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The Rueth Team - Denver's Top Mortgage Company

Current Market Update - May 7

Forebearance - How to get in, get out, and the 12 month waiting period

By Nicole Rueth - May 7, 2020

Real Estate IS Resilient!  

There have been more questions than answers when it comes to forbearance.  Banks and servicers are making it oddly easy to get into forbearance making it seem like even if you don't need it, it's the right thing to do.  But is it?  It can affect your ability to get a lower interest rate or purchase a home for 12 months, locking you OUT of the market.

Parents, sellers.. I'm talking to you as well.  There are consequences the Cares Act did not think through.

Listen to find out how to get in, get out, and more about the 12 month waiting period!
Your partner,

Nicole Rueth
The Rueth Team of Fairway Independent Mortgage Corporation
750 W Hampden Avenue, Suite 500 
Englewood, CO 80110
303-214-6393
www.TheRuethTeam.com

Connect on social media: 
Follow me on FB: https://www.facebook.com/theruethteam/
Twitter: https://twitter.com/nicolerueth
Linkedin: https://www.linkedin.com/company/the-rueth-team-fairway-independent-mortgage/
YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKw
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Denver’s Housing Market is Weathering the Storm


By Nicole Rueth - May 4, 2020

Denver’s Housing Market is Weathering the Storm

We’re well into Colorado’s “spring-time rush” months, which is typically the busiest time of the year for the state’s real estate industry. As the weather warms each year, buyers become more active and home sellers begin listing their homes to meet the demand. Once the weather cools, estate listings drop in the MLS as fewer people house hunt in cooler weather. 2020 has been anything but normal.

Enter COVID-19. April’s Denver Metro Association of REALTORS data showed home sellers pulling their listings from the market despite a large number of closings. Uncertainty swirled as small and large businesses alike temporarily closed, spurring huge numbers of furloughs and setting record-high unemployment rates. Public officials had little to no guidance or answers to how long social isolation would last, and those who invested in the stock market saw one of the largest market drops in history, as the federal government’s injecting one of the largest fiscal “stimulus” bills in history to alleviate effects on the economy.

COVID-19 certainly took the brunt of the blame, but energy markets were primed for major sell-offs as Russia and Saudi Arabia abandoned a crude production agreement amid increasing tensions. As Russia, Saudi Arabia, the U.S., and other major crude exporters continued to oversaturate the supply-side of the market, COVID-19 prevented demand from stabilizing the energy market as social isolation measures kept people from driving and airlines saw a huge reduction in flights.

On top of the energy markets going haywire, it’s no secret most economists expected a gradual slowdown of GDP growth - aka a “recession.” As we’re all aware, recessions are normal market behavior and shouldn’t cause panic. Most recessions are natural adjustments, realignments between demand and supply, and economists expected the U.S. economy to experience a very mild and gradual slowdown sooner than later. Instead, COVID-19 appeared and *waves hand* all this happened.

Despite the negative bombardment of COVID-19, the financial markets, the economy, the election... the world continues to spin. We’re still here. Denver’s job market is showing that it’s resilient to recessions and pandemic, and that’s something to celebrate. Demand will continue to drive the housing market. Even with COVID, people are growing their families, retiring and downsizing, or are looking to upgrade

Let’s return to the Denver housing market. The facts: we know demand is pent-up as closings are still happening, mortgage rates remain at historically low levels, and inventory is still tight. We’re seeing fewer houses on the market due to timid home sellers, but the ones who are selling today are being offered high prices.

What about the future? Well, who really knows, right? COVID may stick around - or not! The important thing to know is Denver’s housing market is right where it needs to be. Heck, I’m going out on a limb here, but I’d imagine many people (especially renters) are sick of their homes and may want to find something new after everyone’s been stuck there for well over a month. Housing continues to be a safe bet, much more so than the retirement portfolio in the stock market.

Of course, there’s no rush. If you need more time to make decisions or you’d like to see more stability, no one will blame you for not wanting to buy or sell anything today. However, if you see the opportunity in today’s market as I do, call me. Let’s chat. There’s a reason why The Rueth Team has become the No. 1 mortgage lender in Denver, Colorado. We’ll take a look at your situation and give you advice on how to best enter the real estate market for YOU.


 
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Current Market Update - April 21

Real Estate IS Resilient!!

By Nicole Rueth - April 21, 2020

Real Estate IS Resilient!  

