Based on the latest report from Mortgage Capital Trading, the volume of mortgage rates experienced a 31% surge in June. This information is based on the actual number of locked loans and comes after a 15% decline in total lock production in May. On average, mortgage rates in June hovered around the 6.7% mark.

Andrew Rhodes, the Senior Director and Head of Trading at MCT, mentioned that the slowdown in originations towards the end of May suggests a revival in originations during the summer months. He emphasized that factors such as rates, housing supply, and affordability will remain the primary drivers behind the limited number of new originations.

MCT has projected add... Read more

Real estate investing offers numerous benefits, attracting millions of Americans. However, selecting the right strategy can be overwhelming for newcomers. To assist beginner investors, we present the advantages and disadvantages of short-term rentals and long-term rentals, aiding in the decision-making process for the most suitable approach.

Investing in short-term rental properties offers several advantages

• It provides a higher return on investment compared to traditional rental properties. By renting out your property on platforms like Airbnb, you can generate greater profits.
• You have control over the pricing strategy. With vacation rentals, you can se... Read more

Purchase loans are claiming a larger share of the origination pipeline as refinance opportunities diminish, reaching a record high of 88.4% in June, according to Black Knight’s market monitor report. This represents a 31% decrease year over year and a 29% drop compared to pre-pandemic levels in 2019, indicating that nearly 90% of newly originated mortgages are purchase loans.

In May, rate lock activity decreased by 1% compared to the previous month. Conforming loans gained market share while non-conforming loan products declined. The 30-year mortgage rate rose by 6 basis points (bps) to 6.78%.

Purchase lock volumes dropped by 11% since March and were 31% lower than th... Read more

During the second quarter, the dollar volume of securitized home-equity transactions nearly tripled compared to the previous three-month period. Furthermore, the average yield on deals closed this year has exceeded 10 percent.

Between April 1 and June 30, a total of six home-equity securitizations amounting to $1.308 billion were identified in a HELN analysis of rated residential mortgage-backed securities that were closed during that time frame.

HELN estimates that the aggregate loan count on transactions during the second quarter was approximately 16,087 units.

In the first quarter, HELN tracked two home-equity backed RMBS worth $0.437 billion, with approximatel... Read more

US officials are contemplating restrictions on the capacity of major lenders to utilize Federal Home Loan Banks as a financial safety net. This is part of a broader plan to revamp the system.

The $1.6 trillion system is currently undergoing a comprehensive assessment by an American regulator, with discussions focusing on substantial changes that would constitute the most significant restructuring in decades. Sources familiar with the matter indicate that the Federal Housing Finance Agency may refine its plans before officially announcing recommendations in the near future. It should be noted that taking measures to limit the borrowing capacity of major lenders may require int... Read more

According to Compass CEO Robert Reffkin, if mortgage rates return to around 5%-5.5%, it could encourage sellers to list their properties and reignite the fervor in the real estate market that was seen during the pandemic.

In a CNBC interview, Compass CEO Robert Reffkin shared his belief that a sustainable mortgage rate of 5%-5.5% would likely lead to an increase in available properties, resembling the high demand experienced during the pandemic.

Currently, sellers hold a significant advantage in the housing market due to the persistently high demand outweighing the supply of available properties. Buyers are willing to accept mortgage rates in the range of 6% or 7%, furt... Read more

The research team at Insurify has conducted a study indicating that homeowners insurance rates may experience a 9% increase in 2023. Factors such as supply chain issues and the impact of climate change are believed to contribute to this rise. On average, homeowners can expect to pay $1,784 per year for their insurance premiums.

Based on estimates derived from Insurify’s collected property data, analysts have determined that home insurance rates increased by approximately 7% in 2022 compared to the previous year. The average annual premium rose to $1,636.

The study also indicates that homeowners in Florida, Oklahoma, and Louisiana pay the highest premiums for homeowner... Read more

ATTOM’s Q2 2023 U.S. Home Affordability Report reveals that in 98% of counties analyzed, median-priced homes were less affordable in Q2 2023 compared to historical averages, continuing a trend since early 2022.

The report indicates that affordability has deteriorated nationwide in the current quarter, driven by a significant surge in home prices. As a result, the average portion of wages required for major home-ownership expenses has reached 33 percent.

The current portion, as per common lending standards that advocate for a 28 percent debt-to-income ratio, is deemed unaffordable. This figure represents the highest level since 2007 and is significantly higher than the... Read more

According to Redfin, the average U.S. home is currently selling for about $383,000, which is only $4,000 less than the all-time high set in June. This represents a minimal year-over-year drop of -1%, marking the smallest decrease in almost four months.

Recent data indicates that the sale-to-list price ratio has reached 100% for the second time since last August. This means that, on average, homes are now selling for their listed price.

The scarcity of homes for sale is a significant factor in maintaining stable prices. Additional data reveals a 27% year-over-year decrease in new listings during the four weeks ending June 25, the largest drop since the start of the pande... Read more

When contemplating the idea of buying a home, our minds tend to gravitate toward the more traditional circumstances. These can include purchasing a starter home independently or taking the leap after getting married or starting a family.

Traditionally, we associate homeownership with either embarking on the journey alone or with a significant other. However, a new trend has emerged that is gaining popularity: purchasing a house with friends.

This trend is particularly prevalent among millennials, who are often delaying marriage and parenthood while taking on mortgages with friends.

Although the trend of co-buying houses with friends is on the rise, it does not nec... Read more

A recent survey by Formfree reveals that many Americans have no idea about their credit score and have given up on homeownership due to it. Only 25% of the 2,000 respondents believe their credit score accurately reflects their financial status, and just 50% think it should be considered for home loan eligibility.

Brent Chandler, the CEO of Formfree, emphasizes that these findings serve as a wake-up call for mortgage lenders. He suggests that they should reevaluate their assessment of loan applicants’ repayment capacity and consider factors beyond traditional credit scores, such as overall cash flow. Chandler advocates for a more inclusive approach that benefits both consume... Read more

In a move aimed at enhancing accessibility and inclusivity, the Federal Housing Administration (FHA) has mandated that lenders offering FHA loans must now inquire about the language preference of mortgage applicants.

Effective from August 28, 2023, lenders will be obligated to utilize the Fannie Mae/Freddie Mac Supplementary Consumer Information Form (SCIF) for loan applications. The SCIF is a well-recognized industry form that facilitates borrowers in specifying their language preferences and indicating any homeownership counseling or education they have received.

The form provides borrowers with the option to share all, some, or none of the requested data. This inform... Read more

The commercial real estate market can be a daunting landscape, with inflation and unpredictable interest rates creating challenges for investors. However, amidst the uncertainties, there is a silver lining – small multifamily properties. These properties are emerging as the low-hanging fruit in the commercial real estate (CRE) space, offering favorable trends and opportunities for both individual and big investors.

Daniel Llorente, the Chief Lending Officer at Florida-based lender Korth Direct Mortgage (KDM), sheds light on this promising niche. In a conversation with Mortgage Professional America, he emphasizes the benefits of considering a smaller portion of the market to... Read more

Mortgage rates have experienced a sudden surge, surpassing the 7% mark despite recent indications of rates being in the 6.7% range. This unexpected rise, accounting for points, brings the actual average back above 7%. Today’s index shows a leap to 7.04, leading lenders to predominantly quote rates of 7% or 7.125%. This development has sparked discussions on the implications for individual financial scenarios and the factors behind this spike in mortgage rates.

In the current market, points – an upfront payment representing 1% of the loan balance to lower the interest rate – hold greater significance. Today, a single point can potentially reduce a 7.125% rate to 6.625%. ... Read more

In the vast landscape of the United States, the role of a US senator holds immense significance, with the Constitution granting each state the privilege of having two senators to advocate for constituents’ interests. Following a similar principle, the Association of Independent Mortgage Experts (AIME) has recently introduced its groundbreaking “state captains” initiative, aimed at amplifying the voices of its diverse membership.

AIME’s website succinctly captures the mission of the initiative: “Thousands of members. Dedicated champions in each state. One powerful voice.” The state captains’ laser-focused dedication, combined with their unique areas of expertise,... Read more

The Federal Reserve asserts that prominent US banks are in a robust position to withstand the effects of a significant economic downturn and sustain their lending operations.

In its latest annual banking stress test results, released today, the central bank declared that all 23 tested banks have exhibited resilience and strength by surpassing their minimum capital requirements, even under the hypothetical scenario of a recession.

During the 2023 stress test, a simulated global recession was conducted, featuring a substantial 40% decline in commercial real estate prices, a significant rise in office vacancies, a 38% drop in house prices, a spike in the unemployment rate ... Read more

In 2023, people hoped for housing prices to drop and make it easier to enter the market. However, prices are still rising in many areas due to economic uncertainty and low inventory. Interestingly, six cities are experiencing significant price declines, defying the national trend. What makes these cities different?

1) Austin, Texas

Following its peak in 2021, the housing market in Austin is experiencing a cooling effect. Recent listings are witnessing significant price reductions, with over 25% of homes on sale reducing their prices to attract potential buyers.

The demand has diminished in various aspects, particularly for individuals from costly cities like San... Read more

In a recent survey conducted by Mphasis Digital Risk, involving 1,386 individuals aged 46 or below, it was found that 66% of this group admitted to frequently going online to assess the worth of properties owned by friends and acquaintances. Moreover, they expressed a sense of envy towards others, comparing their possessions with those of others.

Furthermore, the survey revealed that out of the respondents who engage in online home value searches, a staggering 79% expressed feelings of stress, worry, or even distress as a result of this activity. Additionally, it was discovered that 74% of these individuals currently own a home. These findings reflect the growing trend among ... Read more

Considering the positive findings from yesterday’s robust assessment of new home sales and the slightly enhanced report on pre-owned home sales, the volume of mortgage applications may suggest that the spring housing market hasn’t completely disappeared. It could be merely experiencing a minor delay.

Mortgage applications rose for the third week in a row, though not enough to offset the significant deficit. The Mortgage Bankers Association reported a 3.0 percent increase in the Market Composite Index, reflecting application volume. Despite the shorter workweek due to Juneteenth, the index rose on a seasonally adjusted basis but dropped 8.0 percent on an unadjusted basis c... Read more

Based on the 2023 Planning and Progress study by Northwestern Mutual, the average retirement savings in the United States have experienced a 3% boost, reaching $89,300 in 2023 compared to $86,869 in 2022. However, there has been a notable surge in the expected retirement age, which has escalated from 62.6 years in 2022 to 65 years in 2023.

Aditi Javeri Gokhale, Northwestern Mutual’s Chief Strategy Officer, expressed that Americans’ retirement readiness goal is continuously rising. Despite high inflation and market volatility, people are saving and investing more for the future, indicating a positive trend compared to the previous year.

Gokhale highlighted intriguing... Read more

The latest data from the U.S. Census Bureau, as cited by the New York Times, reveals that the median age in the United States has soared to an unprecedented 38.9 years.

The increase is significant, having previously reached 30 years in 1980 and 35 years in 2000. Similar to many other countries, the aging population of the United States is experiencing a faster growth rate compared to earlier generations, which can have significant implications for society and the economy.

The increase in median age has been attributed to a decline in birth rates, as noted by experts. The COVID-19 pandemic led to a significant drop in birthrates, but according to data from the Centers fo... Read more

In April, both the S&P CoreLogic Case-Shiller U.S. National Home Price Index and the Federal Housing Finance Agency’s (FHFA’s) Home Price Index (HPI) indicate a continued but slower increase in home prices compared to the previous low-interest rate period. The Case-Shiller indices now display a negative annual rate of change.

During the same month, the Case-Shiller National Index, which covers all nine census divisions, saw a 0.2 percent decline, in contrast to a 0.7 percent annual gain in the preceding month. Prior to seasonal adjustment, the index experienced a 1.3 percent month-over-month growth, which adjusted to a 0.5 percent rise after accounting for seasonal fa... Read more

In May, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported that new single-family home sales reached their highest point in 15 months. This significant boost can be attributed to the persistent shortage of existing homes available for sale.

Newly constructed home sales surged by 12.2% from the previous month, reaching a seasonally adjusted annual rate of 763,000 units. This impressive figure outperformed April’s revised rate of 680,000 units. Notably, the sales pace for last month was 20% higher compared to May 2022’s new home sales rate..

The increase in sales, both monthly and annually, reflects a sustained growth in new home ... Read more

A recently published survey conducted by Retirement Living reveals that around one out of every eight baby boomers have taken steps to address the potential impact of an imminent recession. These individuals have chosen to sell their homes in an effort to capitalize on the current high property values before any economic downturn occurs. The survey specifically focused on seniors aged 59 and older in the United States.

Around 20% of the participants indicated that they solely depend on Social Security benefits to generate income during their retirement years. Meanwhile, a significant majority of approximately 70% expressed feelings of uncertainty regarding the adequacy of the... Read more

According to the Mortgage Bankers Association, there was a notable rise in purchase applications, leading to increased demand for mortgages during the week ending June 23.

The MBA’s weekly survey indicated a 3% increase in mortgage loan application volume when adjusted for seasonal factors. However, on an unadjusted basis, applications decreased by 8% compared to the previous week.

Joel Kan, the deputy chief economist at the MBA, pointed out that mortgage rates fluctuated across different loan types during the previous week, resulting in a slight increase to 6.75% for the 30-year fixed rate.

Kan noted that the difference between jumbo and conforming rates grew t... Read more

Planet Home Lending LLC, a company headquartered in Meriden, Connecticut, has revealed its acquisition of a $10 billion bulk of Mortgage Servicing Rights (MSRs) from Village Capital & Investment LLC, based in Henderson, Nevada.

Planet Home Lending has outlined its intentions to pursue additional Mortgage Servicing Rights (MSRs) acquisitions in the latter half of 2023, utilizing bulk acquisitions and co-issue transactions.

