Savings Account Archives - Hanover Mortgages

March 3, 2021

PennyMac announces new board members and executive changes

PennyMac announced Thursday it is making three major changes to its board of directors and executive leadership team.

The mortgage firm has named its CEO, David Spector, as chairman of the board. Spector joined PennyMac 13 years ago as chief investment officer. Prior to his tenure at PennyMac, he was with Morgan Stanley for over a year as co-global head of residential mortgages and spent more than 16 years at Countrywide Financial as senior managing director.

“I am honored that the board has entrusted me with this additional responsibility, and I am excited to continue leading this great company forward,” Spector said.

Additionally, PennyMac has added Jonathon Jacobson, founder of HighSage Ventures, to its board of directors and appointed Jeffrey Perlowitz as independent lead director. Perlowitz will succeed James Hunt, who served in that position for nearly eight years.

“I am also pleased to announce that Jon Jacobson has agreed to join our board. As an original sponsor of PennyMac when it was founded in 2008, Jon has been involved over the years and has been a trusted advisor to me and the company. Jon’s perspectives from his longstanding investment in the company and his invaluable experience are great assets for the board as PennyMac continues to execute on our growth strategy,” Spector said. “Jeff’s experiences and abilities, including his expertise in residential mortgage finance, make him particularly qualified to assume the role of Independent lead director.”

Source: mpamag.com

March 3, 2021

NoVA Housing Projects Get $5.5M In Affordable Housing Loans – Patch.com

NORTHERN VIRGINIA — Five affordable housing projects in Northern Virginia will receive a total of $5.5 million in funding as part of Affordable and Special Needs Housing loans approved by the state.

Forty-three affordable housing loan applications were received during the current round of funding, requesting more than $42 million. Proposals were ranked and loans were offered to the highest-ranking proposals based on funding availability.

The funded projects, totaling $24 million, will create or preserve 1,635 affordable housing units, targeting low-income and very low-income Virginians, according to the state.

The loans are low-interest, and the provisions of the loans encourage developers to use outside funding sources, such as tax credits or other federal and local funding programs.

The Virginia Department of Housing and Community Development administers the Affordable and Special Needs Housing loans, which combine state and federal resources. Funding comes from three main sources: the federal HOME Investment Partnerships Program, the federal National Housing Trust Fund and the Virginia Housing Trust Fund.

In this round of funding, the Department of Housing and Community Development allocated more than $7 million through the HOME Program, more than $4 million through the National Housing Trust Fund, $12.6 million through the Virginia Housing Trust Fund, and an allotment of $500,000 through Permanent Supportive Housing funds.

“As the COVID-19 pandemic continues to create housing challenges in our Commonwealth and across the country, we are pleased to deploy this funding to support Virginians who are most in need,” Virginia Gov. Ralph Northam said Monday in a statement. “The Affordable Special Needs Housing program is a valuable resource for increasing the availability of safe, affordable, and sustainable housing for low-income Virginians, particularly those with special needs.”

Two applications from Arlington County, two from Fairfax County and one from Winchester were among the 28 applications from across the state approved for loans.

The five winning Northern Virginia affordable housing applications were:

Arlington County

Arlington View Terrace East/AHC Inc.

$900,000 from Virginia Housing Trust Fund
The Arlington View Terrace East project will be a partial redevelopment of an existing 60-year-old, 77-unit affordable multifamily rental community in the Arlington View neighborhood. The new construction building will more than double the number of long-term affordable units on the parcel and add family-sized units in a neighborhood experiencing increased housing costs.

Central United Methodist Church Ballston Station/Arlington Partnership for Affordable Housing

$900,000 from Virginia Housing Trust Fund
Central United Methodist Church Ballston Station is a new 144-unit residential construction project directly across the street from the Ballston Metro station in Arlington County. All units in this building are accessible under Fair Housing. Eight units will be fully accessible, and four will be accessible for sensory-impaired individuals.

Fairfax County

Oakwood North Four/Arlington Partnership for Affordable Housing

$900,000 from Virginia Housing Trust Fund
The Oakwood North Four project will provide 79 units of critical affordable housing for independent seniors near the Van Dorn Metro station. This project will enable vulnerable households to age in place and includes a substantial number of smaller units focused on single-person senior households, which will be fully accessible under Fair Housing.

