Average mortgage rates climbed moderately last Friday. Indeed, they rose on every business day last week. However, that followed a week of mainly falls. And those rates begin this morning close to where they were at the start of March.
First thing, it was looking as if mortgage rates today barely move. But that could change later in the day.
Current mortgage and refinance rates
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Program
Mortgage Rate
APR*
Change
Conventional 30-year fixed
7.12%
7.13%
+0.02
Conventional 15-year fixed
6.62%
6.65%
+0.03
Conventional 20-year fixed
7.15%
7.17%
+0.04
Conventional 10-year fixed
6.64%
6.66%
Unchanged
30-year fixed FHA
6.49%
7.17%
+0.01
30-year fixed VA
6.61%
6.72%
+0.02
5/1 ARM Conventional
6.28%
7.38%
Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions See our rate assumptions here.
Should you lock your mortgage rate today?
I doubt we’ll see mortgage rates enter a consistent downward trend much before the summer, and possibly later.
So, for now, my personal rate lock recommendations remain:
LOCK if closing in 7 days
LOCK if closing in 15 days
LOCK if closing in 30 days
LOCK if closing in 45 days
LOCKif closing in 60days
However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So, let your gut and your own tolerance for risk help guide you.
>Related: 7 Tips to get the best refinance rate
Market data affecting today’s mortgage rates
Here’s a snapshot of the state of play this morning at about 9:50 a.m. (ET). The data are mostly compared with roughly the same time the business day before, so much of the movement will often have happened in the previous session. The numbers are:
The yield on 10-year Treasury notes held steady at 4.32%. (Neutral for mortgage rates. However, yields were rising this morning.) More than any other market, mortgage rates typically tend to follow these particular Treasury bond yields
Major stock indexes were rising this morning. (Bad for mortgage rates.) When investors buy shares, they’re often selling bonds, which pushes those prices down and increases yields and mortgage rates. The opposite may happen when indexes are lower. But this is an imperfect relationship
Oil prices increased to $81.35 from $80.62 a barrel. (Bad for mortgage rates*.) Energy prices play a prominent role in creating inflation and also point to future economic activity
Goldprices inched down to $2,159 from $2,162 an ounce. (Neutral for mortgage rates*.) It is generally better for rates when gold prices rise and worse when they fall. Because gold tends to rise when investors worry about the economy.
CNN Business Fear & Greed index — nudged up to 75 from 71 out of 100. (Bad for mortgage rates.) “Greedy” investors push bond prices down (and interest rates up) as they leave the bond market and move into stocks, while “fearful” investors do the opposite. So, lower readings are often better than higher ones
*A movement of less than $20 on gold prices or 40 cents on oil ones is a change of 1% or less. So we only count meaningful differences as good or bad for mortgage rates.
Caveats about markets and rates
Before the pandemic, post-pandemic upheavals, and war in Ukraine, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.
So, use markets only as a rough guide. Because they have to be exceptionally strong or weak to rely on them. But, with that caveat, mortgage rates today look likely to hold close to steady. However, be aware that “intraday swings” (when rates change speed or direction during the day) are a common feature right now.
Find your lowest rate. Start here
What’s driving mortgage rates today?
The Fed
The Federal Reserve’s rate-setting body (the Federal Open Market Committee or FOMC) begins a two-day meeting tomorrow. And a flurry of events is scheduled for the following afternoon.
Almost nobody expects an announcement of a cut in general interest rates on Wednesday. But events that afternoon include:
2 p.m. Eastern — Rate announcement and report publications
2 p.m. Eastern — Summary of Economic Projects publication. This occurs only quarterly and includes a dot plot
These FOMC documents and the news conference may provide new insights into how the Fed’s thinking on future cuts to general interest rates is evolving. So, markets globally will be paying the closest attention to every word written and uttered.
And there is huge potential for Wednesday’s Fed events to move mortgage rates.
I covered this in last Saturday’s weekend edition. And I’ll brief you in more detail again on Wednesday morning so you’ll know what to look out for.
Other influences on mortgage rates this week
Most of the economic reports on this week’s calendar are unlikely to affect mortgage rates. It’s not impossible. But they cover areas of the economy that rarely interest the bond investors who largely determine those rates.
Today’s lone report is a good example. It’s the home builder confidence index for February, which came in as expected. I don’t recall the last time that had a perceptible influence on mortgage rates. And the same goes for tomorrow’s housing starts and building permits, also for February.
