 Greetings! The credit crunch has affected us all. Our transferring employees are being required to provide more documentation than they had in the past to secure a mortgage, down payments have increased and appraisals verifying value are being scrutinized. Below is an article discussing some of the roadblocks that transferring employees are facing today. We can all be helpful by keeping open lines of communication and setting realistic expectations.
Sincerely,
Susan Bender
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The Big Squeeze...The Recent Tightening of Mortgage Requirements
The mortgage industry is undergoing daily changes due to the weakened state of the housing market. Problems in some areas of the mortgage market, such as subprime and Alt-A (almost prime), have resulted in a tightening of credit, as seen in increased credit standards and reduced mortgage availability.
Results from a a survey conducted at a benchmarking session at the Worldwide ERCŪ's National Relocation Conference in May 2008, indicate that "relocating employees are experiencing several challenges in obtaining mortgages. The obstacle most often being faced is 'stricter loan eligibility requirements by lenders,' as reported by 68 percent of the respondents. The other two challenges each cited by 40 percent of respondents was 'requirement of larger down payments' and 'increased documentation and/or processing time for mortgages'."
Loan Officers and Relocation Consultants are also seeing an increase in homes not appraising for their purchase price which causes delays in the process, back ups in receiving household goods due to delayed closings, increased temporary living and sometimes a total displacement of family until the situation is resolved.
So, what can we do to help transferring employees be prepared for a more difficult time obtaining a mortgage? Here are a few things to remind them of:
- Start early, contact NRI Mortgage Solutions prior to selecting a property
- Be prepared to provide additional documents
- Consider an FHA loan for lower down payments
- Keep important documents separate from items that are being packed up for the move
- Stay in contact with the lender to make certain all documents are received and the appraisal has been ordered.
- Expect the process to take more time!
What to expect?...the unexpected. | |
 Under Pressure
With continued pressure to verify mortgage information, FNMA (aka Fannie Mae), the Federal National Mortgage Association that operates in America's secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates, has also dramatically tightened their standards, including those that relate to corporate relocations. In some cases, they have started to require the complete Employer Relocation Policy to demonstrate that the policy is ongoing and not structured for just one individual. NRI Mortgage Solutions continues to see new, more stringent documentation requests... |
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As things change, NRI will keep you informed!
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Susan Bender, CRP, GMS
CEO NRI Relocation
847-215-5000
sbender@nrirelocation.com |
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Pass The Word!
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NRI
is confident that we can wow new customers with the level of service we
provide to you and your transferees. We invite you to tell others about
us so that they, too, can experience the difference.
They
will find what other NRI clients have found -- that no other relocation
company will give them the time, attention and VIP treatment that NRI
does. We believe that relocation is a people business and we put our
people to the test daily to create a positive relocation experience for
our clients and for their employees.
Please pass the word,
and let NRI show them how it's done - when you trust a company that
cares about your employees as much as you do.
We guarantee -- They will appreciate NRI's white glove service as much as you do!
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