The portfolio obtained from Village Capital & Investment encompasses 45,000 home loans that have been securitized by Ginnie Mae. As of June 2023, Planet Home Lending’s servicing portfolio amounted to $94 billion. This acquisition reinforces t... Read more

Researchers have issued a warning about the significant negative impact of remote work on the value of office spaces in New York. It is projected that by 2029, these office properties will experience a decrease of over 40% in value compared to their pre-pandemic levels.

A recent report by teams from New York University and Columbia University indicates that the situation is even worse than previously estimated, as the return to office work has stagnated at approximately 50% occupancy. Titled “Work From Home and the Office Real Estate Apocalypse,” the study conducted by Arpit Gupta from NYU and Vrinda Mittal and Stijn Van Nieuwerburgh from Columbia University predicts ... Read more

The current state of the housing market is subjective at present, and the recently published Existing Home Sales report doesn’t provide significant clarity. The National Association of Realtors (NAR) recorded a yearly rate of 4.3 million properties, which is essentially the same as last month’s figure of 4.28 million and falls within the expected range of 4.25 million.

In January, existing home sales reached their lowest point at 4.0 million units, and to find a lower figure, one would need to look back to 2010. The subsequent recovery has been somewhat lacking in urgency, which is understandable considering the consistent presence of mortgage rates around 7%.

A com... Read more

A recent Zillow report reveals that the primary cause of the ongoing affordability crisis stems from a notable shortage of affordable housing. This shortage disproportionately affects Millennials and Gen Z, who are currently in the prime stage of their lives for purchasing a home. As first-time buyers, they often lack the financial resources beyond a down payment to contribute towards a mortgage.

The ongoing shortage of affordable homes emphasizes the necessity for new government policies and investment opportunities that can stimulate construction projects. This scarcity of affordable options has resulted in the emergence of “missing” households, referring to potential h... Read more

According to ATTOM’s U.S. Home Flipping Report for Q1 2023, a total of 72,960 single-family homes and condominiums were flipped in the United States, accounting for 9% of all sales across the country. This figure represents a decrease from 9.4% in Q1 2022 but an increase from 8% in Q4 2022, reaching the second-highest level seen in this century.

Furthermore, the report indicated that although there was an increase in flipping activity, there were mixed results in terms of raw profits and profit margins. While both profits and investment returns experienced a slight uptick from Q4 2022 to Q1 2023, they remained relatively low compared to previous years, highlighting the cont... Read more

Researchers have issued a warning about the significant negative impact of remote work on the value of office spaces in New York. It is projected that by 2029, these office properties will experience a decrease of over 40% in value compared to their pre-pandemic levels.

A recent report by teams from New York University and Columbia University indicates that the situation is even worse than previously estimated, as the return to office work has stagnated at approximately 50% occupancy. Titled “Work From Home and the Office Real Estate Apocalypse,” the study conducted by Arpit Gupta from NYU and Vrinda Mittal and Stijn Van Nieuwerburgh from Columbia University predicts that... Read more

The Office of the Comptroller of the Currency (OCC) has released its Spring 2023 Semiannual Risk Perspective, highlighting important matters affecting the federal banking system. According to the report, the OCC states that the federal banking system is robust and in good overall condition.

During the recent period of market stress, the OCC has diligently observed the state of the institutions under its supervision. It has actively communicated with banks to ensure the effective management of risks and the restoration of trust in the U.S. banking system. The report indicates that the banking system experienced heightened instability primarily caused by a liquidity crisis in t... Read more

According to the Mortgage Bankers Association (MBA) Loan Monitoring Survey conducted in May 2023, the proportion of loans under forbearance has slightly decreased. The survey indicated that the percentage dropped by two basis points, going from 0.51% of the servicers’ portfolio volume in the previous month to 0.49% as of May 31, 2023.

According to the estimates by the MBA, around 245,000 homeowners are currently enrolled in forbearance plans. Additionally, it is reported that servicers have offered forbearance options to approximately 7.9 million borrowers since March 2020.

In terms of loan types, the percentage of Fannie Mae and Freddie Mac (GSE) loans under forbeara... Read more

ACES Quality Management, a company specializing in software services for quality management and control in the financial services sector, recently published its annual report on Mortgage QC Industry Trends for 2022. The report reveals a significant decrease in the critical defect rate during the fourth quarter of 2022 compared to the third quarter, resulting in a year-end rate of 1.84%, marking a 25.5% reduction.

In 2022, the average defect rate for the entire year was 2.07%, as two consecutive quarters experienced defect rates over 2%. ACES reported notable improvements in credit and moderate improvements in liabilities among the four major underwriting categories. Assets an... Read more

The group of leaders at Harbor Mortgage Solutions, consisting of George Downey, Chris Downey, and Brett Kirkpatrick, have transitioned to Federal Savings Bank located in Chicago. They now oversee the operations of Harbor as the newest branch of Federal Savings Bank.

This decision is driven by the bank’s desire to expand its presence in the reverse mortgage industry. Downey mentioned that this plan had been in progress for almost a year. He explained that the additional resources provided by the bank will enable the Harbor team to surpass their current role as brokers and expand their operations beyond Massachusetts and Rhode Island.

Due to challenges faced by traditio... Read more

When it comes to selling your home, your beloved pets, whom you consider part of the family, can present certain challenges. It’s common to have pets when selling a house, with approximately 60% of sellers owning pets, including 49% who have dogs and 33% who have cats. However, potential buyers prefer to envision their own pets in the space or may not want any pets at all. Additionally, pets can generate unpleasant odors and messes that could discourage interested buyers.

Maintaining a high level of cleanliness is crucial when selling your home, especially if you have pets. To tackle pet odors, consider professional cleaning or replacing rugs, carpets, and furniture. Daily ... Read more

According to the Mortgage Bankers Association (MBA), there was an uptick in home purchase activity last week, resulting in a slight increase in the Market Composite Index. On a seasonally adjusted basis, this index, which measures the volume of mortgage loan applications, rose by 0.5 percent. However, when compared to the previous week without adjustment, it experienced a 1.0 percent decline.

Compared to the previous week, the Refinance Index saw a 2 percent decline and was 40 percent lower compared to the corresponding week in the previous year. Additionally, the proportion of mortgage activity dedicated to refinancing decreased from 27.3 percent to 26.9 percent of total app... Read more

The success of any multifamily community heavily relies on the power of efficient digital marketing. This is because digital marketing serves as the primary driver of numerous qualified leads, which ultimately results in signed leases when executed effectively.

As per the 2022 NMHC/Grace Hill Renter Preferences Survey, a significant 83 percent of potential renters explored the website of a property or company while searching for an apartment. Additionally, almost three-quarters (73 percent) visited rental listing platforms like Apartment.com or Rent.com, while 40 percent checked out the property’s social media channels during their apartment hunt.

Nevertheless, it is ... Read more

MAXEX has introduced a fresh addition to its mortgage exchange platform by including a new non-QM option. This innovative MAXEX Non-QM loan program is being hailed as the “pioneering liquidity program for alternative documentation loans,” enabling multiple sellers to connect with multiple buyers through the MAXEX exchange. By utilizing a single contract, a unified set of guidelines, and a standardized fulfillment process, the program establishes a streamlined flow of loans for alternative documentation.

MAXEX stated in its official announcement that the demand for creditworthy borrowers with non-traditional income has been steadily increasing, despite the recent fluctuati... Read more

After the positive boost in residential builder sentiment, the latest report from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development revealed a strong momentum in the housing market. Housing starts experienced a significant surge of 21.7% in May, reaching a seasonally adjusted annual rate of 1.63 million units. This marked a substantial increase from April’s revised count of 1.34 million units. The monthly growth was the largest percentage-wise since 2016 and ranked as the eighth largest since 1959.

May witnessed an impressive surge in construction starts, with a month-over-month increase of 291,000 units, the largest since early 1990. Despite a... Read more

According to the most recent loan monitoring survey by the Mortgage Bankers Association, more than 96% of homeowners have successfully managed to keep up with their mortgage payments. The survey tracks the number of loans in forbearance each month.

As of May 31, the percentage of loans in forbearance has decreased by two basis points, going from 0.51% in April to 0.49% of the total volume of loans held by servicers. This indicates that approximately 245,000 homeowners in the United States are currently enrolled in forbearance plans, according to estimates by the MBA.

In May, the percentage of Ginnie Mae loans in forbearance dropped from 1.11% to 1.05%. Fannie Mae and Fr... Read more

Multifamily investors and developers are facing increasing difficulties in financing their ventures due to recent bank collapses and rising interest rates. Banks are becoming more cautious, offering fewer loans and prioritizing profitable assets to manage their capital and avoid future risks. This cautious approach has impacted loan amounts available to clients, as banks underwrite to higher interest rates than what is advertised. Refinancing is also challenging, as borrowers may qualify for smaller loan amounts and require additional cash or alternative capital sources.

Financing construction projects is particularly tough, as the absence of cash flow raises lenders’ risk.... Read more

A new study by The Eviction Lab found that prior to COVID-19, one in six renters faced eviction filings annually in high-eviction neighborhoods. During the pandemic, the risk dropped to one in twelve renters.

Job losses during lockdowns hit industries employing many renters, leading to eviction risks. To address this, policymakers enacted eviction moratoria, stimulus payments, expanded unemployment insurance, and emergency rental assistance. These policies reduced eviction filings by 57.6% in 31 cities analyzed.

The study examined eviction patterns and disparities in socio-economic, racial/ethnic, and gender factors. Eviction case records from major and smaller cities s... Read more

The most significant decrease in 13 months was observed as the percentage of homes available for purchase in the United States decreased by 6%, as stated in a recent Redfin report.

Continuing a trend of double-digit declines for the past 10 months, new listings experienced a 23% drop. This contributes to the ongoing scarcity of housing inventory after the pandemic, with recent data revealing a staggering 39% decrease in the number of homes available for sale compared to June 2018, five years ago.

The limited housing inventory is partly due to a prolonged slump in homebuilding and fluctuating mortgage rates. Mortgage rates reached record lows during the pandemic but have... Read more

As the real estate market evolves, targeted niche marketing strategies are gaining prominence over broad approaches. In this article, we explore how realtors and businesses can navigate this trend. Discover insights on identifying target audiences and implementing successful niche marketing strategies in the real estate sector.

Differentiate in real estate with niche marketing strategies. Targeted approaches engage specific market segments, delivering personalized experiences. Key strategies include identifying market gaps, fostering connections, leveraging social media, and spotlighting unique specialties. Stand out in today’s competitive market.

A new study by The Eviction Lab found that prior to COVID-19, one in six renters faced eviction filings annually in high-eviction neighborhoods. During the pandemic, the risk dropped to one in twelve renters.

Job losses during lockdowns hit industries employing many renters, leading to eviction risks. To address this, policymakers enacted eviction moratoria, stimulus payments, expanded unemployment insurance, and emergency rental assistance. These policies reduced eviction filings by 57.6% in 31 cities analyzed.

The study examined eviction patterns and disparities in socio-economic, racial/ethnic, and gender factors. Eviction case records from major and smaller cities s... Read more

US regional banks face increasing pressure despite the stock market’s growing optimism. According to Soros Fund Management CEO Dawn Fitzpatrick, a credit contraction is inevitable, leading to more bank failures due to underlying issues. The commercial real estate sector, where smaller and regional banks have gained prominence, poses further challenges. The shift to remote work has diminished office values, and nearly $1.5 trillion of commercial property debt must be repaid by the end of 2025. Additionally, rising interest rates have reduced the value of many properties. As a result, more than 700 US banks surpass the guidance set by the Federal Deposit Insurance Corp. in 2006 for... Read more

UBS announced the successful finalization of its acquisition of troubled competitor Credit Suisse, marking a significant milestone after the Swiss government orchestrated a swift rescue plan to merge the nation’s top two banks.

This move aimed to protect Switzerland’s global financial standing and prevent market chaos. UBS confirmed the completion of the acquisition, valued at 3 billion Swiss francs ($3.3 billion), ahead of schedule. Consequently, Credit Suisse shares will cease trading on the Swiss and New York Stock Exchange. The merger raises concerns about substantial job cuts, legal disputes, and the risks associated with creating a “too big to fail” Swiss megaba... Read more

Illinois has launched a new program to assist over 1,500 low- and moderate-income homebuyers in purchasing a new home. The program involves providing a second mortgage to these buyers, which does not require any payments while the first mortgage is still active.

The program, known as Illinois HFA1, is being administered by the Illinois Housing Development Authority, as announced by Governor JB Pritzker. The aim of the program is to address the challenge of saving enough money for a down payment, which has become increasingly difficult due to rising home values, interest rates, and other financial responsibilities such as supporting a family.

Under this program, eligible... Read more

A recent survey by Prudential Financial revealed that more than 33% of individuals belonging to Generation X, born between 1965 and 1980, have less than $10,000 in their retirement savings. Additionally, this cohort is experiencing a lack of inheritance from their baby boomer parents. Additionally, approximately 46% of Gen X, equivalent to around 30 million people, are worried that their retirement savings won’t be sufficient to maintain their desired lifestyle. This concern stems from the overall lack of savings among Gen X.

Among the Gen X population, about 35% have less than $10,000 saved for retirement, while 18% have no retirement savings at all, accounting for approxi... Read more

Competition and a dwindling housing supply have fueled a hot home shopping season, states Zillow’s May 2023 Market Report. Despite not matching previous springs, typical U.S. home values grew by 1.4% from April to May, reaching $346,856—up 0.9% from last year. However, high mortgage rates deter sellers, resulting in record-low inventory levels. Monthly mortgage payments for an average-priced home now exceed $1,800, marking a 22% increase from last year and the second-highest on record. While some metro areas experienced a decline in home values, cities like Richmond, Miami, and Oklahoma City saw notable annual price gains.

