Some of the best performing stocks in America this year are from large, national homebuilders – strong consumer demand, limited competition from the existing home sales market, and an improving supply chain have boosted their outlooks. On Monday, homebuilder confidence moved into positive territory for the first time in nearly a year, while Census data on […]
The Federal Housing Finance Agency (FHFA) announced late last year that it is replacing the Classic FICO credit model used by Fannie Mae and Freddie Mac with the FICO 10T and the VantageScore 4.0 credit score models and outlined the timeline for implementation. But a coalition of 17 associations, led by the Housing Policy Council […]
On June 1, Arizona-headquartered retail lender AmeriFirst Financial Inc. relaunched its forward mortgage originations. It ceased that business in December 2022 after rising mortgage rates wreaked havoc on the housing industry. Of the 400 employees scooped up by American Pacific Mortgage (APM) late last year, about 20 LOs have returned to AmeriFirst Financial. Eric Bowlby, […]
Wholesale mortgage lender The Loan Store (TLS) announced on Thursday the roll-out of its new home equity line of credit (HELOC) product, which is currently available in 25 states and Washington, D.C. The Loan Store’s HELOC product is a standalone, fixed-rate line of credit that allows borrowers to tap into the equity of their homes, […]
Mortgage rates declined again this week following the Federal Reserve‘s recent pause on monetary tightening. However, rates on home loans remain at elevated levels compared to last year and that pause looks temporary. What should we expect from the summer home-buying season? The Freddie Mac’s Primary Mortgage Market Survey, which focuses on conventional and conforming loans with a 20% […]
Existing home sales marginally increased in May, but were still down significantly from a year prior, according to the latest report from the National Association of Realtors (NAR). Total existing home sales rose 0.2% from April to a seasonally adjusted annual rate of 4.30 million in May. Year-over-year, sales dropped 20.4% from 5.40 million in […]
Home Point Capital surprised the market on April 7 when it announced that the acquirer of its struggling mortgage origination business was a small wholesale shop few had even heard of. The Loan Store, based in Arizona and accustomed to originating about $20 million a month, was picking up the pieces of the third-largest wholesale […]
On the heels of the Federal Reserve pausing its rate hikes, mortgage demand increased, but only slightly. For the week that ended June 21, mortgage applications only climbed 0.5% from the prior week, according to the Mortgage Bankers Association. This slow growth highlights that while demand is there and rates have fallen for three consecutive […]
Housing starts are surging today and the builder’s confidence data is now in expansion territory. Does this mean the housing recession is over? As I have said many times over the last few months, the builders are efficient sellers and they’re taking advantage of an existing home sales market that is suffering from low inventory and […]
The U.S. Department of Housing and Urban Development (HUD) has over 50 proposed rules in the pipeline in its section of the federal government’s 2023 spring regulatory agenda, released last week by the White House. Most of the 51 entries dedicated to HUD are in the “proposed rule stage,” the second of five stages involved […]
North Carolina-based Truist Financial Corporation announced on Tuesday that seasoned mortgage executive David Smith will be the head of Truist Mortgage effective July 31. Smith will replace the soon-to-be-retired Todd Chamberlain, who will assist with the transition. Smith, whose experience includes leadership roles at companies such as Keller Williams and CitiMortgage, will oversee the strategy and execution of originations, fulfillment, servicing […]
Mike Cagney’s Figure Technologies rolled out a wholesale lending platform that will give loan originators access to the company’s home equity line of credit (HELOC) offering. New wholesale partners of Figure can leverage the company’s HELOC technology to broker loans directly, the company said announcing the launch on Tuesday. “With Figure’s built-in digital origination process, […]
So you’ve been using the same outdated title production software for years and feel like you’re no longer getting the most bang for your buck. As your business grows, you need efficient software that can grow with you, but some questions hold you back. The four most common questions we hear from title professionals about […]
Mortgage rates were near 7% last week but purchase applications were still able to pull out an 8% week-to-week gain. That was surprisingly strong, but as I have always stressed, context is critical. Purchase apps were coming off a four-week losing streak and even though those were mild week-to-week declines, it was still four weeks […]
Below-median family income households are overcoming constraints related to increased borrowing costs and home prices and are finding ways to become homeowners, according to Freddie Mac’s latest economic, housing and mortgage outlook. The below-median family income homeownership rate increased to 53% from 48% since 2016, Freddie Mac said, citing data from the Census Bureau’s Housing […]
