Jessica Lautz

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WASHINGTON (September 14, 2023) – The current real estate market’s high home prices and mortgage rates, as well as limited inventory, are the top reasons that Realtors® and prospective home buyers across races and ethnicities cite as barriers to purchasing a home, according to two new reports from the National Association of Realtors®.

In partnership with Morning Consult, NAR’s 2023 Experiences & Barriers of Prospective Home Buyers Across Races/Ethnicities report surveyed White, Hispanic/Latino(a), Black and Asian prospective home buyers about their experiences. NAR’s 2023 Experiences & Barriers of Prospective Home Buyers: Member Study surveyed Realtors® who focus on residential real estate regarding the latest buyer with whom they worked who has not yet purchased a home, and it compares findings with the consumer study.

“Home buyers face the most difficult affordability conditions in nearly 40 years due to limited inventory and rising mortgage interest rates,” said Jessica Lautz, NAR’s deputy chief economist and vice president of research. “The impact is exacerbated among first-time buyers who are more likely to be from underrepresented segments of the population.”

Among prospective home buyers, Asian (27%), Hispanic (24%), Black (20%) and White (15%) respondents say the main reason they have not yet bought a home is because they are waiting for prices to drop. White respondents (15%) are just as likely to say it is because they are waiting for mortgage rates to drop. Additional market-related reasons that prospective home buyers cite as barriers include waiting for mortgage rates to decline (18% – 25% of all four groups) and not enough available homes within their budget (19% – 24% of all four groups).

The top three reasons why Realtors® say buyers have not yet purchased homes are the same as reported by consumers: not enough homes available for purchase in buyers’ budgets (34%), buyers are waiting for mortgage rates to drop as higher prices affect affordability (18%) and buyers are waiting for prices to drop (9%). These three factors greatly impact affordability since limited inventory drives up home prices and higher rates increase monthly mortgage payments.

Saving for a competitive home down payment is also a primary obstacle for prospective home buyers (6% – 9% of all four groups). In terms of what holds them back from saving for a sufficient down payment, prospective home buyers across races and ethnicities cite as barriers current rent/mortgage payments (43% – 56% of all four groups) and credit card payments (38% – 57% of all four groups). Despite this, awareness about existing down payment assistance programs is low among prospective buyers saving for down payments. Only 8% – 15% of all four groups applied for these programs, 20% – 33% considered but did not apply to these programs, 21% – 32% did not consider these programs, and one-third (30% – 33% of all four groups) say that they are not aware of these assistance programs. For prospective home buyers who are aware of down payment assistance programs, the primary reason they did not apply for them is because they did not know enough about the programs (44% – 58% of all four groups).

Likewise, more than half of Realtors® (53%) say that at least one issue is holding their latest buyer back from saving a competitive down payment: most likely current rent or mortgage payments (23%) or credit card balances or payments (17%). Further, only 23% of Realtors® say that their buyers experiencing these challenges have applied for down payment assistance programs. This is most likely because their income is too high (30%), they did not know enough about the programs (19%), or they are worried about the competitiveness of their offers in multiple-bid situations (17%).

“Down payment assistance programs often fly under the radar for potential home buyers. Using programs – like FHA, VA or USDA loans – can make homeownership more attainable. Experts, such as agents who are Realtors®, can educate potential buyers about these programs. Doing so will bring in more first-time buyers and narrow the racial homeownership gap,” added Lautz.

Discrimination also plays a role in the homebuying process. About one in six (13% – 16% of all four groups) prospective home buyers across races and ethnicities report facing discrimination. More than half of Black (63%), Asian (60%) and Hispanic (52%) prospective home buyers who report this say it was due to their race or ethnicity. Of these, the largest proportions of every group are most likely to report that this discrimination manifests in steering toward or away from specific neighborhoods (36% – 51% of all four groups) and more strict requirements (32% – 48% of all four groups). Despite all of this, most discrimination during the homebuying process goes unreported: 47% – 81% who describe it did not report it to a government agency or legal aid organization. 

Interestingly, only 1% of Realtors® who took the survey report that their buyers experienced discrimination during the homebuying process, while 13% are not sure. Those reporting discrimination are most likely to say this is based on race or ethnicity and lay this at the feet of lenders, saying that buyers experienced this in the type of loan product offered (43%) or that buyers did not receive a call back from lender(s) (29%). Of those who report discrimination, 57% report it based on race, 29% report it based on age and 21% report it based on familial status (including marriage or parental status). Just 7% say that the buyer reported the discrimination, which was on the basis of either race or religion or both, to a government agency or legal aid organization.

To help address discriminatory practices in real estate, NAR offers several resources to its members, including Fairhaven, an interactive training simulation based on real fair housing cases; Bias Override, an implicit bias training course with practical tips to override bias; At Home With Diversity, a certification course aimed at serving diverse consumers; and a confidential voluntary self-testing program for brokerages to assess agents’ compliance with fair housing laws. In Washington, NAR advocates for strong fair housing and fair lending enforcement, and policies aimed at closing homeownership gaps among demographic groups.

About the National Association of Realtors®

The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics.

