Pandemic-related forbearances end on May 31

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1. Pandemic-related forbearances end on May 31

Forbearances provided by the USDA, HUD, and FHA due to pandemic-related financial hardships will now end on May 31, following the White House's decision to end the COVID-19 national emergency. The emergency was terminated several weeks before its scheduled expiration on May 11.

“As the National Emergency may end earlier than originally expected, USDA has determined that a short period beyond the expiration of the COVID-19 National Emergency would be beneficial to both USDA borrowers and servicers,” USDA said. “The USDA is extending the date by which a servicer may approve a borrower’s request for an initial COVID-19 forbearance.”

Some housing relief provisions have already been phased out, but a few have been extended to help borrowers and mortgagees. HUD specifies that no COVID-19 forbearance period may extend beyond November 30, 2023.

2. Mortgage credit availability improves

Mortgage credit became slightly more accessible in March, but it was still at its tightest levels in a decade, according to the MBA.

The Mortgage Credit Availability Index (MCAI) increased by 0.4% to 100.5, signaling easier lending standards. The Conventional MCAI increased by 1.1%, while the Government MCAI decreased by 0.2%.

The decline in government mortgage credit, which many first-time homebuyers rely on, could impact their ability to purchase homes.

Jumbo loans experienced a minor increase in credit availability (+1.4%), but banks may tighten the criteria for these loans due to challenges in the banking industry.

3. More Nuggets

🏠 National home prices just bottomed out, says real estate data juggernaut CoreLogic (Fortune)

🔒 Whole new meaning for the "lock-in" effect... (WSJ)

🌱 Sustainable returns: The mortgage that will pay to make your home more climate-friendly (CNBC)

4. FTC requests halt to ICE's Black Knight deal

The Federal Trade Commission (FTC) is seeking a temporary restraining order (TRO) and preliminary injunction (PI) against Intercontinental Exchange's (ICE) planned acquisition of Black Knight.

The injunction aims to provide time for the FTC to pursue in-house litigation against the merger. The acquisition is set to close following a shareholder vote on April 28.

The FTC argues that the merger of the two largest home mortgage loan origination system providers would drive up costs, reduce innovation, and limit options for lenders.

In response to antitrust concerns, ICE and Black Knight reduced Black Knight's value by 11% and sold off its loan origination system, Empower, to a subsidiary of Constellation Software Inc.

5. GOP lawmakers seek to block small business lending rule

Three Republican lawmakers are trying to block the implementation of a new small business lending rule by the CFPB. Representatives Roger Williams, Andy Barr, and Andy Ogles introduced a resolution of disapproval to halt the rule, which is set to take effect in October 2024.

They argue that the rule is an attack on small businesses and adds burdensome requirements without considering the impact on small businesses and lenders.

The new rule aims to increase transparency and mitigate discrimination in small business lending by requiring lenders to collect and report information on small business credit applications, including demographic data, lending decisions, and the price of credit.

☀️ See you on Friday!

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