Demand driven by affordability; Midwest leads in ... Read more

Despite expectations of an economic slowdown leading to lower home prices and relief for potential buyers, the reality is different. For those prioritizing affordability, the median home prices increased by 2.5% in April 2023 compared to the previous year, following the record-high prices of 2022.

Analysts, including the National Association of Realtors, predict that prices will continue to rise throughout the year. This scarcity of affordable homes is compounded by a significant number of renters, who would normally be interested in purchasing a home, choosing to remain on the sidelines. A survey by Avail reveals that less than one-third of renters are considering buying a h... Read more

A group of five government agencies has collaborated to solicit public feedback on proposed guidelines concerning reassessments of property values in the residential real estate sector.

ROVs, short for “reconsiderations of value,” refer to the requests made by financial institutions to appraisers to reevaluate their assessment of residential properties. These requests are typically initiated when a consumer raises concerns about the appraisal or presents new information that could impact the estimated value of the property. Recently, there has been a growing focus on ROVs and their associated processes, with the Biden administration suggesting that government agencies hav... Read more

Although homeowner equity saw a slight decline on an annual basis for the first time in over a decade, there was a rise in equity when examining the performance on a quarterly basis. Moreover, it is expected that home prices will increase in the coming twelve months.

Based on CoreLogic’s Homeowner Equity Report, single-family properties with mortgages accounted for 63 percent of all properties in the first quarter. The equity for this category experienced a 0.7 percent decrease compared to the corresponding period in 2022, signifying the first such decline since 2012.

As a result, there was a total decrease of $108.4 billion in homeowner equity, averaging to $5,40... Read more

US regional banks face increasing pressure despite the stock market’s growing optimism. According to Soros Fund Management CEO Dawn Fitzpatrick, a credit contraction is inevitable, leading to more bank failures due to underlying issues. The commercial real estate sector, where smaller and regional banks have gained prominence, poses further challenges. The shift to remote work has diminished office values, and nearly $1.5 trillion of commercial property debt must be repaid by the end of 2025. Additionally, rising interest rates have reduced the value of many properties. As a result, more than 700 US banks surpass the guidance set by the Federal Deposit Insurance Corp. in 2006 for... Read more

UBS announced the successful finalization of its acquisition of troubled competitor Credit Suisse, marking a significant milestone after the Swiss government orchestrated a swift rescue plan to merge the nation’s top two banks.

This move aimed to protect Switzerland’s global financial standing and prevent market chaos. UBS confirmed the completion of the acquisition, valued at 3 billion Swiss francs ($3.3 billion), ahead of schedule. Consequently, Credit Suisse shares will cease trading on the Swiss and New York Stock Exchange. The merger raises concerns about substantial job cuts, legal disputes, and the risks associated with creating a “too big to fail” Swiss megaba... Read more

Illinois has launched a new program to assist over 1,500 low- and moderate-income homebuyers in purchasing a new home. The program involves providing a second mortgage to these buyers, which does not require any payments while the first mortgage is still active.

The program, known as Illinois HFA1, is being administered by the Illinois Housing Development Authority, as announced by Governor JB Pritzker. The aim of the program is to address the challenge of saving enough money for a down payment, which has become increasingly difficult due to rising home values, interest rates, and other financial responsibilities such as supporting a family.

Under this program, eligible... Read more

As of 2023, reverse mortgage endorsements have reached approximately one-third of the previous year’s total. Nevertheless, recent data from the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA), presented at the National Reverse Mortgage Lenders Association (NRMLA) Western Regional Meeting in Irvine, reveals an increase in Home Equity Conversion Mortgage (HECM) for Purchase (H4P) loans, as well as a significant decrease in HECM-to-HECM (H2H) refinance transactions during this year.

According to the information available, HUD’s endorsement statistics for 2022 revealed approximately 64,000 units with a maximum claim amount (... Read more

The increasing concern among mortgage bondholders stems from the rising rate of delinquencies in loan repayments and the growing challenge of refinancing loans, exacerbating the existing issue of sparsely occupied office buildings, which has been a persistent problem in American cities. This trend is now becoming more worrisome..

The COVID-19 pandemic and a sluggish economy have given rise to remote work, causing tenants to either cancel or opt not to renew their leases. Consequently, building owners are struggling to make their loan payments. According to a recent report from real estate data firm Trepp, over 4% of office loans bundled into securities were overdue by at leas... Read more

United Wholesale Mortgage (UWM) is being sued by two former employees, Jackson and Kassandra Memmer, who have filed separate lawsuits accusing the company of sexual harassment, retaliation, and violations related to COVID-19 return-to-work policies.

Jackson Memmer, a transgender man, alleges that he was fired following his paternity leave because of an internal appraisal clearing conditions investigation. Kassandra Memmer resigned because UWM denied her requests to work remotely during her pregnancy. Both lawsuits also include allegations of sexual harassment.

The lawsuits were filed in the U.S. District Court for the Eastern District of Michigan, focusing on UWM’s ha... Read more

On Monday, Title Resources Group (TRG), a prominent underwriter of title insurance, revealed that HomeServices of America, a subsidiary of Berkshire Hathaway and a major player in the residential real estate industry, has raised its ownership share in TRG.

According to a joint press release, this development strengthens the existing partnership between the two leading companies in their respective industries.

Gino Blefari, CEO of HomeServices, expressed his enthusiasm for strengthening the connection with Title Resources Group and other partners, including Centerbridge, Anywhere, and Opendoor. He highlighted the valuable outcomes already achieved through their collabora... Read more

This week, the National Association of Mortgage Brokers (NAMB) announced its endorsement of a bill put forward by Republicans in the U.S. House of Representatives. The proposed legislation aims to restore the Loan Level Price Adjustment (LLPA) framework that was effective until May 1, 2023.

Earlier in April, lawmakers introduced a similar bill, but it had narrower objectives. It sought to nullify the modifications announced in January and maintain risk-based pricing.

The revised proposal aims to limit the Federal Housing Finance Agency (FHFA) from making adjustments to the pricing structure specifically for single-family homes. Additionally, it seeks to prevent changes ... Read more

Debt can serve as a valuable tool for addressing immediate challenges, but its repercussions can be severe and enduring, spanning years or even decades.

The history of excessive government debt stretches back to the origins of institutions worldwide. For context, let’s examine a more recent example. In the midst of World War II, while Britain engaged in a fierce struggle against the Axis powers, the monarchy found itself in need of significant funds to support its war endeavors. To fulfill this requirement, Parliament extensively borrowed from Canada and the United States.

According to conventional fiscal theory, a nation’s economy tends to decelerate when its debt-... Read more

In the first quarter, the delinquency rates for commercial and multifamily mortgages experienced a notable rise, indicating a looming real estate recession. The Mortgage Bankers Association (MBA) recently released its quarterly analysis, revealing an across-the-board increase in delinquency rates among the five largest investor groups in the market: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and government-sponsored entities Fannie Mae and Freddie Mac. These groups collectively account for more than 80% of outstanding commercial and multifamily mortgage debt.

The delinquency rates, measured by the unpaid principal bal... Read more

A recent analysis conducted by the National Association of Realtors® and Realtor.com® reveals that the United States housing market lacks over 300,000 homes that are affordable for middle-income buyers. This ongoing shortage of housing inventory primarily affects middle-income buyers, surpassing its impact on other income brackets.

The housing affordability and supply report by NAR and Realtor.com® analyzes the disparity between the current market listings and a balanced market in terms of price range. A balanced market is determined by the presence of an equal number of homes within the price range that is considered affordable for middle-income buyers.

Nadia Evange... Read more

According to a recent report by Redfin, the scarcity of new homes being listed for sale has resulted in a 25% year-over-year decline, reaching the lowest level for early June ever recorded. This drop in new listings, combined with high home prices and interest rates, has had a negative impact on overall home sales nationwide. The report also highlights that the total inventory of homes on the market has decreased by 5% compared to the previous year.

The scarcity of available homes on the market is primarily attributed to the elevated mortgage rates, reaching a daily average of 6.94% on June 7, which is close to the highest level seen in the past twenty years. The majority of ... Read more

Owning a home comes with the responsibility of handling repairs and maintenance. Unfortunately, homeowners often face the harsh reality that these repairs can be quite expensive. In 2023, the average American homeowner has already spent around $2,985 on home repairs. With nearly 1 in 4 homeowners unable to cover a $1,000 repair emergency, many are turning to social media platforms for cost-effective solutions.

Social Media as a DIY Resource

According to a survey conducted by All Star Home, out of 1,000 homeowners, over 34% have experienced unexpected repairs in 2023. Plumbing, appliance, and HVAC issues are among the most common problems faced by homeowners. However, th... Read more

A recent study from the Wharton School of the University of Pennsylvania reveals that retirement replacement rates, which indicate the income seniors can replace after retiring, have been greatly affected in recent years, with a disproportionate impact on Black Americans.

The research paper, compiled by Harvard University scholars, highlights that the median real wealth for families with a white household head aged 50 or above decreased from $260,000 in 2000 to about $172,000 in 2019. In contrast, families with a Black household head experienced a decline from approximately $72,000 to $24,000 during the same period.

The authors of the study, Karen Dynan and Doug Elmendo... Read more

According to a recent report by Redfin, cash purchases accounted for approximately 33.4% of U.S. home acquisitions in April, marking an increase from 30.7% in the previous year and representing the highest proportion in nine years.

All-cash transactions are becoming more prominent in the real estate market, primarily due to higher mortgage rates dissuading buyers who rely on mortgage loans. In April, home sales in the metropolitan areas covered by Redfin’s analysis (which included the 40 most populous U.S. metros) experienced a 41% decrease compared to the previous year. In contrast, all-cash sales declined by 35%.

Many potential homebuyers, particularly those requiri... Read more

Based on the most recent Home Purchase Sentiment Index (HPSI) released by Fannie Mae, the index saw a decline of 1.2 points in May 2023, bringing it to a level of 65.6. This decrease can be attributed to consumers’ perceptions of homebuying and home-selling conditions being influenced by affordability constraints.

Out of the six key elements of the index, four experienced a monthly decrease, particularly in the categories of “good time to buy” and “good time to sell.” Survey respondents expressed a significant decline in their belief that it is a favorable time to buy a home, with the metric reaching near all-time lows.

However, the component measuring the per... Read more

Based on the most recent Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association (MBA), there was a 1.4% decline in overall mortgage applications compared to the previous week.

This represents the fourth consecutive week where there was a decrease in the volume of mortgage applications.

Specifically, the Refinance Index decreased by 1% compared to the previous week and was 42% lower than the same week in the previous year. Additionally, the seasonally adjusted Purchase Index experienced a 2% decline from the previous week. The Purchase Index, on an unadjusted basis, experienced a notable 13% decline compared to the previous week, resulting in a... Read more

The reverse mortgage industry is rebounding after a significant drop in April. In May, HECM endorsements increased by 4.6% to 2,053 loans, showing signs of recovery. The decline in April was largely influenced by American Advisors Group (AAG). Despite challenges like high rates and a competitive lending market, the industry is adapting to improve its position.

New HECM-backed securities production reached $580 million in May, its highest month in 2023. While adjusting after the HECM-to-HECM refi boom, originators are working to adapt to current business conditions. According to John Lunde, president of Reverse Market Insight, the industry is resilient.

According to RMI,... Read more

New data from Redfin reveals that the monthly mortgage payment for the average homebuyer has reached an all-time high of $2,614.

Based on Freddie Mac’s Primary Mortgage Market Survey, the average monthly expense for homeowners, considering a mortgage rate of 6.57% (the weekly average for a 30-year fixed mortgage ending on May 25), has increased by 0.18 percentage points compared to the previous week. This marks the largest weekly increase since February and is expected to dampen the already declining demand in the housing market. In fact, pending home sales across the country experienced a significant 17.4% annual drop in the four-week period ending May 21, which is the sec... Read more

Amid the volatile and uncertain market, predicting a housing crash has become a popular trend. Those who hold a contrary view have faced ridicule, particularly from those lacking understanding of market intricacies.

Rebecca Richardson, from UMortgage, boldly forecasted a year ago that a housing crash would not occur. Now, she sarcastically remarks on the strong opinions she received from skeptics. One year later, despite challenging market forces, she points to mounting evidence suggesting that the feared scenario is unlikely to materialize. While factors like recession, inflation, and stagflation do impact American households, Richardson emphasizes that they do not necessari... Read more

The National Association of Realtors (NAR) released the Pending Home Sales Index Report (PHSI) for April 2023, revealing a combination of outcomes. The report indicated that pending home sales remained stagnant in April compared to March, and experienced a decline when compared to the previous year, 2022.

Despite the national pending home sales remaining unchanged from March, there were variations across the four major geographic regions in the country. Three of these regions experienced an uptick in pending home sales, with the Northeastern region being the exception, as it reported a decline in sales.

In April, the Pending Home Sales Index (PHSI), which serves as a pr... Read more

According to a recent article by financial columnist Bob Carlson in Forbes, many individuals in the reverse mortgage demographic are worried about ensuring their financial resources endure. However, if someone is unable or unwilling to utilize the equity in their home, these concerns can prompt the exploration of alternative strategies. Medicaid is one such option, but as stated by Carlson, it may not be a feasible choice for a significant number of individuals.

In contrast to Medicare, which provides coverage for the majority of medical expenses for individuals aged 65 and above, Medicaid does not include coverage for long-term care. Nevertheless, Medicaid, a program designe... Read more

According to a report by the Associated Press (AP), recent data released by the U.S. Census Bureau reveals that the United States population has aged at an unprecedented rate, surpassing any other period in the past hundred years.

The AP stated on Thursday that the proportion of individuals aged 65 or older increased by over a third between 2010 and 2020, marking the fastest growth rate witnessed in the past 130 years. Conversely, the percentage of children declined during the same timeframe, as per the latest census figures.

According to the data, the decrease in the number of children under the age of five had a significant impact on the median age in the United State... Read more

Delaware authorities have issued a cautionary notice regarding a female suspect accused of pilfering substantial amounts of money from credit unions’ home-equity lines of credit along the Eastern Seaboard.