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Source: nar.realtor

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Efficiency, POS, Policy and Procedure Tools; Events and Webinars Entering August; More “Soft Landing” Talk?

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Rob Chrisman

1 Hour, 23 Min ago

“Yesterday I completed a chore I’ve been putting off for four months. It took me 20 minutes. I will learn nothing from this.” That sums up a lot of my tasks. But that was then, and today I head to Austin, the capital of Texas and where they just voted to approve a wide-ranging property tax reduction bill. Which is good, as Texas residents will need the money for air conditioning in the 106-degree heat forecast for today. What if you’re the owner of an office building with few tenants, absorbing that AC cost yourself? Say what you will about slow times in residential lending, commercial lenders are very anxious. Rumor has it there is 1 billion (with a “b”) square feet of empty space. That’s 4.44 million 15×15 square foot offices. Word has it that landlords are very concerned about when the leases are due in commercial real estate around the nation, and world, as some percentage of people have shifted from office to WFH (working from home), or at least are in some hybrid arrangement. “People need a place to live, they don’t necessarily need a place to work.” (Today’s podcast can be found here and is sponsored by Candor. Candor’s patented automated underwriting decision engine, CogniTech, is a state-of-the-art, 100 percent machine platform that can handle infinite loan scenarios. Listen to an interview with CHLA’s Scott Olsen on the seven consumer rights.)

Lender and Broker Software, Products, and Services

Have you ever experienced something so good you couldn’t wait to tell the world about it? Maybe it was a Michelin star restaurant, or a play under the glittering lights of Broadway. Or maybe it was your loan origination system. Mortgage professionals from across the industry are raving about Empower®, and they’re opening up on camera about how Black Knight’s automated, integrated LOS has created new efficiencies, saved time and money, and helped foster borrowers and members for life. Empower is a cloud-based LOS that puts you back in control of your lending business, and its credibility speaks for itself. Want to know why mortgage pros can’t stop talking about Empower? Click here to see, and then contact Black Knight when you’re ready to try it for yourself.

Did you know Symmetry has some the lowest rates in-market for our Piggyback and Post-Close HELOCs? Not only that, but with NO condo overlays and an ability to move files quickly, you’ll be speeding towards close… AND the simplicity and speed of our service is second-to-none. With the demand for HELOCs being higher than ever, now’s the time to present this solution to your borrowers. Don’t wait until it’s too late: Contact Symmetry today!

“The mortgage industry is constantly in flux. Many mortgage lenders and servicers need more bandwidth and comprehensive oversight challenges. Increased risk exposure comes with a high level of change and uncertainty, so when times slow down, it presents the opportunity for companies to redefine their processes and explore how to become more efficient. Consolidated Analytics’ experienced team of consultants can review your policies & procedures and help safeguard your business while ensuring it remains compliant.

Contact Stephen Faulkner to see how we help businesses remain compliant and keep pace with regulatory change.”

You don’t have to accept lower profitability when loan volume is down. Instead, find efficiencies in your mortgage process that add up to cost savings and bolster your bottom line. Loan officers using Maxwell Point of Sale achieve more with less work, closing 20% more loans and moving loans to clear to close 35% faster. Maxwell POS syncs with your LOS bi-directionally, keeping real-time data in one place for easy management and seamless updates and preapprovals. Managers have visibility into the team’s entire pipeline, allowing them to identify opportunities for quick adjustments and better results. If you’re ready to maximize your mortgage operations and take advantage of every basis point, schedule a call with the Maxwell team.

Is your focus to do more with less? A business intelligence solution should highlight where there are opportunities to incorporate efficiencies and reduce costs. The most forward-thinking industry leaders are turning to Richey May’s RM Analyze to learn what they need to know now more than ever: how to operate even leaner. It’s half the cost of a full-time employee, and you gain access to a strong bench of talent with a rich background in the mortgage industry and access to hundreds of reports, including real-time peer benchmarking data, in no time. With these insights you can make meaningful decisions for your business and do more than just survive. Learn how to operate leaner.

Conferences, Training, and Webinars

Register for Mortgages with Millennials with Kristin Messerli and Robbie Chrisman, a weekly video show designed to empower mortgage professionals to tap into the millennial market. Each episode will feature timely and relevant market updates by Robbie Chrisman, exclusive research by Kristin Messerli, and a guest conversation with an expert in millennial homebuying. This show demystifies the psychology of first-time homebuyers and offers strategies to win more market share with a key segment of the market. Sign up for a weekly reminder with the link to join and a sneak peek into the next episode. The first episode airs on Tuesday August 8 at 10AM PT.

FAMP! Florida Association of Mortgage Professionals 2023 Annual Convention & Trade show, “A Grand Affair”, is August 2-5, at Signia by Hilton Orlando Bonnet Creek. For Over 60 years, this is the annual event that attracts Florida’s top mortgage professionals, and this year is no different. Exhibitors from all over the country will be exhibiting current mortgage products and industry tools for all originators. Do not miss this opportunity to network with mortgage brokers and lenders from across Florida and the United States.

