Interest rates for mortgage loans broke five straight weeks of declines caused by the bank crisis. This week, the 30-year fixed rate rebounded due to recent data indicating a still-resilient economy, the potential continuity of the Federal Reserve’s tightening monetary policy, and pressures in the secondary market. “For the first time in over a month, […]
Owners of a North Carolina property have filed an amended lawsuit against Rocket Mortgage that claims the lender rejected a refinance application in order to impose a higher rate. In an amended complaint, filed Monday, two couples — John Speicher and his wife, Patricia Giles, from Wyomissing, Pennsylvania, and Jeremy and Courtney Speicher from […]
The National Association of Mortgage Brokers (NAMB), an association representing the interests of individual mortgage loan originators and small to midsize mortgage businesses, is welcoming the introduction of a bill that would end the sale of trigger leads. The bill, H.R. 2656, was introduced by Representative Richie Torres of New York on April 17, and […]
In February, the Consumer Financial Protection Bureau issued an advisory opinion addressing how certain mortgage comparison site platforms could potentially be violating the Real Estate Settlement Procedures Act (RESPA) section 8. According to the advisory opinion, if the mortgage comparison site “provides enhanced placement or otherwise steers consumers” to certain operators based on compensation, an […]
The big difference in this housing recession versus other cycles is that housing completions are still rising, which is unusual. However, because of the COVID-19 delays, we are still working through a backlog of homes under construction. From Census: Housing Completions Privately‐owned housing completions in March were at a seasonally adjusted annual rate of 1,542,000. This […]
Introducing Inside Voices with Kristin Messerli, a new interview video series hosting by Messerli, who’s research on NextGen homebuyers helps to inform tomorrow’s generation. She is also author of NextGen Homebuyer Research and a speaker and educator. Today, she interviews Yanely Espinal, the Education Outreach Director for NextGen Personal Finance. She shares what every leader […]
In a cyclical mortgage industry, hedging is key to maintaining a buffer against losses. For New American Funding (NAF), the country’s 33rd-largest mortgage lender, hedging is how the company was able to manage through the troughs of the mortgage business cycle, Rick Arvielo, co-founder and CEO of NAF, said in an interview with HousingWire. “We’re […]
MISMO, the real estate finance industry’s standards organization and a subsidiary of the Mortgage Bankers Association, plans to launch a working group that will create standards for Electronic Home Equity Lines of Credit (eHELOC). The launch of the working group comes at a time when HELOCs are an increasingly popular choice for homeowners who want […]
While a mortgage business’ battle against margin compression is seemingly endless, that fight is less noticeable in times of surging revenue. This year, thus far, has been anything but that. The decline in mortgage volume, along with increasing rates and uncertainty about the months ahead, have amounted to a scramble for revenue and a continual […]
Higher interest rates pushed up profits for Bank of America (BofA) in the first quarter of 2023, but much like its depository peers, JP Morgan Chase and Wells Fargo, the mortgage business dropped by double-digits during this period. The bank posted a net income of $8.2 billion from January to March, rising 15.5% quarter over […]
As the COVID-19 national emergency draws to a close, the forbearance rate has decreased month over month, according to a report from the Mortgage Bankers Association (MBA) on Monday. While the MBA still expects a recession this year, credit quality is generally good, and borrowers facing financial hardship can access enhanced loss mitigation options, the […]
Elevated mortgage rates are continuing to give homeowners a reason to stay at their current homes, according to the 2023 Borrower Insights Survey conducted by ICE Mortgage Technology. But while the inventory-lacking market has caused issues for buyers, one bright spot is that about half of the current homeowners say they plan to sell their […]
As leaders, it is critically important that we pause and reflect on the legacy we are passing on to emerging generations. How can we leave the industry better, stronger, more flourishing than we found it? What can we do to pave the way to unbiased, equitable opportunity and limitless potential for all who aspire to […]
Multi-channel mortgage lender New American Funding (NAF) is entering the joint ventures arena, offering multiple JV models in a margin-compressed and highly regulated industry. Under the JV model, partners will have access to NAF’s infrastructure and mortgage originating process. It will allow the company to mitigate the risk associated with being in the mortgage business […]
Think an old dog can’t learn new tricks? Some say that the nearly 150-year-old title industry has a difficult time adapting and evolving. However, the title industry has proven these critics wrong over the past decade, and importantly, it has done so without leaving homeowners vulnerable to unnecessary risks. Title companies have embraced digitization, automation […]