The two reports that might move mortgage rates this week are both March purchasing managers’ indexes (PMIs) from S&P. One covers the services sector and the other manufacturing.
They’re both expected to show purchasing activity slowing modestly. But I’ll brief you more fully on what to expect on Wednesday.
Friday has no scheduled economic reports. However, three Fed speakers, including Chair Jerome Powell, have speaking engagements that day. Those could be an opportunity to reinforce messages communicated on Wednesday and to correct any misunderstandings. So, they could have an impact on mortgage rates.
Don’t forget you can always learn more about what’s driving mortgage rates in the most recent weekend edition of this daily report. These provide a more detailed analysis of what’s happening. They are published each Saturday morning soon after 10 a.m. (ET) and include a preview of the following week.
Recent trends
According to Freddie Mac’s archives, the weekly all-time lowest rate for 30-year, fixed-rate mortgages was set on Jan. 7, 2021, when it stood at 2.65%. The weekly all-time high was 18.63% on Sep. 10, 1981.
Freddie’s Mar. 14 report put that same weekly average at 6.74% down from the previous week’s 6.88%. But note that Freddie’s data are almost always out of date by the time it announces its weekly figures.
Expert forecasts for mortgage rates
Looking further ahead, Fannie Mae and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.
And here are their rate forecasts for the four quarters of 2024 (Q1/24, Q2/24 Q3/24 and Q4/24).
The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were updated on Feb. 12 and the MBA’s on Feb. 20.
Forecaster
Q1/24
Q2/24
Q3/24
Q4/24
Fannie Mae
6.5%
6.3%
6.1%
5.9%
MBA
6.9%
6.6%
6.3%
6.1%
Of course, given so many unknowables, both these forecasts might be even more speculative than usual. And their past record for accuracy hasn’t been wildly impressive.
Important notes on today’s mortgage rates
Here are some things you need to know:
Typically, mortgage rates go up when the economy’s doing well and down when it’s in trouble. But there are exceptions. Read ‘How mortgage rates are determined and why you should care’
Only “top-tier” borrowers (with stellar credit scores, big down payments, and very healthy finances) get the ultralow mortgage rates you’ll see advertised
Lenders vary. Yours may or may not follow the crowd when it comes to daily rate movements — though they all usually follow the broader trend over time
When daily rate changes are small, some lenders will adjust closing costs and leave their rate cards the same
Refinance rates are typically close to those for purchases.
A lot is going on at the moment. And nobody can claim to know with certainty what will happen to mortgage rates in the coming hours, days, weeks or months.
Find your lowest mortgage rate today
You should comparison shop widely, no matter what sort of mortgage you want. Federal regulator the Consumer Financial Protection Bureau found in May 2023:
“Mortgage borrowers are paying around $100 a month more depending on which lender they choose, for the same type of loan and the same consumer characteristics (such as credit score and down payment).”
In other words, over the lifetime of a 30-year loan, homebuyers who don’t bother to get quotes from multiple lenders risk losing an average of $36,000. What could you do with that sort of money?
Verify your new rate
Mortgage rate methodology
The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.
How your mortgage interest rate is determined
Mortgage and refinance rates vary a lot depending on each borrower’s unique situation.
Factors that determine your mortgage interest rate include:
Overall strength of the economy — A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing
Lender capacity — When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room
Property type (condo, single-family, town house, etc.) — A primary residence, meaning a home you plan to live in full time, will have a lower interest rate. Investment properties, second homes, and vacation homes have higher mortgage rates
Loan-to-value ratio (determined by your down payment) — Your loan-to-value ratio (LTV) compares your loan amount to the value of the home. A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate
Debt-To-Income ratio — This number compares your total monthly debts to your pretax income. The more debt you currently have, the less room you’ll have in your budget for a mortgage payment
Loan term — Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term
Borrower’s credit score — Typically the higher your credit score is, the lower your mortgage rate, and vice versa
Mortgage discount points — Borrowers have the option to buy discount points or ‘mortgage points’ at closing. These let you pay money upfront to lower your interest rate
Remember, every mortgage lender weighs these factors a little differently.
To find the best rate for your situation, you’ll want to get personalized estimates from a few different lenders.
Verify your new rate. Start here
Are refinance rates the same as mortgage rates?
Rates for a home purchase and mortgage refinance are often similar.