The National Association of Realtors® will host its virtual Real Estate Forecast Summit: Residential Update event, Wednesday, August 2, 1-2 p.m. Eastern. NAR Chief Economist Lawrence Yun and NAR Deputy Chief Economist and Vice President of Research Jessica Lautz will share critical data and an outlook for the economy in this mid-year market update. In addition to the focus on housing, attendees can expect an updated overview of the commercial markets.

Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup with Robbie and Rob Chrisman” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT starting August 9th, Robbie and Rob will dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Robbie and Rob will bring a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. Register for the first show on August 9th with Lenders One’s Justin Demola, CMB, as a featured guest discussing chatter from his hundreds of members.

Friday the 4th at noon PT is the next edition of The Mortgage Collaborative’s Rundown with Melissa Langdale and me. We’ll will be covering current events in the mortgage market for 30 minutes starting at noon PT in “The Rundown”.

Whether you communicate in-person or online, with spoken words or written words, delivering a clear and compelling message is more challenging than ever. Join Arch MI on Thursday, August 3, at 1 p.m. ET, as Blaine Rada, Certified Speaking Professional (CSP), and Arch MI’s Senior National Trainer & Instructional Designer, offers his perspective SMART Communicating.

FHA free on-site training in Atlanta, GA., August 7, 8:30 AM – 12:30 PM (Eastern). FHA Endorsement & Program Offices Overview will provide information on FHA endorsement/insuring policies, practices, procedures, and more. Additionally, there will be an introduction to Real Estate Owned (REO), Program Support Division (PSD), and Quality Assurance Division (QAD). Also that day at the same place is free on-site FHA Condominium Approval and Processing Training from 1:30 PM – 4:00 PM (Eastern) providing information on FHA policies for approving condominium project submissions and Single Unit Approval (SUA) guidance.

Free, in-person FHA Appraiser and Appraisal training, August 8, 8:30 AM – 4:00 PM (Eastern), in Atlanta addresses industry FAQs on the Single Family Housing Policy Handbook 4000.1. Topics include changes, policy clarifications, and updates on property acceptability criteria, underwriting the appraisal, minimum property requirements, property defective conditions, enhanced appraiser, underwriter responsibilities and requirements, programs, and products (i.e., 203(k)), and much more.

Free, on-site FHA Underwriting Training in Atlanta, GA., August 9, 8:30 AM – 4:00 PM (Eastern) will address industry-related FAQs on the Single Family Housing Policy Handbook 4000.1. Topics include changes, policy clarifications and updates on CIA (credit, income, and asset) documentation, manual underwriting, Automated Underwriting System (AUS), closing, and more.

Are you wondering what today’s Fed decision means for rates and the mortgage market? Register for a new webinar on August 9th at 11AM PT hosted by Agile Trading Technologies.

In this webinar, Phil Kukafka of Towne Mortgage, Ryan Ferderer of Multi-Bank Securities, and Andrew Rhodes of MCT will give an overview of MBS pooling, discuss the current market, share strategies for efficiently pooling and selling mortgage-backed securities, as well as the process for MBS pooling using Agile’s technology.

Join Optimal Blue for the next session in its Hedging 301 series on Wednesday, Aug. 9th, Noon ET, take a deeper dive into more advanced capital market strategies and how they naturally interplay with technological advances. This session will address the many ways Optimal Blue helps clients streamline daily processes to achieve success and optimal best execution – including mandatory price discovery and dissemination, saving basis points while delivering representative mix, solving for numerous execution iterations, and integrating to the MSR broker community for live, loan-level servicing valuations.

PRMG University TPO August Training Calendar. Walk through calculations to determine what income can be used to qualify a traveling health care professional. Join PRMG University and Essent training on Monday, Aug 14th 1:00 PM – 2:00 PM PDT, for On the Road Again… Traveling As a Traveling Nurse.

Don’t miss the MMA’s Triple Crown Event. Golf on beautiful grounds of The Wilds Golf Club, Tuesday, August 15th. Network with mortgage lenders and brokers while golfing with your friends and colleagues. Get ready to learn and interact with everyone in the industry, on Wednesday, August 16th. Enjoy a full day of speakers and breakouts, with keynote speaker Kristin Messerli. Stay for the after-party with LIVE horse racing just after the conference with the MMA.

FHA free, Live, on-site training in Ankeny, IA will provide an overview of FHA underwriting procedures and addresses a number of industry-related frequently asked questions (FAQs). August 24, 9:00 AM to 12:00 PM

August 17-20 will be Originator Connect, the nation’s largest LO conference. A huge exhibit floor and tons of sessions that will help loan originators bulk up their pipeline, it’s also got special events such as The Non-QM Summit and the Private Lender Forum. Looking to start your own brokerage? There’s an entire half day Build-A-Broker program. And attendees can also get their federal NMLS license renewal class done while you’re there. It’s all free to NMLS-licensees and their support staff. Just go here and register using the code CHRISMANFREE. And if you want to know what’s coming your way, don’t miss keynote speaker Lawrence Yun, the chief economist for the National Association of Realtors.

Join PRMG University to learn about using Symmetry HELOCs option for wholesale and non-delegated correspondent channels, Wednesday, August 23rd 12:00 PM PDT.

