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INVESTTHIS - Scott Bower EPISODE 109, 21st May 2020
The Truth About the Mortgage Industry and Forbearance
00:00:00 00:49:43

The Truth About the Mortgage Industry and Forbearance

Mortgage Forbearance is a buzz word these days, and for good reason. We are going to give you the truth about what is going on right now. Big banks are playing games, and the media is freely giving out the wrong information, which could lead to financial disaster for investors and homeowners alike.

I personally have just gone through a scenario in which I filed for forbearance before I got the right information. On today’s show, I will take you through this step-by-step, so you don’t have to go through what I did.

Because this is such an important topic, I wanted to bring a mortgage expert on the show, go through everything that is happening in the mortgage industry today, so you can avoid problems in the future. Robert Cloud has been in the mortgage business for 17 years. He is currently a Branch Manager with Pinnacle Capital Mortgage, which is ultimately owned by Blackstone Holdings, one of the largest mortgage banks in the country. 

During today’s episode, we will take you through real-world scenarios around mortgage forbearance, the new rules of Fannie Mae and FHA, and the post COVID19 economy. You don’t want to miss our discussion on what the big bank mortgage lenders are doing because it will blow your mind.  

Key Takeaways

  • How COVID-19 has affected the mortgage industry: Every day, there is something new happening. 

  • Forbearance Fannie Mae COVID guidelines. 

  • How COVID19 is different than the crash of 2008. 

  • Depending on the virus, and how fast the economy rebounds, will determine where real estate and finance will go. 

  • Warren Buffett, what’s he doing with his money?

  • Everything you need to know about mortgage forbearance

  • How mortgages work. Mortgages are securities, REITs they invest in mortgage-backed securities. 

  • Modifying a mortgage during COVID-19: How Fannie Mae & FHA are handling forbearance and the affect homeowners and investors

  • Understanding underwriters and underwriting: Calculating risk

  • How forbearance affects your credit report

  • Why investors need to be careful if they have gone into forbearance

  • Everybody that files forbearance that shouldn’t file is affecting their future mortgages.

  • How realtors are destroying their own markets right now.

  • Scott details a real-world scenario about filing for forbearance on his apartment buildings and what happened.

  • Rapid credit checks are now a regular practice due to COVID-19.

  • Post COVID-19 economy. 

  • The worst-case scenario for investors who have gone into forbearance 

  • Beware of the big banks like Wells Fargo, Bank of America & Chase: They don’t have your best interest at heart.

  • How lenders view anyone that has filed for forbearance.

  • Understanding how the big bank mortgage lenders are conducting business during the crises (note: it’s not good)

  • Why you should pull your money out of your line of credit and put it somewhere else.

  • The REIT’s that buy the securities are not investing in mortgage-backed securities, but who is? 

  • Book discussion: The Creature from Jackyl Island - How our lending system was created

  • The good side of forbearance

  • What is Strategic Defaulting and how to use it

  • Real Estate market changes post COVID19 

  • Appraisal waivers due to Fannie Mae loosened up things.

Contact Robert Cloud