That compares to only 28% for both GSEs combined. To be clear, the FHA remains the primary provider of mortgage financing for minorities in this country. And, if you read The Urban Institute, a well-known think tank in Washington, D.C., has a Housing Finance Policy Center that does a significant amount of research and analysis […]
The seasonal housing inventory bottom evaded us again last week as active listings fell and new listing inventory decreased. Purchase application data rose again, with more positive than negative data in 2023. Mortgage rates didn’t move much last week, but the 10-year yield rose even though inflation data was tamer than expected, and we had […]
Wells Fargo has finalized the sale of a $50 billion block of mortgage-servicing rights (MSR), a deal that is expected to close later this year, according to bank officials. One expert in the MSR sector, who asked not to be named, said the bidding for the offering appears to have closed in late February or early […]
Wells Fargo and JP Morgan Chase, the country’s top depository lenders, saw mortgage production volume further decline in the first three months of 2023, signaling another tough quarter for the mortgage industry. Wells Fargo, the fourth-largest U.S. mortgage lender by volume, originated $6.6 billion in mortgages in the first quarter of 2023, which was down […]
Homeownership remains at the core of the American Dream. After all, it improves financial security, enhances family and community stability, and builds intergenerational wealth. The Federal Reserve’s 2019 Survey of Consumer Finances found that the median net worth of a homeowner is approximately $255,000 — more than 40 times that of a renter. First-time homebuyers are the […]
First Federal Bank will acquire the mortgage division of BNC National Bank, which will give the Florida-headquartered community-based bank a nationwide consumer direct mortgage platform. The two banks announced they have signed a definitive agreement for First Federal to acquire certain assets and liabilities of BNC National Bank’s mortgage division on Wednesday. The purchase, which […]
San Francisco-based fintech Polly has hired Parvesh Sahi, a former executive from ICE Mortgage Technology, as chief revenue officer to scale the business in a highly competitive mortgage environment. Sahi will be involved in all aspects of the corporate strategy, business development, sales and account management, the firm said Thursday. Sahi brings to the role […]
The Federal Housing Administration (FHA) published a new draft version of a Mortgagee Letter (ML) on Thursday that would update the mortgage insurance requirements on single-family homes with accessory dwelling units (ADU). The proposal is designed to offer additional flexibility for calculating market rent and using ADU rental income to help qualify for FHA-insured mortgage […]
Mortgage rates have declined over the last several weeks, and it’s helping to lure buyers back into what started out as a slow spring home buying season, Melissa Cohn, regional vice president of William Raveis Mortgage, said. And, the recent rate declines are sparking optimism among economists and loan officers. “On conventional loans, some rates […]
I have often found that where technology and financial services come together, the no’s are necessary. As such, shouldn’t we learn to make them happen productively? Saying no is an inevitability — or rather, it should be. Anyone who has tried to accommodate the ‘yes’s’ all the time could tell you that it is impossible […]
In today’s market, relationships matter more than ever. Strong partnerships with real estate professionals is a start, but mortgage professionals should also invest time and energy in connecting with their community at large. After all, the wider your sphere of influence, the more opportunities you have for business. But how do you embed yourself in […]
The Consumer Price Index data released Wednesday showed again that the breakaway 1970s-style inflation is not happening, even with an expanding economy and an unemployment rate under 4%. The headline inflation data came in lower than anticipated. While we have made progress in cooling down the inflation data, which is running into tough year-over-year comps […]
Top wholesale lender United Wholesale Mortgage (UWM) is yet again ramping up efforts to gain more market share at the cost of potential profits. On Wednesday, the Detroit-based lender announced that it is reviving the conventional 1% down loan option, which allows homebuyers to purchase a home with a 1% down payment. Known as the […]
Olufolajimi Abegunde, a Nigerian citizen living in Atlanta, and Javier Luis Ramos-Alonso, a Mexican citizen living in Seaside, California, were each convicted in 2019 in federal court in Tennessee of participating in a sophisticated international email-hacking scheme that bilked its targets out of hundreds of thousands of dollars. Among those targets were a Memphis-based real […]
Mortgage rates tumbled downward by nearly 1% last week on the heels of a lackluster jobs report, which helped to spur renewed interest in mortgage loans by potential homebuyers. The uptick in mortgage applications was a welcome change for the struggling housing market, which has been plagued by affordability issues that have kept many would-be […]
