Weekly News (June 3, 2020)
This week’s Interest Rate (23th Week)
(Fairway Asset )
30 Y Rate: 2.999%/ 15 Year Rate:2.750%/ 10 Y Treasury: 0.6720%/ FHA:3.250%
Prime Rate:3.0% / Ref IR: 0.00- 0.25%
(The rate based on 25% down payment with 740 above credit score)
We have Special Programs for Owner Occupy and 2nd Home. Conventional interest rate is lowest in history. Government loans still have liquidity problems.
New Jersey will enter into the 2nd Phase re-opening from 6/15
(The Korea Daily 6/2)
- The Governor announced on 6/1 that the State will re-open the 2nd Phase on 6/15 which includes outdoor dining, indoor store opening with 50% occupancy.
- Personal care business such as hair salon, barber shop will be opened a week later on 22nd as well. Nail Salon will not be allowed yet. Gyms will be the next.
- So far, the Governor has signed the order on 5/29 that Daycare centers will open from 16/15, outdoor non-contact sports such as baseball will open from 6/22, and summer camps open from 7/6.
$100M supported for New Jersey low income renters from July
(The Korea Times 6/3)
- 20% of this fund will be allocated for extreme poverty level people and those who are in danger to lose their homes. The qualification is 1) NY residents, 2) income is lower than 80% of AMI (Average Medium Income) which is $78,500 for 4 members family, 3) proof of hardship due to COVID-91.
- This support is up to 6 month rent, but renters have to pay 30% of income for the rent and the balance will be supported.
New York City will re-open the 1st Phase from 6/8
(The Korea Daily 5/30)
- The Governor announced re-opening the 1st Phase in NYC which includes construction, manufacturing, whole sales, retail stores (curbside pick up) with 6 ft distancing, less than 50% work force, and PPE (Personal Protection Equipment).
- Other area which re-opened the 1st Phase already received an approval to move forward to the 2nd Phase which includes office work, retails (inside store), real estate, hair salon, etc.
NY State passed the law to support low income family under COVID-19
(The Korea Daily 5/30)
- Emergency Rent Relief Act of 2020. S8419 has been passed unanimously on 28th. With this law, family having tough time under COVID-91 can receive 4 month rent voucher: April to July.
- This support will apply to people 1) whose income is under 80% of area’s average medium income and 2) rent is over 30% of their income.
COVID-19 pushed Real Estate Mortgage processing faster
(The Korea Daily 5/30)
- COVID-19 forced mortgage lenders and banks to use digital technologies to process from appraisal, and underwriting to closing : notary, income verification, appraisal, e sign, etc.
- Fannie Mae reported that digital technology made improvement on productivity, shorter processing and approval time, simplifying documentation, etc.
- Some experts say that Digital mortgage loan is growing faster than before due to COVID-19.
- Appraisers who need visiting homes are using video clips and Google Earth, which is a hybrid approaches.
- For sellers and buyers of real estate, also using 3D virtual tour package is growing.
Apartment rent can be decided by virtual (online) tour?
(The Korea Times 6/2)
- Virtual(online) tour is considered a major tool for showing and decision making of rental properties in most of area after COVID-19.
- com and Kingsley Associates reported that 53% of surveyees answered they had a virtual tour and 63% of them answered the virtual tour was enough for making decision to rent. The director of Apartmentlist.com said that they seem to be comfortable for online processing for their rental properties.
- Currently rent is stable during the pandemic situation, but high density area shows landlord’s concession such as low security deposit and free 1st month rent which lead to rent reduction eventually.
Due to unrest for George Floyd protesters, NYC extended the curfew till 6/7
(The Korea Daily/Times , NYT 6/3)
- The Mayor announced on 6/2 that the curfew (8:00pm – 5:00am) will be extended to 6/7.
- The curfew in NYC to curtail protesters for unjustified death of George Floyd (46 Blackman) by police force has begun from 11:00pm on 6/1.
- George Floyd was killed in police custody on 5/25 soon after a deli employee called 911, accusing him of buying cigarettes with a counterfeit $20 bill in Minneapolis.
- The protesters started gathering in Minneapolis and spread to LA, Atlanta, NYC, Washington DC, and more cities. Some of protesters became violent, and destroyed and looted some stores in Manhattan and Bronx.
- “GoFundMe” George Floyd memorial fund has reached to $10M as of 6/2. Also “Minneapolis Freedom Fund” which is for paying the bail money for poor people received over $20M.
ADM developer missed two month mortgage payments
(The Record 6/2)
- Triple Five, the developer that operates American Dream in East Rutherford has failed to make two payments on it’s $1.4B mortgage for Mall of Minnesota, a property it had put up as collateral for an American Dream loan.
- The Minnesota mall was slated to reopen Monday, after closing to curb the spread of COVID-19. However, the mall this week postponed reopening and suspended curbside pick up out of an abundance of caution by significant unrest of the community. The mall is just outside of Minneapolis, where George Floyd’s death sparked outrage and protests.
Other/Tech News : LG “Velvet” model cell phone introduced for 20’s and 30’s
– Specially designed for video contents (YouTube, Virtual tour)