However, some lenders will charge more for a refinance under certain circumstances.
Typically when rates fall, homeowners rush to refinance. They see an opportunity to lock in a lower rate and payment for the rest of their loan.
This creates a tidal wave of new work for mortgage lenders.
Unfortunately, some lenders don’t have the capacity or crew to process a large number of refinance loan applications.
In this case, a lender might raise its rates to deter new business and give loan officers time to process loans currently in the pipeline.
Also, cashing out equity can result in a higher rate when refinancing.
Cash-out refinances pose a greater risk for mortgage lenders, so they’re often priced higher than new home purchases and rate-term refinances.
Check your refinance rates today. Start here
How to get the lowest mortgage or refinance rate
Since rates can vary, always shop around when buying a house or refinancing a mortgage.
Comparison shopping can potentially save thousands, even tens of thousands of dollars over the life of your loan.
Here are a few tips to keep in mind:
1. Get multiple quotes
Many borrowers make the mistake of accepting the first mortgage or refinance offer they receive.
Some simply go with the bank they use for checking and savings since that can seem easiest.
However, your bank might not offer the best mortgage deal for you. And if you’re refinancing, your financial situation may have changed enough that your current lender is no longer your best bet.
So get multiple quotes from at least three different lenders to find the right one for you.
2. Compare Loan Estimates
When shopping for a mortgage or refinance, lenders will provide a Loan Estimate that breaks down important costs associated with the loan.
You’ll want to read these Loan Estimates carefully and compare costs and fees line-by-line, including:
Interest rate
Annual percentage rate (APR)
Monthly mortgage payment
Loan origination fees
Rate lock fees
Closing costs
Remember, the lowest interest rate isn’t always the best deal.
Annual percentage rate (APR) can help you compare the ‘real’ cost of two loans. It estimates your total yearly cost including interest and fees.
Also, pay close attention to your closing costs.
Some lenders may bring their rates down by charging more upfront via discount points. These can add thousands to your out-of-pocket costs.
3. Negotiate your mortgage rate
You can also negotiate your mortgage rate to get a better deal.
Let’s say you get loan estimates from two lenders. Lender A offers the better rate, but you prefer your loan terms from Lender B. Talk to Lender B and see if they can beat the former’s pricing.
You might be surprised to find that a lender is willing to give you a lower interest rate in order to keep your business.
And if they’re not, keep shopping — there’s a good chance someone will.
Fixed-rate mortgage vs. adjustable-rate mortgage: Which is right for you?
Mortgage borrowers can choose between a fixed-rate mortgage and an adjustable-rate mortgage (ARM).
Fixed-rate mortgages (FRMs) have interest rates that never change unless you decide to refinance. This results in predictable monthly payments and stability over the life of your loan.
Adjustable-rate loans have a low interest rate that’s fixed for a set number of years (typically five or seven). After the initial fixed-rate period, the interest rate adjusts every year based on market conditions.
With each rate adjustment, a borrower’s mortgage rate can either increase, decrease, or stay the same. These loans are unpredictable since monthly payments can change each year.
Adjustable-rate mortgages are fitting for borrowers who expect to move before their first rate adjustment, or who can afford a higher future payment.
In most other cases, a fixed-rate mortgage is typically the safer and better choice.
Remember, if rates drop sharply, you are free to refinance and lock in a lower rate and payment later on.
How your credit score affects your mortgage rate
You don’t need a high credit score to qualify for a home purchase or refinance, but your credit score will affect your rate.
This is because credit history determines risk level.
Historically speaking, borrowers with higher credit scores are less likely to default on their mortgages, so they qualify for lower rates.
So, for the best rate, aim for a credit score of 720 or higher.
Mortgage programs that don’t require a high score include:
Conventional home loans — minimum 620 credit score
FHA loans — minimum 500 credit score (with a 10% down payment) or 580 (with a 3.5% down payment)
VA loans — no minimum credit score, but 620 is common
USDA loans — minimum 640 credit score
Ideally, you want to check your credit report and score at least 6 months before applying for a mortgage. This gives you time to sort out any errors and make sure your score is as high as possible.
If you’re ready to apply now, it’s still worth checking so you have a good idea of what loan programs you might qualify for and how your score will affect your rate.
You can get your credit report from AnnualCreditReport.com and your score from MyFico.com.
How big of a down payment do I need?
Nowadays, mortgage programs don’t require the conventional 20 percent down.
