Keeping you Safe and Informed During COVID-19
We want to thank you for your continued support to our community and confirm that Pivot will do our part to provide the support and security needed to bolster confidence and take the concerted efforts to control worsening global conditions.
We welcome the opportunity to serve you. Please reach out to us for any questions you might have at firstname.lastname@example.org or visit us at pivotlending.com. If you have a loan in process, please contact your loan officer for any questions. If you have questions about loan payments, please contact us at 303-952-1070 or at email@example.com or visit us at pivotservicing.com.
State Of The Industry
Presented by Bryant Ottaviano, Ashley Ottaviano, Dave Olson and Jeff Radcliff
Listen to Bryant provide updates on the current status of Mortgage Backed Securities, Warehouse Line Capacities and Jumbo Loans. Ashley reports on the facts on Underwriting During Unsure Times. Appraisals and the New Normal are explained by Jeff. This is a fantastic discussion on why the current market is functioning the way it is and what Pivot is doing to help insure all access is open to assist.
Avoiding Fraud and Scams
The Cybersecurity and Infrastructure Security Agency (CISA) warns individuals to remain vigilant for scams related to Coronavirus Disease 2019 (COVID-19). Cyber actors may send emails with malicious attachments or links to fraudulent websites to trick victims into revealing sensitive information or donating to fraudulent charities or causes. Exercise caution in handling any email with a COVID-19-related subject line, attachment, or hyperlink, and be wary of social media pleas, texts, or calls related to COVID-19.
Here are our quick tips:
- Read emails and texts carefully – Contact IT teams if you receive a suspicious communication.
- Visit trusted sources directly – Use known sources for virus updates, like the CDC, etc. Various maps and websites are using COVID updates as a disguise for malware.
- Keep computers up to date – Stay tuned for news from Microsoft and other key vendors on patches as they come out. Verify updates and communicate any actions needed from users clearly.
- Additional tips listed on the Federal Trade Commission Consumer Information page.
Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19 Outbreak.
Pivot has applied the following business continuity readiness:
- Applied stringent cleaning processes within our office and workspaces
- Offered our employees ability to work from home
- Practice Social Distancing as recommended by the CDC
- Limiting business travel, group meetings, and office visitations
- Adherence to written Business Continuity Plan and Disaster Recovery Plans
Here are a few ways we all can help the wellbeing of those at risk and the financial stress of our community:
- Encourage low-cost actions such as promoting good hygiene practices.
- Remain home when anyone in the home is sick
- Encouraging healthy and eligible locals to donate blood platelets to help in maintaining the current blood supply*
- Encouraging stimulus of the economy by purchasing gift cards online and support small business and frontline employees through drive up or delivery services
- Encouraging donations to local food banks
Know your Home Mortgage Options During a Crisis
Millions of people across the country are facing financial hardships due to the Coronavirus crisis. If you are among those who are struggling financially in the wake of the COVID19 pandemic, options are available.
Mortgage deferment and mortgage forbearance are two of the most common assistance agreements made between borrower and lender, allowing temporary suspension of monthly payment due.
A loan deferment allows a hold on payments for a certain number of months. Those delayed payments are added to the end of your loan and must be repaid on or before your loan matures.
Forbearance allows you to pause or reduce your mortgage payments for a limited period, however, you’ll need to pay everything back within an agreed time-frame; either immediate or payment reduction.
For those encountering financial hardship and loss of income due to COVID19, the forbearance or deferment process could help bridge the gap. All agreements are made on a case-by-case basis and offered at the servicer’s advisement. Borrower’s must note that any and all amounts that are temporarily deferred do not go away, and must eventually be repaid, which means that deferring too long or too much could potentially set you up for serious problems in the not-too-distant future.
In response to these financial hardships, it is important to know that the Coronavirus Aid, Relief, and Economic Security (CARES) Act , puts in place two protections for homeowners with federally backed mortgages. – Lenders and servicers may not foreclose on you for 60 days, beginning on March 18, 2020, and ending on May 17, 2020. Second, if you experience financial hardship due to the coronavirus pandemic, you have a right to request temporary payment assistance.
If the pandemic has you worried about how you’ll make this month’s mortgage, know that you have options. Contact Pivot Lending or Pivot Servicing at (303) 952-1070 for assistance during this difficult time. You can also search online for a HUD housing counseling agency near you, or call HUD’s interactive voice system at (800) 569-4287.
Temporary Closures and Employment Related to COVID-19
Some states have ordered certain businesses to close because of the coronavirus (COVID-19), raising questions about pay, leave, and unemployment insurance. Here are answers to some common questions, posted by ADP.
COVID Act Now Map
Fannie Mae and Freddie Mac Updates
Greetings friends and colleagues,
We have sent some general communications on the status of Pivot and our staff, but I wanted to reach out to all of you to let you know personally that we are making the best out of this situation and the support from all of you has been much appreciated.
We were very fortunate to have moved over to about 85% of our folks having laptops prior to the COVID crisis. We have been working diligently to reassign and purchase new laptops for those that were not in possession of laptops. We have several departments (accounting, post-closing, funding) that are still very paper heavy, so we are coordinating with these departments to ensure social distancing while in the office and creating schedules that prevent no more than 10 employees from being in one location at a time. We are answering calls and emails as quickly as we can.
Much like 2008, there has been a massive lock-up in credit markets. We have seen 30 year fixed rate mortgages as low as 2.875% move all the way up to 4.25% today. Under normal circumstances, this type of move would have put an enormous amount of stress on the industry, but in todays environment, it is almost considered a ”normal” day. My opinion on the future of rates is that we will see additional QE from the Fed focused specifically in the MBS market, to alleviate the almost 325 bp spread between the 10 Year and a no point 30 year fixed rate mortgage. Historically the spread is about 170 bps. As this spread relaxes (hopefully sooner rather than later) we should get back to a more normal setting as it relates to closing mortgage loans, until then we are implementing a maximum number of loan closings per week of 50. This control will allow us ample time to sell the loan into the various secondary market conduits available to us.
General Mortgage Information:
Assignments and DoTs are being recorded, in most cases, through MERS (Mortgage Electronic Registrations System). Title companies will absorb the risk on ensuring the DoT is recorded if a county does not accept this process. Please be confident in our ability to ensure this process is safe.
Attached is the guidance from both FNMA and FHA for modifications. Any Portfolio loan will be presented to the CU for your approval prior to consummation.
Foreclosures have been halted until further notice according to the FHFA.
We are working directly with the FHLB and credit unions regarding modification requests. At this time we have not received any requests, only questions pertaining to future needs.
With regard to work from home scenario in servicing, we are getting in front of the remittances for March and will not have any major delays. Our employees have phone access from home with our phone system.
As more relevant information becomes available from the mortgage industry, I will share it with you.
I realize that all of you are contending with the exact same concerns that plague Pivot today and I want you to feel safe in knowing that your mortgages are protected. We are here and are not going to fail you.
In closing, I would ask you to send me any specific requests or questions. I am more than happy to give you the answer or find someone who can. Pivot is here today due to the friendships and partnerships that I have personally created with all of you. You are my partners, my peers and most importantly, you are my friends. I write this email with the strongest of confidence in our ability to weather this current situation because of you.
With all of my support and sincerity,