The advisory was posted on social media earlier this month by the Delaware State Police.

According to a post made by the Delaware State Police, their financial crimes unit is seeking assistance in locating Danielle Cappetti. Allegedly, Cappetti has been utilizing counterfeit identification documents to withdraw substantial amounts of money from credit unions situated throughout the Atlantic Coast Region, including those in Delaware.

As per the state police, it... Read more

According to the Q1 2023 United States Country Insight and Commodity Report by Linesight, the economy experienced a modest growth of 1.6% in 2023. However, the construction industry saw a decline of 0.9%, which can be attributed to a sluggish residential sector, persistent labor shortages, and higher interest rates.

The report also highlighted that there has been some improvement in the supply chain situation, but several suppliers of Long Lead Equipment (LLE) mentioned operating at full capacity, with their order books filled until Q3 2024.

Labor remains a significant concern across all industries, especially due to the decreased availability of skilled workers, which ... Read more

In the absence of any foreseeable decrease in interest rates, the demand for initial home loans is expected to remain low. Consequently, loan originators are faced with the challenge of maximizing their output of secondary mortgages.

We presented this query to Bard, an artificial intelligence tool developed by Google, and it provided the following suggestions.

To enhance the likelihood of generating a higher number of home-equity transactions, loan officers (LOs) can focus on establishing connections with homeowners. Establishing relationships entails investing time in comprehending their financial circumstances, their loan objectives, and their overall financial requir... Read more

ATTOM has published its analysis of qualified low-income Opportunity Zones, which were designated by Congress for economic revitalization through the Tax Cuts and Jobs Act of 2017. These zones, as defined in the legislation, encompass census tracts located in or adjacent to low-income communities that fulfill specific criteria for redevelopment across all 50 states, the District of Columbia, and U.S. territories.

According to the latest report, approximately 52% of Opportunity Zones across the country experienced either stable or decreased median prices for single-family homes and condos between Q4 of 2022 and Q1 of 2023. In nearly half of these zones, prices dropped by at le... Read more

Colonial Savings, F.A., a company headquartered in Fort Worth, Texas, has made a declaration to discontinue its mortgage origination operations by July 31, 2023. Instead, the company will focus on delivering comprehensive banking services and mortgage servicing solutions to its customers.

Having been established in 1952, Colonial Savings has gained a reputable position in the mortgage origination sector, assisting numerous individuals and families in realizing their aspirations of owning a home.

Dave Motley, the President of Colonial Savings, F.A., expressed profound gratitude towards the company’s employees, customers, and partners for their steadfast support and loy... Read more

Email marketing is a powerful tool that can yield exceptional results when implemented effectively. By incorporating a few simple strategies, you can significantly improve your email campaigns and maximize their impact. In this article, we will explore six key techniques that can elevate your email marketing game and help you achieve better outcomes.

1. Determine the Optimal Email Frequency: Instead of bombarding your subscribers with an excessive number of emails, take the time to understand their preferences. Assess the appropriate volume of emails that aligns with their expectations and avoids overwhelming their inbox. Quality over quantity is the key.
2. Provide Va... Read more

On Thursday, the Federal Housing Administration (FHA) made an announcement stating that they have published a new preliminary Mortgagee Letter (ML) on their single-family “drafting table.” This letter, if approved, would modify the agency’s guidelines on investigating whether a lender is incapable or unwilling to fulfill a borrower’s payment obligations for a Home Equity Conversion Mortgage (HECM).

According to the draft Mortgagee Letter (ML), the proposal would additionally mandate that lenders, who have not made a mandatory payment to a borrower, furnish specific information to the FHA. The FHA stated that these proposed modifications are being evaluated in response... Read more

In April, there was no change in the number of agreements for buying previously owned houses. The National Association of Realtors® (NAR) reported that its Pending Home Sales Index (PHSI), a predictive measure of existing home sales, stayed the same as March, at 78.9. Although the index had shown some progress during the initial three months of the year, it has now declined by 20.3 percent compared to the previous year.

NAR’s Chief Economist, Lawrence Yun, attributed the sluggish sales in the typically bustling season of residential real estate to persistent limitations in available inventory. He further emphasized that affordability obstacles are still present and are hin... Read more

In the three months leading up to April 30, 2023, an increasing number of home sellers are offering concessions to attract buyers. Approximately 42.9% of homebuyers are now receiving freebies, a significant rise from 25.5% compared to the previous year. However, there has been a slight decrease of 2.7% since February, when an all-time high of 45.6% of buyers received concessions.

A recent report by Redfin reveals that the percentage of home sellers offering concessions, such as cash incentives, discounts for repairs, closing cost assistance, and mortgage-rate buydowns, has decreased primarily due to seasonal factors. During the early spring, when more buyers tend to enter the... Read more

The U.S. Census Bureau has published the 2020 Census Demographic Profile and Demographic and Housing Characteristics File (DHC). This dataset provides additional information about the population count, as well as essential demographic and housing statistics that were previously released for congressional apportionment and legislative redistricting purposes.

Out of the 126.8 million housing units recorded as occupied in 2020, 80.1 million units (63.1%) were occupied by homeowners, indicating the homeownership rate in the country. This rate, reported for 2020, is the lowest since 1970, showing a decline of two percentage points compared to 2010 when it stood at 65.1%. Meanwhile... Read more

In the ever-evolving real estate market, selling luxury properties requires a strategic approach to attract high-end buyers and secure top dollar for your exquisite home. Despite the recent decline in luxury home sales, there are still opportunities to succeed by following these three essential tips.

Invest in Professional Home Photography and Staging

With nearly half of buyers starting their home search online, a compelling online presence is crucial for capturing the attention of potential buyers. Utilizing professional photography and staging services is essential to create visually stunning listings that leave a lasting impression.

While high-quality photos ... Read more

According to the Census Bureau, the annualized rate of New Home Sales in April was 683,000, adjusted for seasonal fluctuations.

Estimates released today by the U.S. Census Bureau and the Department of Housing and Urban Development indicate that in April 2023, the sales of new single-family houses were recorded at an annual rate of 683,000, adjusted for seasonal fluctuations. This figure represents a 4.1 percent increase compared to the revised rate of 656,000 in March, and an 11.8 percent increase compared to the estimated rate of 611,000 in April 2022.

In April, the supply of homes decreased to 7.6 months, down from 7.9 months in March. The highest recorded supply was ... Read more

Kim Smith, an experienced professional in the reverse mortgage industry with a background at Freedom Financial, Generation Mortgage, and American Advisors Group (AAG), has recently joined Smartfi Home Loans in San Diego. In her new role, she will serve as the Senior Vice President of wholesale lending.

This transition occurs during a period of transformation in the reverse mortgage sector, marked by consolidations through mergers among major lenders such as AAG, Finance of America (FOA), Cherry Creek Mortgage, and Guild Mortgage. These mergers follow a notable industry departure due to bankruptcy.

However, despite these shifts, Smith remains optimistic about the prospec... Read more

According to a recent report from Redfin, the era of the housing market during the pandemic has led to a shift in home price-growth trends, making them more localized in the previous year than they have been since 2009.

In the spring of 2022, towards the end of the homebuying boom during the pandemic, there was a significant increase in metro-to-metro variations in home-price growth, reaching the highest level in 13 years. While the variation has decreased since then, price growth continues to fluctuate more than pre-pandemic levels, as the housing market rapidly cools down in certain areas of the country while remaining stable in others.

The housing market’s local na... Read more

Entering the wholesale channel can be a significant decision for loan officers, retail lenders, and consumer-direct lenders. Before making the leap, it’s crucial to consider several factors, as highlighted by the STRATMOR Group in its May Insights Report. In the report, STRATMOR partner Jim Cameron presents an article titled “Thinking About Wholesale? Considerations for Mortgage Originators and Lenders,” equipping decision-making with valuable research, data, and analysis.

Cameron begins by posing essential questions that originators should ask themselves when contemplating a switch to the wholesale channel. One key consideration is the earnings potential. Originators n... Read more

Despite a lackluster performance in existing home sales, the market for new residences is experiencing a significant upswing, with sales of new single-family homes reaching a peak not seen in 13 months during April.

The latest data, published in collaboration with the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, projected new home sales at an annual rate of 683,000 after seasonal adjustments. This reflects a 4.1% increase compared to the revised rate of 656,000 units in March and an 11.8% rise from the 611,000-unit rate recorded in April 2022.

The actual number of transactions exceeded the predictions of economists, as a Reuters poll of i... Read more

Despite a 4:1 ratio of positive earnings per share (EPS) beats to misses in 1Q23, the S&P 500’s performance during the earnings season has been lackluster. Wells Fargo equity analyst Christopher Harvey suggests that the market gains this year have been primarily driven by funding and liquidity rather than strong fundamentals.

This raises concerns about the future outlook. Rising capital costs, reduced liquidity, and potential delays in the Federal Reserve’s actions contribute to the uncertainty. Harvey believes the market may be headed for a downturn, prompting the need for a defensive approach. Investing in high-yielding dividend stocks can provide a reliable income ... Read more

When it comes to finding the right mortgage lender, options can be overwhelming. However, Newrez stands out as an online lender with a range of loan products that cater to various borrowers, including those with unconventional financing needs. In addition to conventional, VA, and FHA loans, Newrez provides alternative and proprietary mortgage solutions tailored for self-employed individuals, investors, and borrowers with less-than-perfect credit. If you’re seeking an online mortgage lender that offers flexibility and personalized assistance, read on to discover if Newrez is the right fit for you.

Who is Newrez suitable for?

Newrez is an excellent choice for borrowers ... Read more

New York’s 10X Capital revealed the launch of its Residential Real Estate Income Platform, operated under the Tower1 label. Ray Sturm, an experienced real estate investment executive, has been recruited to oversee this new venture at the alternative asset management company.

Ray Sturm, the founder of two successful venture-backed asset management companies, recently served as the CEO of AlphaFlow, established in 2015 with support from Y Combinator, Point72 Ventures, and Social Capital. AlphaFlow managed over $1.5 billion in residential business purpose assets and conducted a securitization deal with Jefferies and Saluda Grade. Earlier, Sturm co-founded RealtyShares in 2013,... Read more

According to Yardi Matrix, the construction of multifamily housing in the United States was strong as the new leasing season began. Currently, there are approximately 1.1 million units under development across 4,910 properties. However, the rate of completed projects has been slow, with only 73,506 units being made available for occupancy from January to April this year. This represents less than 7 percent of the total units in the national pipeline and accounts for 20 percent of last year’s total of 369,827 units.

The national multifamily construction statistics have significantly decreased, primarily due to stricter financing requirements. This has resulted in a nearly 50... Read more

The Mortgage Bankers Association (MBA) reported that the Market Composite Index, a metric used to measure the volume of mortgage loan applications, declined by 4.6 percent on a seasonally adjusted basis during the week ending May 19th. Compared to the previous week, the index was 5 percent lower on an unadjusted basis. This decline marked the second consecutive week of decrease.

During the same week one year ago, the Refinance Index witnessed a 44 percent decline, and in the current week, it experienced a 5 percent decrease. The share of applications for refinancing remained constant at 27.4 percent.

The Purchase Index, after being adjusted for seasonal variations, drop... Read more

In the first quarter of 2023, AG Mortgage Investment Trust experienced a positive turnaround, achieving a profit of $8.7 million, a significant improvement from the net loss of $14.6 million in the previous quarter.

Despite the challenging market conditions, the company successfully increased its book value per share by 4%, reaching $11.85 and $11.48 on an unadjusted and adjusted basis, respectively. AG Mortgage also maintained a healthy liquidity position of $88 million, as stated by CEO Thomas Durkin.

In the company’s earnings call, he noted that the first quarter of 2023 began on a positive note, reflecting the ongoing market recovery that had been observed since D... Read more

Black Knight has released their most recent “preliminary” report on mortgage performance statistics for the end of April 2023, revealing an overall increase of 13% in the delinquency rate compared to the previous month’s record low.

The rise in delinquencies was primarily driven by early-stage borrowers who were 30 days late on their payments. This segment experienced a significant increase of 200,000 (+25%), mirroring the impact observed during previous calendar-related events.

Nationwide, there was a continued improvement in serious delinquencies (loans that were 90+ days past due), as the number of such loans decreased in 45 states (90%), along with the Distric... Read more

The real estate sector is being transformed by artificial intelligence (AI), leading to significant changes in various industries. Forward-thinking real estate agents are recognizing the potential of AI to enhance their efficiency, accuracy, and overall competitiveness in the industry.

AI includes a broad spectrum of technologies that empower machines to carry out tasks traditionally requiring human intelligence. Within real estate, AI can be applied through natural language processing and machine learning techniques.

For real estate agents, incorporating AI into their workflow can significantly improve efficiency and accuracy. Tasks such as analyzing property records c... Read more

A recent Redfin report reveals that in just four major metropolitan areas in the United States, purchasing a typical home would be more cost-effective than renting. This means that the estimated monthly mortgage expense for the typical home is lower than its estimated monthly rental cost.

In the 50 most populous metropolitan areas in the United States, the average cost of purchasing a typical home is 25% higher than renting. The estimated monthly mortgage payment for these homes is $3,385, while the estimated rent is $2,715. Redfin calculated the monthly housing payments based on the Redfin Estimate of the homes’ value in March, assuming a 6.5% mortgage interest rate (the a... Read more

The survey findings from Accurate Group reveal that 26% of homeowners have intentions to utilize their home equity as collateral for borrowing within the upcoming year.

The report involved conducting interviews with one thousand homeowners in the United States during the first quarter, aiming to ascertain their plans regarding obtaining a home-equity loan, home-equity line of credit, first mortgage refinance, or reverse mortgage within the upcoming year.

