What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

How real estate agents can increase profitability in 2021

As real estate professionals strategize on how to do business in this competitive, fast-paced market, they’ll discover the need for better tools to market their listings.

HousingWire's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

An Honest Conversation on minority homeownership

In this episode, Lloyd interviews a senior research associate in the Housing Finance Policy Center at the Urban Institute about the history and data behind minority homeownership.

CoronavirusReal EstateMortgage

JPMorgan Chase tightens standards for jumbo loans in Manhattan

Fears of falling prices as pandemic exodus reduces demand

JPMorgan Chase has tightened mortgage terms on jumbo loans for co-operatives and condominiums in Manhattan amid shrinking buyer demand, Bloomberg reported on Friday.

Chase announced that, beginning this week, it would limit jumbo loans to 70% of the sale price. The new standards apply to loans of more than $765,600 not guaranteed by Fannie Mae and Freddie Mac — which account for 95% of the Manhattan market, according to the report.

JPMorgan’s new loan-to-value restrictions will apply to all Manhattan apartments, including re-sales and co-ops, many of which are relatively affordable, older units that price sensitive buyers turn to first.

A JPMorgan spokesperson confirmed the new loan terms are due to “current economic conditions.”

Jonathan Miller, real estate appraiser and consultant with Miller Samuel Inc., told HousingWire it’s “unusual” for one of the New York boroughs to be singled out.

Untying business growth from the housing market cycle

Lenders need to be able to grow their business in a way that is not linear and is not tied to the market cycles – leveraging automation technology can help.

Presented by: Indecomm Global

“Manhattan is one of the highest-cost housing markets in the United States, and a large chunk of the mortgage loans are jumbo,” he said. “But the Manhattan market has been the slowest to recover because its residents have the most wealth and mobility in the city. Large numbers were able to leave with COVID lockdown occurred.”

Miller added that the lack of a vaccine has discouraged many who initially left from returning to Manhattan.

“That’s weakening the market as prices have softened,” he said. “Unlike conforming lenders, many jumbo loans are held in portfolio, and future economic conditions are awash in uncertainty at the moment.”

Melissa Cohn, a mortgage lender and broker with William Raveis Mortgage, added that an influx of condominium inventory in New York City created “a perfect storm.”

“Prices have fallen by a greater percentage in New York City than anywhere else in the country,” Cohn said. “Chase and other lenders have chosen to restrict loan values in order to protect themselves.”

Cohn added that many lenders are following similar paths during the pandemic: raising maximum credit score requirements, lowering maximum loan amounts, requiring more cash reserves, and even limiting or eliminating home equity loans

In March, HousingWire asked the question “Did non-QM just disappear from the market?” as many of the biggest lenders specializing in lending to borrowers outside the Qualified Mortgage lending box were pausing their activities due to uncertainty in the market. The two main holdouts were Angel Oak Mortgage Solutions and Citadel Servicing, which remained in the non-QM lending business as long as possible before eventually bowing out. 

But non-QM lending staged a comeback in May, as several companies that halted non-QM lending in March went back on the market, including Sprout Mortgage, GreenBox Loans, and Angel Oak.

Leave a comment

Most Popular Articles

FHFA doubles affordable housing disbursement to $1B

FHFA Director Mark Calabria has upset the #FannieGate folks: the GSEs will be doubling their affordable housing disbursement to $1B in 2020

Mar 01, 2021 By

Latest Articles

Rocket Mortgage stock surges thanks to Wall Street Bets

Rocket Companies Chairman Dan Gilbert may want to gift some karma to users of the infamous subreddit Wall Street Bets. The company’s stock soared to over $42 on Tuesday after day traders took notice.

Mar 02, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please