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Apache is functioning normally

Apache is functioning normally

Just weeks after New York-based digital lender Better Home & Finance Holding went public, Better issued pink slips to employees in early September in a new round of layoffs, Insider reported.

Better laid off about a quarter of its U.S. mortgage sales and origination team, according to the news outlet, citing two former employees who were affected by the latest downsizing.

The layoff news comes on the heels of Better going public via special purpose acquisition company (SPAC) Aurora Acquisition Corp. in August.

About 75 employees are left on the mortgage origination team in the U.S. as well as some employees in India, according to Insider. 

While Better didn’t respond to HousingWire‘s inquiry about the number of affected employees, spokeswoman Jessica Schaefer told Insider the firm has more than 100 people left on the team. 

Better plans to fill some vacant positions from the layoffs.

“As a publicly listed company, we’re focused on making prudent and disciplined decisions that account for market dynamics so that we can continue to serve both customers and shareholders for the long-term,” Better’s spokesperson said in an e-mailed statement to HousingWire.

“We are hiring more seasoned professionals who can sell in this tough mortgage environment and then making them 10X more productive through our continued investment [in] technologies such as Tinman and One Day Mortgage, which have created efficiencies that streamline and automate nearly every major function of homeownership,” the spokesperson said. 

As of June, Better had 950 team members, a 91% decrease over an 18-month period from 10,400 in Q4 2021, according to its previous filing with the Securities and Exchange Commission (SEC). 

While Better was an efficient refi shop during the pandemic years when rates hit record lows, the lender and other independent mortgage banks (IMBs) were hit hard by the Federal Reserve‘s monetary policy.

The digital lender reported a net loss of $45.5 million in Q2, an improvement from a net loss of $89.9 million the previous quarter.

In Q2, Better’s origination volume was $900 million across 2,421 loans, compared to production of $800 million across 2,347 loans funded in Q1.

When Better debuted on Nasdaq in late August, the SPAC deal unlocked $565 million of fresh capital for the unprofitable company.

The digital lender has pivoted its strategy from being a one-stop-shop to becoming a “mortgage-as-a-service” company or a white-label provider of mortgage tech.

“For things like homeowner’s insurance, title insurance, and Realtors, we’ve now just become a marketplace. We match the consumer with a partner capable of delivering the best product to them. So, we ended Better Real Estate for the sake of efficiency and savings for the consumer. We partner with best-in-class agents, insurance companies and title companies,” Better CEO Vishal Garg said in an interview with HousingWire in August.

Better will invest in tech-driven products like One Day Mortgage, a program that will allow customers to apply for a mortgage, get preapproved, lock their rate and receive a mortgage commitment letter within 24 hours.

“We are committed to further developing this technology during an interest rate environment where customers need it the most,” Better’s spokesperson noted.

Better was ranked as the 59th largest lender in Q1 2023, plummeting from the 19th in 2021, according to Inside Mortgage Finance.

Source: housingwire.com

Apache is functioning normally

Apache is functioning normally

HELOC, Manufactured, Technology, Marketing, and Digital Tools; Central Banks and Inflation

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HELOC, Manufactured, Technology, Marketing, and Digital Tools; Central Banks and Inflation

By:
Rob Chrisman

7 Hours, 56 Min ago

If you want something sobering, almost mesmerizing, here’s a short drone video of the flood damage in Libya (at the 15 second mark you can see how it tore through the city). Fortunately not so sobering are some stats out of the United States. The U.S. homeownership rate in 2022 was even higher than before the COVID-19 pandemic at 65.8 percent compared to 64.6 percent in 2019. That rebound was driven largely by those aged 44 and younger. And who says Millennials aren’t buying homes? Homeownership continued to climb from the foreclosure crisis (2004) and Great Recession (2008), when rates dipped as low as 63.4 percent in 2016. Homeownership rates recovered approximately half of the 5.6 percent decrease from 2004 to 2016. In Hawai’i the homeownership rate is 59 percent, I bring up the Aloha State because American Savings Bank, First Hawaiian Bank, and Central Pacific Bank joined Hawaiʻi Community Lending, a Hawaiʻi-based nonprofit community development financial institution, in pledging to provide mortgage forbearances to Maui families impacted by the recent wildfires. (Today’s podcast can be found here and this week’s is sponsored by the Trade-In Mortgage powered by Calque. Homeowners can buy before they sell, make non-contingent offers, and tap their home equity to fund the down payment on their next home. Lenders can help their clients negotiate a lower purchase price, reduce their interest payments, and eliminate PMI. Today’s podcast features Greg Korn and Ben Petit in an interview from the New England Mortgage Bankers Conference.)

Lender and Broker Software, Products, and Services

In an era defined by technological advancements, Dark Matter Technologies LLC emerges as a transformative force in the mortgage origination landscape, marking its evolution from Black Knight Origination Technologies. Under the Perseus Operating Group of Constellation Software Inc., Dark Matter Technologies remains steadfast in its commitment to pioneering innovation. CEO Rich Gagliano aptly sums up the company’s vision: “Dark Matter Technologies is on a mission to revolutionize the mortgage origination business by supporting, growing, and aggressively innovating new and existing products.” With over 1,300 dedicated mortgage technology experts and a portfolio that includes Empower, AIVA, Exchange, and more, Dark Matter Technologies is poised to lead the industry into a new era of unparalleled transformation. Learn more about Dark Matter Technologies and their mission, here.

There is approximately $9T in agency or government MSR outstanding. Billions of dollars are being transacted daily and this volume requires disciplined loan accounting processes to record loans accurately, produce investor reporting, and power business decisions. SBO from SitusAMC is a comprehensive loan accounting and master servicing platform that reconciles daily and monthly servicer cash collections down to the penny, aiding in the discovery of potentially misplaced funds and enhancing the financial integrity of the entire process. Servicers using SBO produce accurate and timely details providing confidence that their investor reporting obligations are being met. Schedule a demo of SBO with SitusAMC’s client-focused experts.

“Did you hear Capacity’s big announcement at TMC Fall? We’ve acquired Denim Social! Together, we’re building a support automation platform that helps you automate support, connect more authentically with your borrowers, and close more loans, faster. Read the press release to learn more! We also gave away a personalized AI Assessment worth $10,000 to help mortgage lenders identify opportunities for improving their business with AI. Plus, our new GSE Search feature pulls accurate, up to date GSE regulations within seconds using generative AI. Want to join the AI in mortgage revolution? Meet the Capacity team today.”