The primary motivation cited by respondents for seeking to access cash was the interest rate associated with the loan. Following that, the extractable equity amount, investment performance, and job security were identif... Read more

According to the April 2023 data from the Mortgage Bankers Association (MBA) Builder Application Survey (BAS), mortgage applications for new home purchases experienced a 4.1% rise compared to the previous year. However, when compared to the totals from March 2023, there was an 11% decrease in applications.

Based on data from the MBA’s Builder Application Survey (BAS), the MBA predicts that new single-family home sales in April 2023 were at a seasonally adjusted annual rate of 649,000 units. This estimate is considered a reliable indicator for the U.S. Census Bureau’s New Residential Sales report. This estimate is derived by the MBA through the analysis of mortgage applica... Read more

In recent years, many companies have embraced remote selling through online platforms and webinars, aiming to cut costs and increase efficiency. However, the question remains: Can this shift be made without experiencing significant revenue declines? While electronic mediums offer convenience, there are certain aspects of sales that are best accomplished in person, where building trust and establishing genuine connections are paramount.

Becoming a trusted advisor, for instance, requires personal interaction to effectively understand and address prospects’ problems, brainstorm creative solutions, and alleviate their stress. Face-to-face meetings enable sales professionals to ... Read more

The ex-Silicon Valley Bank executive, who has faced the majority of the blame for the financial institution’s downfall, is unwilling to promise to relinquish any portion of the $10 million he received each year from the defunct bank.

During his appearance before the Senate Banking Committee on Tuesday, Greg Becker, the former CEO of SVB, attributed the March collapse of the company to extraordinary circumstances, interest rate increases, and adverse social media attention, rather than managerial errors. While Becker expressed willingness to collaborate with regulators in assessing compensation, he declined to commit to returning any portion of his earnings, despite facing p... Read more

Jessica Manna has been named the new chief marketing officer at Go Mortgage, a non-QM lender.

Columbus-based Go Mortgage announced that Manna will lead marketing efforts, focusing on enhancing the company’s brand visibility and driving business expansion. Responsibilities include supervising digital marketing, brand positioning, and messaging to propel growth.

Go Mortgage CEO Michael Isaacs expressed his enthusiasm for Jessica’s appointment, citing her strategic mindset, creativity, and marketing acumen as valuable assets. He believes her vast experience and innovative approach will contribute significantly to boosting brand visibility and capturing a larger market ... Read more

According to the Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association (MBA) for the week ending May 12, 2023, there has been a 5.7% decline in mortgage application volume across the country, causing prospective home buyers in the spring season to show caution.

According to the Mortgage Bankers Association (MBA), the Refinance Index experienced an 8% decline compared to the previous week and was 43% lower compared to the same week last year. Additionally, the seasonally adjusted Purchase Index dropped by 4.8% in comparison to the previous week. Moreover, there was a 5% decline in the unadjusted Purchase Index compared to the previous week, with a n... Read more

The FHA has released Mortgagee Letter 2023-10, introducing policies for quicker payment of funds to mortgagees when they transfer a Home Equity Conversion Mortgage (HECM) to the Department of Housing and Urban Development (HUD). The updated regulations allow FHA mortgage holders to request Preliminary Title Approval earlier and with fewer documents, reducing the time between loan eligibility for HUD assignment and claim fund payment to mortgagees.

When a Home Equity Conversion Mortgage (HECM) reaches 98% of its Maximum Claim Amount (MCA), the HECM program enables mortgagees to transfer the HECM to the U.S. HUD.

The Maximum Claim Amount (MCA) is utilized to determine the... Read more

Wells Fargo has reached a settlement with its shareholders in which they will pay $1 billion. The lawsuit, filed by the shareholders, accused the bank of issuing deceptive statements regarding its adherence to federal regulations following the revelation of a fraudulent account-opening scandal in 2016.

A lawsuit representing public employees from Rhode Island and Mississippi, who had invested in Wells Fargo, has received preliminary approval from a federal judge in New York. The settlement follows repeated sanctions against Wells Fargo for consumer protection law violations dating back to 2016. During that time, employees opened unauthorized accounts to meet sales targets, le... Read more

Eric Rohr, the former CFO of Live Well Financial, has been spared imprisonment for his involvement in artificially boosting the worth of the reverse mortgage lender’s bonds. This more lenient sentence is a result of Rohr admitting guilt and assisting federal authorities in the case against the company’s ex-CEO.

Rohr has received a sentence of time served on all five counts, along with three years of supervised release for each count, to be served concurrently. The decision acknowledges Rohr’s contribution to the case against ex-CEO Michael Hild, who is appealing his 44-month prison sentence, claiming insufficient legal representation during his 2021 trial.

At his ... Read more

Homebuilder sentiment in the United States unexpectedly increased in May, reaching its highest point in the past 10 months. The rise can be attributed to the ongoing scarcity of available homes, which has led potential buyers to consider new construction as an alternative.

According to data released on Tuesday, the National Association of Home Builders/Wells Fargo index surged by five points to reach 50. This marks the fifth consecutive month of improvement; however, it is important to note that the current level of the index remains significantly lower than what was observed towards the end of 2021, a period characterized by lower mortgage rates.

According to a stateme... Read more

Paramount Residential Mortgage Group (PRMG) has introduced a fresh mortgage option specifically tailored for individuals employed in the cannabis industry, known as a non-qualified mortgage (non-QM).

In the news release, PRMG acknowledged that although cannabis has been legalized for recreational use in 22 states, it continues to be categorized as a Schedule I substance according to federal law. As a result, any monetary gains derived from the cannabis industry are deemed unlawful. Consequently, banks are reluctant to offer services to cannabis business owners due to concerns about potential legal consequences.

PRMG’s non-QM offering is specifically designed to assist... Read more

In the first quarter of 2023, there was a significant decrease in the volume of mortgage origination, dropping to $324 billion, marking the lowest level in the past nine years.

Mortgage origination volume saw a significant decline in the first quarter of 2023, down 34.9% from the previous quarter and 62.3% from the same quarter last year. This trend has continued for seven consecutive quarters since its peak in Q2 2021, reaching the lowest volume since the 2014 “taper tantrum” period. On the other hand, mortgage balances increased by $121 billion in Q1, totaling $12 trillion by March-end. This growth, although considered healthy, was the smallest increase since Q1 2021. H... Read more

HouseCanary has published its most recent Market Pulse Report for April 2023, analyzing more than 20 metrics derived from listings and providing a year-over-year comparison. The Market Pulse is a continuous assessment of exclusive data and insights obtained from HouseCanary’s nationwide platform.

In the initial month of the second quarter of 2023, HouseCanary reports that the housing market responded to a 0.25% increase in the Federal Reserve’s nominal interest rate, leading to a decline in market activity. Despite the relatively small rate hikes, the housing market experienced year-over-year declines in both contract volume and net new listings. Additionally, the volume ... Read more

Recently, the flatter and more predictable rates have been seen as a blessing, although the proximity of the sideways range to long-term highs is perceived as more of a curse. There is a growing concern that additional banks may face the risk of failure, and certain economic indicators indicate the presence of recessionary cracks. However, inflation and labor market data have not yet shown a clear shift that definitively suggests a downward trend in rates as the next major development. As long as this deadlock remains unresolved, bonds will face considerable challenges in moving away from the ongoing sideways grind.

With the exception of the year-end drift observed in Decembe... Read more

According to the latest report from the Boston College Center for Retirement Research (CRR), about 50% of American households face a potential inability to maintain their desired lifestyle after retiring, even if they continue working until the age of 65. This finding is based on the National Retirement Risk Index (NRRI).

The researchers state that by integrating recent research discoveries and methodological improvements, the latest iteration of the NRRI can provide a more precise assessment of the retirement readiness of households of working age. Furthermore, it enables the evaluation of how economic and policy factors affect retirement security.

Despite recalculatin... Read more

Executives from two prominent US banks that experienced major failures in March faced questioning from the Senate Banking Committee, shedding light on the causes of their banks’ collapses and potential regulatory oversights.

The hearing not only delved into the failures of these banks but also addressed concerns regarding executive compensation, specifically whether senior executives prioritize short-term gains, such as stock price increases, over the long-term health of their companies.

Despite their banks’ plummeting stock values, executives at Silicon Valley Bank and Signature Bank received substantial compensation, mostly in the form of company stock, before the... Read more

According to the 2023 U.S. Housing Equity Loan Survey conducted by Accurate Group, individuals considering accessing their home equity are exploring alternative options and products more frequently than reverse mortgages.

According to the survey findings, when homeowners were questioned about their inclination to utilize their home equity in the future, 26% expressed a high or moderate probability of borrowing against it within the next year. Conversely, 51% indicated a low or very low likelihood of tapping into their home equity, while 23% remained neutral on the matter.

Among the individuals contemplating home equity lending options, a significant majority of 71% inte... Read more

In May, home builders’ optimism regarding the market for newly built homes grew further, driven in part by the scarcity of pre-owned homes available for purchase. According to the National Association of Home Builders (NAHB), the NAHB/Wells Fargo Housing Market Index, a gauge of builder confidence, surged by 5 points to reach 50. This marks the fifth consecutive month of increased confidence and the first instance since July 2022 that the index has reached its midpoint.

According to Robert Dietz, the chief economist of the NAHB, the role of new home construction has become more prominent in the market due to a growing number of homeowners, who have mortgages with interest r... Read more

According to the latest quarterly report from the National Association of Realtors®, approximately 70% of metropolitan markets experienced an increase in home prices during the first quarter. This occurred while 30-year fixed mortgage rates fluctuated between 6.1% and 6.7%. Within the 221 tracked metro areas, 7% recorded double-digit price growth, which is a decrease from the 18% reported in the fourth quarter of 2022.

In comparison to the same time last year, the median price of existing single-family homes nationwide saw a slight decline of 0.2%, reaching $371,200. This follows a 4.0% increase in the national median price when comparing the previous quarter year-over-year.... Read more

According to Bank of America’s 2023 Homebuyer Insights Report, a significant number of optimistic individuals looking to purchase homes, particularly those in their 40s and younger, are proceeding with their plans despite perceiving the current market as advantageous to sellers. Although 55% of surveyed potential homebuyers acknowledge the increased competitiveness of the market compared to the previous year, 54% intend to accelerate their home purchases or stick to their original timeline. This includes 62% of Gen Z homebuyers and 55% of millennial homebuyers.

Despite the optimism of many prospective homebuyers, not all are eager to enter the market. According to the surve... Read more

New American Funding (NAF), a mortgage lender in Orange County, has recently strengthened its reverse mortgage division by appointing experienced professionals as divisional managers.

NAF Appoints Barbara Sica as East Coast Divisional Manager and Dennis Loxton as Central Regional Manager for HECM Business. Both newly appointed managers have extensive experience in reverse mortgage products.

Barbara Sica has held various positions related to reverse mortgages at companies such as Liberty Reverse Mortgage, Associated Mortgage Bankers, and United Northern Mortgage. In her most recent role, she served as a Vice President and Regional Reverse Manager at Homebridge Financial ... Read more

PennyMac Mortgage Investment Trust (PMT) has recovered from its recent setbacks, achieving a first-quarter profit of $50.2 million in 2023.

In the first quarter of the year, PennyMac Mortgage Investment Trust (PMT) posted a net income of $50.2 million, equivalent to $0.50 per common share. This marks a significant turnaround from the net loss of $5.8 million experienced in the preceding quarter. CEO David Spector credited the company’s success to its effective “credit-sensitive strategies” and financing arrangements.

In the company’s earnings report, it was stated by PMT’s CEO, David Spector, that the credit-sensitive strategies employed by PMT yielded positiv... Read more

During the initial three months of 2023, Guild Mortgage, a lender based in California, experienced challenges similar to other lenders due to elevated mortgage rates and limited housing inventory. Despite a leadership transition announced in March, the company’s revenues declined more than its expenses, resulting in a loss for the quarter.

Guild Mortgage, led by CEO Mary Ann McGarry, a lender focusing on home purchases with a distributed retail model, reported a net loss of $37.2 million in the first quarter of 2023, surpassing the $15 million loss from the previous quarter. The adjusted net loss for Q1 2023 stood at $2.5 million.

During this period, the company’s n... Read more

After the COVID-19 pandemic, the focus has been on the increasing inflation and the measures taken to address it, such as raising interest rates. However, there is another significant concern that could have widespread consequences for both consumers and the economy: commercial real estate. In the next two years, there will be a substantial increase in the amount of commercial real estate loans, with a value of around $1.5 trillion, reaching their maturity.

This situation could have a detrimental impact on the construction and development in major cities that are struggling to recover from the effects of the pandemic. The tightening of lending conditions and the refinancing o... Read more

According to a recent survey, public trust in Jerome Powell’s leadership of the Federal Reserve has significantly declined. This decline in confidence brings it to a level that matches or falls below that of previous leaders, as the central bank continues its battle against inflation.

The findings of a Gallup poll published on Tuesday reveal that 36% of American adults express either a significant or moderate level of trust in the Federal Reserve chairman’s ability to make appropriate decisions or recommendations for the economy.

This figure is slightly below Janet Yellen’s 37% during her initial year as head of the Fed in 2014. However, the difference falls withi... Read more

On Monday, NewRez, a mortgage lender and servicer, introduced a unique credit program in collaboration with Freddie Mac. This program aims to support first-time homebuyers who meet the eligibility criteria by offering them closing cost assistance of $3,000 or higher.

NewRez borrowers will have access to Freddie Mac’s BorrowSmart Access program, which will be facilitated through Caliber Home Loans’ extensive network of branches across the country.

This program provides qualifying borrowers in specific metropolitan areas with closing cost assistance of $3,000 or more. To be eligible, borrowers must meet certain criteria, including making a minimum 3% downpayment, part... Read more

The Loan Store, based in Arizona, has witnessed remarkable expansion following its acquisition of specific assets from Homepoint’s wholesale origination channel, which occurred several weeks ago.

