On March 29, the Federal Housing Finance Agency (FHFA) announced Fannie Mae and Freddie Mac would enhance their COVID-19 pandemic-era deferral policies which allowed homeowners experiencing hardship to defer up to six months of mortgage payments to be settled at the end of the loan. Since the pandemic began, the FHFA has enabled lenders to […]
Higher mortgage rates did not scare away potential homeowners last week. Borrower demand for home loans increased across the board, despite rates being at their highest level in over a month. “There are still so many borrowers looking to purchase a home. Plenty of buyers, but not enough homes for sale,” California-based mortgage loan officer Dan Stone, […]
Representatives of federal enforcement and regulatory agencies, including the Consumer Financial Protection Bureau (CFPB), Department of Justice (DOJ), Federal Trade Commission (FTC) and the Equal Employment Opportunity Commission (EEOC) are warning that the emergence of artificial intelligence (AI) technology do not give license to break existing laws pertaining to civil rights, fair competition, consumer protection […]
Rocket Central’s new vice president of public policy, Karan Kaul, plans to prioritize homeownership opportunities for first-time homebuyers, households of color, low- and moderate-income households that have historically found it difficult to access mortgage credit. As such, Rocket will continue to offer its special purpose credit programs, which allow first-time homebuyers to receive funds toward […]
New home sales posted yet another increase in March, rising 9.6% from February to a seasonally adjusted annual pace of 683,000 homes, according to data published on Tuesday by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). This is the fourth straight month of new home sales increases. On a year-over -year basis, however, new home sales […]
United Wholesale Mortgage (UWM) has moved to dismiss an amended counterclaim filed by broker shop America’s MoneyLine (AML) that accuses the lender of antitrust practices regarding the “ultimatum” it imposed two years ago. UWM’s motion to dismiss, filed on April 19 in Michigan federal court, states that the dispute is not an antitrust case, as […]
The Mortgage Bankers Association (MBA) filed an amicus brief on Friday in response to the Consumer Financial Protection Bureau (CFPB) and the Department of Justice‘s interest in determining a liability standard that would apply to lenders in cases of alleged bias by third-party appraisers. The mortgage trade group said it was concerned that the CFPB […]
New listing data hasn’t recovered since last year’s big Can we now say that the housing market‘s spring selling season is finally underway? Since 2020, the seasonal bottom for housing inventory has arrived several months later than normal, making it more complicated to track housing inventory data. Still, we have some promising signs that we […]
It’s been delayed, but that’s not enough for the mortgage industry. In a blog post published Thursday, Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit made the case that the Federal Housing Finance Agency‘s (FHFA) loan level price adjustments (LLPA) related to a mortgage borrower’s debt-to-income (DTI) ratio is unworkable and should be scrapped […]
The trading volume of mortgage-rights servicing (MSRs) so far this year is on pace to meet or exceed last year’s robust mark, when MSRs on some $1 trillion worth of home loans exchanged hands — then fueled by the spike in interest rates, industry players say. As of late April 2023, mortgage interest rates, though […]
One aspect I didn’t like to see in this report is that the days on market fell and are back to under 30 days. This is the reality of our world: total active listings are still near all-time lows and demand so far has been stable since We only have 2.6 months’ worth of housing […]
Denver-based brokerage franchise Motto Mortgage, owned by RE/MAX, has accused broker shop UMortgage of “tortious interference” in its contract with a former franchisee called TRB Solutions, whose controlling member was Breon Price, the top-producing loan officer. According to a lawsuit filed in March in a U.S district court in Colorado, UMortgage “unlawfully solicited” and “induced” […]
Distributed retail lender Guild Mortgage has picked up a top-producing team of loan officers, branch managers and back-office staff in California from rival retail shop Fairway Independent Mortgage. Guild, publicly traded and based in San Diego, added 40 employees across eight branch offices in California, the company said Thursday. John Lowe leads the new California […]
The Federal Housing Finance Agency (FHFA) on Wednesday released a proposed rule that would codify many of its regulatory policies related to fair housing and fair lending. In formalizing housing regulation policies through the rulemaking process, the Biden administration hopes to make it more difficult for future administrations to untangle them. The proposed rule would codify in regulation FHFA’s fair […]
Real estate valuation technology provider Clear Capital announced on Thursday an expansion of its partnership with CoreLogic. Through the expanded partnership, Clear Capital’s recently launched Universal Data Collection product will be available for order and fulfillment through CoreLogic’s suite of Valuation Workflow Solutions. “The key to appraisal modernization is wide-spread adoption, and alongside CoreLogic, we […]
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 […]