A new era in loan origination has arrived. Mortgage Machine Services, an industry leader in digital origination technology to residential mortgage lenders, announced the launch of its namesake platform Mortgage Machine™, an out-of-the-box, all-in-one LOS designed to accelerate lenders’ operational velocity and support an end-to-end digital origination process. Developed by digital mortgage pioneer and industry veteran Jeff Bode, Mortgage Machine utilizes intelligent automation, configurable business workflows and a cloud-based infrastructure to optimize the entire loan lifecycle and create a seamless lending experience. Key platform features include AI-powered task automation, a scalable cloud-based infrastructure, flexible APIs, pre-configured workflows for retail and TPO channels, integrated document management and POS functionality. Mortgage Machine also offers all-in-one eClosing capabilities, including an eClose room, eNotes, eVault and RON, and utilizes MISMO SMART Doc® data and security standards. Visit here to get started on your digital transformation journey.

Blend Labs continues to be the mortgage industry’s leading technology platform. Core to the platform is Blend’s unique integration with Desktop Underwriter® (DU®) and LPA. These integrations help streamline your approval process for borrowers, with all the conditions lined up for your fulfillment team. Add in intelligent and automated follow-ups and you’ll get to the closing table faster and more efficiently. Putting this information at the loan officer’s fingertips creates a streamlined process and eliminates manual work which equals lower costs, higher pull-through, and increased revenue. See more ways that Blend is committing to innovation and continues to lead the way.

Looking for timely advice on how to capture more loan volume and improve your bottom line in a down market? Now is the time to explore ways to tap into new markets. Expanding your mortgage footprint through new products and channels or by reaching new geographies insulates your business against economic and interest rate volatility by diversifying your sources of volume and revenue. By setting the groundwork to connect with new borrower markets now, you’ll open new revenue possibilities for when the market inevitably recovers, positioning your business to hit the ground running and beat out the competition. Download this informative eBook from mortgage solutions provider Maxwell for actionable advice, including how to create your expansion plan and choose the offerings best suited to the markets you want to pursue. Click here to download Growing Your Mortgage Footprint: How to Launch New Loan Products, Channels & Geographic Expansions.

Broker and Correspondent Products

Build your book with AFR Wholesale® (AFR)! Now, get the chance to listen from and ask questions directly to AFR and Freddie Mac to turn those prospects to active pipeline at the next Why Wait webinar series covering Manufactured Home Financing on Wednesday, September 20th at 1 PM EST. Register here today! Have you and your borrowers looked into Manufactured Housing as an option? With unbeatable affordability, customization options that are very tailored, quick installation and trusted quality, manufactured homes are worth exploring. Especially with a top lending partner in AFR who has been an industry leader for over 25 years. This is a live webinar, and a recording will not be provided so make sure to join and get great insight and have the opportunity to ask questions and listen to scenarios! Visit AFR Wholesale, email [email protected], or dial 1-800-375-6071. AFR Wholesale® – Don’t wait. Register today!

“With Cash-Outs on the decline during this high interest rate environment, it is important to present your borrowers with different cash-out options. That is why Vista Point is announcing a brand new HELOC product coming soon, in addition to our existing Closed-End Second. Our HELOC product is being designed as a complement to our Closed-End Second to provide a full suite of Equity Solutions. Our HELOC will provide a specific solution for borrowers that want the optionality of an interest-only payment, or the ability to draw up and buy down their line during the 5-year draw period with no Appraisals up to $250k. Just like on our Closed-End Second offering, with HELOC loan amounts up to $550K and combined lien amounts up to $2.5M, your borrowers can get the cash they need without sacrificing their advantageous 1st mortgage rate. HELOC will be available for full doc and bank statements on OO and 2nd homes. For more information, reach out to us, or meet us at the Philly MBA to discuss.”

Capital Markets

We learned last week that prices in August rose by the largest monthly percentage in 15 months. However, that month-over-month inflation was widely expected due to a surge in gasoline prices. Underlying oil prices are also pointing towards further increases in September. Meanwhile, core prices were up 0.3 percent and core goods prices declined by 0.1 percent. Over the last three months core prices have increased at an annualized pace of 2.4 percent, the lowest three-month pace since March 2021. Retail sales rose faster than analysts’ expectations in August, also due to higher gas prices. Many analysts expect consumer spending to slow as excess savings built up over the pandemic have materially declined and credit is increasingly costly and difficult to obtain. Additionally, the resumption of student loan payments is expected to cut into discretionary spending. It will take more than expectations of slower spending before the Federal Reserve feels inflation is firmly under control.

What could move mortgage rates this week? The U.S. Federal Reserve, Bank of England, Bank of Japan, and the central banks of Norway, Sweden, and Switzerland are all announcing rate decisions after a spate of recent inflation data shows that price increases are alive and well. The Fed’s Federal Open Market Committee (FOMC), the action arm of “the Fed,” is not expected to raise rates. It’s unlikely that the commentary around the commitment to keep fighting inflation and higher rates for longer will change either, but it could tilt a little more to the hawkish side after a stronger-than-anticipated inflation report for August.

The week could also see some extra drama on the political front as the countdown continues toward a potential government shutdown on October 1 in addition to the battle between the United Auto Workers (UAW) union and Detroit automakers. The auto worker strike could complicate Fed Chair Powell’s bid for a soft landing. Union leaders are asking for a 36 percent wage increase over four years, to match the similar recent pay increase for top executives. The union also wants pay to rise automatically with inflation in the future, as it did before the financial crisis.

This week brings the aforementioned FOMC meeting that begins tomorrow and concludes on Wednesday with the Statement, updated SEP (where fed funds projections will be closely scrutinized), and Chair Powell’s press conference. The treasury will also be in the headlines with more coupon auctions scheduled: $13 billion reopened 20-year bonds tomorrow and $15 billion reopened 10-year TIPS on Thursday. The only scheduled, probably non-market moving, news out today is the NAHB Housing Market Index for September. We begin the week with Agency MBS prices roughly unchanged from Friday, the 10-year yielding 4.34 after closing last week at 4.33 percent, and the 2-year is at 5.00 percent.