In a recent interview with Mortgage Professional America, The Loan Store’s president Brandon Stein said his company had some 900 approved mortgage partners nationwide before the transaction and more than 9,000 after the deal was consummated.

After laying off hundreds of employees, Homepoint opted to close its mortgage origination business and sell related assets to The Loan Store.

Following the completion of the transaction, The Loan Store experienced immediate benefi... Read more

According to Black Knight, mortgage rate-lock volumes experienced a decline of 22% in April compared to the previous month. This drop can be attributed to a combination of cautious homebuyers and limited housing inventory, creating a challenging situation for the market.

Based on the Originations Market Monitor Report by the real estate analytics company, it was found that there was a decrease in purchase loan locks by 22%, cash-out locks by 21%, and rate-and-term refi locks by 28% compared to February. In April, purchase locks accounted for over 87% of all rate-lock activity, which is the highest percentage ever reported by Black Knight. This surge in purchase locks can be a... Read more

According to the latest Market Share Analysis report from the American Land Title Association (ALTA), the title insurance industry adapted to the challenges of 2022 and successfully weathered the significant and continuous decline in the residential real estate market. This decline had a major impact on the business of title companies, causing a significant decrease in their operations.

ALTA reported that title insurers earned $21 billion in insurance premiums in the previous year, marking a 16% decline compared to the previous year. In contrast, the industry experienced a significant increase in claims payouts, surpassing $596.1 million, which is over 25% higher than the $47... Read more

The modifications made by the Federal Housing Finance Agency to Fannie Mae’s and Freddie Mac’s pricing model for single-family homes remain a topic of controversy. Despite a recent report indicating that the changes do not impose a burden on the affluent to support the less affluent, Republican lawmakers in Congress have introduced legislation to revoke them.

Last week, two Republican members of the House introduced individual bills to reverse the changes, citing it as the reason. On April 26, Representative Stephanie Bice, who is also the vice chairwoman of the Republican Main Street Caucus, introduced the “Free Market Mortgage Act of 2023.” Although the bill’s lan... Read more

A recent report from Redfin has highlighted that new listings of homes for sale have fallen 22.4% nationwide in the four weeks leading up to April 23, marking one of the most significant declines since the start of the pandemic. The trend appears to be a result of homeowners wanting to retain their low mortgage rates and struggling to find another home to purchase.

The current lack of inventory is resulting in a significant decline in the total number of homes for sale, leading some homes to sell much more quickly. Almost half of the homes on the market are now selling within two weeks, a higher portion than seen in nearly a year. This trend is happening even as elevated mort... Read more

Redfin’s recent study indicates that the “lock-in” effect, which caused a significant decrease in available property listings, has revived the trend of bidding wars during the pandemic. This is because prospective homebuyers are vying for a limited number of homes, as they choose to remain in their current homes to avoid obtaining mortgages at higher interest rates.

The challenges mentioned could potentially be eased if the Federal Reserve opts to discontinue any upcoming interest rate hikes during their June gathering.

In April, 48% of homes that were sold went under contract within a span of two weeks. This represents a decline from 51% during the same period la... Read more

It is highly probable that there will be an increase in homeowners’ insurance rates in the future. This is because Fitch Ratings has discovered that U.S. homeowners’ insurance is on track to incur a statutory underwriting loss in 2022 due to insurers’ ongoing struggle with above-average catastrophe losses and uncertainty resulting from persistently high inflation and macroeconomic volatility.

Fitch predicts that in most areas, significant rate hikes will lead to robust premium growth in 2023, resulting in improved segment performance. However, uncertainties regarding catastrophes and the severity of claims may hinder the immediate achievement of underwriting profit. Fit... Read more

Despite the sluggish housing market at the beginning of the year, Fidelity National Financial managed to generate a profit.

Fidelity National Financial, one of the Big Four title insurers, reported revenue of $2.474 billion in Q1 2023, a decrease from $3.167 billion in the same period the previous year. The company’s net income also decreased to $59 million from $400 million in Q1 2022. Fidelity’s title segment generated $1.6 billion in revenue during the quarter, a decline from $2.4 billion in the prior year, and a net income of $128 million compared to $191 million in Q1 2022.

Despite these financial results, CEO Mike Nolan acknowledged that they came at a signifi... Read more

The rise of big data and data analytics has revolutionized the housing market, providing more opportunities for individuals who were previously shut out of certain markets. However, new research from Harvard’s Joint Center for Housing Studies (JCHS) has shown that while these technological advancements have potential, carefully designed regulations and public policies are needed to ensure that fair housing goals are met.

One working paper, “Digitalization of the Housing Search: Homeseekers, Gatekeepers, and Market Legibility,” found that while online housing searches offer more options, neighborhoods with mainly Black or Latino residents contain less information about t... Read more

Buying a home is a significant investment, and it is crucial to be aware of any issues before making a purchase. While waiving a home inspection may help you secure a property in a competitive market, it can also reveal major hazards within your home. Therefore, it is important to consider the benefits of a home inspection before deciding whether or not to waive it.

Home inspections typically cost between $300 and $400, but they can help you avoid costly repairs later on. In addition, home inspections provide the opportunity for a contingency, which allows buyers to back out of a deal or renegotiate an offer if significant issues are discovered.

A home inspection covers... Read more

Rocket Companies announced on Thursday that despite delivering steady outcomes in the first quarter of 2023, the company incurred a net loss of $411 million, or 16 cents per diluted share, marking its second consecutive quarterly loss.

Compared to the fourth quarter of the previous year, the latest results were an improvement, with the parent company of Rocket Mortgage reporting a net loss of $493 million, or 14 cents per diluted share. However, the loss was considerably lower than the first quarter of 2022, where the fintech reported net income of $1.04 billion, or 40 cents per diluted share.

The company recorded a net revenue of $666 million, which was 75% lower than ... Read more

Only a select group of individuals, typically those well-versed in the details of Loan Level Private Adjustments (LLPAs) and the Federal Housing Finance Agency, were aware of the upcoming changes that are now in effect. This group, which includes loan originators, was also privy to recent modifications to the upfront fee system in relation to mortgages.

Rebecca Richardson, a mortgage broker from UMortgage in Charlotte, N.C., is one of the knowledgeable few who truly delve into the intricacies of the mortgage industry. In one of her video tutorials as her “Mortgage Mentor” persona, she jokingly acknowledges that becoming a mortgage broker was not likely a childhood dream f... Read more

According to ATTOM’s yearly analysis of optimal days to sell a house, spanning the previous 12 years of home sales data, May, June, and April present opportunities for sellers to receive a premium of 10% or more over the market value. Notably, May holds the top 16 best days for selling a home.

Based on an analysis of more than 51 million transactions of single-family homes and condos between 2011 and 2022, the findings indicate that delaying the sale of a property until warmer weather arrives may yield higher seller premiums.

Recent data reveals that the spring and summer months are when homebuying activity is most active, presenting a prime opportunity for homeowners... Read more

The Federal Housing Finance Agency’s (FHFA) changes to loan level pricing adjustment (LLPA) fees have faced opposition from Congress. A group of 34 Republican lawmakers in the House of Representatives introduced the Responsible Borrower Protection Act of 2023, which would block the FHFA’s amended pricing framework for Fannie Mae and Freddie Mac.

The framework includes changes such as increased pricing for borrowers with higher debt-to-income ratios and elimination of upfront fees for certain groups. However, the Mortgage Bankers Association (MBA), the National Association of Realtors, and the Community Home Lenders of America (CHLA) have raised concerns about the new fees... Read more

According to Redfin’s records, in Q1, there was a decline of 4.2% in the number of people using Redfin.com to search for a new metro to relocate to, compared to the previous year. In contrast, there was a larger drop of 15.6% for those searching to move within their current metro, which is the largest decline in Redfin’s records.

Amid the slowdown in the housing market after the pandemic-induced home-buying frenzy, home searches in distant locations have fared better than those within the same metropolitan area. This is primarily due to high mortgage rates, elevated home prices, and inflation, which have prompted many buyers, especially remote workers with flexibility, to... Read more

In an effort to prevent the unjust denial of housing assistance to people with criminal records, the US Department of Housing and Urban Development (HUD) intends to suggest modifications to its regulations governing public housing agencies and housing providers that receive subsidies from HUD. The proposed changes come after HUD conducted a thorough review of its regulations, policies, and guidance and identified areas where improvements and clarifications were necessary to ensure compliance with best practices by PHAs and HUD-affiliated owners.

The proposals will require other housing providers and PHAs to adopt certain principles, including not automatically denying an appl... Read more

A mortgage industry consulting firm, STRATMOR, suggests in a published column that lenders should contemplate adding more home equity lending due to factors such as the housing market instability, pandemic-induced home value increase, and consumer outlook.

Based on CoreLogic’s statistics, around 63% of U.S. properties with mortgages have experienced a total boost of $1 trillion in home equity levels as of Q4 2021. Furthermore, Black Knight’s data demonstrates that the amount of tappable home equity has grown by $3.4 trillion within the past three years.

The article highlights that towards the end of 2022, this pattern shifted to some degree. With a gradual, moderate... Read more

According to a recent news release from the Joint Center for Housing Studies of Harvard University, home remodeling activity is forecasted to slow down in the first quarter of next year, marking the end of a decade of consistent growth. This slowdown is expected to be accompanied by a decrease in the number of projects being financed.

The Leading Indicator of Remodeling Activity, which provides a short-term outlook for home improvement and repair spending on owner-occupied homes, remained at 471 in the first quarter compared to the prior quarter. However, it had increased from 414 in the first quarter of 2022. The Joint Center anticipates a decrease in year-over-year gains, w... Read more

In recent news, Impac Mortgage is no longer suitable for listing on the NYSE American and has been delisted from the exchange immediately. The California-based lender’s common stock ticker symbol IMH is no longer tradable due to non-compliance with the required $2 million, $4 million, and $6 million stockholders’ equity. The NYSE American cited Section 1009 of the NYSE American Company Guide in its announcement.

Impac Mortgage recently shifted to a broker model and decided to wind down operations within its third-party origination (TPO) channel. The lender stated that a broker model would allow the company to provide various products at a reduced cost per loan. The decisi... Read more

A new report from LendingTree has revealed that despite fluctuations in mortgage rates over recent months, new buyers are still likely to face high mortgage payments. This is particularly true in light of the persistently high cost of homes in the US.

Analyzing data from the LendingTree platform across all 50 states between January 1 and March 31, 2023, the report found that mortgage payments for recent borrowers in every state were in excess of $1,700 per month on average.

While these figures may seem staggering, it’s worth noting that not all borrowers will be making payments of this size. Many homeowners have fixed-rate mortgages that were secured before rates bega... Read more

Huntington Bancshares Inc., the parent company of Huntington National Bank, reported that home-equity lending volume surpassed traditional mortgage originations during the first quarter of 2023. The company disclosed in its earnings report that first-quarter home-equity originations amounted to $0.8 billion based on commitment amounts, down from last year’s quarterly average of $1.1 billion. However, first-quarter home equity originations exceeded residential mortgage originations by $0.5 billion.

A review of historical data indicates that mortgage originations outpaced home-equity lending in 2020, 2021, and 2022. Prior to that, since at least 2016, home-equity volume had b... Read more

The Uniform Residential Appraisal Report (URAR) is a crucial document for real estate appraisers. It provides a comprehensive evaluation of a property’s value, which is used by lenders, insurers, and other parties in making informed decisions. Recently, the URAR underwent a significant overhaul, and its new format has generated a lot of buzz. In this article, we’ll take a closer look at the new URAR and explore its key features.

The new URAR is more of a decision tree or flow chart than a traditional form. It is designed to trigger new sections and required data and supplements based on the appraiser’s responses to “yes/no” questions. For example, if an appraiser no... Read more

According to the 2023 Retirement Confidence Survey (RCS) by the Employee Benefit Research Institute (EBRI), there has been a significant decline in the confidence levels of both older and younger Americans in their ability to have a secure retirement compared to the previous year. This drop is only comparable to the one that occurred during the 2007-08 financial crisis, as per the survey.

The survey revealed a significant decline in confidence among both workers and retirees in their ability to finance their retirements, with figures dropping to levels seen only during the 2008 global financial crisis. The current economic climate, especially inflation, has eroded Americans�... Read more

The Federal Housing Finance Agency’s (FHFA) changes to loan level pricing adjustment (LLPA) fees have faced opposition from Congress. A group of 34 Republican lawmakers in the House of Representatives introduced the Responsible Borrower Protection Act of 2023, which would block the FHFA’s amended pricing framework for Fannie Mae and Freddie Mac.

The framework includes changes such as increased pricing for borrowers with higher debt-to-income ratios and elimination of upfront fees for certain groups. However, the Mortgage Bankers Association (MBA), the National Association of Realtors, and the Community Home Lenders of America (CHLA) have raised concerns about the new fees... Read more

According to Redfin’s records, in Q1, there was a decline of 4.2% in the number of people using Redfin.com to search for a new metro to relocate to, compared to the previous year. In contrast, there was a larger drop of 15.6% for those searching to move within their current metro, which is the largest decline in Redfin’s records.

Amid the slowdown in the housing market after the pandemic-induced home-buying frenzy, home searches in distant locations have fared better than those within the same metropolitan area. This is primarily due to high mortgage rates, elevated home prices, and inflation, which have prompted many buyers, especially remote workers with flexibility, to... Read more

In an effort to prevent the unjust denial of housing assistance to people with criminal records, the US Department of Housing and Urban Development (HUD) intends to suggest modifications to its regulations governing public housing agencies and housing providers that receive subsidies from HUD. The proposed changes come after HUD conducted a thorough review of its regulations, policies, and guidance and identified areas where improvements and clarifications were necessary to ensure compliance with best practices by PHAs and HUD-affiliated owners.