Ovation at Arrowbrook | SCG Development

$900,000 from Virginia Housing Trust Fund
$900,000 from National Housing Trust Fund
$600,000 from the HOME Program
Ovation at Arrowbrook (Arrowbrook Apartments I) will be new construction of 126 family units, consisting of one-, two-, and three-bedroom apartments for tenants with incomes at or below 30 percent, 40 percent, 50 percent, and 60 percent of the area median income. Six units will be reserved for individuals with developmental disabilities with incomes at or below 40 percent of the area median income. Fifteen units will be fully accessible to physically impaired and/or sensory impaired residents. The building will include a structured parking garage, finished clubroom, fitness room, a conference center, and a study and computer center. The project will include an outdoor lounge and grilling area, bicycle storage, dog park access, as well as proximity to a 15-acre park inside the development site.

City of Winchester

Blue Ridge Habitat for Humanity Affordable Housing 2020/Blue Ridge Habitat for Humanity

$400,000 from HOME Program
The Blue Ridge Habitat for Humanity Affordable Housing 2020 project will result in five affordable home ownership units for five families that earn less than 60 percent of the area median income. Funding will be used for families and individuals who are residents of Winchester. Families will participate in seminars that prepare them for first-time homeownership and contribute to the construction of their homes, performing 200 hours of “sweat equity.”

Source: patch.com

March 2, 2021

Three solutions for homeowners in forbearance

While the Biden administration has pushed the foreclosure and forbearance moratoriums out to June of this year the extension isn’t necessarily a fix to the problem. Sure, given vaccination rates, reopenings, and the expected jobs growth that will come with them, we can probably predict more borrowers in forbearance will be back on their feet come June. But just because they’re earning an income again, that doesn’t mean these borrowers are ready to pay back as much as 15 months’ worth of unpaid mortgage bills. It’s up to governments, servicers, and mortgage professionals to offer solutions that will keep borrowers in forbearance from going into foreclosure and make sure forbearance doesn’t become a chronic problem in the housing market.

To understand what solutions are out there for these borrowers, MPA spoke with Andrew Wang (pictured top) and Woobie Rust (pictured below), CEO and chief compliance officer respectively at Valon, a tech-driven mortgage servicing firm. They explained why extending the moratoriums just ‘kicked the can down the road’ and what solutions are out there for these borrowers.

“Most homeowners, as we can see in general statistics about the US market, are in a position where they don’t have much liquidity,” Wang said. “Even if they get a job that covers monthly payments, it doesn’t really address the fact that they’ve missed 12+ months of monthly payments. The question is, when they’re back working, what are they able to do to compensate for those lost months? There are two answers really: either they win the lottery, or governments and the mortgage industry can come up with a solution.”

Solution #1: The Balloon Payment

The first solution Wang offered would be a government-led initiative that’s already been floated as an option. That option would take a borrower and collect their unpaid mortgage bills into a single balloon payment due after either five years, or when the property is sold. It’s a solution that allows them to stay current on their mortgage payments while giving them much-needed breathing room.

Wang expects this solution is most likely to come through state governments, noting examples in California and Washington DC as signs of some hope for this solution. Wang expects more Democratic-leaning states to deliver this option.

Woobie Rust noted, too, that Fannie and Freddie have already come out with a payment deferral program that will turn these unpaid forbearance months into a balloon payment due down the road.

Solution #2: Refinancing

Woobie

“The unique difference from the great recession is that homeowners have accrued equity during this crisis,” Rust said. “Now paying the loan off in full is an option for homeowners.”

Wang noted that originators could help these borrowers by refinancing their properties based on accrued home equity. They could get a cash-out refi to pay down the old mortgage debt while creating a new one. However, that solution comes with the key caveat that a borrower just out of forbearance or newly re-employed is not a likely candidate for an agency loan. Securing that refi might mean going the non-QM route, unless the agencies waive some restrictions on refis for these borrowers.

Solution #3: Smarter servicing

While this might not be a silver bullet for borrowers in forbearance, Wang and Rust noted that if servicers are strengthening their data processes and deepening their knowledge of specific state regulations, they can develop more creative solutions for borrowers. It’s important for servicers to know, for example, that borrowers will have 15 months of options and many might have only used a portion of that. Should they need to go back into forbearance, servicers should be able to provide a solution.

Wang and Rust believe services will need creativity and flexibility in order to solve the forbearance issue. It’s their view that a data-oriented, targeted approach by servicers can play a crucial role in setting the groundwork for any meaningful solution. If servicers are to help keep forbearance from becoming a chronic issue, they might have to look to their approaches.

“Forbearance is an interim solution,” Wang said. “But in a more data-oriented industry you should be able to know which borrowers are impacted and selectively target homeowners who are undergoing stress and deploy solutions for them immediately. That’s what we believe the market is heading towards, but it’s not there today.”