Employment

Are you more energized, more encouraged, and more motivated to succeed today than yesterday? Zig Ziglar famously stated, “People often say that motivation doesn’t last. Well, neither does bathing; that’s why we recommend it daily.” “As an industry leader, Thrive knows that motivation, discipline, and belief in your ability to succeed is critical,” stated Randell Gillespie, National Sales Leader for Thrive Mortgage. “There is no better time than now to find ways to continually motivate your team, which is why we put so much focus on daily opportunities like these at Thrive. Through our weekly High-Performance Coaching Calls, our very own nationally-recognized Marketing Master, James Duncan, leads these motivating and educational experiences for results. The biggest names in the mortgage industry and thought-leadership have been part of our Thrive Nation broadcasts. We want everyone to be better today than yesterday. Start a conversation with us and find out how.

“The fall season is here, and now more than ever is the time to build rapport with your referral partners and clients to maintain a steady stream of business. At Guaranteed Rate Affinity, not only do we have the greatest number of products, but we have the tech platform for our loan officers to do business from anywhere. With PowerVP, you can do anything from creating loan applications to sending pre-approval letters all from your mobile phone. Anything you could do from your desk, you can now do on the go with PowerVP. Gone are the days of being chained to your desk and missing out on important moments. Primarily, it gives you a work-life balance you never thought possible. Luckily, we’re hiring the best of the best loan officers to leverage our tech platform to grow their business. Ready to learn more? Contact Tim McGraw to get started.”

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Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

It’s been a difficult time for everyone. But coming into the new year, many have found the past twelve months have landed them with lower credit scores than ever before. This can damage not only your financial reputation, but also your prospects. So, what’s the effect of a high or low credit score, and how can you improve yours? 

Why Is a Good Credit Score Important?

It’s like a digital record of financial viability, which is reflected in a credit score. Purchases made using credit cards and monthly debt repayments boost your score. A low credit score makes borrowing money, securing credit cards with good interest rates, or qualifying for a mortgage difficult. Conversely, maintaining a good credit score can:

  • Increase loan amounts available      
  • Lower interest rates on loans
  • Increase the probability of loan acceptance
  • Provide access to buy now, pay later credit offers

Boosting Your Score Is Easy

Knowing everything about your credit score is important. So, you must check it whenever possible to see where you can give it a boost. Let’s discuss eight easy ways to improve your credit score In 2021.

#1 – Know Your Score with a Free Credit Report

To improve your credit score, you need to know what it is. There’s plenty of companies out there that can give you a free credit report card, such as TransUnion, Equifax, and Experian. Most of these provide paid services to keep on top of changes. If you have the spare income to subscribe, it can significantly help your credit score. Keep reading to find out how.

With companies like Experian, you are entitled to one report free annually. And you may even be eligible for another if you’ve recently been refused a loan or employment based on a poor credit score.

#2 – Check If Your Report Is Accurate

Identity theft and credit fraud are rife these days. Once you have your report, take the time to review your accounts and dispute any you know aren’t right. Even if you don’t get lost money back, having false debts removed from your credit report can boost your score.

#3 – Pay Your Bills on Time

Perhaps the most frequent cause of lowered credit scores is late payments. To give your credit a boost, make sure to pay any bills and loan repayments on time. Using direct debits is a reliable way to make sure payments reach their destinations on time. And monthly reminders on your phone or work computer can help if you’d rather not automate your payments.

#4 –  Open a Secured Credit Card

The main benefit to get this card is that you’re more than likely to get approved if you don’t have stellar credit. You’ll need to make a deposit upfront. And they often don’t require a credit check to apply. Another huge benefit is you’re going to build your credit just like any normal credit card would, if the issuer reports to the credit bureaus. When choosing any credit card to help boost your credit, make sure they report to the bureaus before applying. 

#5 – Get a Credit-Builder Loan

To get a credit-builder loan, you don’t need to have a good credit score. You just need to prove that you have enough income to make the payments. 

You regularly can’t get to the cash until you have completely reimbursed the advance, which implies you can work on your savings and your credit simultaneously.

#6 – Check Your Credit Report for Errors

The first thing to do is to look at your Credit Report. Second, You can get one from each of the major bureaus. You’re entitled to a free copy every 12 months. Once you receive these, pay detailed attention to any errors such as an incorrect address, the spelling of your name, open accounts being reported as closed, outdated information, and many more. Check here for more information.  

#7 – Get a Credit Card, and Request More Credit

Spending credit is the best way to earn better credit. So, look for a credit card that fits your needs. You can use it for predictable expenses you can pay off as soon as you get paid. Simply using the card and paying it off at the start of every month shows you can use credit responsibly, which should allow you to request more credit to use and improve your debt ratio, which also affects your credit score. These things can help boost your credits score effortlessly.

#8 – Patience Is a virtue

Repairing your credit score won’t be fast or without hurdles. Take your time to think through all your financial choices, limit your access to new credit avenues unless they fit into your overall credit goals, and keep on top of payments. It may take months for the results to show, but once they do, it’ll be worth it. Hang in there!

Do you want to write a guest post for us? Check out our guest posting guidelines here and get in touch!

Source: credit.com

Apache is functioning normally

Apache is functioning normally

Cybersecurity, Warehouse, Accounting, Marketing Tools; New Broker Products; CFPB Co-Marketing Case

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Cybersecurity, Warehouse, Accounting, Marketing Tools; New Broker Products; CFPB Co-Marketing Case

By:
Rob Chrisman

Fri, Sep 15 2023, 8:34 AM

“Happy” 15-year anniversary of Lehman Brothers going belly up. “I was struggling to understand how lightning works and then it struck me.” One of the conversation topics here at the NAMMBA event in Orlando is how Florida has its share of estimated lightning strikes every year. (As does the rest of the nation: here’s a link to an interesting real-time map.) Another topic is Florida’s Senate Bill 264 which prohibits the direct or indirect ownership of specific categories of real estate by “foreign principals” from a foreign “country of concern,” defined as the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolás Maduro, or the Syrian Arab Republic… The Statute prohibits the acquisition of (1) any interest in agricultural land by a foreign principal, (2) any interest in real property located near a military installation or critical infrastructure by a foreign principal, and (3) any real estate interest by a foreign principal of the People’s Republic of China, subject to very limited exceptions. There are challenges, of course. (Today’s podcast can be found here and this week’s is sponsored by SimpleNexus, an nCino Company, and award-winning developer of mortgage technology for modern lenders. Hear an interview with Simple Nexus’ Lori Brewer on areas in the mortgage space that technology and innovation will impact most.)

Lender and Broker Software, Products, and Services

“Our latest blog, ‘FEMA, Floods, Fires, and Funding, Oh no!’, highlights the early impact of this year’s hurricane season, blustered by Idalia’s trail of destruction and fanned by the Maui fires. This year packs a bigger punch as FEMA, the primary lifeline for relief, faces serious funding concerns that have led to restrictions on access to assistance. Where does this leave homeowners and servicers who face more disasters before yearend? Servicers, it’s time to evaluate your workflow automation, ensuring distressed borrowers have immediate access to relief and that your operations are streamlined accordingly. CLARIFIRE® delivers the speed, accuracy, and results that servicers need to succeed in the face of the volumes and complexities of all the parties involved. Arm your servicing team when disaster strikes with CLARIFIRE, delivering better results, better software, and BRIGHTER AUTOMATION®.

It used to be that our postal mailboxes were stuffed with all kinds of marketing materials. It still happens today of course, but mostly in our online mailboxes instead. But one thing has stayed the same: marketing still needs a special spark to stand out in a crowd, and that’s why utilizing a far less crowded medium might now be the “old-is-new-again” way to reach your prospects. Not to mention, it’s also one of the best ways for mortgage professionals to make a lasting impression on homebuyers during the holidays! Connect with the ICE team to learn how easy it can be to start with Surefire℠ CRM and Mortgage Marketing Engine.

More than ever, mortgage brokers and correspondents need a lending partnership that empowers them to exceed client expectations with elite service, speed, and simplicity. Rocket Pro TPO’s technology team delivered Pathfinder, the most powerful technology ever for brokers, created in partnership with Google. Combining multimillion-dollar AI and machine learning tech, it’s a first-of-its-kind centralized platform, right at your fingertips, 24/7/365. Also, their partners outpace the competition by leveraging Rocket Connect portal technology which connects brokers to the right team right away, including operations leaders for any question or escalation need. Their industry-leading Pricing Calculator quickly produces loan options to share with clients using Clear Quote, an easy-to-download PDF. To learn more, watch EVP, Mike Fawaz discuss more details. Interested in learning more about a Broker or Non-Delegated Correspondent partnership? Contact Rocket Pro TPO.

In challenging down economic times, Loan Vision is your solution to maximizing profitability and reducing costs in your business. With Loan Vision, companies see improvements of 25 to 35 percent decrease in days to close the books, 20 percent reduction in accounting headcount, complete LOS to G/L automation, and improved reporting and visibility that allow for better business decisions. Don’t accept a competitive disadvantage or get caught flat footed in a recovering market. To improve your cash position, gain a competitive edge, and prepare your business for sustained growth, contact Carl Wooloff to schedule a call today.

“Mortgage Industry Veterans Announce Fund It, New Startup Venture to Automate Warehouse Lending. Fund It is redefining how the mortgage industry manages its warehouse banking processes. Most IMBs still handle their warehouse funding manually. The Fund It platform, built with AI-powered algorithms, provides an automated warehouse lending solution. View capital needs projections in the next 30 to 60 days, eliminate human data errors, and access robust reporting tools that drive data-driven decisions. It also seamlessly integrates with many popular mortgage tools that IMBs currently use. Fund It’s platform tracks fundings, collateral administrations, and loan purchases. It also pinpoints cost leakages. These features help IMBs save time and increase profit on every warehouse-funded mortgage loan. FundIT optimizes every element of an IMB’s warehouse lending process. Use Fund It to enjoy higher profits by automating a traditionally manual-heavy process. Visit our website to learn more how to manage your company’s warehouse funding operations.”

Click links, ask questions later. The most common attack vector for a cyberattack is the human element. It’s what phishing emails, phone calls and text messages all have in common. Yet while it’s the weakest link, the human element could be your organization’s greatest prevention layer if trained correctly. In an industry that incentivizes people based on sales goals, every mortgage lead has bottom line potential. And in the current market, it’s only human to go after leads without stopping to consider their legitimacy. But recent data shows just how risky clicking without thinking can be. According to ISACA, in 2022 social engineering (tricking humans) was the #1 attack vector, and even the best teams are vulnerable. Learn how to do a better job at testing and training your team to identify legitimate leads. Talk to Richey May’s cybersecurity experts for help assessing and defining your cybersecurity training needs.

The CFPB and Co-marketing

Ken Perry with the Knowledge COOP writes, “The Freedom mortgage case should capture the attention of every mortgage broker, lender, and real estate agent. This is the biggest statement the CFPB has made about their feelings on co-marketing in a long time! The fact that they targeted a mortgage company providing free open house flyers, and free access to a subscription they pay for is huge because these arrangements exist in so many mortgage companies, including wholesale lenders, and rarely does the referring entity have to pay for these things. This is truly a case of, ‘if everybody is doing it then is it even wrong?’ Well, it looks like the CFPB has answered that question. Now we wait and see if $1.75 million was enough of a deterrent to force people to look at their business practices and make some immediate changes. These settlements usually come in groups. I can’t help but wonder if we will see more soon…”

Capital Markets

Much like the Consumer Price Index on Wednesday, the Producer Price Index report for August came in above expectations yesterday (0.7 percent versus consensus 0.4 percent). Other data on the day also included better than expected August Retail Sales (0.6 percent month-over-month, largely due to gasoline stations), and a smaller than expected increase in weekly jobless claims. Low jobless claims reflect a fairly tight labor market, which helps to explain why consumer spending continues to hold up in the face of inflation pressures and rising rates.

On the central bank front, the European Central Bank raised interest rates for the 10th consecutive time, to 4 percent, as President Lagarde signaled a shift that could mean the peak has been reached, though she insisted that she can’t yet say if that’s the case. As far as our Fed, there is zero likelihood the central bank is going to signal they’re done hiking rates at the conclusion of the FOMC meeting next week.

Despite all the major events over the past couple days that have influenced bonds, including the beginning of an auto worker’s strike last night, today’s calendar also has some market moving potential. We’ve already received Empire manufacturing, import prices (-3.0 percent, ex-gas flat), and export prices (-5.5 percent from the prior year). Later this morning brings August industrial production and capacity utilization, and preliminary September Michigan sentiment that includes inflation expectations. We begin the day with Agency MBS prices worse .125 from Thursday evening, and the 10-year yielding 4.32 after closing yesterday at 4.29 percent; the 2-year is up to 5.03.

Employment

Crescent Mortgage Company, a subsidiary of United Bank, named “Most Trusted Bank in America” for 2023 by Newsweek, is celebrating its 30th anniversary and rapidly expanding its retail division in the southeast. We welcome ambitious Loan Originators seeking growth and unparalleled support. Seasoned veteran David Rapson, CMB serves as SVP – Retail Lending, guiding us to new heights. President and CEO Fowler Williams, CMB emphasizes our unique commitment to allowing originators to do what they do best, originate loans, we will handle the rest! Backed by advanced technology and curated product offerings including agency, 1X close construction or renovation, low down payment options, non-QM, as well as unique portfolio offerings, Crescent has built a platform for Loan Officer success, a platform for you. Join our journey. Experienced Loan Originators or Branch Managers, explore possibilities by contacting David Rapson to elevate your success. The future is bright at Crescent Mortgage.

Supreme Lending is pleased to announce Rachel Saylor Brown as its newest Producing Tampa Bay Area Manager. Leveraging 10 years of remarkable industry experience, Brown will steer Supreme’s Florida expansion strategy, together with her husband Chris Brown, and a best-in-class team: Kaitlin Schiro, Nancy Myrick and Anna Livingston, all seasoned mortgage professionals. Rachel and her team are known for providing exceptional client experiences through transparent communication, meaningful relationships, and industry-leading technology. Supreme Lending is thrilled to welcome her to the team!

“Revolutionize Your Leadership: Meet Your Visionary Executive! Are you on the hunt for a C-suite dynamo to steer your organization to new heights? Look no further! I am a strategic powerhouse primed to tackle the role of President, CEO, COO/CSO. With a proven track record in strategy, team building, P&L mastery, and agile execution, I’m all about results, not magic. My extensive network includes GSE’s, investors, regulators, vendors, PE sources, and compliance experts. My experience spans Mortgage, Insurance, Tech and more. I don’t just lead; I innovate. I seamlessly integrate tech into strategy diversifying revenue streams while boosting traditional sales. Fintech? Consider it a bonus. Comfortable with boards and stakeholders, I’m a goal-driven, creative problem solver and an adept communicator. West Coast-based, but I’m open to relocation or remote work. Ready to transform your organization? Email Chrisman LLC’s Anjelica Nixt today for more details and a game-changing connection.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

My name is Steven Wynands and I’m the co-founder and CEO of Peer Reputation. Over 60,000 real estate agents and brokers use our platform to discover and leverage their professional relationships. This is my personal reflection on what happened over our first 12 months that finally gave me the courage to believe in myself and pursue this project full-time. I hope you find it interesting and that it helps you if you’re going through the same decision. 

Facing The Big Decision

I never thought I’d find myself in this position. Saddled with student loans, credit cards, a mortgage, and childcare for two, it would be very irresponsible for me to leave my cushy, government job to pursue my own startup ambitions. I tried to delay this decision as long as possible. I sacrificed sleep so that I could be there for my family and deliver everything my job expected of me. Wishfully, I hoped that the universe would take care of it for me by turning the startup into an overnight success or burying it to the ground. Neither of those things happened, but I did get plenty of signs that helped me make a decision.

Getting Inspired (Again)

I was just one year removed from an unsuccessful real estate startup that spanned two years. I had no intention of jumping into another project, but one afternoon of phone calls changed everything. The first phone call was from a buyer’s agent whose clients were interested in one of my listings. Her call made me uneasy and I wanted to protect my sellers so I made a few more calls of my own. 

I reached out to other listing agents who had recently worked with this buyer agent and was surprised by the responses. I wasn’t connected to these other agents in any way yet they openly shared detailed warnings with me about working with this buyer’s agent. They were eager and grateful for the opportunity to protect other agents and consumers from reliving their nightmares and wished there was an easier way to do so. Thankful and inspired, I called up my friend Steve with an idea.

Starting Up, Extra Lean & First Signs from The Universe

I’ve known Steve since middle school. We worked together throughout secondary school as well as college where we studied computer engineer together at Virginia Tech. We continued working together on projects after graduation including the recent unsuccessful real estate startup. At this point we were each raising two small kids and a bit burned out from long nights and weekends so I approached him with a very simple project based on the phone calls I just had that afternoon. We discussed the backstory and basic specs and agreed to meet a few days later to test out my idea.

The basic premise was simple. I wanted to know if other agents were just as eager to share their feedback to protect other agents and consumers too. To test out this idea I created a list of 600 recently sold homes along with the listing and selling agent information, and Steve coded up a test project to request feedback between these cooperating agents. We built this out on Saturday and Sunday and were ready to launch the following Monday. 

Immediately after launching our test I was prepared to throw in the towel. I thought the experiment had failed and I was just happy to know that we had only spent a few days on it. It turned out that the only failure was my uninformed expectations and analysis. I showed the results of our testing from that day to my brother who enjoys marketing as a Product Manager for Zappos and he was blown away!  He said that we were hugely successful by achieving a 70% total email open rate and 20% email click rate. 

I still wasn’t sure exactly what we were building but I knew enough from his reaction that we had to keep on going. The next week we doubled the sample size and tweaked some wording in our emails and achieved an 80% total open rate and 27% click rate! It was very clear that we were building something that people wanted. We just had to keep it going while we figured out exactly what that thing was.

Product? Market? Fits!

Over the next few weeks, we increased our survey sample sizes and maintained high open and click rates. We received over 10,000 responses in our first month! The manual data loads were becoming so overwhelming that we didn’t have time to work on the platform. I buckled down and focused on creating a web scraper to automate the data routines while Steve worked on building out the infrastructure that could house a richer experience.