The proposals will require other housing providers and PHAs to adopt certain principles, including not automatically denying an appl... Read more

A mortgage industry consulting firm, STRATMOR, suggests in a published column that lenders should contemplate adding more home equity lending due to factors such as the housing market instability, pandemic-induced home value increase, and consumer outlook.

Based on CoreLogic’s statistics, around 63% of U.S. properties with mortgages have experienced a total boost of $1 trillion in home equity levels as of Q4 2021. Furthermore, Black Knight’s data demonstrates that the amount of tappable home equity has grown by $3.4 trillion within the past three years.

The article highlights that towards the end of 2022, this pattern shifted to some degree. With a gradual, moderate... Read more

Mr. Cooper announced that it had reached a definitive agreement to purchase Rushmore Loan Management Services.

Mr. Cooper has struck a deal with Rushmore to purchase their residential mortgage servicing platform, which includes about $37 billion of outstanding principal balance.In addition, Mr. Cooper has also agreed to acquire Roosevelt Management Company, which will serve as the foundation for its mortgage servicing rights (MSR) fund asset management approach.

Expected to be completed by mid-2023, these deals represent the latest efforts by Mr. Cooper to strengthen its servicing operations through acquisitions.

Terry Smith, the CEO of Rushmore, stated that after... Read more

In marketing, video content is potent, and it’s crucial for real estate professionals to utilize it. Short-form videos are gaining popularity, and in 2023, they are the focus of marketers. According to a HubSpot report, 30% of marketers plan to invest more in short-form videos, which is the most effective and popular social media content format.

Most marketers define short-form video as anything less than 60 seconds, while some set the limit at three minutes. Bite-sized and easy-to-consume, short-form videos are ideal for scrolling through and viewing in multiples. TikTok leads in short-form content, but YouTube and Instagram are also joining the trend.

Short videos a... Read more

Resort communities in rural areas are renowned for their exceptional ski lodges, breathtaking views of mountains or oceans and exhilarating outdoor activities. Nevertheless, in recent times, these holiday destinations have also attracted affluent visitors seeking refuge from the frenzied urban lifestyle. Unfortunately, what tends to be disregarded are the locals who maintain the functioning of ski resorts, rafting expeditions, eateries, and drinking spots, as well as the schools, medical facilities, and overall community.

Sun Valley, Idaho, where the annual Allen & Company Sun Valley Conference is held, also known as the “summer camp for billionaires,” is grappling wi... Read more

The U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD) have released updated residential sales statistics for March 2023, at a time when many Americans are struggling to navigate challenging economic conditions characterized by high mortgage rates and steep home prices.

Mark Palim, Deputy Chief Economist at Fannie Mae, noted that new single-family home sales increased by 9.6% in March, reaching a seasonally adjusted annualized rate of 683,000, which surpassed expectations and represented the strongest pace in a year. The report also indicated that the supply of units for sale at the current sales pace decreased by eight-tenths to 7.6 months, rep... Read more

The Reverse Mortgage Market Index (RMMI) has reported a decline in collective housing wealth for senior homeowners aged 62 and over in Q4 of 2022. This is the first time in over a decade that such a drop has been recorded. The decline in the RMMI was attributed to the decrease in senior-held home equity from $12.42T in Q3 of 2022 to $12.39T in Q4 of 2022, as senior home debt increased by $30bn while home values remained relatively stable due to the cooling of the housing market.

According to Steve Irwin, the President of NRMLA, while many housing markets are experiencing a decrease in home values, it is worth noting that senior homeowners still possess $12.39 trillion in hous... Read more

HUD has declared the allocation of approximately $15 million in fresh subsidies to facilitate home repairs that promote health and safety for financially disadvantaged seniors. The explicit objective is to empower them to age comfortably in their own homes. These funds will be divided among 13 non-profit organizations and one state government.

As stated in its declaration, HUD’s Older Adults Home Modification Program (OAHMP) will offer these subsidies, which will allow financially challenged seniors to stay in their residences. The grants will be used to implement home modifications that are low-cost, easy to access, and provide significant benefits, such as reducing the ch... Read more

The proposed bill that would prohibit the sale of trigger leads has been embraced by the National Association of Mortgage Brokers (NAMB), a group that advocates for the concerns of independent mortgage loan originators and medium-sized mortgage enterprises.

On April 17th, Representative Richie Torres from New York presented H.R. 2656, a bill that would amend the Fair Credit Reporting Act and forbid the generation and distribution of trigger leads – an issue that the National Association of Mortgage Brokers (NAMB) has been advocating for since at least 2018. According to Ernest Jones Jr., NAMB’s president, this legislative measure would provide overdue relief to both consu... Read more

On April 1st, 2023, the city of Los Angeles implemented a new tax called the “mansion tax.” This tax is levied on homes that sell for over $5 million, with a 4% rate, and homes that sell for over $10 million, with a 5.5% rate. The tax is designed to raise $1 billion per year to help solve the homeless crisis in the city and create more affordable housing options.

Real estate agents are advising their wealthy clients to sell their homes before the transfer tax takes effect, but the market in Los Angeles is already soft, creating challenges for sellers. Many brokerages are also warning their agents to be cautious about giving financial or legal advice to avoid the tax.

LendingOne has appointed Samuel Bjelac, who previously served as the vice president of wholesale lending at CoreVest, as its new vice president responsible for third-party originations (TPO).

According to LendingOne, a Boca Raton-based private lender, Bjelac’s two decades of experience in the field will play a crucial role in the growth of their TPO channel.

LendingOne has stated in its press release that its TPO Channel is dedicated to enabling mortgage brokers to expand their income and improve their profits in the DSCR market. The company’s loan offerings, which include DSCR rental, fix and flip, SFR portfolio, and fix to rent, are accompanied by fast and dependa... Read more

The Federal Housing Finance Agency (FHFA) has issued a statement to address misinformation that has been circulating on social media platforms regarding loan-level pricing adjustments (LLPAs) for conventional mortgages. The FHFA states that borrowers with higher credit scores are not being charged higher fees to offset lower fees charged to borrowers with lower credit scores. The updated fees, which increase as credit scores decrease for any given level of down payment, do not represent pure decreases for high-risk borrowers or pure increases for low-risk borrowers.

In response to misinformation about the Federal Housing Finance Agency’s (FHFA) loan-level pricing adjustment... Read more

The Remodeling 2023 Cost vs. Value Report by Fixr.com reveals that an HVAC electrification conversion is expected to have the highest return on investment in 2023, with homeowners recouping 103.5% of its costs from resale. The report includes informative graphics depicting all the projects featured in the report, displaying their associated costs, recouped value, and ROI percentage. Furthermore, the report highlights the remodeling jobs that have recorded the most significant increases in ROI in the last year.

Fixr.com compared the ROI and total costs of the previous year’s projects and predicted that the home remodeling industry would grow to a market size of $485 billion ... Read more

The recent increase in US home purchase mortgage applications, despite rising mortgage rates, indicates that the housing demand in the country is stabilizing. According to the data released by the Mortgage Bankers Association, there was a 4.6% increase in the gauge of home purchases in the week ending April 21, which is the second time in three weeks. This shows that the housing market may have reached its bottom, and it is showing signs of recovery.

Although the contract rate on a 30-year fixed mortgage rose by 12 basis points to 6.55%, the increase in demand for home purchases shows that buyers are willing to pay higher rates to purchase a home. However, if the mortgage rat... Read more

In the report on Potential Home Sales Model for February 2023, recently published by First American Financial Corporation, it has been found that the seasonally adjusted annualized rate of potential sales for existing homes has gone up to 5.74 million units, representing a month-over-month surge of 2.6%.

Moreover, it is worth noting that this figure indicates a substantial growth of 56.7% from the market potential’s lowest point recorded in February 1993.

On the other hand, there has been a decline of 11.4% in the market potential for existing-home sales compared to the previous year, resulting in a loss of 702,000 units. As of February, the present potential for exis... Read more

ATTOM Data has released property tax data for 87 million single-family homes, revealing that the amount levied in 2022 is estimated to be $339.8 billion, indicating a 3.6% increase from the previous year’s $328 billion. This year’s growth rate is twice that of the 1.6% increase in 2021 but is still lower than the 5.4% growth rate recorded in 2020.

According to ATTOM’s report, the average tax on single-family homes in the US rose by 3% in 2022 to reach $3,901, following a 1.8% increase in the previous year. This resulted in an effective tax rate of 0.83% nationwide, which is slightly lower than the 0.86% recorded in 2021 and the lowest it has been since at least 2016

Rocket Mortgage managed to retain its position as the top home lender in the country in 2022, but just barely. Based on the Home Mortgage Disclosure Act (HMDA) data compiled by iEmergent, Rocket originated $127.58 billion in home loans, beating United Wholesale Mortgage by only about $63.5 million, which is equivalent to less than a day’s worth of business.

The Consumer Financial Protection Bureau (CFPB) collected data comprised of first and second lien originated loans for one-to-four family homes that are occupied. However, this data does not take into account multifamily or correspondent loans. The data reveals that Rocket managed to surpass United Wholesale Mortgage (UW... Read more

This year’s Equitable Housing Finance Plans from Fannie Mae and Freddie Mac have been published, outlining the enlargement of several programs and the launch of new initiatives. These measures are intended to promote feasible opportunities for affordable homeownership and rental housing access.

The latest updates to the plans are an extension of last year’s initial release, which aimed to identify and tackle obstacles to attainable housing opportunities, particularly for marginalized communities. These plans are aligned with the government-sponsored enterprises’ objectives of promoting fairness in housing finance for the upcoming three years, and they will receive yearl... Read more

According to analysts at Morgan Stanley, there is an increasing possibility of default in the commercial real estate market. This is because valuations of office and retail properties are expected to drop by up to 40%, and there is a significant amount of debt, approximately $1.5 trillion, that needs repayment before the end of 2025

The recent failures of banks, particularly Silicon Valley Bank and Signature Bank of New York, have further complicated the situation. These banks have historically extended credit to the $20 trillion commercial real estate sector and have recently faced substantial outflows.

According to Morgan Stanley analysts, the amount of debt in the co... Read more

JP Morgan’s CEO Jamie Dimon expressed his candid views on the banking crisis in his yearly letter to shareholders. Dimon attributed Silicon Valley Bank’s recent mishaps to inadequate regulatory measures and oversight by US authorities, claiming they were blatantly overlooked.

Dimon holds the belief that the crisis will not resolve quickly and its impact will be long-lasting on the economy for several years. Nonetheless, he advises against responding to the situation with excessive rules and regulations, contending that the existing regulations encouraged banks to hold onto low-interest assets that decreased in value when interest rates increased.

In addition, he fau... Read more

As the deadline for filing federal income tax approaches, many individuals have taxes on their minds. According to a recent study by LendingTree, Americans are paying varying amounts of property taxes, with some areas having higher or lower rates than others. The amount of property taxes, also known as real estate taxes, can be influenced by several factors, including the location and value of the home.

Major Findings:

• The median property taxes in the 50 largest metropolitan areas of the United States can vary greatly. In comparison, Birmingham, Alabama has the lowest annual median property taxes, which are $8,096 less than those in the New York metropolitan area, ... Read more

The CFPB has released a policy statement that clarifies the legal ban on abusive behavior in the consumer financial markets, and outlines over ten years of prior rulings. The agency is responsible for enforcing and overseeing efforts to halt abusive practices that harm consumers.

The Consumer Financial Protection Act was enacted by Congress in 2010 as a response to the financial crisis, which included a ban on abusive conduct. The Act assigns responsibility for enforcing the ban to the CFPB, federal banking regulators, and states, with the CFPB serving as the primary administrator. The CFPB’s latest policy statement will aid in identifying misconduct for those charged with ... Read more

As the deadline for filing federal income tax approaches, many individuals have taxes on their minds. According to a recent study by LendingTree, Americans are paying varying amounts of property taxes, with some areas having higher or lower rates than others. The amount of property taxes, also known as real estate taxes, can be influenced by several factors, including the location and value of the home.

Major Findings:

• The median property taxes in the 50 largest metropolitan areas of the United States can vary greatly. In comparison, Birmingham, Alabama has the lowest annual median property taxes, which are $8,096 less than those in the New York metropolitan area, ... Read more

The CFPB has released a policy statement that clarifies the legal ban on abusive behavior in the consumer financial markets, and outlines over ten years of prior rulings. The agency is responsible for enforcing and overseeing efforts to halt abusive practices that harm consumers.

The Consumer Financial Protection Act was enacted by Congress in 2010 as a response to the financial crisis, which included a ban on abusive conduct. The Act assigns responsibility for enforcing the ban to the CFPB, federal banking regulators, and states, with the CFPB serving as the primary administrator. The CFPB’s latest policy statement will aid in identifying misconduct for those charged with ... Read more

In February, there was a marginal decrease (-0.1%) in construction expenditure compared to January, and although there was a 5.2% increase compared to the previous year, the growth was not significant. Of particular importance is that residential construction is no longer a leading contributor to the industry’s figures and is struggling to maintain its position.

The total expenditure on construction in February, after being adjusted for seasonal variations, was $1.844 trillion, slightly lower than the previous month’s $1.845 trillion but higher than February 2022’s $1.753 trillion. The unadjusted spending for the month was $130.004 billion. So far this year, the total s... Read more

If you’re planning to sell your home this spring, there are certain features and amenities that can help you command a higher sale price and sell your home faster, according to a recent report by Zillow. The study analyzed around 2 million home sales in 2022 and examined 271 features and design terminologies mentioned in listing descriptions.

Chef-friendly amenities such as steam ovens, pizza ovens, and professional-grade appliances can sell for as much as 5.3% more than similar homes without them, adding up to about $17,400 on a typical U.S. home. Trendy statement features like terrazzo floors and she sheds can contribute to an estimated 2.5% sale premium when mentioned in... Read more

Despite the fact that housing costs are high in general, a significant number of Americans are striving to overcome the challenges of affordability caused by inflated housing prices and historically high mortgage rates. Furthermore, the problem of exorbitant housing costs is not limited to homeowners alone, as renters are also grappling with the impact of soaring prices.

