home buyer

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It’s almost mid-December, which means it is time for another round of mortgage and real estate predictions for the upcoming year.

I think it’s safe to say that 2021 has been another stellar year for both the mortgage industry and the housing market.

But it’s going to be hard to top or even match what we’ve experienced this year in terms of mortgage origination volume and home price gains.

However, the party might not be over yet, with additional home price gains on the horizon due to similar factors in play.

Let’s see what 2022 might have in store as we once again look into the crystal ball.

1. Mortgage rates will go up, but only slightly.

Experts have been calling this for years to no avail. We have been told year in and year out that the low mortgage rates are leaving the station.

But year after year, they remain. In 2022, I do expect them to rise somewhat, but not by a meaningful amount.

Sure, your 30-year fixed rate may go from 3% to 3.5%, but that’s not a huge jump. And any 30-year fixed in the 3s is generally very favorable.

It will put pressure on prospective home buyers who also have to grapple with rising home prices and a lack of inventory.

And it will certainly dent mortgage refinance demand, as most existing homeowners have already locked in a lower rate.

However, as I said in my 2022 mortgage rate predictions post, there will likely be opportunities during the year to snag a very low mortgage rate.

Why? Because the economy continues to be a bit of a mess and we’re still sorting out COVID. Until we put that stuff behind us, interest rates could swing in both directions.

2. Home prices will continue to rise a lot

Don’t be fooled by the old mortgage rates up, home prices down fallacy. There’s not a negative correlation, despite what everyone plainly assumes.

Both can go up at the same time, and that’s exactly what I expect to happen in 2022. Granted, mortgage rates will probably only rise slightly, while home prices will continue to surge.

For some reason, a new year gives folks new hope that a trend will simply come to an end.

But why would home prices just stop going up because it’s a new calendar year? The answer is they won’t.

As I’ve said before, the same fundamentals that have been at play for some time, continue to be in play.

There’s a severe lack of inventory and a surplus of would-be home buyers out there. It doesn’t take a genius to figure out what happens with prices.

When there’s a shortage of something people want/need, a premium must be paid until production ramps up.

Unfortunately, production (new home building) is still way behind and won’t catch up for a while.

In the meantime, expect more of the same, and higher 2022 home prices across the board.

The only difference is that estimates are all over the place, with some calling for just a 2.5% increase (CoreLogic) and others saying 11% (Zillow) or even 16% (Goldman Sachs) .

Personally, I’m bullish and going with the higher figures out there, but recognize gains will probably be lower in 2022 than they were this year.

3. Cash out refinances will finally get hot

cash out share

Housing pundits have been talking about the massive pile of collective home equity we’ve been sitting on for years now.

And it has only grown even larger since then, with equity levels the highest on record.

In short, American homeowners have a ton of equity in their properties that is ripe for tapping via a cash out refinance or a second mortgage, such as a HELOC.

But we have yet to see a massive cash out boom like the one experienced in the early 2000s housing market.

I expect cash out refis and HELOCs to have their day in the sun in 2022 as more and more homeowners realize how much their properties have appreciated.

Per Freddie Mac, about 42% of refinances resulted in cash out this year, which is up a bit from prior years, but nowhere close to the 80%+ share seen in 2006 and 2007.

Despite slightly higher mortgage rates, it may still be worth unlocking this valuable equity to pay for upgrades, college tuition, and other expenses.

After all, a 3% 30-year fixed rate is still phenomenal, and many homeowners can take out a large sum of money while keeping their loan-to-value (LTV) ratio very low.

And you can expect mortgage lenders to aggressively pitch this product now that rate and term refinances have mostly been exhausted.

4. The bidding wars will remain (and may even worsen)

It won’t get any easier buying a home next year. Even if mortgage rates are slightly higher, this won’t “bring prices down to earth.”

I keep hearing that line and it just doesn’t make any sense. Financing has never been the problem here. It’s always been a lack of supply.

And there will continue to be a lack of supply well into 2022, so why should competition be any less?

If anything, I could see more desperation fueled by these expected higher interest rates as buyers won’t want to miss out on their low rate too.

If you think about the last few years, at least mortgage rates were rock bottom. Now that you’ve got to worry about a rising rate and finding a home, the panic could be even more pronounced.

As always, prepare yourself adequately, start looking for a home immediately, and be aggressive if you want to win the bidding war.

Oh, and make sure you use an experienced real estate agent who knows how to get the job done.

5. Home sales volume will be flat or even lower next year

2022 home sales

While Redfin believes new listings will hit a 10-year high next year, I’m not so sure.

As much as there is motivation to sell a home due to sky-high asking prices, there remains the dilemma of where to go next.

Sure, you might be able to move to a different state, but those “cheap states” aren’t so cheap anymore.

At the same time, supply chain issues and a lack of workers is making it hard for home builders to ramp up supply of new homes.

Collectively, this will make it difficult for home sales to increase next year, as much as we all want to make a mint selling our homes.

This also reinforces the idea that home prices will continue to go up, and that the housing market will remain super competitive.

That being said, it will be a very lively housing market in 2022, just not one that necessarily sees a lot of growth.

6. Home buyers will continue to flock to new states

2022 hot housing markets

Yes, the cheap states aren’t so cheap anymore. But that won’t stop people from getting out of town.

Many young, prospective home buyers have been priced out of their local markets in California and other hot spots.

This, combined with the work-from-home new normal (sprinkle in some politics), will fuel a continuation of migration seen in recent years.

This means more folks from the Golden State will make the move to nearby states such as Arizona, Idaho, Nevada, Texas, and Utah.

While more affordable for them, it will exacerbate those local markets and make them more expensive for the people who already rent there.

Some of the hottest housing markets of 2022 include Salt Lake City, Utah, Boise, Idaho, Spokane, Washington, Indianapolis, Indiana, and Columbus, Ohio.

Basically any metropolitan area that was/is considered cheap and desirable will be less so next year as the out-of-state home buyers storm in.

So no matter where you happen to be, expect a fierce seller’s market.

7. First-time home buyers will purchase a second home or investment property (first)

This is an interesting one that I’m borrowing from Zillow because it’s seemingly odd, yet kind of savvy. And so 2021 and beyond.

Typically, a first-time home buyer will purchase a home to live in nearby where they work.

But because the real estate market is so hot and in such short supply, high-earning, cash-rich Millennials and Gen Zers may actually buy a second home or investment property instead.

The thinking is that they can get in on the real estate market by making an investment, even if it’s not in their overpriced backyard.

For example, a well-earning Gen Zer who lives in Santa Monica that may be priced out there could purchase a more affordable second home in Phoenix, Arizona, or an investment property in Las Vegas, Nevada.

Of course, this isn’t necessarily for the faint of heart, and this is exactly the type of thing that leads to trouble down the road.

But as long as mortgage lenders don’t get too careless with underwriting standards, it doesn’t signal the start of a housing crisis.

It does tell you just how crazy real estate has gotten though.

8. Home buyers will return to the city

condo search

While the suburbs have been hot in our post-COVID-19 world, I do believe more buyers will start to consider the city life again.

We will get through this pandemic, and once life returns to mostly normal, lots of folks will wish they owned in an urban center.

Prices in many once-hot areas close to lots of cool restaurants, bars, etc. have been deflated, but I expect that to reverse course in 2022.

The urban living trend isn’t going to disappear, even if more people work from home, or desire abundant outdoor space.

So look out for condo prices to see more price gains in 2022 and beyond, and play catch up with single-family residence gains.

There’s already proof in data here – Redfin noted that users filtered searches to single-family homes only (excluding condos/townhomes) in just 28% of searches in September.

That was down from a high of 37% in July 2020, when living in a city seemed unthinkable.

Condos also tend to appreciate the most at the tail end of a housing boom, which we could be approaching, so it all kind of makes sense.

9. There will be more layoffs, closures, and mergers

While there is some hope that cash out refis and home purchase loans will keep mortgage volumes afloat, it won’t be enough for all mortgage lenders out there.

For example, Freddie Mac is forecasting $2.1 trillion in home purchase origination in 2022, up from $1.9 trillion this year.

But also expects refinance origination volume to fall from $2.5 trillion to $995 billion. That’s gonna be a problem for the shops that specialize in refinances.

Ultimately, total volume dropping from $4.5 billion to $3 billion will be an issue and there’s no way around it.

As a result, you can expect more mortgage layoffs, similar to the Better.com layoffs, along with some outright closures.

I also believe there will be more consolidation in the fragmented mortgage market, with bigger banks and lenders swallowing up smaller ones.

10. The housing market won’t crash in 2022

I already said home prices will go up, but I’ll reiterate that the housing market won’t crash in 2022, either.

There is a large group of people who believe the housing market is due for a correction, mostly just because home prices have gone up a ton.

Sure, it’s easy to raise eyebrows these days when looking up what your house is worth, or your neighbor’s.

But that alone isn’t enough to make them reverse course, especially when there is a continued, historic lack of supply.

Additionally, mortgage lenders have yet to return to the loose underwriting that dominated the space in the early 2000s, and ultimately created the mortgage crisis.

For me, that means another year of strong housing appreciation, and another year without a housing market crash.

At the same time, it does mean we will be one year closer to a crash, which as history tells us, is inevitable.

(photo: Quinn Dombrowski)

Source: thetruthaboutmortgage.com

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It’s been some time since I’ve done mortgage Q&A, so without further delay, let’s explore the following question: “Do you need 20% down to buy a house?”

If you chat with anyone older than 50 (maybe 60), they’ll probably tell you that you need to (or should) put 20% down if you want to buy a house.

For them, it’s the normal, or should I say traditional, down payment needed to secure a mortgage.

And while it might be conventional wisdom when it comes to home buying, it’s not necessarily the reality anymore.

In fact, the median down payment is just 12%, per the National Association of Realtors (NAR) 2021 Home Buyer and Seller Generational Trends report. Despite this, a lot of people still seem to think you need 20% down to purchase a home.

You Don’t Need a 20% Down Payment…

typical down payment

A few years back, the NAR 2017 Aspiring Home Buyers Profile report found that 39% of non-owners believed they needed more than 20% for a mortgage down payment on a home purchase.

And 26% assumed they needed to put down 15-20%, while 22% said they needed a down payment of 10-14% in order to buy. None of those answers are true.

A 2020 study from NAR also had a whopping 35% of respondents going with the 16% to 20% down payment tier, easily the number one answer.

In reality, you may not even need a down payment if you take out a certain type of home loan, or receive gift funds for the down payment.

Even if a down payment is required, it’ll be a lot less than 20% in most cases, most likely less than 5%.

Last year, the typical down payment for first-time home buyers was just 7%, while it was 17% for repeat buyers, per NAR.

It’s common for repeat buyers to use the proceeds from their original home to buy a replacement, making it easier to come up with a larger down payment.

Conversely, first-timers often have a tough time coming up with funds because they can’t tap into home equity.

You’ll notice both figures have moved lower over the years, though average down payments have ticked higher recently, perhaps due to home buyer competition in this hot housing market.

20% Down Payments Used to Be the Norm

20 percent down payment

  • Your parents probably put down 20% or more when they bought a house
  • But back then home prices were a lot lower than they are today (and interest rates a lot higher)
  • You might only need to put down 3% or 3.5% when you purchase a property these days
  • But there are still key advantages to putting down at least 20% like no mortgage insurance and a lower interest rate

Back in the day, it was customary to come in with 20% down (or more) when purchasing a property.

But property values were significantly lower those days, and mortgage rates a lot higher.

Times have changed as home prices skyrocketed and mortgage lenders got more competitive (and less risk-averse).

Leading up to the housing crisis seen in the mid-2000s, a zero down mortgage was a common theme. In fact, there were lenders that named themselves after that lack of a down payment…

Of course, we all know what happened next – home prices tanked and low down payment options began to evaporate.

That led to increased FHA loan lending, which requires only 3.5% down if you have at least a 580 FICO score.

And over time, Fannie Mae and Freddie Mac introduced a competing product that allows for loan-to-value ratios (LTVs) as high as 97% (just 3% down).

So we’ve kind of come full circle, though we’re not quite at the zero-down stage just yet.

Though lenders have offered mortgages with just 1% down, such as Quicken, Guaranteed Rate, and United Wholesale Mortgage thanks to the use of grants.

Should You Put Less Than 20% Down on a Home?

median down payment

  • You may not need to put 20% down on a home purchase in many cases
  • But it will cost you more money monthly if you don’t via a higher rate, PMI, and a larger loan amount
  • It may also make your offer less desirable to home sellers if they have competing bids with larger down payments
  • So it can beneficial to put down more, especially in a seller’s market

We’ve already answered the original question. You don’t need a 20% down payment to purchase a home.

In fact, you don’t need any down payment in some cases if you consider a home loan from the VA or USDA, both of which offer 100% financing.

You also don’t need to put down 10% or even 5% thanks to widely available programs from the FHA and Fannie and Freddie.

The median down payment is quite a bit lower, around 12% at last glance, and even lower (6%) for the 22 to 30 age cohort.

This age group also said saving for the down payment was one of the most difficult steps of the home buying process.

Now assuming you can muster a 20% down payment, should you come in with less?

This answer is a bit more elusive because it depends on a variety of factors, which include your household balance sheet and your financial goals.

Perhaps it’s better to frame the question the other way around.

Why You Should Put 20% Down on a House

In short, the less you put down on a home, the more you pay each month via your mortgage payment. This happens for three main reasons:

– Larger loan amount (less down means more financed)
– Higher mortgage rate (rates tend to rise as down payments fall)
– Mortgage insurance (added cost to account for risk)

If you put down less than 20%, you wind up with a bigger loan amount (obviously), a higher mortgage rate (usually) because of pricing adjustments, and you have to pay mortgage insurance to protect the lender.

This means your monthly housing costs go up, but you keep more cash in-hand, or at least not in your house.

Let’s assume the home you want to purchase is selling for $350,000 and you plan to take out a 30-year fixed mortgage. This comparison chart shows us how things might look.

3% Down vs. 20% Down: The Math

$350,000 Home Purchase 3% Down Payment 20% Down Payment
Down payment $10,500 $70,000
Loan amount $339,500 $280,000
Mortgage rate 4.125% 3.875%
Monthly P&I payment $1,645.39 $1,316.66
PMI $125 n/a
Total monthly cost $1,770.39 $1,316.66
Difference +453.73

As you can see from the chart above, the 3% down mortgage payment is roughly $454 more expensive each month thanks to those three things I mentioned.

That higher payment equates to an additional $27,223.80 spent over the course of five years.

Additionally, because the loan balance and mortgage rate are higher, more of your payment goes toward interest every month.

After 60 months, the 3% down mortgage would have a balance of $307,684.69, whereas the 20% down mortgage would be whittled down to $252,738.50.

The tradeoff is basically more money in your pocket versus the home, and the ability to buy more house now in exchange for a higher monthly payment.

This assumes you lack the down payment funds, but can afford the higher payments, which can be a common scenario for young high-earning individuals without significant savings (HENRYs).

At the same time, I’ve argued that it’s possible to buy more house if you put more money down because less income is required.

This assumes income is the problem and not assets, which can result in debt-to-income issues, which are prevalent and often grounds for denial.

Of course, it’s entirely possible for a low-down payment to be voluntary, for a homeowner who wants to park their money elsewhere.

That decision really comes down to how you value your housing investment, and if you think you can do better putting the money in the stock market or some other place.

For those who don’t have that choice, take comfort in the fact that you don’t need a 20% down payment to buy a home, or anywhere close to it.

But you will pay extra for that convenience, and you might have more hurdles to clear, such as convincing a seller to take your offer when another prospective buyer offers to put down 20%.

Alternatively, you could get a gift for a portion of the down payment and get the best of both worlds.

Can You Put More Than 20% Down on a House?

  • You can put as much down as you’d like (or even buy all-cash to avoid the mortgage entirely)
  • There are advantages to putting down more than 20% on a home purchase
  • Such as a lower mortgage rate thanks to fewer pricing adjustments
  • And an even stronger offer if buying a home in a hot market
  • Also a lower monthly payment and much less interest paid

You sure can. It’s generally possible to put down as much as you’d like on your home purchase, though if you put down too much you could run into issues with minimum loan amounts from lenders.

Of course, this probably isn’t going to be an issue in most cases with property values so high these days.

I’ve heard of home buyers putting down 50% just because they are debt-averse, but again, most folks don’t have that type of cash lying around.

The obvious benefit of putting a large down payment on a house is that you’ll have a smaller mortgage balance and pay less interest as a result.

You’ll also enjoy lower monthly payments, which will free up cash for other expenses or investments.

Conversely, you’ll have that much more money locked up in your property, which you’ll only be able to access if you sell or take out another home loan.

When it comes to mortgage rate pricing, it’s possible to obtain a slightly lower interest rate when you put down more than 20%, though it likely won’t be much.

We’re talking .125% to .25% lower depending on the scenario in question, so there are diminishing returns, especially when interest rates are already low.

But if you have bad credit the pricing impact can be greater with a larger down payment, so in those cases it could make sense to put down more than 20%, assuming you’ve got the cash available.

However, once you’re at 65% LTV (35% down payment) the pricing incentives tend to stop, so there wouldn’t be a benefit mortgage rate-wise after that threshold.

In summary, consider how much money you want locked up in your home, what your money could be doing (earning) otherwise, and how much it’ll cost you to put less down.

Lastly, don’t forget home sellers favor those who come in with larger down payments!

Read more: 2021 home buying tips to get the deal done.

Pros of Putting Down 20% on a Home Purchase

– Smaller loan amount
– No mortgage insurance required
– Lower mortgage rate
– Pay less interest over the life of the loan
– Ability to tap equity or take out a HELOC
– Lower closing costs
– Better chance of getting your offer accepted in a hot market
– More lender choice and loan options available

Cons of Putting Down 20% on a Home Purchase

– Requires a lot more money up front
– May make you house poor (little leftover for repairs/maintenance)
– Money tied up in the home that could lose value (and thus access to it)
– Could invest that money elsewhere for a better return
– Inflation makes dollars worth less over time
– Difference in monthly payment may not be all that substantial

Source: thetruthaboutmortgage.com

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One of the trickiest aspects of homeownership is unloading an existing property while acquiring a replacement.

Aside from being stressful, it can also be difficult it not impossible thanks to financing constraints and unwanted contingencies, which a home seller likely won’t accept in a hot market.

Unfortunately for those in this predicament, real estate is red hot at the moment, thanks to a lack of inventory and record low mortgage rates.

This means contingent offers, where you must sell before you commit to buy, aren’t likely to be accepted. And worse yet, even an offer that requires a mortgage could be denied in favor of an all-cash offer.

Enter “Knock Home Swap,” which as the name implies, looks to solve this common conundrum by giving the concurrent home buyer/seller some helpful tools to compete.

How Knock Home Swap Works

how knock works

  • First you get pre-approved for a mortgage with Knock Lending LLC
  • This allows you to make offers on a replacement home with down payment assistance included
  • Once you find the right home you can move in and make just the new mortgage payment
  • In the meantime, your old home will be prepped, listed, and sold while they cover monthly mortgage payments

We’ve heard of home swapping before, with it being a common feature with popular iBuyers.

For example, Opendoor, HomeLight, Reali, and Offerpad all offer trade-in programs where you can sell them your home and buy one from them at the same time.

But unlike an iBuyer, Knock doesn’t purchase your old home from you—instead, it’s sold on the open market via a licensed real estate agent. Ideally for a much higher price.

To close the buy/sell gap, they integrate a “competitive mortgage,” along with an interest-free bridge loan (similar to the one Compass offers) that covers the down payment on the new home, along with mortgage payments on the old home.

You can also claim up to $25,000 for “home prep and repairs” on the old property so it sells quickly and for top dollar, similar to the service provided by Curbio.

So it’s almost like Knock combined several different fintech offerings into one to make the home selling, buying, renovating, and mortgage financing process one smooth transaction.

In exchange for all these services, Knock charges a 1.25% convenience fee when you close on your new home, which can be rolled into the mortgage if you wish.

Once your old home sells, you pay back Knock for any monies advanced, such as down payment assistance, mortgage payments, and home preparation costs.

Speaking of, they’ll advance up to six mortgage payments on your old home, $25,000 in home renovation costs, and up to 5% down payment on the new purchase.

Which Homes Qualify for Knock Home Swap?

  • Property must be located in their service area (new markets launching soon)
  • Must be single-family residence, condo, or townhome that is eligible for traditional home loan financing
  • Title must be clear and held by seller
  • Must be owner-occupied or vacant (no tenants)
  • Knock must value home at $150k or higher (or combined value of old/new homes must be at least $350,000-$400,000)

At the moment, Knock Home Swap is live in a limited number of cities, mostly located in Florida and nearby states.

Those cities include Atlanta, Austin, Charlotte, Dallas-Fort Worth, Fort Lauderdale, Houston, Jacksonville, Orlando, Miami, Phoenix, Raleigh-Durham, San Antonio, Tampa, and West Palm Beach.

Several more markets are expected to launch this year and in 2021, so stay tuned.

It should be noted that both homes must be in those markets in order to qualify. Additionally, the property cannot be in an age-restricted community, nor can it be a distressed sale or bank-owned.

They also won’t go for homes with a solar lease, unpermitted additions, or significant foundation or water damage.

It is available exclusively through local broker and real estate agent partners who have been trained as Knock Certified Agents.

Why Use Knock Home Swap?

why use knock

  • You can buy a new home before selling your old home
  • You can get down payment assistance (up to 5%) for new home purchase
  • They provide the home loan and bridge financing that pays old mortgage before you sell
  • Can get up to $25,000 in home renovation costs fronted to sell your home for top dollar
  • Fee is only 1.25% plus standard real estate commissions and closing costs

There are several reasons why an existing homeowner might consider using a service like Knock Home Swap.

For one, it can be difficult to buy and sell a home at the same time because contingencies are often frowned upon.

So again, if the market is hot, or a particular property you have your eye on is popular with other buyers, the seller likely won’t accept a contingent offer.

Additionally, there can be complications when trying to juggle two mortgages at once, especially if affordability is already stretched.

There’s also the sheer timing of things when selling one property and acquiring another – will you need a leaseback before you move into the new home?

With Knock Home Swap, you can get the ball rolling on your new home and concurrently renovate and prep your old home to list, without worrying about where you’re going to live.

And you aren’t selling your home at a basement price to an iBuyer – it’s sold on the open market after suggested repairs are made, meaning it should go for a decent price.

Additionally, there’s more certainty overall if one company has approved your mortgage and is covering the old one while your former property sells.

In terms of gotchas, they do charge a fee of 1.25% for the service, which while not free, seems reasonable. I believe it’s based on the new home sales price.

Of course, they are also originating your mortgage and presumably taking full real estate agent commission on both the new home and the old home.

This could mean a standard fee of 2.5% to 3%, which might be more expensive than what other discount real estate brokerages charge.

Still, you seem to get a lot of good value out of it, and if the repairs they suggest result in a higher sales price for your home, it could cover the fees and then some.

Knock Lock and Shop

In early October 2022, the company unveiled a new solution known as “Lock and Shop,” which is basically a mortgage pre-lock option.

It allows prospective home buyers to lock an interest rate while shopping for a property to buy.

If rates go up during that time, they will enjoy their lower, locked interest rate regardless.

If rates happen to go down, they might receive the option of a float-down to capture some of that improvement.

The rate lock periods are being offered in 60, 75, 90, and 120-day increments, with longer lock periods resulting in higher interest rates. And vice versa.

The Lock and Shop feature can be used in conjunction with Knock Home Swap and Knock GO (Guaranteed Offer), which allows first-time home buyers to compete with all-cash buyers.

Knock also recently launched an interest-free equity advance loan that can be used to buy down your mortgage rate and/or increase your down payment to lower monthly mortgage payments.

It can also be used to cover the cost of a rate lock extension via the Lock and Shop program.

Source: thetruthaboutmortgage.com

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If you’re looking for a home purchase lending expert in the Midwest, you may want to check out “Flat Branch Home Loans.”

The Columbia, MO-based company is the #1 home purchase lender in the state, beating out the very biggest names in the industry.

They’re also the top USDA lender in the states of Missouri, Kansas, and Illinois, as well the eighth largest nationwide.

That’s pretty impressive, and could be directly related to their 1,000+ years of combined mortgage experience.

So if you’re a prospective home buyer looking for a little extra guidance, they could be a good fit.

Flat Branch Home Loans Fast Facts

  • Employee-owned, direct-to-consumer mortgage lender
  • Offers home purchase loans and mortgage refinances
  • Founded in 2005, headquartered in Columbia, MO
  • Funded about $3.75 billion in home loans last year
  • #1 retail home purchase lender in the state of Missouri
  • Roughly two-thirds of overall business comes from home state
  • Also very active in Illinois, Kansas, and Oklahoma
  • Currently licensed in 30 states nationwide

Flat Branch Home Loans is an employee-owned, direct-to-consumer retail mortgage lender located in Columbia, Missouri.

They were founded by current president Jim Yankee in 2005, and have since grown to a 700-employee strong company.

Their claim to fame is being #1 home purchase lender in the state of Missouri, as well as a big-time USDA loan lender.

This makes it obvious that they’re a solid choice for home buyers, though they also do a good deal of mortgage refinancing as well.

Last year, they funded about $3.75 billion in home loans, with a 70/30 split of purchase loans and refinances.

Roughly two-thirds of their overall production comes from their home state of Missouri.

And they’re the fourth largest mortgage lender in Missouri overall, only bettered by U.S. Bank, Rocket Mortgage, and Wells Fargo.

Aside from Missouri, they’re quite active in the states of Illinois, Kansas, and Oklahoma.

At the moment, they’re licensed in 30 states, including Alabama, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, and Wisconsin.

For the record, their name is derived from the Flat Branch stream that flows near Columbia, MO.

How to Apply with Flat Branch Home Loans

To get started, you can visit a local office if located in the Midwest, or simply navigate to their website.

At last count, they’ve got about 58 physical locations in a handful of Midwestern states.

If you begin at the website, you can browse their online loan officer directory, read bios, and find someone to work with.

Once you narrow down your loan officer search, you can click on “Apply” and you’ll have the option to continue on to the digital application or have them reach out to you.

It might be wise to have them reach out first so you can discuss loan pricing and eligibility before filling out the app.

When it comes time to complete the app, their digital mortgage experience is powered by SimpleNexus.

You can fill out the app from a computer, or download their smartphone app and tackle it that way.

Applicants can eSign disclosures, quickly calculate payments, securely scan and upload documents, and message their loan officer with questions along the way.

You’ll also receive updates as you go to determine where you’re at in the process. And receive a notification whenever they request a new document from you.

Simply put, Flat Branch Home Loans offers a good combination of the latest technology and human touch.

Loan Programs Offered by Flat Branch Home Loans

  • Home purchase loans
  • Refinance loans: rate and term, cash out, streamline
  • FHA loans
  • USDA loans
  • VA loans
  • HomeReady and Home Possible (3% down)
  • Grants and down payment assistance programs
  • MHDC loans
  • Section 184 Indian Home Loan Guarantee program

Flat Branch Home Loans is big on home purchase financing, and has a long list of programs to help secure a mortgage.

If you’re an EMT, firefighter, police officer, teacher, or military, their “Community Champions Program” comes with up to $900 in lender credits and a waived appraisal fee.

They also originate Missouri Housing Development Commission (MHDC) loans, which feature down payment assistance via a forgivable second mortgage.

As noted, they’re a major USDA loan lender, so if you’re purchasing a rural home they should be a great fit.

The USDA program has its quirks, so using an experienced lender who knows how to navigate it is advised.

Aside from that, they offer all the major stuff like conforming loans, FHA loans, VA loans, and even bridge loans to help you buy before you sell.

Their Lock and Shop option, which allows you to lock a mortgage rate before you find a home, is available in the states of Arkansas, Illinois, Iowa Kansas, Missouri, Oklahoma, Texas, and Nebraska.

Lastly, they offer the Section 184 Indian Home Loan Guarantee program, a low-down payment loan option for Native Americans.

It’s unclear if they offer jumbo loans or adjustable-rate mortgages, though you can get a fixed-rate mortgage in a variety of different loan terms.

Flat Branch Home Loans Rates

While we know they specialize in home purchase lending, we don’t know a lot about their loan pricing.

To my knowledge, they don’t feature their mortgage rates or lender fees on their website. As such, you’ll need to speak with a human to get a quote.

This doesn’t say anything about their rates, good or bad, it just doesn’t give us anything to go on in this review.

Once you get a mortgage rate quote, be sure to shop their mortgage APR with other banks, lenders, and mortgage brokers to see where they stand.

Take note of any lender fees and/or discount points required for the quoted rate to ensure you’re doing an apples-to-apples comparison.

The only hint we have about pricing comes from their Zillow reviews, in which a good chunk of customers indicated a lower rate and/or closing costs than expected.

Flat Branch Home Loans Reviews

Over at Zillow, Flat Branch Home Loans has a stellar 4.96-star rating out of a possible five from about 900 customer reviews.

Many of the reviews highlight their hands-on service and fast closings, especially important to home buyers.

They’ve also got a 4.9-star rating from about 160 Google reviews, along with a 4.7-star rating on Facebook from roughly 200 reviews, and a 4.9 rating on LendingTree from 40 reviews.

While they aren’t an accredited business, they do hold an ‘A+’ rating with the Better Business Bureau based on customer complaint history.

To wrap things up, Flat Branch Home Loans is clearly a home purchase lender first and foremost.

They pride themselves on their extensive mortgage knowledge and experience, important attributes when it comes to home buying.

Ultimately, if you want a competent lender who you can rely on to close on time, they might be a solid choice.

Their wide array of loan programs, including proprietary offerings and low or zero down options, is also a big plus.

Just pay attention to pricing as well to ensure you receive quality service and a competitive rate.

Flat Branch Home Loans Pros and Cons

The Pros

  • Can apply for a home loan online or via smartphone
  • Offer a mostly paperless, digital mortgage experience
  • Physical branches in many Midwestern states
  • A good range of loan programs to choose from (especially for home buyers)
  • Excellent customer reviews across ratings websites
  • A+ BBB rating
  • Free smartphone app
  • Free mortgage calculator and home buyer guides online
  • They service their loans after closing

The Cons

  • Do not list their mortgage rates or lender fees online
  • Not licensed in all states

(photo: Ivan)

Source: thetruthaboutmortgage.com

Apache is functioning normally

With a name like “NJ Lenders Corp.,” there’s no question who they’re focused on; folks in the Garden State!

What’s more interesting is the fact that something like 70% of their mortgage loans are derived from previous customer referrals.

In other words, they constantly get recommended by friends and neighbors, instead of having to rely solely upon advertising.

And when you focus so heavily on one geographical area, you definitely want to get it right.

So far, they seem to be accomplishing their goals, as evidenced by their thousands of 5-star reviews. Read on to learn more.

NJ Lenders Corp. Fast Facts

  • Retail, direct-to-consumer mortgage lender
  • Offers home purchase loans and refinances
  • Founded in 1991, headquartered in Little Falls, NJ
  • Funded roughly $5.5 billion in home loans last year
  • More than 80% of business done in home state of New Jersey
  • Also active in New York, Massachusetts, and Florida
  • Currently licensed in 14 states and the District of Columbia

NJ Lenders Corp. is a direct-to-consumer mortgage lender with branches in three states, mostly located in New Jersey.

They got their start way back in 1991, which if you’re not keeping track is more than 30 years ago.

Since that time, they’ve grown from a modest single office into a multi-billion-dollar mortgage originator.

They’ve closed more than 100,000 mortgage loans, with loan volume exceeding $40 billion.

Last year, they funded a solid $5.5 billion in home loans, which was probably their biggest annual production on record.

Business was split nearly equally between purchase loans and mortgage refinances.

At the moment, they’re licensed in 16 states, including Colorado, Connecticut, Delaware, Florida, Georgia, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, along with Washington D.C.

As noted, they are laser-focused on New Jersey, with the state accounting for more than 80% of overall volume.

But they’re also active in the states of New York, Massachusetts, and Florida, and originate home loans across much of the East Coast.

They were the fifth largest mortgage lender in the state of New Jersey, only topped by Rocket Mortgage, Wells Fargo, Chase, and loanDepot.

How to Apply for a Mortgage with NJ Lenders Corp.

While they have physical branches in New Jersey, New York, and Pennsylvania, there’s a good chance you’ll work remotely with a loan officer.

The good news is they have a solid website and loan application process, which is mostly paperless.

In fact, you can download their free smartphone app and complete much of the process from the palm of your hand.

Their digital app is powered by SimpleNexus, one of the leaders in the fintech space.

It allows you to complete the application digitally from any device, eSign documents, upload paperwork, and snag same-day pre-approvals.

Once your loan is submitted, you’ll gain access to secure, real-time updates as your loan progresses forward.

NJ Lenders Corp. said they built a better operations platform by keeping 95% of their files in-house.

This allows them to control the entire underwriting and loan closing process, improving both efficiencies and speed.

If you’re a home buyer, you can take advantage of their “Home Buyer’s Edge” program, which goes beyond a basic mortgage pre-qualification.

It provides a full credit approval that involves a complete review of your income, assets, and credit by a loan underwriter.

This gives home sellers peace of mind your offer can actually close in the event of a bidding war.

All in all, they appear to offer the latest tech and a solid operations setup to keep loans moving quickly to the closing table.

To get started, simply head over to their website and click on “get a rate quote” or “find a loan officer.”

Home Loan Programs Offered by NJ Lenders Corp.

  • Home purchase loans
  • Refinance loans: rate and term, cash out, streamline
  • Home renovation loans
  • Conforming loans
  • Jumbo loans
  • FHA loans
  • VA loans
  • USDA loans
  • First-time home buyer loans
  • Non-warrantable condo financing
  • Reverse mortgages
  • Interest only home loans

NJ Lenders Corp. offers an excellent selection of loan programs, including harder-to-find options like interest-only home loans and non-warrantable condo financing.

You can get a home purchase loan, renovation loan, or refinance loan, including a cash out refinance.

They offer the full suite of government loans (FHA/USDA/VA), along with both conforming loans and jumbos.

And they’ve got first-time home buyer loans with low down payment requirements, as well as reverse mortgages for seniors.

You can get a home loan on all major property types, from single-family homes to condos/townhomes and investment properties.

NJ Lenders Corp. Rates

The only area where more information would be helpful is pricing.

They don’t publicize their mortgage rates online, nor is there a lender fee section on their site.

This means you’ll need to fill the mortgage rate quote request form on their website, or simply call in to get connected with a loan officer.

Generally, it’s best to get pricing and check eligibility before completing a loan application anyway.

NJ Lenders Corp. does say their goal has always been to offer competitive mortgage rates and fees, and they wrote “best mortgage rates” on their website homepage.

So as an independent mortgage banker there’s a good chance they offer low rates. But always take the time to shop around, and compare offers.

Also inquire about any fees charged, such as a loan origination fee or separate costs for underwriting and processing, if applicable.

NJ Lenders Corp. Reviews

On Experience.com, NJ Lenders Corp. has an excellent 4.88-star rating out of a possible 5 from more than 20,000 customer reviews.

You can filter by loan officer on that site if you want to fine-tune your search.

Over at Zillow, it’s a superior 4.98-star rating from 3,300+ reviews, pretty much as close to perfection as you can get.

Many of those reviews indicate that the interest rate and/or fees and closing costs were lower than expected.

They’ve also got a 4.8-star rating on Google from more than 600 reviews.

Lastly, while not accredited with the Better Business Bureau (BBB), they do hold an ‘A+’ rating based on complaint history.

To summarize, NJ Lenders Corp. has thousands of excellent customer reviews, uses the latest tech, and has tons of loan programs to choose from.

The only real question mark relates to loan pricing. If it’s also good, they could be an excellent choice for either a home purchase or a refinance.

NJ Lenders Corp. Pros and Cons

The Good

  • Can apply for a home loan online or via smartphone
  • Many physical branches in the state of New Jersey
  • Offer a digital loan process powered by SimpleNexus
  • Lots of loan programs including interest-only, reverse, etc.
  • Offer fully underwritten credit approvals to give home buyers an edge
  • Thousands of excellent customer reviews across ratings websites
  • A+ BBB rating
  • Free smartphone app
  • Free mortgage calculators, guides, and glossary online

The Maybe Not

  • Only licensed in 16 states (primarily East Coast)
  • Do not publicize mortgage rates or lender fees

(photo: Bobby Hidy)

Source: thetruthaboutmortgage.com

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Webinars and Training, Construction Tracking, MERS Certification, 100% Financing, HELOC Products; Jumbo, DSCR Program News

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Webinars and Training, Construction Tracking, MERS Certification, 100% Financing, HELOC Products; Jumbo, DSCR Program News

By:
Rob Chrisman

2 Hours, 59 Min ago

The United States has about 336 million people. Did you know that 1/3 of them live within a 500-mile radius of Nashville? This is a cool site for anyone putting together a sales presentation for a real estate agent or a borrower. Speaking of geography, Wyoming has 23 counties, not 58 as the Commentary mentioned yesterday, further proof that this is, and always will be, produced by human hands! (Thank you to everyone who corrected me on that.) While we’re on selling, from a sales perspective, some LOs advocate adding value by subtracting complexity for clients. They are asking themselves, “How do I add value? How am I any different?” They are looking at their sales pitch, comparing bringing up pain (minimizing pain through minimizing paperwork) versus bringing up pleasure (“You’ll save time by working with me.”) And most are doing what they say they’re going to do: If you tell a potential client you’re going to call in two days, call in two days. Simple. Now go get ‘em! (Today’s podcast can be found here and this week’s is sponsored by Lenders One, one of the largest mortgage co-ops in the country with a diverse mix of 250+ member companies and providers of an end-to-end solution independent mortgage professionals trust to drive profitability and growth. Listen to an interview with Lenders One’s Justin Demola on the member benefits of joining a national alliance of independent mortgage banks, banks, and credit unions.)

Lender and Broker Products, Software, and Services

Ever feel like you can’t keep up with the latest tech trends? Having trouble separating hype from reality? Black Knight’s Dana Federspiel, SVP of servicing technologies and product innovation, knows these struggles and is helping lenders, servicers and mortgage industry professionals navigate the future. Dana is participating in a panel discussion during the USFNdustry Forum in Charlotte, North Carolina on the emerging trends in technology to help make more sound business decisions to support your business. Special focus will be given to artificial intelligence, machine learning, robotic process automation and more. Panelists will also evaluate options within the cloud computing universe that are becoming increasingly prevalent and affordable. If you need help cutting through buzz words to identify what really matters so you can remain successful both today and in the future, contact Black Knight.

As lenders adapt to volatile mortgage rates, many are stopping to reconsider their servicing strategy. Do inconsistent mortgage origination volumes have you questioning what makes more sense: retaining servicing or selling servicing released? Seth Sprague, CMB, Richey May’s Director of Mortgage Banking Consulting Services (aka, resident servicing expert), outlines the 13 key trends and strategies in servicing including recommendations on how to make the right decisions for your business. Want more help defining the optimal strategy? You know where to find us.

Thinking about boosting volume with construction loans? Think outsourcing. Homebuilder confidence is slowly improving, with sales of newly built single-family homes rising 4.1 percent in April, according to the NAHB’s latest numbers. If that’s piquing your interest in launching a construction loan program or scaling your existing offerings, CFSI Loan Management can provide the foundation you need to excel. “We’ve seen it time and time again,” says CFSI CEO Brian Mingham. “Outsourcing the trickiest aspects of construction lending, like budgeting, inspections, funding draws and disbursements, can reduce costs and unleash new business opportunities.” Imagine having all the complexities seamlessly handled by a team of seasoned experts, so you close more deals. CFSI has helped hundreds of lenders do exactly that for the past 10 years. To find out how they can help you, contact Brian Mingham (855-344-3052).

We know the current market can be stressful. But fortunately, there’s a bright side: home equity. These products have been around for decades but in recent years have taken a back seat to cash-out refinances. Now this is changing as borrowers with historically low first mortgage rates and generationally high levels of tappable equity rediscover HELOCs and home equity loans. Leverage this historic opportunity with FirstClose Equity, the rapid end-to-end digital technology that processes HELOCs and home equity loans in days instead of weeks. FirstClose Equity is designed to enable lenders to dramatically elevate the experience they deliver to existing or potential customers while providing a streamlined workflow for processors. Learn more.

“Looking for 100 percent financing with competitive pricing? All roads lead to ESSEX CORRESPONDENT and our Down Payment Assistance (DPA) product. Become a fully delegated and underwrite/fund your own 100 percent LTV purchase product. FHA 1st 96.5 percent LTV with two 3.5 percent 2nd mortgage options; 0 percent Forgivable or a 10 year Fully Amortized. No DTI limit, AUS approval required. FICOS as low as 600. One set of guidelines is available in 47 states. No first-time home buyer requirement. No 3rd party underwrite allows you to close as quickly as your team can originate. Email Kim Schenck or contact your Account Executive today and get signed up!”