Four months after conducting our first test we finally had our platform shell in place. We relaunched our feedback platform more broadly in the same local market and watched the results come in immediately. Now that we finally had a user dashboard, agents were registering and interacting directly with us. A thousand agents registered the first month and I knew we had a hit when they were telling us how surprised they were that this kind of platform hadn’t existed before. They were also asking us for more features! We could not believe how smoothly everything was happening! Things were continuing to ramp up based on user demand.

Traction and Scaling

Eight months into our project, things were going very smoothly. Peter joined us as a co-founder and freed us up to be more strategic and engaged with the user community. Our friends saw their friends using our platform from social media and asked if they could help with our startup. We all had fun learning and growing together while watching thousands of feedback and hundreds of new users register every week, but I could feel the transformation of startup project to company taking place.

10 months into the project, I was spending nights and weekends at Steve’s house again. We’d plan and program into the morning hours and then I would sleep just enough that I could drive home safely and spend time with my family. I was also working nights and weekends to deliver on my full-time job and doing 20 real estate transactions on the side. I knew it was time to come out of the startup honeymoon and figure out if this thing was going to last before I burned out again and so we put ourselves through a major test-expansion.

For the first ten months, we only served one market as we built and fine-tuned the platform. We had grown at a compound monthly growth rate of 27%, and we were ready to find out if we could replicate our success nationally. We expanded to a few test markets and were thrilled to see that the email open and click rates stayed high as we increased our registered users 42% over the previous month! Everything was going so well but I couldn’t seem to take the leap of faith and work on this project full-time. This is around the time that the universe sent more signals my way.

Our Users Established Our Product Messaging

As an engineer who got into PropTech and then became a top-producing real estate agent, I’m keenly aware of how sensitive the real estate industry can be. I studied how RedFin pulled its Scouting Report project and how Keller Williams opposed AgentMatch. But I also saw how NAR and Houston Realtors had tried moving forward with ratings, and that the agent performance analysis was enough to propel HomeLight to a $40M Series B. Since our platform was built on top of agent-to-agent ratings, I didn’t feel comfortable taking the full-time plunge yet and thrusting myself into major industry scrutiny. That changed very quickly with one phone call from a real estate agent.

Every week we receive feedback from tens of thousands of real estate agents. We also get lots of phone calls and emails about our platform that I answer personally. After I finished my usual explanation on one of these phone calls, the agent responded, “Oh, it’s about professionalism? That’s awesome.” That was the key. Although our system was built on top of ratings that’s not really what we stood for. I learned from our users that they were actually utilizing it for professionalism and accountability. We finally had a message that we could promote publicly with great confidence and it came just in time for the next big moment.

Coming Out of Stealth Mode (Product Timing & The Parker Principles)

On April 2, 2018, Inman News published The Parker Principles: A Real Estate Manifesto. It was created based on input from agents, brokers, companies, and associations from around the country as a series of principles to make real estate better. It echoed so many tenets of our startup: Quality, professionalism, and accountability in real estate. When I read The Parker Principles I felt like these industry leaders were screaming for the solution our team had built. The universe was clearly telling me to pop out of my shell and so I did. I reached out to Inman News about our platform and they covered us two months later in June. I had outed myself as the real estate agent behind Peer Reputation and there was no going back now.

Something’s Gotta Give

We were about 11 months removed from the weekend project that turned into a full-blown startup and the major Inman Connect real estate conference was coming up in mid-July. I knew we had to keep the momentum going so I took a week off from work and flew out to San Francisco to mingle with the industry I had just revealed myself to. 

On the second day of Inman Connect I was standing in the lobby of the Hilton when the COO of Remine, Jonathan Spinetto, said, “Follow me.” He led me through a series of halls and we stopped outside of a suite. When the suite doors opened a few minutes later, MLS executives walked out and I walked into a dim room lit blue by a portable projector and populated with the CEO, COO, and CFO of Remine. Jonathan handed me a display cable and said, “Demo.” 

We went over the platform, the processes, team, and potential roadmap. At one point during our discussion I remember that Mark Schacknies, then-CFO and now-CEO, told me, “You need to sleep.” It actually wasn’t the first time I had heard something like that. When Gill South interviewed us for the Inman News article, she told me that I should devote my full attention to the startup. Smart industry folks were telling me that I needed to quit my full-time job and I was finally ready to consider it.

The Tipping Point & Decision

A few weeks after coming back from Inman Connect, my boss called me into his office and asked me, “Do you have outside employment?” I responded openly and honestly and from there my work life began to unravel. My telework was cut in half which meant I spent more time driving through grueling DC area traffic. I wasn’t prepared to scale back on my startup activities when things were going so well so I just continued sleeping less.

I was tired. The startup was going great and the work environment was souring. Why couldn’t I just quit and focus on the startup? The answer was that I wanted to provide a stable environment for my wife and children, and that requires income. I had been so focused on building the platform and acquiring users that I hadn’t considered income until now. Now I was motivated, confident, and ready to take a leap. On October 17th, 2018 Peer Reputation welcomed its first paid subscriber. 10 days later, I quit my job.

Fast Forward

It’s been 9 months since I quit my job and I don’t regret it one bit. Things have not slowed down and continue to look better and better. I’d love to write more about it but, unfortunately, I’m out of time! I’ve got to get back to preparing for some major events. I’m heading to Inman Connect in Las Vegas where we’ve been selected as a finalist for the Inman Innovator Award. I’ll also be pitching onstage at the conference as one of eight selected startups at Tech Connect. If you’re going to the conference as well please swing by our table in Startup Alley to say hi! (I still can’t believe this is all happening!)

Source: geekestateblog.com

Apache is functioning normally

If you’re in the real estate industry, you certainly know that the average time from mortgage application to closing has been hovering around 50 days. It’s not a point of pride or badge of honor for any mortgage, title, real estate or valuation firm. If anything, it’s been one of the most stubborn (and most publicized) blemishes on the image of the entire home-buying process. Much of that average time to close tends to pile up in the title and settlement stage of the process. 

Even many real estate professionals can’t really tell consumers what’s going on during that period. But most understand that there are a lot of phone calls, emails and texts exchanged. More than a few real estate agents have come to dread calling the closing company to find out when they can close. Loan officers dread having to email an appraisal firm for the report they’re waiting on.

