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 […]
Sprout Mortgage and its ex-workers are close to settling several lawsuits over unpaid wages following the abrupt closure of the non-QM lender 11 months ago. A judge has yet to approve the deal. On June 1, attorneys representing the former employees filed a notice of motion for preliminary settlement approval in a federal district court in […]
Cenlar FSB, the second-largest mortgage servicer and largest subservicer in the U.S., announced on Tuesday the promotion of two leaders in its wholesale bank division. Keith Austin has been promoted to director of asset management and valuation services. With over 25 years of experience in portfolio management, he brings to the role an extensive expertise in default […]
In honor of National Homeownership Month, Chase Home Lending unveiled on Tuesday an upgraded suite of resources for homebuyers to assist in navigating the homebuying process and managing homeownership. One resource unveiled by Chase is Lock and Shop, which enables buyers to lock in their mortgage rate for 90 days without an upfront fee when […]
With rates around 6.9% and home prices still near record highs, homebuyers are demanding that their loan officers provide options to lower monthly mortgage payments as much as possible. Michael J. Barnes, a branch manager at Mann Mortgage, recently had a client who planned to live in a new home for five years before selling […]
Nationwide Property & Appraisal Services LLC (NPAS), a pioneer in the real estate appraisal sector, announced on Tuesday the launch of its product line, Pinnacle Desktop Appraisals. This service delivers a cost-effective solution that enhances efficiency, accuracy, and impartiality, according to the company. Designed to cater to the needs of home equity lenders, fix and […]
Top U.S. originator United Wholesale Mortgage (UWM) is the target of two lawsuits filed by former underwriters alleging retaliation, a hostile workplace environment, gender/sexual harassment and failure to pay minimum wages and overtime. The company declined to comment on the accusations. According to the lawsuits filed in a U.S. district court in Michigan, the alleged events occurred […]
Top Producer Software, a leading real estate software provider, announced on Monday the release of its first-ever social media lead product, Social Connect. This new product combines social media marketing with automated lead nurture to enable real estate agents to grow their database and convert more leads into clients. “Social Connect is a game changer […]
Desmond Smith: There are two ways to get a mortgage — HousingWire recently spoke with Desmond Smith, chief growth officer at United Wholesale Mortgage, about the role that wholesale lending plays in the mortgage ecosystem and common myths and misconceptions about becoming an independent mortgage broker. HousingWire: What role has wholesale lending historically played in […]
Direct retail lender Revolution Mortgage has scooped up two of loanDepot‘s top LOs, accelerating its plans to expand market share despite a tough origination environment. Jorden Brok and Brett Lotsoff are producing area managers and SVPs of mortgage lending at Revolution Mortgage and are tasked with expanding the company’s footprint in the greater Chicago area. […]
The affordability challenges homebuyers are facing are becoming more deeply entrenched, according to Black Knight‘s most recent monthly mortgage monitor report. “In a sense, the gridlocked housing market has been feeding on itself,” Andy Walden, VP of enterprise research strategy at Black Knight, said. Tightening credit availability, elevated rates, inventory shortages and strengthening home prices […]
It’s been such a different year for inventory from 2023 versus 2022 that we are heading toward an event that would have seemed impossible in earlier years: If the current inventory trend continues, we will see some negative year-over-year inventory data soon for the weekly single-family listing data. the chart below shows the clear trend, […]
The U.S. Department of Justice (DOJ) this week announced that it had secured a settlement of more than $3 million from Philadelphia, Penn.-based ESSA Bank & Trust over allegations that the company engaged in redlining majority Black and Hispanic communities from access to credit services around the Philadelphia area. According to a complaint filed by […]
Polly, a leading provider of innovative mortgage capital markets technology, recently announced the appointment of industry veteran Cheryl Messner as chief customer officer (CCO). Messner, who has extensive experience and expertise in mortgage fintech, joins Polly as the company experiences significant growth and adoption in the industry. “Polly has revolutionized traditional pricing and loan delivery, […]