The numbers are stacked against us yet we keep charging forward.  Real estate agents celebrated last night when Governor Polis announced they could do showings starting on Monday the 27th.  Is it back to business as usual?  Not even close.  Take a look at these numbers...

- Fannie Mae's Home Purchase Sentiments is down 11.7% to its lowest level since December 2016
- University of Michigan's Consumer Confidence Index was 101 in February, 89.1 in March and 71 in April.. down to its lowest level since 2009
- NAR surveyed it's members and 90% of them noted home buyer interest is down.  44% of them said the drop was more then 50%
- MBA Purchase applications are down 35%
- Unemployment is up to 17% based on last week's jobless numbers and will probably be over 20% when we get the updated number on Thursday
- and finally ... Homeowners taking advantage of the forbearance plan is up to 2.9 million homes or 5.5% of the originations.  This will cost servicers $2.3 Billion a month!

High forbearance numbers are pushing bank and non-bank lenders to tighten their credit box, hurting first time homebuyers, move up buyers and jumbo buyers alike!  We all heard what Chase did.  But did you know other banks are doing the same.. just a little more quietly.

Wells Fargo, USBank, and BB&T all raised their FICO minimum to 680; Flagstar raised it to 640; Navy Federal stopped doing FHA loans hoping to bring them back in 2021 and Better.com stopped doing FHA loans and raised their minimum FICOs.

Meanwhile virtual showings is up 400%!  WOW.. this is your opportunity to engage in a whole new way... because the way we did things won't be the way we work going forward.

This is also the time when we all have to be more creative than ever.  Supporting our clients with solutions that help them in their journey to build wealth through real estate.  

Your partner,

Nicole Rueth
The Rueth Team of Fairway Independent Mortgage Corporation
750 W Hampden Avenue, Suite 500 
Englewood, CO 80110
303-214-6393
www.TheRuethTeam.com

Connect on social media: 
Follow me on FB: https://www.facebook.com/theruethteam/
Twitter: https://twitter.com/nicolerueth
Linkedin: https://www.linkedin.com/company/the-rueth-team-fairway-independent-mortgage/
YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKw
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Current Market Update - April 7

FHFA is Willing to Risk It, Unessential again?

By Nicole Rueth - April 8, 2020

FHFA is gonna "Wait and See" if Servicers Need Liquidity....

FHFA Director Mike Calabria, said today that they were going to "pause" on setting up any kind of liquidity facility for conventional loans.  Unlike Ginnie Mae, which last week, set up a liquidity facility for government backed loans....FHA, VA, USDA loans.  Ginnie Mae said they were going to help support the Servicers of these loans to pay investors, property tax, homeowners insurance and mortgage insurance for borrowers who couldn't make their payment

Typically, Servicers are able to handle changes in the market and handle a situation where a small percentage of borrowers don't make their payment.  But, they are NOT able to withstand the magnitude of borrowers seeking Forbearance. if 25% of all mortgage holders take advantage of Forbearance, that could cost the Servicers up to $25 BILLION a month.  No Servicer is set up to handle that massive amount of liquidity needs to satisfy investors, property tax and homeowners insurance.

Mark Calabria stated he prefers to "wait and see" if liquidity facilities are needed...perhaps in early 2021.  Well, Mark, by then it may be too late.  Because mortgage lenders and servicers need the ability to originate and service loans.  And without the liquidity support, it could put a halt on ability to provide conventional loans for buyers.  Mr. Calabria does not feel things are "not that bad yet".  Not that bad yet?  Just in the first week alone, there was a 1,270 percent increase in borrowers seeking forbearance.  The second week, there was an increase of 1,896 percent increase.  Looking at just one servicer.  During the first week available, Mr. Cooper allowed over 86,000 loans to go into forbearance.  The second week there were 219,000 loans that went into forbearance, The third week...717,000 went into forbearance.  There is no immediate sign of slowing down.  

​Is Real Estate Essential???

CAR released a letter last essentially stating that they are needing to re-look at whether real estate is an "essential business".  The 3rd update of the Colorado Public Health Order it did NOT include open houses or in-house showings as essential.  The definitions are currently being debated among lawyers and said a formal position will be made available soon.  As of the writing of this post, that position has not been released....stay tuned.  

Transactions are still considered essential.  So contract transactions, loan originations, appraisals, and closing are still able to be completed.

RSVP TODAY - Agent Ignite - Online

Thursday April 16th - 10:30am via Zoom
Featuring Bruce Gardner
www.TheRuethTeam.com/events
 
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If Not Me, Then Who?