On Thursday, August 24th 1:00 PM PDT, learn about the FHA 203(h) product, the Mortgage Insurance for Disaster Victims program, which allows for up to 100% financing for the purchase of a new home for borrowers who owned or rented a home.

The 2023 Kentucky Affordable Housing Conference (KAHC), Rising to the Challenge: Building A Stronger Kentucky, will be held at Central Bank Center in Lexington on Thursday and Friday, August 24-25. Offering a wide range of training, panel discussions and networking opportunities, whether you’re interested in specialized housing, mortgage lending, single-family development, multifamily development, or HMIS. The general business development sessions will cover cyber security, diversity, language access and more. #KAHC23 is hosted by Kentucky Housing Corporation (KHC).

National MI University’s August Webinars: The Basics of Underwriting the Self-Employed Borrower ​​​​​with Marianne Collins – August 2nd at 1pm ET. Leading With Style ​​​​​​with Andrew Oxley – August 8th at 2pm ET. How to Build, Maintain, and Protect Your Database ​​​​​with Dr. Bruce Lund – August 9th at 1pm ET. Building Trust and Eliminating Virtual Credibility-Crushers with Julie Hansen – August 15th at 1pm ET. Power of Mindset in Today’s Market ​​​​​with Rebecca Lorenz – August 22nd at 1pm ET.

The California MBA’s Western Secondary will be August 21-23 at the Waldorf Astoria at Monarch Beach in Orange County. “Explore the possibilities of the 2023 Western Secondary Market Conference – a unique in-person event that brings together the most influential players in the secondary market.”

Capital Markets: “Soft Landing” Still on the Table?

Well, here we are: The Federal Reserve pushed its key policy rate (overnight Fed Funds) to a 22-year high last week, with another 25-bps hike to 5.25%-5.50%. It’s not enough for the central bank to declare victory on inflation just yet, but it sure looks like markets are charting their next steps, with the Consumer Price Index now down to 3%, and the Dow Jones Industrial Average notched its biggest winning streak since the 1980s. Furthering the case for a soft landing, U.S. GDP growth in Q2 was stronger than expected, while durable goods orders showed the fourth straight month of growth.

In its policy statement, the Fed’s committee observed “moderate” economic growth and “elevated” inflation due to a strong labor market. Additionally, the committee, as well as chairman Powell, reiterated the Fed’s reliance on further economic data and the perceived risk of declaring victory prematurely only to have inflation rebound. Following the Fed meeting, the “advance” estimate of GDP for the second quarter came in at 2.4 percent annualized growth, higher than market expectations for 1.8 percent. The Atlanta Fed GDPNow is already estimating 3.5 percent annualized growth in the third quarter. While higher than expected GDP soured markets, Friday’s lower than expected inflation data was a welcome surprise. The core Personal Consumption Expenditures price index for June slowed to 4.1 percent from 4.6 percent. Lower inflation with continued economic growth would support the soft-landing narrative.

This week brings July month-end which means July payrolls on Friday with other labor market indicators before including ADP employment and Challenger layoffs. Central bank decisions include the Royal Bank of Australia (tomorrow) and Bank of England (Thursday) where each is expected to hike rates by 25 basis points. Today’s month-end calendar gets under way later today with Chicago PMI and Dallas Fed manufacturing, both for July. We begin the week with Agency MBS prices roughly unchanged from Friday, the 10-year 3.97 after closing last week at 3.97 percent, and the 2-year up at 4.88.

Jobs and Promotions

A National IMB is looking to revamp its accounting structure and is seeking to hire a Chief Finance Officer and fill other, multiple Senior Staff Accounting Roles. These roles must possess strong business and leadership skills and excel in forecasting and communication. Both should also be proficient in Loan Vision or AMB. Confidential inquiries should be directed to Chrisman LLC’s Anjelica Nixt for forwarding; please specify the opportunity.

Homeowners Financial Group announces the promotion of Eric Zeier, who will assume the role of National Sales Manager in the Homeowners sales organization. Based in Atlanta, Eric began his mortgage career in 2002 after playing football in college and the NFL. He joined Homeowners in 2020 after years of proven success in senior leadership roles with other lenders throughout the Southeast. “Eric Zeier is one of the hardest-working, most coachable leaders I’ve ever met,” said Homeowners Financial Group CEO Bill Rogers. “It’s going to be very exciting to see what his accomplishments will be in the future.” “I’ve had the privilege and honor to be part of so many special teams and organizations,” Zeier said. “Few if any can rival what we’ve created here at Homeowners. I’m excited to continue to serve and support our entire organization as we write the next chapters of this amazing journey we’re on.”

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Source: mortgagenewsdaily.com

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The 30-year fixed-rate mortgage averaged 6.78% this week, backing away from its near-7% mark last week. “That relief is welcome at a time when the St. Louis Fed is reporting there are tighter lending standards now for consumers seeking mortgages,” says Jessica Lautz, deputy chief economist and vice president of research at the National Association of REALTORS®. “Simultaneously, home prices have now hit the second-highest amount recorded since January 1999.”