Source: mpamag.com

March 2, 2021

You donât have to move to the country to get a USDA Home Loan – Washington Post

The U.S. Department of Agriculture rural lending program offers a zero percent down payment option and generally has lower interest rates than conventional loans. The loan program is based on the home’s location as well as buyer qualifications and income limits. Surprisingly, the addresses that could qualify are within minutes of some major cities across the United States, including D.C.

We asked Edward Barry, chief executive of Maryland-based Capital Bank to explain how this little-known program might help some home buyers. Barry offered the following insights via email.

● What makes a USDA loan an especially great option for first-time home buyers is the flexibility of not having to save for the down payment as they offer a zero percent down payment. For folks just starting out, there is a lower-income allowance for USDA loans (although the range of eligibility is determined on a state and county level) as well as lower credit score requirements. And, given that they usually have lower interest rates than conventional 30-year fixed loan options, it can be easier on the budget, too.

● Getting the right type of loan can make a big difference on a new home buyer’s monthly payment and their budget.

● The USDA’s definition of “rural” is really a lot broader than people probably assume when they’re thinking about their home-buying options. It really comes down to population density. For example, there are areas 30 minutes from D.C. that people don’t think of as “rural” with residential addresses in those regions that are eligible for a USDA loan.

● It’s important to note that a lender has to be approved to offer this type, and other types, of government-backed loans.

● One more potential advantage of a USDA loan: USDA offers a streamlined refinance, meaning it’s comparatively easier than a traditional conventional loan refinance.

Finding the right lender is important

● Of course, no two home buyers are the same. That’s why it’s important to have a knowledgeable lender who takes a personal approach to applicants, who listens and clearly lays out all their available options.

● Home buyers should make sure the lender’s loan officers will personally guide them through the application process, listening to their goals and learning their limitations to ensure that the mortgage aligns with the home buyer’s individual needs. It’s that personalized guidance that makes all the difference in securing the right loan, such as identifying whether a USDA loan or potentially other government-backed loans may be an option.

● Some lenders don’t even know about this under-the-radar USDA loan, and not all lenders are approved to offer this type of government-backed mortgage.

To learn more about eligibility for a USDA loan, click here.

Source: washingtonpost.com

March 2, 2021

Deephaven names new president and CEO

Mortgage lending expert John Keratsis, whose experience spans nearly two decades, is joining mortgage platform Deephaven as it extends its footprint in the non-QM market. He will succeed Matt Nichols as president and CEO.

According to a Press release, the transition will enable Nichols – who will also continue to serve as executive board chair of Deephaven – to focus on his position as co-head of Pretium’s residential credit business. Pretium purchased Deephaven Mortgage in 2019.

“I am thrilled to be joining Deephaven during a time of considerable expansion in the non-agency credit space. Pretium’s willingness to invest in intelligent technologies will allow Deephaven to grow and offer creative products to borrowers, which is an exciting opportunity for someone with my experience,” Keratsis said.

Before joining Pretium and Deephaven, Karatsis oversaw a number of Incenter’s mortgage services and specialty lending business divisions as senior managing director. He was also the founder and CEO of Boston National Title, a title and settlement services platform, before it was acquired by Incenter in 2016.

“We are excited to welcome John to the Deephaven team,” said Matt Nichols, founder of Deephaven. “He is a committed entrepreneur with a proven track record of building successful businesses that combine a client-centric operating approach with a commitment to providing world-class service. His depth and breadth of experience and expertise will be instrumental as we continue to scale our platform and look to capitalize on a broad array of strategic business opportunities.”

Source: mpamag.com

March 2, 2021

USDA offers loans to help people buy, repair homes | The Globe – The Globe

WORTHINGTON — USDA Rural Development is accepting applications for very low- and low-income individuals and families seeking to purchase or repair a home in a rural area.

The Direct Home Loan program offers financing to qualified very-low and low-income applicants who are unable to qualify for traditional financing. No down payment is required, and the interest rate could be as low as 1% with a subsidy. Applicants must meet income and credit guidelines and demonstrate repayment ability.

The program is available in rural communities of generally 35,000 people or less.

The maximum loan amount is $20,000 at a 1% interest rate, repayable for a 20-year term and can be used to improve or modernize homes and do essential repairs. Grants of up to $7,500 are available to homeowners 62 and older and must be used to remove health or safety hazards, such as fixing a leaking roof, installing indoor plumbing, or replacing a furnace.

Contact Worthington’s USDA Rural Development Housing Specialist at 372-7783, ext. 4, for more information.