The Mortgage Bankers Association (MBA) is highlighting the challenges and successes that the COVID-19 pandemic created for mortgage servicers in response to a series of reports published this week by the U.S. Department of Housing and Urban Development (HUD)’s Office of the Inspector General (OIG). “[The] report from the OIG confirms what we all know […]
A former CrossCountry Mortgage employee accused her immediate superior at a branch in Georgia of sexual harassment and said the mortgage company retaliated against her after she lodged complaints with the human resources department and federal authorities. Christina Nielsen, a former processor, claims that during her employment at CrossCountry, Alpharetta branch manager Steven Bocca subjected […]
SimpleNexus, a homeownership platform developer for loan officers, borrowers, real estate agents, and settlement agents, announced this week a new integration with Empower, the loan origination system (LOS) from Black Knight. This bidirectional integration, available to financial institutions, including independent mortgage banks nationwide, enables real-time sharing of loan application data, milestone updates, and documents. “We […]
The Consumer Financial Protection Bureau (CFPB) will look for ways to streamline and simplify mortgage servicing rules in the months ahead following public comment on how to reduce risks for borrowers having trouble with their mortgage payments, according to a blog post from CFPB Director Rohit Chopra. Chopra noted in the post the importance of […]
After a slight decline this week, mortgage rates are expected to stay at their current elevated levels for a while in reaction to the Federal Reserve‘s (Fed) decision to pause its tightening monetary policy in June. In turn, mortgage origination volumes will remain under pressure for the remainder of the year. The Freddie Mac’s Primary […]
The Federal Reserve‘s (Fed) interest rate hike pause will give the housing industry a cautious sigh of relief, but observers are already nervous that the rate-induced pain train won’t come to a complete stop for a while longer and volatility will remain. The Fed’s updated economic projections showed that central bankers forecast that inflation could […]
About 60% of mortgage industry professionals in the U.S. are living paycheck to paycheck, an issue caused primarily by inflation, high interest rates and fewer deals, according to a study released this week by payroll technology company Everee. “The survey of 314 U.S.-based professionals in the mortgage industry with commission-based roles also found that over […]
The Federal Reserve (Fed) maintained the federal funds rate in the 5% to 5.25% range on Wednesday, following 10 consecutive hikes that brought rates to a level never seen since 2007. The Federal Open Markets Committee (FOMC) has decided to pause its rate hikes in June after data that pointed to cooling inflation and the […]
TransUnion announced on Wednesday that it has entered into a commercial agreement with Truework, an income and employment (VOIE) services verification provider, in order to provide comprehensive income verification coverage. Together, Transunion and Truework will offer verifiers an accurate and up-to-date view of consumers’ income and credit data, enabling better insights and more efficient decision-making, […]
Two straight weeks of mortgage rate declines helped spur consumer demand, according to the latest figures from the Mortgage Bankers Association. For the week that ended June 9, mortgage applications climbed 7.2% from the prior week. It can partly be explained by the 30-year fixed rate decreasing to 6.77% during roughly the same period. “Mortgage […]
The first quarter of 2023 proved a tough market for everyone in the housing industry, including institutional buyers of single-family rental (SFR) properties, but there are signs the second quarter of this year has been far more buoyant for these so-called “Wall Street” players. One clue to that resurgence is a $1.5 billion deal inked recently by Pretium […]
Dallas-based Comerica Bank has decided to “organically exit” the mortgage banker finance business following the tumult in the banking industry that threatened the nation’s top warehouse lenders. The process of exiting the space, which is expected to be largely complete by year-end, is a “strategic action” to enhance Comerica’s core business focus, according to a bank’s presentation […]
Inflation was running over 9% last year and the headline inflation growth rate has cooled off a lot recently. Does this mean the Federal Reserve will pivot soon to prevent a recession? I don’t believe they will, but the growth rate of headline inflation falling is good enough for them to pause rate hikes tomorrow. […]
Mortgage credit availability dropped in May, a consequence of a tougher mortgage landscape that has resulted in lender consolidation as well as high rates and limited inventory that has stretched consumer budgets. The monthly Mortgage Credit Availability Index fell by 3.1% to 96.5 last month, according to the Mortgage Bankers Association. A decline of the […]
Add Guild Mortgage to the list of lenders offering down payment assistance programs in order to court more buyers at a time when mortgage rates remain elevated. The California-based lender rolled out a 1% down payment advantage program this week that allows customers to buy a home with a minimum down payment of 1% of […]
In accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act, Fannie Mae has released a new version of its 2022 Stress Test Disclosure, which reflects two hypothetical economic scenarios, including a “severely adverse” scenario. The report was initially released in August 2022, but Fannie Mae announced in November that it had made a […]
HomeZada, a cloud-based platform for digital home management, announced on Monday that it has added Zada, an AI chat assistant, to the suite of apps on its platform. The goal of Zada Home AI Assistant is to assist with the challenges homeowners face when trying to finding answers on remodeling projects, product comparisons, and maintenance […]
The housing market, which is facing challenges with mortgage rates, affordability, prices and inventory, hasn’t been this purchase-dominant in decades, according to Black Knight’s originations market monitor report. Today, nearly nine out of every 10 mortgages originated is a purchase loan, the report notes. Last month, purchase locks accounted for 88% of the market mix, […]
After seeing disappointing inventory growth two weeks ago, which I chalked up to the Memorial Day holiday, I was hoping for a big push in active listings last week, but that didn’t happen. And, the recent uptick in mortgage rates to almost 7% slowed purchase application data again. Here’s a quick rundown of the last […]
Home prices aren’t crashing, despite what the housing bubble boys are saying. In fact, home prices have firmed up higher recently. The housing bubble boys are a crew that from 2012 to 2019 screamed housing crash every year. They went all in during COVID-19 in 2020, doubled down in 2021 as the forbearance crash bros […]
With mortgage rates still in the upper-mid 6% range, borrowers who received mortgages in May 2023 paid an average of $2,331 a month, up 20% from a year prior. That’s according to the latest origination data from mortgage tech firm Candor Technology. Per data from Candor’s underwriting engine, the average buyer in May 2023 received […]
The National Association of Mortgage Brokers (NAMB) declared its support this week for a bill introduced by Republicans in the U.S. House of Representatives that would reinstate the Loan Level Price Adjustment (LLPA) structure that was in place prior to May 1, 2023. Lawmakers proposed similar legislation in April. However, it was more limited in […]
Homebuyers these days are facing much higher costs of ownership compared to a year ago, pushing most to the sidelines. Mortgage rates and home prices are high and inventory is paltry, resulting in a largely frozen housing market. Nearly two-thirds of Americans say they are waiting for mortgage rates to drop before entering the market, according […]
Home equity levels have been on the decline over the last year, new data shows. Homeowners with mortgage loans saw their home equity levels decline by an average of 0.7% between the Q1 2022 and Q1 2023, the first decline recorded since early 2012, according to CoreLogic’s Homeowner Equity Report (HER). Homes with mortgages account […]
It’s been a brutal 15-month period for the housing market since the Federal Reserve began escalating its benchmark interest rate in March 2022 to combat rising inflation. Since then, the Fed has bumped rates 10 times, effectively putting the brakes on what had been a hot housing market. As the June 13-14 meeting of the central bank’s Federal […]
A 10 basis point decline in mortgage rates last week wasn’t enough to spur consumer demand for mortgages, according to the latest figures from the Mortgage Bankers Association. For the week that ended June 2, mortgage applications fell 1.4% from the prior week. That was despite mortgage rates dropping to 6.81% from 6.91% during roughly […]
High home prices and mortgage rates are continuing to constrain affordability in housing markets nationwide. As a result, consumers’ perceptions on home buying and selling have further diverged. Fannie Mae‘s Home Purchase Sentiment Index (HPSI) — which tracks the housing market and consumer confidence with selling or buying a home — declined by 1.2 points […]
After the recent extraordinary show of force defending changes to LLPAs by federal regulators and their friends, the forest through the trees risk remains in focus to me. One of the great concerns I have, as both a former regulator and the former head of a major industry trade association, is the downside risk of […]
The acquisition of Roostify by CoreLogic aims to streamline the user experience in the mortgage application process. By incorporating Roostify’s mortgage application software into CoreLogic’s suite of products, clients can benefit from an end-to-end integrated workflow to the loan origination process. This integration will simplify the application process, reducing manual tasks and providing real-time updates […]
Rocket Mortgage is looking to hire local loan officers at a time when mortgage rates are high and the industry remains heavily reliant on the purchase market. The Michigan lender, which racked up record profits with its call center model during the pandemic due to a large number of refis, said hiring local LOs isn’t […]