For a buyer purchasing a $410,200 home—the median price of an existing home in June—that translates to a mortgage payment of $2,135 at today’s mortgage rate, Lautz says. “This is out of reach for many first-time buyers, as the median qualifying income would need to be $102,480.”

Besides higher rates, buyers are up against a deep housing shortage. Thirty-three percent of homes sold above the list price in June due to housing inventory, which has hit its lowest level in four decades, Lautz says.

Many homeowners may be reluctant to sell out of fear they wouldn’t find or couldn’t afford another home in this bare market. Lower mortgage rates could help counter that somewhat, Lautz says. “While new inventory is needed, lower rates would bring current owners out of their homes they may have outgrown and into the market,” she adds. 

Here’s a closer look at mortgage rates for the week ending July 20, according to Freddie Mac’s weekly mortgage market index:

  • 30-year fixed-rate mortgages: averaged 6.78%, falling from last week’s 6.96% average. A year ago, 30-year rates averaged 5.54%.
  • 15-year fixed-rate mortgages: averaged 6.06%, dropping from last week’s 6.3% average. This time last year, 15-year rates averaged 4.75%.

“Borrowers should remember that an average rate isn’t the exact rate that everyone will be offered,” says Jacob Channel, senior economist at LendingTree. “Owing to this, while home buyers can generally expect lenders to offer rates near what the current average is, they should also remember that other factors like their personal credit score and income will also play a large role in the specific rate they get.” Channel urges borrowers to shop around among different lenders and gather several rate quotes.

Source: nar.realtor

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Correspondent Programs; STRATMOR and Customer Service; Credit Products and News; Training and Webinars

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By:
Rob Chrisman

Thu, Jul 20 2023, 10:16 AM

Ever see the movie “Cocoon”? Is there an X-rated version? Seven of the 10 fastest-growing metro areas over the past year are in Florida. The Census Bureau tells us there was population growth for about two-thirds of U.S. metro areas during this time, but The Villages, Florida, had the greatest percent increase at 7.5 percent. (Yes, as in the “STD Capital of America” Villages!) The metro area of Myrtle Beach-Conway-North Myrtle Beach, South Carolina-North Carolina came in second and saw population climb by 5.0 percent. The metro area of Dallas experienced the largest numerical population increase, seeing its population climb by 170,396 or by 2.2 percent from July 1, 2021, to July 1, 2022. The metro area of Houma, Louisiana, had the greatest percent decline over this time range, and two other metro areas in Louisiana were among the 10 fastest-shrinking metros. (Today’s podcast can be found here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services to the mortgage industry for almost four decades. To experience how Richey May can help you transform your mortgage business, visit richeymay.com. Hear an interview with NAR’s Jessica Lautz on the latest inflation figures and the Fed’s calculus moving forward.)

TPO Channel Products

Now is the time to become an approved Newrez Correspondent partner. A partnership with Newrez Correspondent provides access to an extensive product menu, delegated/non-delegated underwriting, multiple delivery methods, and professional experience needed to ensure success in an ever-changing market. With exciting enhancements such as the recently added Bulk AOT and soon to be released Appraisal Alternatives, there is no better time than now to become a Newrez Partner. Every week new lenders are joining the Newrez family of nearly 1000 approved correspondent clients, and are enjoying the many benefits of partnering with a top Correspondent Investor when efficiency, cost reduction, and profitability are critical. Newrez Correspondent understands the importance of personalized service and strives to exceed our client’s expectations at every turn. Contact us today to schedule a meeting at the Western Secondary Conference August 21st to 23rd for an in-person discussion on how a Newrez Correspondent Partnership can optimize your business.

Planet Home Lending’s Correspondent division is built on an unwavering commitment to Correspondent lending and the belief that strong partnerships are the cornerstone of success. Our continually refined product lineup ensures you have the right products to build volume in any market cycle. Go beyond government and conventional loans and move into profitable niche products, like renovation, manufactured homes, and buydowns. Get in touch with Planet’s SVP Correspondent Sales Jim Loving (414-270-0027) to learn more or click here to download the latest version of our Product Highlights flyer, then put Planet to work for you!

STRATMOR and Customer Service

Lenders have struggled for years trying to build customer-centric cultures. According to data from STRATMOR Group’s MortgageCX program (more than one million borrower surveys and counting), the number one frustration in the pursuit of Customer Experience (CX) excellence is the transition from collecting customer feedback to creating internal behavioral change. In his July Customer Experience Tip, MortgageCX Director Mike Seminari shares four motivational strategies for lenders that can help drive the change needed. For inspiration on motivation, read, “Motivate Your Mortgage Team to CX Excellence.”

Credit Products and News

Attention Mortgage Lenders: Empower Millennial and Gen Z Homebuyers! Download The Ultimate Credit Scoring Playbook, your go-to resource for conquering unique buyer pool challenges with Millennial and Gen Z homebuyers. Gain comprehensive insights, strategies, and expert tips to guide these tech-savvy generations to their dream homes and establish yourself as a trusted advisor by mastering credit score management. Understand market conditions, interest rates, regulations, and preferences that will affect these generations in their homebuying journeys. Shape your success in the mortgage industry and drive unprecedented growth. Don’t miss out on this opportunity to elevate your expertise. Download The Ultimate Credit Scoring Playbook for Millennials and Gen Z eBook for free now! Follow Birchwood Credit Services to gain access to a plethora of industry-related news and informative content that will aid you in closing loans at lightning speed!