According to a recent study by LendingTree, some states have a larger population of individuals who are falling behind on rent payments, while others have more people living without paying rent at all.

Based on the analysis of data from the U.S. Census Bureau Household Pulse Survey, LendingTree discover... Read more

According to the February 2023 Black Knight Mortgage Monitor Report, home prices have experienced their first increase in seven months due to lower interest rates. However, they are still 18% lower than pre-pandemic levels, mainly because of affordability issues. Furthermore, the report states that inventory levels declined for the fifth consecutive month, reaching their lowest point since May 2022.

Home prices increased by 0.16% on a seasonally-adjusted basis, the largest gain in a year. However, the growth rate dropped below 2%, a level not seen in ten years. The Black Knight Mortgage Monitor Report projects that the annual growth rate will drop below zero percent by April ... Read more

The Black Knight Home Price Index reported that a drop in 30-year interest rates during February resulted in a rise in home prices and put an end to a seven-month period of declining growth. The report from the real estate analytics firm indicated a widespread shift in home price patterns across the country, with 39 of the largest 50 markets experiencing an upsurge in prices, leading to an overall improvement in the national trend.

The extensive rebound in prices was a significant turnaround from just three months prior, during which 48 out of the 50 biggest metropolitan areas in the United States experienced a decrease in prices.

The top-performing large cities in term... Read more

The latest Market Pulse Report from HouseCanary, which employs a range of metrics obtained from their nationwide platform, has been published for the period spanning from March 2022 to March 2023.

HouseCanary notes that despite the Federal Reserve implementing continuous rate hikes throughout the year and the impacts of three bank failures, there has been a significant decline in market activity in terms of contract volume and net new listing volume when compared to the previous year. Additionally, the numbers for net new listings are lower than those for contract volume, which has further contributed to the decrease in inventory numbers.

As we enter the second quarter ... Read more

The idea of advocacy efforts within an organization may seem abstract to some, but those who actively engage in such efforts understand the process. At a recent conference hosted by the Association of Independent Mortgage Experts (AIME), a panel of experts provided clarity on the topic. They shared specific details on what the trade group has accomplished since it began lobbying efforts last year.

During the Hall of AIME event held in Naples, Florida last month, Brendan McKay, who serves as the President of Broker Advocacy for AIME, moderated a panel discussion on advocacy efforts being undertaken by the organization. Among the panelists was Janine Kempfer, the Vice President... Read more

Last year saw an increase in the amount of equity that homeowners could extract, but this year’s forecast suggests that much of that gain will be lost. Among all states, California still holds the highest amount of tappable equity.

TransUnion’s Home Equity Trends Report Q4 2022 showed that the number of active home-equity accounts increased from 10.3 million in the previous year to 10.9 million in the fourth quarter of 2022. Out of the total, 71 percent were HELOCs, while HELOANs represented the remaining 29 percent.

During the most recent three-month period, the median combined loan-to-value (CLTV) ratio for all properties stood at 20 percent, while the average CLT... Read more

Selling a home can be a thrilling experience. It’s the culmination of years of investment and hard work, and the thought of finally seeing some cash in hand is exciting. However, the hefty commission that real estate agents charge can put a damper on your excitement. Did you know that realtor commission is negotiable? Yes, it is! Here are three ways you can save money on realtor commission:

Understand the Market: By law, agents cannot say that the commission is a set amount in their market. Though the industry standard is about 6%, it’s negotiable. In a seller’s market, where there are more buyers than inventory, it’s easy to sell homes. The agent won’t have to put ... Read more

After working for over a decade at Wyndham Capital Mortgage as the vice president of national direct-to-consumer sales, Donny Kirby departed to establish his own mortgage broker firm, Cornerstone Home Loans. The Charlotte, North Carolina-based company was his previous employer.

While working at Wyndham, Kirby was responsible for driving the growth of the company’s branches, expanding them from Charlotte, North Carolina, to Arizona, Texas, Utah, and Missouri. As mortgage rates increased and the demand for affordable mortgages surged, Kirby recognized the potential in the wholesale lending channel.

Kirby stated in an interview that the current state of the mortgage indu... Read more

The Consumer Financial Protection Bureau (CFPB) has recently implemented a new rule aimed at increasing transparency in small business lending. This new rule is designed to promote economic development, combat unlawful discrimination, and provide a more comprehensive view of small business lending. As per the new rule, lenders are obligated to gather and disclose a wide range of information pertaining to small business credit applications, encompassing demographic and geographic data, lending verdicts, and credit costs.

Small businesses and family farms are the backbone of the American economy, accounting for nearly half of all private sector workers and the majority of new j... Read more

Real estate agents are receiving numerous calls from first-time homebuyers and cash-ready investors, but there is a shortage of properties available for buyers and their agents to consider. A recent report by Redfin reveals that despite the increased demand, homeowners are hesitant to sell their homes due to declining house prices and mortgage rates, resulting in a lack of increase in home sales.

Redfin has reported a fourth consecutive week of growth in mortgage-purchase applications. During the week ending March 26, the Homebuyer Demand Index, which measures requests for home tours, offers, and consultations with agents, reached its highest point since May of the previous y... Read more

Over the past few years, automation has been increasingly adopted in various aspects of the housing industry. This can be attributed to the introduction of AI-powered chat tools for agent marketing, automated lead generation, and other cutting-edge technologies. The recent unveiling of Restb.ai’s latest technology has further expanded this list, as it offers AI-based property descriptions.

According to the company’s announcement on Thursday, Restb.ai has introduced a new tool called “Property Descriptions,” which utilizes photos and essential listing details to generate AI-driven property descriptions that are ready to be used. The company aims to simplify and acceler... Read more

The Consumer Financial Protection Bureau (CFPB) has declared that the state regulations requiring disclosure for lending to businesses in California, New York, Utah, and Virginia are not superseded by the federal Truth in Lending Act (TILA).

The CFPB scrutinized disclosure regulations in California, New York, Utah, and Virginia to ascertain whether they clashed with and took precedence over the Truth in Lending Act. Following a review of public feedback on its initial decision, the CFPB confirmed that there was no contradiction since the state laws provide disclosure safeguards for businesses and entrepreneurs pursuing commercial loans.

The aim of TILA is to ensure that... Read more

Recently, Fannie Mae transferred $926 million of mortgage credit risk to private insurers and reinsurers through two Credit Insurance Risk Transfer (CIRT) transactions, namely CIRT 2023-2 and CIRT 2023-3. Since its inception, the CIRT program has provided insurance coverage of around $23.5 billion for Fannie Mae on $793 billion worth of single-family loans.

CIRT 2023-2 and CIRT 2023-3 cover loan pools of around 44,000 and 54,000 single-family mortgage loans, respectively. The former has an unpaid principal balance of roughly $13.8 billion with collateral LTV ratios of 60.01% to 80%, while the latter has an unpaid principal balance of about $18 billion with collateral LTV rati... Read more

During the week ending March 24, the Mortgage Bankers Association (MBA) reported an increase in both home purchase and refinancing applications for the fourth consecutive time. According to MBA’s Market Composite Index, which measures application volume, there was a 2.9 percent increase on a seasonally adjusted basis and a 3.0 percent increase on an unadjusted basis compared to the previous week, which ended on March 17.

Compared to the previous week, the Refinance Index showed a 5 percent increase, resulting in a higher refinance share of activity, which rose from 28.6 percent to 29.1 percent of total applications. However, when compared to the same week in 2022, the Index... Read more

The gender gap in homeownership has been a long-standing issue, with single men being more likely to own a home than single women. However, recent years saw the gap narrow, nearly closing in 2021, according to a Zillow analysis. Unfortunately, the gap widened again last year, highlighting the challenges that single women face when buying a home.

In 2016, the homeownership rate for young single women was just 19.4%, while it was 29.6% for young single men, representing a gap of 10.1 percentage points. However, as more women joined the workforce in the next five years, the gap reduced, and record-high homeownership rates for single women were witnessed in 2020. By 2021, the gap... Read more

According to the National Association of REALTORS®, there was an increase in pending home sales for the third straight month in February. While three regions in the United States experienced monthly growth, the West saw a decline. However, all four regions saw a drop in transactions when compared to the same period last year.

In February, the Pending Home Sales Index (PHSI) increased by 0.8% to reach 83.2. The PHSI is a measure that looks ahead and predicts home sales based on contract signings. However, when compared to the same period last year, pending transactions decreased by 21.1%. It is important to note that an index score of 100 represents the level of contract acti... Read more

The MBA has recently unveiled the leading commercial and multifamily originators for 2022. This information was revealed in the form of their yearly report, which includes details such as the origination volumes and roles played by 148 mortgage firms operating within the industry.

JLL, CBRE, Meridian Capital Group, JP Morgan Chase & Company, Eastdil Secured, Wells Fargo, KeyBank, Newmark, Walker & Dunlop, and PNC Real Estate were among the top 10 originators of commercial and multifamily mortgages in 2022.

The report was classified into subcategories based on factors such as the role played, investor group, property type, financing structure type, originating of... Read more

In March, the national rent index showed a 0.5 percent increase according to the April 2023 Apartment List National Rent Report. This marks the second consecutive monthly increase and a slightly faster pace than the previous month. The magnitude of this month’s increase is comparable to the typical price fluctuations observed in March before the pandemic. Following a year of record-setting price drops in 2022, it appears that rental demand is returning to its usual seasonal pattern.

The rate of year-over-year rent growth has been slowing down and is currently at 2.6 percent, which is the lowest it has been since April 2021. This rate is slightly lower than the average rate ... Read more

For the week ending March 24, there was a 2.9% increase in home loan application volume reported by the Mortgage Bankers Association.

The market composite index of MBA experienced a 2.9% rise on a seasonally adjusted basis compared to the previous week, while it was up by 3% on an unadjusted basis. This increase coincided with a drop in the 30-year fixed-rate mortgage to 6.45%, marking the lowest rate in over a month.

According to Joel Kan, the deputy chief economist of MBA, the increase in application activity can be attributed to the third consecutive weekly decline in mortgage rates. Despite the 30-year fixed rate being significantly higher compared to last year by 1... Read more

The housing market in March 2023 saw an increase in the inventory of homes for sale compared to the previous year, as reported in Realtor.com’s Monthly Housing Market Trends Report. However, the growth rate in inventory slightly declined, and there were still fewer homes available to buy on a typical day in March than there were pre-pandemic.

Compared to last year, the total inventory of homes for sale, including those under contract but not yet sold, increased by 9.3%, with a slower growth rate than the previous month. Additionally, the number of homes under contract (pending listings) decreased by 24.5% compared to the same time last year, suggesting a possible stabilizat... Read more

During the week ending March 24, the Mortgage Bankers Association (MBA) reported an increase in both home purchase and refinancing applications for the fourth consecutive time. According to MBA’s Market Composite Index, which measures application volume, there was a 2.9 percent increase on a seasonally adjusted basis and a 3.0 percent increase on an unadjusted basis compared to the previous week, which ended on March 17.

Compared to the previous week, the Refinance Index showed a 5 percent increase, resulting in a higher refinance share of activity, which rose from 28.6 percent to 29.1 percent of total applications. However, when compared to the same week in 2022, the Index... Read more

According to a recent report by Redfin, there was a 3.6% year-over-year decrease in the number of Redfin.com users searching for homes in a different metropolitan area in February.

Redfin’s records, dating back to 2018, indicate that there was a significant decline in the number of Redfin.com users searching for homes within their current metropolitan area, with a 14.4% drop. This decline was even greater than the 3.6% decrease in users looking to relocate to a new metro. Both of these declines mark the largest ones on record for Redfin.

Mortgage rates have increased significantly over the past year, leading to higher home-buying costs in almost all cases. However, fo... Read more

As per the National Association of Realtors (NAR), baby boomers have now become the biggest cohort of homebuyers, surpassing millennials. In 2022, boomers represented 39% of all homebuyers, up from 29% in the previous year, while millennials’ share dropped from 43% in 2021 to 28% in 2022. The rise of the boomer generation ended years of millennials being the largest group of buyers in the market. Younger boomers (ages 58 to 67) comprised 23% of buyers, while older boomers (68 to 76) made up 16% of buyers.

The increase in the number of baby boomers buying homes is attributed to their years of built-up equity, boosted by the run-up in home values during the peak market years ... Read more

In February, Freddie Mac stated that the serious delinquency rate for Single-Family homes was 0.65%, a decrease from 0.66% in January. This rate is also lower than the previous year’s 0.99% in February 2022.

Freddie Mac’s serious delinquency rate had peaked at 4.20% in February 2010 after the housing bubble, and reached 3.17% in August 2020 during the pandemic.

The delinquency category includes mortgage loans that are “three monthly payments or more past due or in foreclosure”. However, mortgages in forbearance are included in this report as delinquent but are not shared with the credit bureaus.

Furthermore, the serious delinquency rate was at 0.60% just b... Read more

In January, the S&P CoreLogic Case-Shiller U.S. National Home Price Index showed a seventh consecutive monthly drop in home prices. However, the decline was not as significant as in the previous months, which could be attributed to a period of reduced interest rates that motivated potential homebuyers to make a move.

The Case-Shiller index experienced a 0.5% decrease from December to January, bringing the reading down to 292.71. Although the national index still showed a slight increase year over year, the January reading was only 3.8% higher compared to the same period in the previous year. This represents a decline from the 5.6% growth rate observed in December 2022.Read more

Thank you for your inquiry. Per your request, below is the record count and volume-based pricing for California. We can sell California by county–if this interests you let me know which ones and I will return counts and pricing. Let me know if you have any questions or how we can help.

**we can also provide record counts and volume-based pricing for Insurance Agents, Mortgage Loan Officers, and Investment/Wealth Advisors

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