Source: dglobe.com

March 1, 2021

New anti-money-laundering requirements could worsen loan turn times

The Anti-Money Laundering Act passed in 2020 and implemented this fiscal year has added significantly more compliance-related steps for lenders, now having to take government-mandated steps to prevent both institutional and individual fraud. While some states have similar requirements already, others will be facing these obligations for the first time, potentially exacerbating turnaround times for loans as conventional identity-verification systems are pushed to their limits. Longer turn times on loans are the last thing lenders need right now and a speedy solution is needed.

That solution, as it turns out, might lie abroad.

SmartSearch, a British electronic verification and anti-money laundering (AML) tech provider has been doing this work with 5,000 clients in the UK, where money laundering through real estate has been a more widely publicized issue. Its platform, recently launched in the US market along with the opening of a Utah office, is designed to automate that compliance process and keep lenders up to date with this new legislation.

“Financial institutions lending money based on property have got to undertake a full customer identification program for an individual or a corporate client,” said Martin Cheek (pictured), co-founder of SmartSearch. “Within that there are two tests they have to undertake: the first is whether this individual or entity exists and the second is whether this individual or entity is who they purport to be. At a high level that’s what you have to do, but then there is mitigation of internal risk factors, ensuring the lender or broker doesn’t lose out on that transaction. While that’s not directly regulated, it’s a financial risk burden for the business.”

Read more: UWM taps Fannie Mae leader for new executive position

The general fraud prevention and AML processes that most lenders employ, Cheek explained, rely heavily on ID documents like passports, drivers’ licenses, utility bills, and information from corporate registries. The issue with those documents, however, is that they’re very easy to fake. Verifying them, and conducting the full customer identification process with them, can be a hugely time-consuming process especially as so many different parts of the mortgage chain might need to conduct independent verifications of their own.

Cheek’s SmartSearch system, conversely, claims to be able to do a preliminary assessment of a company in two minutes, and an individual in two seconds. That initial assessment, too, acts as a sort of triage. Low fraud or money laundering risk borrowers can then be brought through the loan process efficiently while higher risk individuals and entities can be subjected to more stringent checks like electronic document validation, or even facial recognition.

Read more: PCMA expands mortgage program for high-net-worth clients

The SmartSearch platform, according to Cheek, is designed as a browser-based platform accessible from anywhere with an internet connection. It is able to conduct a wide range of checks against individual and corporate applicants, verifying the truth behind as many of the documents the applicant submitted as possible. These checks can verify simple risks like whether an individual borrower is who they say they are, or calculate increasingly complex risk factors, such as the application of a politically-exposed-person, whether from the US or a foreign official.

In the face of new compliance pressure and already lagging turn times, lenders need an efficient solution to their new AML and anti-fraud requirements. Cheek believes that having honed their service in the UK’s more advanced and restrictive regulatory environment for real estate, SmartSearch might be the tool American lenders need now.

“We provide that one stop shop,” Cheek said. “We’ve got multiple data vendors, and it gives you the ability to be able to comply with your risk-based approach.”

Source: mpamag.com

March 1, 2021

SBI cuts home loan interest rates, waiver on processing fees continues – Mint

State Bank of India (SBI) has reduced the interest rate on home loans. The Bank now offers interest concession of up to 70 basis points (bps )with interest rates starting from 6.70% onwards. This is a limited period offer ending on 31 March. The lender is also giving a 100% waiver on processing fees. The interest concession is based on the loan amount and CIBIL score of the borrower. SBI believes that it is important to extend better rates to customers who maintain good repayment history.

SBI, being the market leader in home finance, takes ownership in bolstering consumer sentiments. The affordability for the consumer increases immensely with the present offerings as the EMI will be reduced.

Also Read | Assam shakes up the micro loans universe

Saloni Narayan, DMD (Retail Business), SBI said, “Our customers have complete trust in us because of our total transparency. The reduced interest rates are one of the best interest rates in Home Loans anyone can wish for.”

SBI home loan interest rates are linked to CIBIL score and start from 6.70% for loans up to ₹75 lakh and 6.75% for loans above ₹75 lakh.

Customers can also apply from the ease of their home via the YONO app to get additional interest concession of 5 bps. On the eve of International Women’s day, a special 5 bps concession is being made available to the women borrowers.

State Bank of India is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country. The home loan portfolio of the bank has crossed the milestone of ₹5 lakh crore. As of 31 December 2020, the bank has a deposit base of over ₹35 lakh crore and advances of more than Rs. 26 lakh crore with CASA ratio of about 45%. SBI commands over 34% market share in home loans and around 33% in the auto loans segment.

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Source: livemint.com

March 1, 2021

How to Build an Emergency Fund

April 4, 2019 Posted By: growth-rapidly Tag: Emergency Fund

You never know what life will bring. You can unexpectedly lose your job. A medical emergency can present itself, or you may have unexpected home repairs. So, as financial advisors would say, having an emergency fund to cover these ’emergencies’ makes good financial sense.

An emergency fund then is a stash a money you save somewhere, usually in a savings account, to cover some of those unexpected surprises. These ’emergencies’ or unexpected events can be costly and they can threaten your financial well being when presented with them. It is therefore important to create one, know what a good emergency fund amount is, where you should keep your emergency savings, and how much you should save in your emergency fund.

Ready to get started? Start your emergency fund today with CIT Bank.

1. Where to put your emergency fund?

High yield savings accounts or money market accounts are a great choice to put your emergency fund for two main reasons. First, they are safe. The point of having an emergency fund is to have that money available to you when an emergency arises. In other words, you want to make sure that your money is there when you need it.

The worst thing you can do to your emergency fund is to expose it in the stock market. The stock market is so volatile that you can lose all of your money in a matter of minutes.

So money placed in high yield savings accounts are safe because they’re not exposed to the stock market and they are insured by up to $250,000, making them some of the best places to stash your emergency fund.

Second, they are accessible. They are liquid, and can easily get your cash within 24 hours, if not sooner.

Related: The Best 5 Places to Keep Your Savings

2. Emergency fund amount.

How much should you have in your emergency fund?

Your emergency fund amount depends largely on your unique circumstances. But financial experts recommend to have at least 3 to 6 months’ worth of living expenses. So if your monthly expenses is $2000, your emergency fund amount should be at least $6,000.

3. Your emergency savings choice.

CIT Bank 2.4% APY Savings Builder High Yield Savings Account is a great option for your emergency fund. It offers a very high APY 2.45%, multiple times better than what a typical traditional savings account is offering.

Learn more about CIT Bank here.

4. How to Start an emergency savings fund

Starting an emergency fund is easy. Open a savings account to use strictly for unexpected expenses and start stashing money away every week, every month, or every paycheck. Even if you think you don’t have enough money to save, save smaller amounts in the beginning and increase it whenever possible.

5. Reasons why you should have an emergency fund.

If you don’t have an emergency fund, you may find yourself in hot water when an emergency arises.

Apply for a loan. If you don’t have a safety net, you may be forced to apply for a personal loan. And a personal loan can put you into more debt. You will have to work hard to repay the principal, plus interest. And if you can’t pay your loan, a judgment can be entered against you.

Take out a 401k loan. You’re allowed to borrow against your retirement account such as a 401k plan. However, just as any other loan, you have to repay it back according to the rules set by your account, or else you will get hit with a penalty. Also, taking money out of your retirement account prevents potential growth of your account.

Selling stocks, rental properties. You may have to sell your stocks or real estate investments in case of emergency. However, that will cost you a lot of money like transaction cost, taxes, etc.

Learn more:

The 5 Best Places to Keep Your Savings

Top 5 Reasons Your’re Not Saving Money

Money Saving Tips: 6 Secrets to Saving Money

4 Reasons CIT Bank Can Maximize Your Savings

Working With The Right Financial Advisors.

You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

Source: growthrapidly.com

March 1, 2021

SitusAMC buys warehouse mortgage lender, continuing acquisition streak

SitusAMC has completed its acquisition of Street Resource Group (SRG), expanding the proptech firm’s warehouse lending technology offering.

The deal will see SitusAMC combine its existing ProMerit system with SRG’s warehouse loan system (WLS) to support more than 60 of its clients representing approximately $3 trillion in loan funding during 2020. While financial details of the transaction were not disclosed, SitusAMC said that it will retain the SRG team, and SRG founder and CEO Stanley Street will serve as vice chairman of SitusAMC Technologies.

“SitusAMC is dedicated to providing warehouse lenders with technologies designed to support both traditional operations and the future paradigm of digital automation in the mortgage industry,” Street said. “We look forward to joining SitusAMC as we continue to deliver superior outcomes to WLS clients and enhance the overall value we can provide to the warehouse lending market.”

Founded in 1986, SRG provides more than 1,500 independent mortgage originators and more than 14,000 users with warehouse lending options. Through its WLS platform, mortgage bankers and their warehouse lenders can automate the lending process while improving compliance.

“As independent mortgage bankers become a more prominent part of the mortgage origination market, having a trusted warehouse lending partner is critically important,” said SitusAMC CEO Michael Franco. “This acquisition enhances our focus on providing solutions that ensure the availability of credit to the broader mortgage market and will allow us to further our existing efforts to bring greater efficiency into the primary origination market.”

Source: mpamag.com