Lenders are keenly aware of the 3 Ds of lending: divorce, death, and da money. This is an answer to the 5 Cs of lending, and credit is very important to lenders. Evaluating a borrower’s credit is always important, especially with the ATR (ability to repay) requirements. Anyone who is thinking we’re heading for foreclosures shooting higher had better take a look at the equity that current homeowners have, and the credit quality of the current crop of borrowers.

Huh? Now SoFi will “underwrite” your loan for you?

VantageScore Solutions was launched in 2006 and is owned by America’s three national credit reporting companies (CRCs) – Equifax, Experian, and TransUnion.

Lenders are still talking about Equifax’s shift last year where it eliminated order options in October, resulting in the need for double orders, and then raising prices on Jan 1st for those double orders. So most will say that competition is good, and the Transunion Truework news last month on income and employment verification is being watched to see how it plays out.

I bring all of this up because yesterday Experian® announced consumers can now choose to share information directly from their employers’ payroll service through Experian Verify™ when applying for credit, including mortgages, auto loans and personal loans. “The enhancement introduces Experian’s automated income and employment verification waterfall and helps lenders easily leverage both instant and permissioned technology with consumer consent to verify income and employment for over 85% of the U.S. workforce… A multi-step approach is needed to help reduce dependencies on complex and costly manual verification processes. Lenders who use a multi-step approach can keep consumers engaged while verifying income and employment information faster and more efficiently.”

Training and Events Next Week

Keep a finger on the pulse of borrower demand and incentive with Black Knight’s complimentary Mortgage Monitor webinar, which provides insights into the mortgage market you can’t get anywhere else. Our experts analyze the most current information from Black Knight’s vast mortgage, housing, and property data assets to deliver a clear view of the market. We also include the latest rate lock data, so we’re able to dig deep into origination trends and provide information that can help you market and allocate resources more effectively. Register now.

Do you have questions about CDFIs? Are you wondering how CDFI’s QM exception and FHLB access work? Falcon Capital Advisors is hosting a webinar with its CDFI experts to share an overview of these primarily non-bank entities and how recent changes in CDFI rules could advantage lenders who are seeking to serve minority borrowers, deeper credit FHA borrowers, participate in state HFA programs and lower their own costs of capital for all of those loans. Register for the webinar on 7/27/2023 at 2pm EST using this link. For more information on Falcon’s CDFI advisory services drop an email.

On Thursday, July 27th at 2pm ET Tabrasa’s Bill Bodnar will be hosting a webinar entitled “Reading the Markets – The Back Nine”. With half the year (or round) over, join Bill for a fast-paced presentation on what Mortgage Market Guide is seeing in the back half of 2023 for the economy, Fed, rates, housing and more.

In Hawai’i, join MBAH for an exciting event on July 26th, 8:30 – 10:30am at Dave & Buster’s Honolulu, Pa’ina Hale, 2nd Floor. Bring together the top real estate experts to share best practices for today’s market.

PRMG’s non-QM Investor Solution product which provides an option for Debt Service Coverage Ratio (DSCR) and No Ratio qualifying on investment properties, Wednesday, July 26.

Angel Oak Mortgage Solutions Part 2 of 2, A Non-QM Webinar on Bank Statement Loans, is all about Angel Oak Mortgage Solutions innovative Bank Statement Program aimed specifically for self-employed borrowers. This webinar on Wednesday, July 26th, 1:00 PM EST | 10:00 AM PST, will take a deep dive into program details, highlight how they determine income and discuss how to market to these borrowers.

Addressing Appraisal Bias and Explore potential solutions to mitigate appraisal bias. California MBA’s Mortgage Quality and Compliance Committee new webinar on July 27th at 11 AM PST. Join and discuss appraisal bias and investigate potential solutions to combat it.

There are many unique characteristics and benefits of the reverse mortgage program that are often misunderstood by potential senior prospects. Join Plaza Home Mortgage® for a free webinar, Thursday, July 27 | 11:00 AM PT / 2:00 PM ET, designed to help you “organize” loan benefits, risks, and loan figures in a way that will help borrowers better understand how a reverse mortgage loan works, and what it means for the future equity and ownership of the borrower’s home.

The 2023 CMLA Convention is back in Vail on August 2-4 at The Hythe. Register today and join us for compelling speaker sessions, ample networking opportunities, and the annual golf tournament. Please find this year’s agenda below – it has been reimagined to provide increased value for our attendees and sponsors, as well as a better event flow. Come and celebrate CMLA and the mortgage industry’s resilience.

FAMP! Florida Association of Mortgage Professionals 2023 Annual Convention & Trade show, “A Grand Affair”, is August 2-5, 2023, at Signia by Hilton Orlando Bonnet Creek. For Over 60 years, this is the annual event that attracts Florida’s top mortgage professionals, and this year is no different. Exhibitors from all over the country will be exhibiting current mortgage products and industry tools for all originators. Do not miss this opportunity to network with mortgage brokers and lenders from across Florida and the United States.

MBA Education is bringing the best-in-class training to Seattle, WA., August 8-11. Begin advancing your career by enrolling in the School of Mortgage Banking I: An Introduction to the Real Estate Finance Industry provides a foundation in residential loan production, underwriting, secondary marketing, regulatory compliance, warehousing and servicing.

In Michigan, the MMLA Annual Lending Conference is 8/9-8/11 is in Mt. Pleasant. “Our event brings attendees from all of the state and country to hear our nationally renowned speakers give expert advice on how you can grow your business even in these challenging times!

“What do David Stevens, CMB, Mitch Kider, and Rob Chrisman all have in common? They’ll be at NAMMBA CONNECT 23, September 14 – 16 at the JW Marriott Bonnet Creek in Orlando, FL as the opening session. NAMMBA CONNECT 23 is the largest conference in the mortgage and real estate industry focused on connecting lenders to the multicultural marketplace. This year has been a tough year for our industry. That’s why we are providing 100 complimentary conference registrations in addition to the first night’s room stay for any Sales, Operations, Marketing or HR Executive who would like to attend the conference. This is our way of giving back to the industry. This offer is on a first come, first serve basis. To reserve your space click here. To see the agenda click here.

Capital Markets

Of course, anyone can sue anyone, right? But capital markets folks took note of this article on how Go Mortgage is suing its former capital markets director for corporate sabotage!

But back to rates! With signs that central banks around the globe are making progress in their fight against inflation, global bond yields have fallen as of late, and Treasury yields across the curve rallied once again yesterday on the heels of the UK CPI cooling more than expected. That move was also aided by the release of a below-consensus Housing Starts report for June that fell 8 percent on both a month-over-month and year-over-year basis (actual 1.434 million, expected 1.475 million, prior 1.559 million). Building Permits were not much better (actual 1.440 million, expected 1.472 million, prior 1.496 million). The drop was broad-based, with both single-family and multi-family production pulling back during the month. This month’s numbers showed a striking shift away from multi-family towards single-family.

The lack of housing inventory continues to help the homebuilder community despite higher mortgage rates. Signs continue to point to a clearing of previous backlogs caused by material and labor shortages, and demand remains sufficient given the ongoing lack of existing homes available for sale. Accordingly, builders are cutting back on sales incentives with just 22 percent reporting that they cut pricing in July, down from 25 percent in June and 27 percent in May. The number of multi-family units under construction is at record levels, while single family units under construction are in the middle of its historical range.

Today’s economic calendar is under way with weekly jobless claims (228k, lower than expected; 1.754 million continuing claims) and Philadelphia Fed manufacturing (-13.5, little changed from last month’s -13.7). Later: leading indicators and existing home sales, both for June, and month-end supply consisting of 2-, 5- and 7-year notes and $24 billion 2-year FRNs, a Treasury auction of $17 billion 10-year TIPS, and Freddie Mac’s Primary Mortgage Markets Survey. We begin the day with Agency MBS prices worse .125-.250, the 10-year yielding 3.79 after closing yesterday at 3.74 percent, and the 2-year is 4.84: the 2-10 yield curve inversion is as steep as ever.

Employment and Transitions

“Foundation Mortgage Corporation, a Full-service wholesale Lender based in Miami Beach, FL, is one of the fastest growing NonQM Lenders in the industry. Foundation is currently accepting applications for experienced, NonQM Account Executives to join our team. (AZ, CA, TX, CO, WA, FL). We are also proud to announce the addition of Ann DiCola, Senior Account Executive. Ann is an industry veteran joining Foundation after 12 years with Axos Bank. Reach out to Dean Ayres, Senior Vice President- Sales to learn more about how Foundation Mortgage can help you build your NonQM business.”

Are you interested in changing our industry for the better? Do you have what it takes to join the top-rated client service team in mortgage technology? Apply to become MCT’s Senior Capital Markets Technology Advisor. While many technology providers are cutting staff and reducing service levels, MCT is continuing to invest in making sure clients succeed. Led by Paul Yarbrough since its formation in 2019, MCT’s Client Success Group (CSG) has revolutionized the client experience by providing fast and effective onboarding, intimate support levels, and deep subject-matter expertise. Through a combination of firsthand capital markets experience, active listening to client feedback, and direct engagement in the technology development process, the CSG is finding new efficiencies and improving execution for mortgage lenders. If you have the drive and experience to match this team at the senior level, apply to join MCT in pushing the secondary market forward.

California’s Summit Funding, Inc., a privately held nationwide mortgage banker and servicer, announced it has expanded its East Coast footprint by hiring three divisional leaders based in North Carolina: Deran Pennington, Chris Shelton, and Matt Schoolfield. They bring more than half a century of experience recruiting and building highly successful mortgage sales teams.

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

Source: mortgagenewsdaily.com

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Jessica Lautz, NAR deputy chief economist, joins CNBC’s special ‘Taking Stock’ and CNBC’s Diana Olick to discuss the state of the housing market, real estate pricing and consumer behavior when it comes it home buying.