Title agents dread being blamed by everyone from the buyer to the seller, from the real estate agent to the lender, for that delay that falls between the signing of a sales agreement and the signing of the closing documents. 

We’re in an automation revolution

We’ve been in the midst of an automation revolution for some time now. Our industry as a whole has made tremendous strides in that regard. A potential homebuyer can today apply online and possibly be approved in minutes. More closings are happening remotely via convenient, digital processes. Consumers can tour a potential home without leaving their own living rooms. Yet, what’s often most remembered is surprisingly not the moment the keys are exchanged. It’s the unending back-and-forth from business to business and the waiting.

We can start with the little things

Status checks between different firms. Missing information that’s required to process the loan or finalize the closing. Small but vital tasks that fall through the cracks because someone didn’t get an email or went on vacation without others knowing where that task stood.

It’s also the sheer volume of questions asked and answered in the course of an extremely complex process and the typical consumer’s extremely limited understanding of that process. Also adding to the pressure to streamline is the overall economic trend toward nearly instantaneous, do-it-yourself purchases (a la Amazon), virtual tours for new listings and even a rise in FSBO listings. Consumers (and real estate professionals) are increasingly demanding that their transactions be conducted quickly, whether they involve socks, new cars or houses.

It’s also things like wire fraud, its potential, and some of the less effective or manual means of combatting it. It’s traceable to overuse and misuse of phones and email as project management queues and order-entry portals. In many ways, that 50-day turn time can be traced to the way we communicate with each other.

Does anybody inside the industry truly believe that a 50-day average is the best we can do, or that we’re making any more money because of it? Most likely the converse is true. While there’s not a single silver bullet out there to eradicate the root causes of that wasted time, knowing the cause of several of these inevitable delays is a great start towards streamlining them. 

Where automation can help

It’s easy to think that investing in technology can solve some of our biggest communications bottlenecks. Where the right technology is strategically selected and wisely implemented and used, it certainly can. It starts with the planning. Owners and decision-makers should not start their search with a technology in search of a problem, or the coolest demo, but rather with a thorough diagnosis of their own operations. At what points in the workflow and pipeline does the march toward closing inevitably slow down or even sit for days? 

Odds are, you’ll find that, especially in the title, escrow and settlement phase of the home purchase, your biggest time traps data entry, data extraction or moving a part of the file from one system, company or technology to another.

Look for solutions that can help remove as many silos from the process as possible. If you know that most of your biggest broker clients strongly prefer to work with text messaging for communications, rolling out another smart phone app to communicate with agents—especially when they might already have 10 other title agency apps they need to log into every other day—may not be the best way to streamline effectively.

Where it takes more than just tech to streamline

Admittedly, every settlement services business is unique. They serve different markets with different rules. There are many unique situations making it nearly impossible to build a universally applicable technology to create truly seamless pipeline.

If you look around, you’ll see numerous examples of otherwise efficient and effective employees doing the right job with the least effective tool. How many of your employees tend to use their inboxes and email folders as virtual project management queues or for some other function they weren’t truly intended to be? 

How many of your teammates are using their personal cell phones to text real estate agents, unintentionally creating a serious business risk by using a communications channel which is unmanaged and unmonitored?  How many voice mails does your team leave for Realtors, consumers, lenders or appraisers on a daily basis? How fast—if at all—do they get a return call that resolves what drove their call in the first place? How do your new orders come in? If you’re like many title agents, you get some by email, a few through an app or your website, a couple by text and maybe even something in the mail. How do you manage to get all of that information from different sources into the same production platform?

It’s not a simple fix, but odds are, as an industry, we could shave days or weeks off of the time it takes to finalize the closing by rethinking how we do it at the tactical level as well.

It takes a human touch to bring the American Dream to light, no matter how much we automate. It’s a myth to imagine that Chat GPT or Blockchain or some other technology will eventually automate the process 100 percent. Buying a home is a major event in many people’s lives. Most will wish to look to a knowledgeable source and experience human interaction at some point when buying or selling a home.

We’d be much better off, however, by reviewing our workflows and how we perform them. By attacking the many seemingly minuscule time wasters and introducing better means to-communicate—or even eliminating altogether the need to communicate in some places—we’ll improve the real estate transaction.

Hoyt Mann is a co-founder and president of McKinney, Texas-based alanna.ai, a conversational AI assistant for title agents.

This column does not necessarily reflect the opinion of RealTrends’ editorial department and its owners.

To contact the author of this story:
Hoyt Mann at  [email protected]

To contact the editor responsible for this story:
Tracey Velt at [email protected]

Source: housingwire.com

Apache is functioning normally

At Promenade Towers, a Bunker Hill apartment complex with 611 units that bills itself as “an urban oasis in the heart of downtown,” tenants received 371 eviction notices from late January through July.

At 1600 Vine, a Hollywood building with 375 units that’s been known for attracting social media influencers who have posted from its balconies and manicured courtyard, 313 notices were issued in that period.

Across Los Angeles, more than 40,000 eviction notices, the vast majority of which were three-day notices to pay or move out, have been sent to tenants since late January. They were issued at buildings across the city, for amounts ranging from $0 to $561,700. The 10 buildings sending the most notices to their tenants — more than 150 each — were upscale apartments in places such as downtown, Hollywood and Woodland Hills.

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Details about the notices, which are a precursor to an eviction lawsuit, were collected by the city for the first time this year and made public by the city controller’s office. They shed light on a key step in the eviction process that until now has been shrouded in secrecy, offering a glimpse at how often tenants across the city are met with the threat of eviction.

While public perception is that tenants in low-income and gentrifying communities are most threatened with eviction, the data are in line with research showing that large property management firms tend to automate their processes and initiate eviction proceedings at higher rates, said Kyle Nelson, a senior policy and research analyst at the nonprofit advocacy group Strategic Actions for a Just Economy.

“You have extremely high-rent tenancies with extremely inflexible landlords,” said Nelson, who has been studying evictions in L.A. County for a decade.

The 40,000 notices were sent to residents of about 8,400 buildings. Roughly 94% of them were notices that give tenants three days, not including weekends or court holidays, to pay any outstanding rent, fix other issues or move out, according to an analysis by the controller’s office; 96% were issued for nonpayment of rent.

