All member services are being offered online or by video or phone consult with one of our team members. Lockbox and key lease, exchange, pick-up or returns and store item purchase are by appointment only. CLICK HERE to make a service request and our membership team will reply promptly during business hours.
ONLINE CONTINUING EDUCATION
Online Continuing Education CE is being offered through the Center for REALTOR® Development, The CE Shop and Partner Real Estate Associations CLICK HERE TO EXPLORE CE OPPORTUNITIES
FREE ONLINE VIRTUAL CLASSES AND TRAININGS
For a wide variety of complimentary Real Estate and Business training courses happening now CLICK HERE
PAYMENT DEFERRAL FOR BORROWERS
The FHFA announced that beginning July 1st, Fannie Mae and Freddie Mac will have a new option to offer homeowners to repay their forborne payments.
The new program creates a “payment deferral” option for borrowers. “Payment deferral takes the missed mortgage payments and puts them into a payment due at the sale, or refinancing of the home, or the end of the loan. The borrower’s monthly mortgage payment will not change. Mortgages that exercise the payment deferral option will remain in Enterprise Mortgage-Backed Securities, subject to the terms of the trust agreements.” This applies to only the principal and interest, though, according to information on Freddie Mac’s website.
This payment option is similar to the FHA’s “partial claim” payment option, so it will help to create symmetry between the two programs.
This change is another option for homeowners in forbearance in addition to the GSEs’ current options which include extending the term, lowering rates, and adding the missed payments to the principle and will certainly help some homeowners.
These options to not apply to loans that are not federally backed.
We recognize that the process for applying for these benefits has been frustrating. Thankfully, the state has begun processing these claims. If you’re having trouble getting through to SCDEW, lease keep calling the SCDEW staff–they’ve added staff and additional work hours–it won’t be quick but it will be worth it.
PAYCHECK PROTECTION PROGRAM
SBA announces New EZ and Revised Full Forgiveness Applications for PPP
SBAborrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law on June 5, 2020. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.
Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.
Virtual Closings allowed until August 1. The Court also allowed remote closings for real estate transactions until August 1, 2020 by Order 2020-05-01-01. The order allows for parties to a real estate transaction, under the supervision of an attorney, to participate in a closing by video conference. This order does not allow remote notarization but will be beneficial to a variety of our clients and customers. Stay in touch with your closing attorney to make sure you’re aware of any changes to his/her closing procedures.
New Protect Your Investment Brochure
REALTORS® have access to a new resource to share with homeowners who are struggling to meet their loan obligations. The Protect Your Investment brochure encourages homeowners to work with REALTORS® and housing counselors and offers guidance on options provided by lenders. REALTORS® may add their logo to the cover for a customized look. Click here to learn more
SMALL BUSINESS LOANS
|The U.S. Small Business Administration (SBA) has approved Governor Henry McMaster’s request for the agency to offer South Carolina’s small businesses with disaster assistance.
The disaster declaration means that South Carolina’s small businesses that have suffered substantial economic injury as a result of the COVID-19 virus may qualify for low-interest federal disaster loans. All 46 counties are included in the disaster declaration.
South Carolina businesses can apply online at: https://www.sba.gov/funding-programs/disaster-assistance
New Extended IRS Deadlines Apply to 1031 Like-Kind Exchanges and Opportunity Funds
The U.S. Treasury and IRS, at the urging of NAR and its affiliates, announced on 4/9/20 that tax deadline extensions applicable to 1031 like-kind exchanges and opportunity fund investments that are already underway, as well as deadline relief for quarterly estimated tax filers. If an investor has taken the first step of a like-kind exchange by selling the old property, and either the 45-day or the 180-day deadline falls between April 1 and July 15, the deadline has now been extended to July 15. If an investor who sold a capital asset planned to roll over the gain into an Opportunity Fund and the 180-day deadline to do so falls between April 1 and July 15, they can now make the investment as late as July 15.
As a result of the IRS’ earlier notice of deadline extensions, the deadline for first quarter estimated tax payments was already extended to July 15. But before this new IRS deadline relief notice was released yesterday, second quarter estimated payments were still due on June 15, meaning that the second quarter payments were due before the first. Now, both first quarter AND second quarter estimated tax payments are due at the same time, on July 15, 2020, for those who file quarterly.
FEMA continues to take proactive steps to address the COVID-19 pandemic and to help serve its National Flood Insurance Program (NFIP) customers who may be experiencing financial hardships, the agency is extending the grace period to renew flood insurance policies from 30 to 120 days.
To avoid a lapse in coverage, there is typically a 30-day grace period to renew National Flood Insurance Program policies. However, due to the widespread economic disruption arising from this pandemic, FEMA recognizes that policyholders may not meet the standard deadline.
This extension will allow additional time for policyholders who may be struggling financially to pay insurance premiums and ensure their policies are not cancelled for nonpayment of premium due to circumstances beyond their control.
If a policy has an expiration date between February 13, 2020 and June 15, 2020, then the NFIP insurer must receive the appropriate renewal premium within 120 days of the expiration date to avoid a lapse in coverage. Likewise, if a policyholder receives an underpayment notice dated between February 13, 2020, and June 15, 2020, then the NFIP insurer must receive the additional premium amount requested within 120 days of the date of the notice.
Policyholders who need additional time to pay their premiums, beyond the 120-day extension, should contact their agent or insurer to inquire about other options the insurer may offer for premium payment.
SC Department of Health & Environmental Control or call 1-855-472-3432
Chambers of Commerce COVOD-19 Updates: