Now that Hurricane Sandy has passed and the cleanup commenced, mortgage bankers funding loans in the Mid-Atlantic and Northeast can expect their originations to be “frozen” for awhile, according to the Mortgage Bankers Association.
MBA president David Stevens in an interview with National Mortgage News said lenders will need to have properties “re-appraised” in the wake of storm damage.
The trade group also anticipates that mortgage profits and origination volumes will be lessened because of the days lost to the storm.
“Each month has about 22 business days,” said Stevens “and we’re looking at two days lost right now.”
On a positive note, Stevens anticipates that the Fannie Mae/Freddie Mac trading window will reopen on Wednesday and that FHA and VA will be open for business again.
Marc Savitt, president of the National Association of Independent Housing Professionals said he’s hearing from his 9,000 members that business will be hurt the most in the New York and New Jersey area. “West Virginia is not bad, except for snow in the mountains,” he said in an email exchange. “Northern Virginia has some power issues but they’re okay.” (Savitt is based in West Virginia, about one hour from Washington.)
CoreLogic released a report late Monday measuring the top 25 zip codes in the New York City-Northern New Jersey-Long Island area that are at risk of exposure to residential property damage from the hurricane.
Massapequa, located on the South Shore of Long Island, holds the top spot with more than $4.6 billion in total structure value at risk.