05:02

Wed, Jun 28 20237:10 PM EDT

Source: cnbc.com

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Jessica Lautz, NAR deputy chief economist, joins CNBC’s special ‘Taking Stock’ and CNBC’s Diana Olick to discuss the state of the housing market, real estate pricing and consumer behavior when it comes it home buying.

05:02

Wed, Jun 28 20237:10 PM EDT

Source: cnbc.com

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Today marks the last day to submit a nomination for HousingWire’s prestigious and first-of-its kind Women of Influence award. Each year, HousingWire’s Women of Influence award spotlights women who are cultivating a new path forward for the housing economy and paving the way for the women who follow after them. These women are recognized based on achievements within their organizations, their communities and the in the industry at-large.

HousingWire reached out to previous award winners and asked them to share any advice they would have for someone starting out in the industry. Keep reading to see the responses from some of the previous Women of Influence honorees.

“Be teachable and take every opportunity to learn as much as you can about the industry. Recognize that some lessons are taught and some are caught. Find people who will pour into you (taught) and will model for you (caught).” — Lisa J. Haynes, senior vice president, chief financial officer and diversity and inclusion officer, Mortgage Bankers Association

“Make sure you are passionate about what you do and who you are serving. You’ll accomplish all of your goals if you truly care about what you are working on.”
— Hilary Saunders, Esq., co-Founder and chief broker officer at Side

“The best learning is done situationally. Put yourself in new experiences. And take the lead to get there. Ask your supervisor what you can take off their plate so you can learn by doing new things. Seek conversations with people in related but different roles or fields, to expand your ability to think creatively with new inputs.” — Liz Gehringer, president and CEO, franchise brands, Anywhere Real Estate Inc.

“Be curious with what you can achieve. Self-doubt and imposter syndrome gets the best of us, push yourself beyond that line and you will surprise yourself on what you can do.” — Dr. Jessica Lautz, deputy chief economist and vice president of research, National Association of Realtors

Join the ranks of these inspirational women and nominate a female colleague — or yourself — for the Women of Influence award, today!

Source: housingwire.com

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If you’ve gone house hunting over the past couple of years, you know how competitive the market is. In some cities, it’s not unusual to see 30 or more bids on a single home due to heavy demand and limited inventory. Now there’s yet another layer of competition involving millennials, baby boomers and mortgage rates.

Those two generations are colliding as millennials enter their prime homebuying years and boomers look to spend their senior years in different regions and homes. The result is that they are competing for many of the same homes in many of the same markets, The Hill reported.

“With the rise of remote and hybrid work and constraints on housing affordability, millennial homebuyers are embracing the suburbs and even small towns — locations which have traditionally been the refuge of retirees,” Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors (NAR), told The Hill in an email.

But in a challenging housing market with high prices and strict lending guidelines, boomers hold two big advantages: They have more equity built up from previous home purchases, and they have higher incomes. This gives them a leg up on millennials in terms of paying for steadily rising mortgage and borrowing costs.

“Boomers are not downsizing and millennials — first-time buyers in particular — are buying later in life. This puts both generations of buyers in head-to-head competition for similarly sized properties,” Lautz said.

One reason boomers are not downsizing their homes — and in some cases are buying homes of equal or bigger size — is that they are working longer. Many Americans are continuing to work well past their 60s as a way to “phase into retirement,” according to a recent USA Today column from Grace Sutherland Smith, executive director of AgeWell Middle Tennessee.

Florida’s Retirees Are Fleeing: Here’s Where They’re Going Instead

Boomers made up the largest share of homebuyers in 2022 at 39%, according to NAR data. That was up from 29% in 2021. In contrast, millennials saw their share fall to 28% in 2022 from 43% in 2021, when they occupied the biggest slice of the market.

Boomers tended to be repeat buyers in 2022, according to Lautz, which means they already had equity from previous homes to increase their purchasing power.

Rising mortgage rates have added to the competition between millennials and boomers. During the COVID-19 pandemic, the average rate on a 30-year fixed-rate mortgage fell as low as 2.67%, according to Federal Reserve data. That made it easier for young buyers to afford a home. Today, the rate has ballooned to 6.39%.

High rates make it especially tough for buyers without much equity because they have to make smaller down payments.

“If they are to rely on a mortgage for their next purchase, they are going to want to wait until rates are lower than they are today,” KPMG economist Yelena Maleyev told The Hill. “If they plan on paying all-cash, they are not as affected by higher mortgage rates and can provide a more enticing offer than a first-time buyer.”

Retirement Savings: Here’s How Much Money Millennials Should Have To Retire by 2045
Real Estate Transfer: Baby Boomers Secure Generational Wealth by Transferring Property to Children

An increase in available homes would go a long way toward fixing the problem — for both millennials and boomers. That’s happening, though at a slow rate. Housing starts in April rose 2.2% to a seasonally adjusted annual rate of 1.40 million, The Hill reported, citing Census Bureau data. Much of the gain was due to a 5.2% increase in multifamily units under construction, although the number of new single-family homes is also increasing.

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Source: gobankingrates.com

Move Over, Millennials: This Generation Now Has More Homebuyers

The National Association of Realtors says a surprise group is buying the most homes today.