With the mortgage industry still rightsizing, mortgage professionals are worried about regulation of the industry and inflation that thins already tiny margins. Industry players are largely pessimistic about the economic climate and expect interest rates to trend up in the near term future, according to the HousingWire Q2 2023 LenderPulse survey. Roughly 30% of 155 […]
Consumer price increases cooled further in March, which is welcome news for the Federal Reserve, which made the challenging choice at its March meeting to continue with its federal funds rate hikes despite the failures of Silicon Valley Bank and Signature Bank. The Consumer Price Index (CPI) rose by 5.0% in March, before seasonal adjustment […]
Misinformation is spreading on TikTok about the Federal Housing Administration‘s (FHA) recent increase to the maximum mortgage modification term, causing confusion for homebuyers. The FHA announced a final rule last month that allows mortgagees to increase the maximum FHA-insured mortgage loan modification term from 360 months to 480 months following a default. That change is slated […]
Forbearances granted by the U.S. Department of Agriculture (USDA), the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) due to pandemic-related financial hardships will soon come to an end, according to an announcement on Tuesday. The forbearances are now slated to end on May 31, according to the announcement. […]
The Federal Trade Commission (FTC) has opened a new front in the fight against Intercontinental Exchange‘s (ICE’s) planned acquisition of Black Knight. The agency petitioned a California federal court to issue a temporary restraining order (TRO) and preliminary injunction (PI) that prevents ICE from going forward with the deal to buy Black Knight. The goal […]
Friday, April 7, marked a day for celebration. After four years of Congress hiking Veterans Administration (VA) so-called “Bluewater Navy” mortgage loan fees as an offset to pay for other critical veterans’ benefits, Congress has finally let those excessive VA mortgage loan fees expire. This good news for homebuyers comes on top of FHA action in […]
Rate lock volume jumped 43% in March on the back of seasonal tailwinds, falling interest rates and stronger purchase market performance. Lock volumes increased across the board, led by purchase locks jumping 44% in March — well above the 30% average February to March gain seen across the past 5 years, Black Knight’s originations market […]
The housing market welcomed the news of lower mortgage rates last week after four reports showed that the labor market isn’t as tight as it seems and that the fear of 1970s-entrenched inflation was a lousy narrative. The 10-year yield finally broke below a critical technical level it had difficulty breaking for many months and we […]
Given Friday’s job report, those who have been concerned with entrenched 1970s inflation — which would lead to double-digit mortgage rates — can put their disco shoes back in the closet. I have tried to explain that the 1970s inflation isn’t a reality, and Friday’s report should ease the fear that wage growth is spiraling […]
Rate lock volume activity in the residential mortgage industry increased across the board in March after dipping in February, according to data compiled by the Mortgage Capital Trading, Inc. (MCT) MCTlive! Lock Volume Indices report. In March, purchase lock activity increased 23% compared to February, according to the report, while rate/term refinance volume grew by […]
The spring homebuying season is here, but a large majority of consumers are pessimistic about making the purchase, citing unfavorable mortgage rates and rate lock-in effects as the cause, according to Fannie Mae. The government-sponsored enterprise’s Home Purchase Sentiment Index (HPSI), which tracks the housing market and consumer confidence to sell or buy a home, […]
Signs of a slowdown in the labor market have emerged, sparking hope that the Federal Reserve may stop its ongoing tightening monetary policy, which has spurred increasing mortgage rates. But industry observers say it’s prudent to wait for inflation figures in order to bet that the Fed’s rate hikes are over. The slowdown in the labor market […]
Shrinking wholesale lender Homepoint is closing its mortgage origination business and will sell its origination-focused assets to competitor The Loan Store, the company announced on Friday. Michigan-based Homepoint is “winding down” its tenure as a direct participant in the mortgage origination business and becoming an investor in the market, as the company will hold an […]
After a few years of nothing less than an automation revolution in the title industry, market uncertainty and declining volume are now testing just how effective our efforts have been. If the primary purpose of employing technology is to streamline the workflow, reduce unnecessary expenses and drive greater productivity, the efforts of title agents and […]
The Federal Deposit Insurance Corporation (FDIC) has decided, in a “gradual and orderly” move, to sell a portfolio of $114 billion in mortgage-backed securities (MBS) it retained after seizing control of failed regional banks Signature Bank and Silicon Valley Bank (SVB). The face values of SVB’s portfolio is approximately $87 billion, while Signature Bank’s assets […]