Mat Ishbia is optimistic about the mortgage market. The Pontiac, Michigan-based United Wholesale Mortgage (UWM) CEO believes that 2022 and 2023 are equally challenging years, but the market will improve in 2024. Meanwhile, 2025 and 2026 will be off the charts. What does Ishbia think about surging mortgage rates, lack of housing inventory and monetary […]
The Federal Housing Finance Agency (FHFA) officially implemented an updated pricing framework for Loan-Level Price Adjustments (LLPAs) in May to improve homeownership prospects for first-time homebuyers with lower income and weaker credit scores. It’s a simple goal, but as is often the case in U.S. housing policy, it is being executed in a very complicated […]
Mortgage rates jumped last week amid a debt ceiling impasse and expectations of another federal funds rate hike. However, rates have started to reverse course over the last few days, following news of a debt agreement and an expectation that the Federal Reserve may pause hikes. On the fiscal side, President Joe Biden and House Speaker […]
Connecticut-based lender and servicer Planet Home Lending has acquired the assets of Illinois-based retail lender Platinum Home Mortgage Corporation. The financial terms of the transaction have not been disclosed. With the acquisition, Planet will inherit the majority of Platinum’s origination staff and branches throughout the country. The deal also expands Planet’s footprint in the Midwest, Northwest and West Coast […]
The Federal Housing Administration (FHA) submitted for public comment on Wednesday its proposal to create a new partial claim option, a result of its acknowledgment that its current loss mitigation toolkit isn’t enough to support struggling borrowers as rates surge. The Payment Supplement Partial Claim will allow servicers to use the FHA partial claim to bring a […]
Austin-based rent reporting fintech Boom announced on Wednesday that it has raised $4.5 million in a seed round to improve user experience, expand its product offerings and market its app to customers. The seed round was led by Chicago-based venture capital fund Starting Line, followed by Clocktower Technology Ventures, Company Ventures, Gilgamesh Ventures, and Plaid […]
Higher mortgage rates caused by the debt ceiling drama and resilient inflation reduced demand for home loans last week, affecting the already depressed refinancings in particular, according to the latest Mortgage Bankers Association (MBA) data. The trade group’s market composite Index declined 3.7% on a seasonally adjusted basis for the week ending May 26 compared to […]
The debt ceiling deal struck by President Joe Biden and House Speaker Kevin McCarthy on Saturday represents momentary relief for the mortgage market, as it reduces the chances of a federal government default. But that’s just the first step in an ongoing effort to avoid the chaos. The deal has to receive Congressional approval before […]
Swiss bank UBS Group AG plans to wind down a business in its US mortgage unit that focuses on “to-be-announced” (TBA) trading, Bloomberg reported late last week. The decision is part of UBS’s strategy to focus more on financing mortgage originators, the outlet said, citing an anonymous source discussing non-public information who asked not to […]
Artificial intelligence (AI) is a buzzword in virtually every industry right now. And, in the mortgage industry, AI will play an instrumental role in helping loan officers to be more efficient, according to Nima Ghamsari, Blend‘s co-founder and CEO. “Some of these borrowers have hundreds of products that they can choose from. How is an […]
New listing data rose last week, according to Debt-ceiling drama pushed bond yields up last week, taking mortgage rates to a new 2023 high in the middle of the spring home-selling season. Active housing inventory, thankfully, saw some decent growth last week. Purchase application data had a second straight week of declines. Here’s a quick […]
Borrowers seeking mortgage financing to purchase a home could find themselves saving $100 a month or more by shopping around, and locating cheaper lenders with which to do business. This is according to a new blog post published this week by the Consumer Financial Protection Bureau (CFPB). By analyzing Home Mortgage Disclosure Act (HMDA) data […]
Texas-based Colonial Savings, F.A. has decided to exit the origination business amid one of the most challenging cycles in decades, provoked by the Federal Reserve‘s tightening monetary policy and a banking crisis. The company will focus on full-servicing banking and mortgage servicing businesses, it announced on Thursday. The origination activity will cease effective July 31, 2023, but all outstanding […]