By Nicole Rueth - April 6, 2020

If Not Me, Then Who? 
Denver’s top mortgage company emphasizes personal character in times of crisis

I have seen some things in my lifetime but I have never seen anything like what COVID-19 is doing to the economy or our lives. The constant feed of bad news can drain the most determined of us, but personal character - deciding to put others ahead of ourselves - will keep more neighbors from getting sick.

One of the best mottos to fostering leadership in dark times is, “If not me, then who?” 

As a mortgage lender, I’m not on the front lines. I am not a trained medical professional, but I want to do my part to help those who are on the front lines. Even if my team are not the ones walking into hospitals filled with sick patients and limited safety equipment, we can still do our part to help. “The Rueth Team” has followed the advice of public officials from the CDC and Colorado Department of Public Health and moved to working entirely from our homes. 

While we may play a small role in isolation, we’re doing our part to keep those on the front lines from having to make unimaginable decisions, like deciding who will or will not survive due to a limited number of ventilators.

As public leaders decide how to best manage this crisis, it’s up to each and every one of us to do our small part to help our neighbors. Luckily, we can make a difference from isolation such as supporting non-profits who are supporting those on the front lines, promoting your small businesses over your social media, and by simply respecting your fellow neighbor’s space.

I’m a believer in supporting causes whose missions focus on those in need. As is true with most natural disasters, the neediest are affected the most. As non-profits continue to serve the neediest, they rely on public donations, which can be especially difficult as a fluctuating economy scares potential donors. If you don’t support non-profits, who will?

Here is a list of a few of my favorite non-profits:
  • SECORCares - Committed to supporting families who are living paycheck-to-paycheck in the suburbs, Colorado-based SECORCares defines suburban poverty as the aftermath of when "life happens." SECORCares understands all too well how many families living in the suburbs are one disaster away from poverty. SECORCares needs donations of rice, beans, oatmeal, sanitizing wipes, spaghetti, spaghetti sauce, and financial donations (click here) to purchase large amounts of food. 
  • Nurse-Family Partnership - Nurse-Family Partnership is a community health program that truly changes lives for generations to come. Through ongoing home visits from registered nurses, low-income, first-time moms receive the care and support they need to have a healthy pregnancy, provide responsible and competent care for their children, and become more economically self-sufficient. Even as COVID-19 spreads, it’s more important than ever for mothers to learn how to care for their newborns from nurses. Read more about what they’re doing for COVID-19 here.
  • Ronald McDonald House Charities of Denver - Ronald McDonald House Charities of Denver provides a home away from home for families of children being treated at area hospitals and supports community programs that serve the needs of children. Their main focus is providing comfortable, low-cost housing to out-of-town mothers and fathers needing to be near their hospitalized children. 
  • United Way - Your generosity will help families and people in need to access critical information and services like food, shelter, and more through the global United Way network. 95% of your donation will provide relief to those left vulnerable by the pandemic.
If you don’t have the financial ability to donate money to charities, you can make a difference for your local businesses. As we continue to self-isolate, we still need to eat. Order takeout from local restaurants! Not only are you helping restaurants keep their workers on payroll, you’re helping the farmers who source the restaurant’s produce and ingredients, the delivery driver who needs to afford rent, and so much more. If you’re not supporting your local businesses, who will?

If your friends or family own a small business, promote them on social media. There is no shame in offering a bit of free exposure for your tribe in today’s environment. It’s why you’re in their network! Your recommendation might just be enough for someone in your network to hire your friend. If you’re not supporting your friends and family, who will?

At the end of the day, my actions may not be enough to shorten how long this virus will affect our community, but it helps. Winning this war will come down to respecting people’s space and thinking of others before yourself. This virus is affecting everyone in different ways and you have no idea if a stranger is more susceptible or if they’re the primary caretaker of someone who is. If you don’t respect someone’s space, who will?

Now is the time to lean into your character and take care of your neighbors. Even if it’s something small like ordering takeout or donating what you can, we need to spread positivity. It’s easy to be overwhelmed with negativity when each day brings worse news and updates, but it’s up to us as individuals to do our part. If you’re not spreading positivity, who will?

The Rueth Team of Fairway Independent Mortgage Corporation is serious about taking care of our local metro Denver community. We understand very well how this virus is affecting everything and everyone, some more than others. It’s important to keep the neediest in mind. If not us, then who?


 
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