The data do not capture all the eviction notices issued by landlords through the end of July. The housing department has an estimated backlog of 5,000 paper copies received in the mail it needs to enter into its database, said spokesperson Sharon Sandow. The city plans to catch up no later than October.

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Some landlords said they automatically issue the notices when rent is late.

“Rent is due on the 1st and considered late on the 4th with ‘3-day pay or quit notices’ sent after the 4th as a reminder that rent is due and unpaid,” said Thomas Meredith, senior business manager for 1600 Vine. “These were only notifications that the tenant’s rent was past due.”

But by law the notices are more than reminders. They are the legal demands that come before a court case that could ultimately force a tenant from their home.

Landlords who serve notices don’t necessarily follow up with a lawsuit, however, and it’s unknown how many of the notices have translated to court action.

Representatives of Symmetry Apartments, a 431-unit complex in Northridge that issued 152 eviction notices, said it’s had 28 actual evictions this year, and not all were for nonpayment of rent. The complex had $2.2 million unpaid rent from the pandemic and began issuing eviction notices again in February when local emergency tenant protections ended, the landlord’s representatives said.

When those protections expired, the city adopted new rules meant to shield at-risk renters from a wave of evictions.

Among those rules is one that bars tenants from being evicted for less than one month’s fair market rent, which is determined by the number of bedrooms in an apartment and based on figures from the U.S. Department of Housing and Urban Development for Los Angeles.

According to the data, landlords issued 4,300 eviction notices for amounts below that cutoff since March 27 when the ordinance went into effect.

The rule only applies to rent debt incurred after that date and the data do not specify when the debt was incurred, so it is difficult to say whether landlords are complying with the rules.

Symmetry Apartments issued seven notices for amounts lower than the fair market value threshold. Representatives said they were all “sent erroneously” and they did not file lawsuits in those cases.

At 1600 Vine, about 35 three-day notices were mistakenly issued for amounts below the threshold because of a clerical error and none resulted in an eviction, Meredith said.

Citywide there were about 1,300 cases in which nonpayment of rent was cited as the reason for an eviction notice even though the rent owed was listed as $0. More than 400 were issued for amounts less than $500.

There were also a sizable number of notices sent for very large amounts. Seventeen properties saw notices issued for more than $100,000 in back rent.

Since eviction notices were not previously collected in Los Angeles, it’s not known how the number of notices compares with the past.

But court filings show that eviction lawsuits are rapidly increasing across the region.

Before plummeting during the pandemic, eviction numbers in Los Angeles had been on a gradual downward trend since the Great Recession. That direction appears to be reversing as pandemic restrictions end and landlords move to file a backlog of cases.

From January through June 2023, there were more than 23,000 eviction lawsuits filed in L.A. County, a 74% increase over the first half of 2022 and the highest first half total since 2016, according to court data collected by Nelson, the research analyst.

The building that issued the most eviction notices in the period reflected in the data was Promenade Towers, where the least expensive one-bedroom was advertised for $2,487 a month as of Wednesday, 50% higher than the median comparable listing citywide, according to the real estate website Apartment List.

The building issued 371 notices to 170 units, more than a quarter of the total in the complex, according to the city housing department. Since July, the landlord, Goldrich Kest, which owns more than 100 apartment complexes across the country, has given out an additional 16 notices at the property, city records show.

Normally, eviction lawsuits are sealed for privacy purposes unless a landlord wins a judgment. But The Times reviewed nine eviction cases filed by Promenade Towers in August.

One was served to a 49-year-old woman living in one of the units reserved for low-income tenants. The woman, who requested anonymity out of concern for her future housing prospects, said her temporary job in property management ended soon after she moved in in early 2022. Since then, she has struggled to find consistent employment and has never paid rent.

“I haven’t been able to afford to move out,” the woman said. “Otherwise, I would have been long, long, long gone.”

All nine eviction lawsuits are for rent allegedly owed in 2022.

The City Council passed renter protections that now discourage landlords from filing eviction claims against tenants for 2022 rent not paid because of the COVID-19 pandemic. The protections are intended to shield such tenants from eviction until February 2024 provided that COVID affected their ability to pay. It’s unclear whether that’s the case for the Promenade Towers residents.

Goldrich Kest officials did not answer a written list of questions from The Times, but maintain that the eviction cases it filed are valid.

“Without getting into the particulars, Promenade Towers is in full compliance with city and county ordinances,” said Love Zepeda, a company regional director.

Niv Davidovich, an attorney representing Goldrich Kest, said that his firm has won cases despite the pandemic restrictions even when the housing department objected.

“Such evictions were entirely legal and well within landlords’ rights to file and pursue, and these judgments prove this to be the case,” Davidovich said.

Park La Brea, a rent-stabilized community that is the largest apartment complex west of the Mississippi with 4,245 units, is another hot spot for eviction notices, according to the city data.

The Times analysis counted notices given at individual addresses. While none of Park La Brea’s addresses were in the top ten for most eviction notices, collectively the complex saw hundreds.

The 10 addresses with the most eviction notices spanned several neighborhoods, with four in the San Fernando Valley and six in the Los Angeles Basin.

In many cases, the buildings had several things in common: relatively high rents and residents who said management used eviction notices as a warning after late payments.

At Motif in Woodland Hills, where at least 183 eviction notices went out this year, resident Tracey was in the process of moving out.

When paying rent in Motif’s online portal, she said, tenants are given a five-day grace period. “The second you don’t pay there’s an eviction letter on your door,” Tracey said. Prior to moving out, Tracey racked up five eviction notices for being, she said, “like a second late” on payment, often while traveling.

“They’re really big on eviction letters,” she said, declining to give her last name for fear of retaliation by the property management company she will rely on in her new complex.

Stephanie, who declined to give her last name, was walking her dog at Reveal in Woodland Hills, where at least 233 eviction notices went out this year.

The building’s lease says the landlord can serve a three-day notice any day after the first of the month.

A seven-year resident of the complex, Stephanie said she understands why people get behind on rent.

“It’s really expensive and prices go up every year in this market,” she said.

Times assistant data and graphics editor Iris Lee contributed to this report.

Source: latimes.com