Indeed, first-time home buyers put only 6 percent down on average.
Down payment minimums vary depending on the loan program. For example:
Conventional home loans require a down payment between 3% and 5%
FHA loans require 3.5% down
VA and USDA loans allow zero down payment
Jumbo loans typically require at least 5% to 10% down
Keep in mind, a higher down payment reduces your risk as a borrower and helps you negotiate a better mortgage rate.
If you are able to make a 20 percent down payment, you can avoid paying for mortgage insurance.
This is an added cost paid by the borrower, which protects their lender in case of default or foreclosure.
But a big down payment is not required.
For many people, it makes sense to make a smaller down payment in order to buy a house sooner and start building home equity.
Verify your new rate. Start here
Choosing the right type of home loan
No two mortgage loans are alike, so it’s important to know your options and choose the right type of mortgage.
The five main types of mortgages include:
Fixed-rate mortgage (FRM)
Your interest rate remains the same over the life of the loan. This is a good option for borrowers who expect to live in their homes long-term.
The most popular loan option is the 30-year mortgage, but 15- and 20-year terms are also commonly available.
Adjustable-rate mortgage (ARM)
Adjustable-rate loans have a fixed interest rate for the first few years. Then, your mortgage rate resets every year.
Your rate and payment can rise or fall annually depending on how the broader interest rate trends.
ARMs are ideal for borrowers who expect to move prior to their first rate adjustment (usually in 5 or 7 years).
For those who plan to stay in their home long-term, a fixed-rate mortgage is typically recommended.
Jumbo mortgage
A jumbo loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac.
In 2023, the conforming loan limit is $726,200 in most areas.
Jumbo loans are perfect for borrowers who need a larger loan to purchase a high-priced property, especially in big cities with high real estate values.
FHA mortgage
A government loan backed by the Federal Housing Administration for low- to moderate-income borrowers. FHA loans feature low credit score and down payment requirements.
VA mortgage
A government loan backed by the Department of Veterans Affairs. To be eligible, you must be active-duty military, a veteran, a Reservist or National Guard service member, or an eligible spouse.
VA loans allow no down payment and have exceptionally low mortgage rates.
USDA mortgage
USDA loans are a government program backed by the U.S. Department of Agriculture. They offer a no-down-payment solution for borrowers who purchase real estate in an eligible rural area. To qualify, your income must be at or below the local median.
Bank statement loan
Borrowers can qualify for a mortgage without tax returns, using their personal or business bank account as evidence of their financial circumstances. This is an option for self-employed or seasonally-employed borrowers.
Portfolio/Non-QM loan
These are mortgages that lenders don’t sell on the secondary mortgage market. And this gives lenders the flexibility to set their own guidelines.
Non-QM loans may have lower credit score requirements or offer low-down-payment options without mortgage insurance.
Choosing the right mortgage lender
The lender or loan program that’s right for one person might not be right for another.
Explore your options and then pick a loan based on your credit score, down payment, and financial goals, as well as local home prices.
Whether you’re getting a mortgage for a home purchase or a refinance, always shop around and compare rates and terms.
Typically, it only takes a few hours to get quotes from multiple lenders. And it could save you thousands in the long run.
Time to make a move? Let us find the right mortgage for you
Current mortgage rates methodology
We receive current mortgage rates each day from a network of mortgage lenders that offer home purchase and refinance loans. Those mortgage rates shown here are based on sample borrower profiles that vary by loan type. See our full loan assumptions here.
This morning’s line-up of econ data is certainly not the most relevant to the bond market, but the NY Fed Manufacturing index has registered an impact at times. This is not one of those times. While volume suggests traders waiting to make trades at 8:30am, there was no bias toward higher or lower levels at that particular time. Some selling pressure was already in place starting at 8am and more selling kicked in just before 9am. The other data wasn’t relevant, but the big miss in NY Fed (-20.9 vs -7.0) arguably could have been. The fact that it offered no help is a sign of the troubled times for bonds.
For a short while this morning, it looked as if bonds would break up and over the recent 4.32+ ceiling in 10yr yields, but trading calmed down and trended sideways in a narrow range for the rest of the day. It was a calm conclusion to what has otherwise been the most damaging week since October. But don’t let the calm fool you. It’s likely to be calm before the storm considering next week brings a new Fed dot plot for the first time since December 13th.