While the mortgage industry is flooded with rules, there is no rule prohibiting you from celebrating National Donut Day a day earlier! Plus, we Donut want you to miss an opportunity for a free Krispy Cream. Among other things we don’t want you to miss, MERS season is officially here, and early-bird pricing is available now! If your organization had more than 1,000 MINs [on the MERS® System] on March 31st, you must have the annual review completed by an “authorized MERS third-party reviewer. Donut fret, MQMR aced the MERS certification with flying colors! Donut miss this opportunity to save, pricing will increase through the end of the year. Donut wait until the last minute, as your annual audit report may be submitted anytime between now and December 31, 2023. Schedule a call to discuss your MERS Annual Audit requirement and lock-in the sweetest deal of the season!

Sponsored Webinars and Training

Join MCT today, June 1st at 10am PT, for its webinar discussing Strategies to Improve Profitability in the Current Market. In this webinar, MCT’s Phil Rasori and Paul Yarbrough will provide a current market overview and include actionable insights to improve profitability for lenders. Attendees will receive key hedging, trading, best execution, and MSR recommendations, as well as how to leverage technology to improve profitability and efficiency. MCT also recently released a new whitepaper on Mortgage Pipeline Hedging 101. The whitepaper reviews information on moving to mandatory, the strategy of hedging, the benefits of hedging, and how to determine if you are ready. Read the whitepaper to learn how you can use hedging as a tactic to mitigate risk and optimize profitability when selling mortgage loans.

Lenders that support down payment assistance (DPA) are in high demand as a multitude of market conditions put a strain on affordability. To help more lenders win business by supporting consumers with DPA, the Mortgage Bankers Association is hosting the webinar Profit & Succeed with DPA on June 8 at 2 pm EDT. Best practice approaches to DPA lending will be shared by panelists Mark Hasson of Lennar Mortgage, Kate McDougall of Lake Michigan Credit Union and Down Payment Resource’s Veronica Khandelwal and Sean Moss. Registration is FREE for MBA members! Register now to turn up the heat with DPA programs this summer

Investors and Lenders: Jumbo, Non-QM, and DSCR News

Newfi Wholesale’s newly expanded Non-QM product suite offers 90 percent LTV up to $1.5M, loan amounts up to $4M, 2-1 buydowns, DSCR (no minimum ratio) 1-8 units, and alt-doc solutions that make sense for your borrowers. (For more information contact SVP, Non-QM Development & Strategy Dan Bayer or 925-584-0579.)

Effective 5/15/2023, updates to Kind Lending’s Choice Jumbo Program are now live. See UW guide for full program requirements located in Kwikie. Additionally, based on FHFA’s announcement that it would rescind controversial loan-level pricing adjustments (LLPAs) for conventional borrowers with debt-to-income (DTI) levels at or above 40 percent, as of May 14th,

Kind Lending will no longer be charging for a DTI >=40 percent on any FNMA or FHLMC loans. If you have an affected loan that is in process now, Kind Lending will automatically remove this price adjustment and will send out a new lock confirmation.

United Wholesale Mortgage (UWM) is rolling out a suite of six fixed-rate jumbo products. “Brokers now have access to more competitive jumbo pricing, along with transparent investor guidelines and loan qualifications, giving them a leg up on big banks and retail lenders. This will give loan officers the flexibility to tailor a fixed jumbo loan to each borrower’s situation, helping them get into their homes faster, cheaper, and easier.”

As a leader in Non-QM lending, Carrington Correspondent is working hard to deliver top-notch products to trusted partners. Nearly 2 dozen changes took effect on March 23, 2023, which hopefully will have a positive impact on your business and borrowers. Highlights include reduced FICO at which cash-out may be considered for reserves from 700 to 620 for all Non-QM loans. Investor Advantage (DSCR) changes include Resales within 6 months ok, Cash-out FICO requirement down from 640 to 620 and updated “1st-time investor” definition to no investment ownership within 36 months (was 12) – LTV benefit. Prime Advantage (FICO 660+) Now permits primary residences of 3-4 units (was 1-2).

Carrington Prime Advantage for borrowers who just miss qualifying for traditional or jumbo financing. Carrington Flexible Advantage Plus for borrowers who have recently re-established credit scores above 620. Carrington Flexible Advantage for borrowers with recent credit events and FICO down to 550. Carrington Investor Advantage for seasoned property investors with no income documentation.

Did you know there is no State Licensing Required in 20 States & DC? These states consider DSCR loans as commercial loans, so they are generally not subject to licensing requirements.

Carrington Mortgage Services Investor Advantage (DSCR) loan may be the answer for your borrowers.

Champions Funding recently announced an expanded business loan product to increase your offerings to real estate investors. Champs Accelerator Expanded (DSCR < .75) / No Ratio, part of its robust suite of DSCR loan options to fit your borrowers’ needs. Champs accepts transferred appraisals on DSCR and can get your loans closed quickly.

Looking for more options for your borrowers? American Heritage Lending offers CondoTels & Non-Warrantable Condos programs.

Angel Oak Mortgage Solution’s Investor Cash Flow mortgage (DSCR Loan) program now allows you to offer your clients financing for condotels. In addition to this new program enhancement, Angel Oak has implemented rate reductions across all loan programs. If you haven’t ran a loan scenario recently, today is the day to Get Started!

Angel Oak Mortgage Solutions shared great news regarding lending services, now offering its DSCR loans to non-permanent residents. Angel Oak believes in the importance of helping everyone achieve their dreams of homeownership, regardless of residency status. If you have clients who are non-permanent residents seeking financing options, Angel Oak Mortgage Solutions would be honored to assist.

Capital Markets

What will we talk about without the periodic debt ceiling negotiations to consume the press? There’s always the Fed. The Federal Reserve’s Beige Book for May described overall economic activity as little changed in April and early May with four Districts reporting small increases and two reporting slight-to-moderate declines. Consumer expenditures remained resilient while manufacturing activity was flat or up in most Districts. Residential real estate activity improved, and employment increased in most Districts, while prices rose at a slowing pace.

For LOs watching prequals stack up on desks across the country, we had a second consecutive bond price rally (rates down) yesterday due to both a sense that the House of Representatives would pass the debt limit bill and dovish Fed speak. Expectations for a June rate hike flipped from over 70 percent to below 30 percent after Fed Governor Jefferson said that a potential decision to hold the fed funds rate range steady at the June meeting should not be viewed as a signal that the hiking cycle is over. Philadelphia Fed President Harker said that he supports holding steady in June, but also acknowledged that more tightening could be done at subsequent meetings.

Today’s economic calendar includes a series of labor market indicators ahead of tomorrow’s payrolls report. First up were job cuts from Challenger, Gray & Christmas for May: U.S.-based employers announced 80,089 cuts in May, a 20 percent increase from the 66,995 cuts announced one month prior, 287 percent higher than the 20,712 cuts announced in the same month in 2022. Next was ADP employment for May (278k, a huge jump). Weekly jobless claims were 232k with the back month revised higher, while Q1 productivity and unit labor costs were -2.1 percent and 4.2 percent, respectively. Later today brings S&P Global manufacturing PMI and ISM manufacturing PMI for May, April construction spending, Freddie Mac’s Primary Mortgage Markets Survey, and remarks from Philadelphia Fed President Harker. We begin the day with Agency MBS prices roughly unchanged from Wednesday’s close, the 10-year yielding 3.62 after closing yesterday at 3.64 percent, and the 2-year stubbornly high at 4.40 after the spate of jobs news.

