage process and implement the necessary reforms to ensure veterans can compete and buy a home in today’s highly competitive housing market. today.”

“Our nation’s veterans have provided invaluable service in protecting our freedoms and our American way of life. It is only right that we ensure that they receive the benefits they deserve,” lawmakers wrote. “We call on your department to improve the VA mortgage lending process and request a report on steps VA has taken to increase lending competitiveness. It is imperative that veterans receive a competitive loan that gives them the opportunity to purchase a home.

The full text of the letter can be read here and lower.

Edward Jones - Bart Dalton


According to the National Association of Realtors, the median home sale price rose 15% year-over-year and inventory fell 0.3 months from February 2021. That’s 120 consecutive months of decline. year-over-year increases, longest streak on record.

The increase in cash and conventional loans with waived contingencies has reduced veterans’ ability to compete in today’s housing market. VA borrowers fare less well than borrowers using conventional loan products, with 11% of VA borrowers switching loan products during their home search, compared to just 1% of conventional borrowers switching their financing method.

The letter was also signed by: Representatives Brian Fitzpatrick (PA-01), Eric Swalwell (CA-15), Fred Keller (PA-12), Mike Kelly (PA-16), Vicky Hartzler (MO-04), Brian Mast (FL-18), Doug LaMalfa (CA-01), Juan Vargas (CA-51), Dina Titus (NV-01), Tom O’Halleran (AZ-01), Eleanor Holmes Norton (DC-AL) , Rodney Davis (IL-13), Stephanie Bice (OK-05), Adriano Espaillat (NY-13), Yvette Herrell (NM-02), Mike Turner (OH-10), Raul Grijalva (AZ-03), Chris Pappas (NH-01), Jahana Hayes (CT-05), Mariannette Miller-Meeks, MD (IA-02), Dan Meuser (PA-09), Susie Lee (NV-03), Glenn “GT” Thompson (PA – 15), Scott Franklin (FL-15), Ed Case (HI-01), Jay Obernolte (CA-08), Michael Waltz (FL-06), William Timmons (SC-04), Cathy McMorris Rodgers (WA- 05), Fred Upton (MI-06), Jake Ellzey (TX-06), Tim Ryan (OH-13), Ben Cline (VA-06), Katie Porter (CA-45), Henry C. “Hank” Johnson , Jr. (GA-04), Adam Smith (WA-09), Elaine Luria (VA-02) Mario Díaz-Balart (FL-25), Gus M. Bilirakis (FL-12), Jaime Herrera Beutler (WA-03), Rashida Tlaï b (MI-13), Cindy Axne (IA-03), David Kustoff (TN-08), Debbie Lesko (AZ-08), David G. Valadao (CA-21), Ted W. Lieu (CA-33), Sam Graves (MO-06), Peter Meijer (MI-03), Michael FQ San Nicolas (GU-AL), Ken Calvert (CA-42), Bill Johnson (OH-06) , Tracey Mann (KS-01), Ralph Norman (SC-05), Angie Craig (MN-02), Suzan DelBene (WA-01), Carlos A. Gimenez (FL-26), Kim Schrier, MD (WA- 08), Brad Sherman (CA-30), John Carter (TX-31), Richard Hudson (NC-08), Ed Perlmutter (CO-07), Elise M. Stefanik (NY-21) and Linda T. Sánchez ( CA-38).

Pierce College

The Honorable Denis McDonough


US Department of Veterans Affairs

810 Vermont Avenue N.W.

Washington, D.C. 20420

Dear Secretary McDonough:

Thank you for your work to ensure that the men and women who have served our country receive the benefits they rightly deserve. It is with these efforts in mind that we write to request that your department work to make home ownership more accessible to veterans in our country. Specifically, we believe the Department of Veterans Affairs (VA) should explore how VA mortgages can be competitive in today’s market and ensure veterans have bargaining power throughout the process of buying a home. home.

As you may know, buyers face an incredibly competitive housing market and have for some time. According to the National Association of REALTORS®, February 2022 saw a median sale price of $357,300 and 1.7 months of inventory. Median selling price rose 15% year-over-year and inventory was down 0.3 months from February 2021. This represents 120 consecutive months of year-over-year increases , the longest streak ever recorded. Sellers have benefited the most from this intense real estate market, generally earning their full asking price[1].

Charles Wright Academy

Historically, VA mortgages have been attractive and competitive to sellers. Unfortunately, the current housing market and the increase in cash and conventional loans with waived contingencies may prevent veterans from competing with other buyers. VA borrowers fare less well than borrowers using conventional loan products, with 11% of VA borrowers switching loan products during their home search, compared to just 1% of conventional borrowers switching their financing method.[2] This is of particular concern given the alarming levels of veteran homelessness in our country. In 2021, 19,750 veterans experienced homelessness[3].

Our nation’s veterans have provided invaluable service in protecting our freedoms and our American way of life. It is normal for us to ensure that they receive the benefits they deserve. We call on your department to improve the VA mortgage lending process and request a report on steps VA has taken to increase lending competitiveness. It is imperative that veterans receive a competitive loan that gives them the opportunity to purchase a home. To better understand the problem, we ask for answers to the following questions:

Ed Selden carpet one

  1. How is the VA working to improve assessment policy and procedure, such as minimum ownership requirements, to improve veterans’ ability to compete, while maintaining levels of Protection Appropriate for Loan Guarantee Program and Veteran Home Buyers?
  2. At what level should the financing commission be set to strictly cover the risk of non-payment and the guarantee payments of 25% of the mortgage loan program?
    1. Does VA have the resources it needs to commission a study identifying what percentage of VA financing fees is currently spent on the home loan guarantee program, and what percentage is diverted to other programs?
  3. How does the VA work to improve public perception of the VA mortgage program?
  4. How can Congress help the VA in its efforts to improve the competitiveness of the mortgage program?
DuPont Historical Museum Fort Nisqually Site Walking Tour

We look forward to your response and working with you to resolve this important issue for our veterans.