Employment

“Button Finance, an industry-leading Home Equity mortgage lender, is seeking a dynamic and experienced Marketing Specialist to build out our correspondent lending program. The ideal candidate will have a strong background in creating innovative marketing strategies and a deep understanding of the mortgage industry. You’ll lead campaigns, drive customer acquisition, and enhance our brand visibility. Join a growing company that is constantly delivering top-quality customer service with HELOCs/HELOANs closing in under 12 days and 24-hour review times. Strong skills in digital marketing, data analysis, and exceptional communication are required. Join our team and contribute to shaping the future of mortgage lending. Please send resumes to Rose King.”

Hey, did you hear that Planet is acquiring right-sized, financially solid distributed retail companies to expand its geographic footprint? This month’s acquisition of Platinum Home Mortgage Corporation brought 20+ branches and 100+ Professionals to Planet. After three decades together, Platinum’s producers were confident in their choice to join Planet because of its financial stability, competitive pricing, and strong leadership. Planet has solidified its position as a leading mortgage industry player by gaining the #9 spot on Inside Mortgage Finance’s overall lender leaderboard and the #4 spot among government loan producers. With the additional volume from Platinum’s power players, Planet expects to continue gaining market share (especially for government, where it’s at 5.2 percent now). To find out how you can profit from working with people who think bigger, work smarter, and perform better, contact Planet’s VP, Talent Acquisition Peter Briggs (435-709-6278).

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Let’s cut right to the chase. Yes, Chase was the top mortgage lender in Illinois last year, per HMDA data.

The NYC-based bank funded a strong $14.6 billion in the Land of Lincoln, beating out other national brands and hometown lenders.

They grabbed a near-10% market share despite being only the fourth largest mortgage lender nationwide.

And were able to hold off Guaranteed Rate, Wells Fargo, and even Rocket Mortgage in the process.

Read on to learn more about the biggest mortgage lenders in the state of Illinois.

Top Illinois Mortgage Lenders (Overall)

Ranking Company Name 2021 Loan Volume
1. Chase $14.6 billion
2. Guaranteed Rate $10.6 billion
3. Wells Fargo $6.6 billion
4. Rocket Mortgage $6.0 billion
5. U.S. Bank $5.6 billion
6. Huntington Bank $4.3 billion
7. loanDepot $3.8 billion
8. UWM $3.5 billion
9. Newrez $2.9 billion
10. Homepoint $2.8 billion

As mentioned, Chase led the pack with nearly $15 billion in home loan origination volume in 2021, per Richey May’s HMDA data.

That was plenty enough to overtake Guaranteed Rate, which is a direct lender headquartered in Chicago, Illinois.

Despite being a local brand, Guaranteed Rate only mustered $10.6 billion last year.

Coming in a distant third was San Francisco-based bank Wells Fargo with $6.6 billion. Through their controversies, they continue to be a mortgage lender of choice for many.

In fourth was Rocket Mortgage with $6 billion, somewhat lackluster given their headquarters in nearby Detroit, Michigan.

Rounding out the top five was U.S. Bank with $5.6 billion. They seem to perform well in and around their home state of Minnesota.

Others in the top ten included Huntington Bank, loanDepot, United Wholesale Mortgage (UWM), Newrez, and Homepoint.

Top Illinois Mortgage Lenders (for Home Buyers)

Ranking Company Name 2021 Loan Volume
1. Chase $5.6 billion
2. Guaranteed Rate $5.5 billion
3. U.S. Bank $3.0 billion
4. Wells Fargo $2.1 billion
5. loanDepot $1.6 billion
6. UWM $1.6 billion
7. Huntington Bank $1.5 billion
8. CrossCountry Mortgage $1.5 billion
9. Caliber Home Loans $1.4 billion
10. Rocket Mortgage $1.4 billion

If we look at just home purchase loans, Chase was once again #1 with $5.6 billion funded, a top pick for home buyers in the state.

However, Guaranteed Rate was breathing down their neck with $5.5 billion in purchase loans.

It then dropped off quite a bit with U.S. Bank’s $3 billion, Wells Fargo’s $2.1 billion, and loanDepot’s $1.6 billion.

Other brands in the top-10 list were UWM, Huntington Bank, CrossCountry Mortgage, Caliber
Home Loans, and Rocket Mortgage.

Top Refinance Mortgage Lenders in Illinois (for Existing Homeowners)

Ranking Company Name 2021 Loan Volume
1. Chase $8.9 billion
2. Guaranteed Rate $5.1 billion
3. Rocket Mortgage $4.5 billion
4. Wells Fargo $4.4 billion
5. Huntington Bank $2.7 billion
6. U.S. Bank $2.4 billion
7. loanDepot $2.2 billion
8. Mr. Cooper $1.9 billion
9. Freedom Mortgage $1.9 billion
10. UWM $1.9 billion

If you’re an existing homeowner, you might be wondering who helped the most borrowers refinance their home loans.

Those who guessed Chase were correct. It’s pretty rare to see one company sweep all three categories. So it appears Illinoisans really love Chase, at least when it comes to mortgage banking.

Their $8.9 billion was more than enough to run away with this category, despite Guaranteed Rate’s best efforts with $5.1 billion.

In third was Rocket Mortgage with a close $4.5 billion, while Wells Fargo also put up a respectable $4.4 billion in fourth.

Ohio-based Huntington Bank closed out the top five with a much smaller $2.7 billion.

The rest of the top ten included U.S. Bank, loanDepot, Mr. Cooper, Freedom Mortgage, and UWM.

Those relying primarily on this category will need to pivot in 2022 to capture more of the waning mortgage market.

Top Mortgage Lenders in Chicago

Ranking Company Name 2021 Loan Volume
1. Chase $12.2 billion
2. Guaranteed Rate $8.8 billion
3. Wells Fargo $4.9 billion
4. Rocket Mortgage $3.9 billion
5. U.S. Bank $3.9 billion
6. Huntington Bank $3.6 billion
7. loanDepot $3.0 billion
8. UWM $2.6 billion
9. CrossCountry Mortgage $2.2 billion
10. Homepoint $2.1 billion

Who Is the Best Mortgage Lender in Illinois?

While we discussed the top mortgage lenders in the state in terms of loan volume, the best one may or may not be on the lists above.

And what’s best for one home buyer or existing homeowner might not be the right fit for another individual.

Take the time to compare the many mortgage companies available to you. Consider their mortgage rates, their fees, loan program options, and any perks they offer.

Also factor in your personality – do you prefer a lot of hands-on attention from a smaller company, or is technology and self-service your thing?

Once you investigate these things you’ll be able to find a mortgage lender that is best suited for you and your specific needs.

That could mean service over lowest price, or vice versa. If you put in the time, you should be able to get the best of both worlds.

Source: thetruthaboutmortgage.com