Import Prices
0.3 vs 0.3 ‘cast, 0.8 prev
NY Fed Manufacturing
-20.9 vs -7 f’cast, -2.4 prev
Industrial Production
0.1 vs 0.0 f’cast, -0.5 prev
Consumer Sentiment
76.5 vs 76.9 f’cast, 76.9 prev
10:18 AM
Modestly stronger overnight, but weaker during domestic hours. 10yr up 2bps at 4.312. MBS down 9 ticks (.28).
12:38 PM
Modest push back after hitting lows around 10am. MBS now down only 6 ticks (.19) and 10yr up only 1bp at 4.3.
02:26 PM
Sideways at barely weaker levels. MBS down 7 ticks (.22) and 10yr up 1.2bps at 4.304
04:41 PM
Same levels as previous update. Same sideways drift.
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
Editor’s Note: Options are not suitable for all investors. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Please see the Characteristics and Risks of Standardized Options.
The greenshoe option allows underwriters involved with IPOs to sell more shares than initially agreed upon: usually up to 15% more. That can occur if there is enough investor demand to purchase the shares.
Because IPO share prices can be volatile, the greenshoe option is an important tool that can help underwriters stabilize the price of a newly listed stock to protect both the company and investors.
Understanding the Greenshoe Option
Also called the over-allotment option, the greenshoe provision is part of an underwriting agreement between an underwriter and a company issuing stock as part of an IPO, or initial public offering. The greenshoe option is the only type of price stabilization allowed by the Securities and Exchange Commission (SEC).
The SEC allows this because it increases competitiveness and efficiency of IPO fundraising. It gives underwriters the ability to stabilize security prices by increasing the available supply. It is the responsibility of an underwriter to help sell shares, build a market for a new stock, and use the tools at their disposal to launch a successful initial public offering.
The greenshoe option got its name when the Green Shoe Manufacturing Company was issued the first over-allotment options in 1919.
💡 Quick Tip: Access to IPO shares before they trade on public exchanges has usually been available only to large institutional investors. That’s changing now, and some brokerages offer pre-listing IPO investing to qualified investors.
How Does a Greenshoe Option Work?
During the IPO process, stock issuers set limits on how many shares they will sell to investors during an IPO. With a greenshoe option, the IPO underwriter can sell up to 15% more shares than the set amount.
IPO underwriters want to sell as many shares as they can because they earn on commission as a percentage of IPO sales.
All of the details about an IPO sale and underwriter abilities appear in the prospectus filed by the issuing company before the sale. Not every company allows their investment banker to use the greenshoe option. For instance, if they only want to raise a specific amount of capital, they wouldn’t want to sell any more shares than necessary to raise that money.
There are two ways an underwriter can over allot sales:
At the IPO Price
If the IPO they are underwriting is doing well, investors are buying IPO shares and the price is going up, the underwriter can use the greenshoe option to purchase up to 15% more stock from the issuing company at the IPO price and sell that stock to investors at the higher market price for a profit.
A Break Issue
Conversely, if an IPO isn’t doing well, the underwriter can take a short position on up to 15% of the issued stock and buy back shares from the market to stabilize the price and cover their position.
The underwriter then returns those additional shares to the issuing company. This is known as a “break issue.” When an IPO isn’t performing well, this can reduce consumer confidence in the stock, and result in investors either selling their shares or refraining from buying them.
The greenshoe option helps the underwriter stabilize the stock price and reduce stock volatility.
Types of Greenshoe Options
There are three types of greenshoe options an underwriter might choose to use depending on what happens after an IPO launches. These options are:
Full Greenshoe
If the underwriter can’t buy back any shares before the stock price increases, this is known as a full greenshoe. In this case, the underwriter buys shares at the current offering price.
Partial Greenshoe
In a partial greenshoe scenario, the underwriter only buys back some of the stock inventory they started with in order to increase the share price.
Reverse Greenshoe
The third option for underwriters is to purchase shares from market investors and sell them back to the stock issuer if the share price has dipped below the original offering price. This is similar to a put option in stock trading.
Recommended: How Are IPO Prices Set?
Greenshoe Option Examples
Here’s an example of how a greenshoe option might work in real life.
Once the IPO company owners, underwriter, and clients determine the offering or initial price of the newly issued shares, they’re ready to be traded on the public market. Ideally, the share price will rise above offering, but if the shares fall below the offering price the underwriter can exercise the greenshoe option (assuming the company had approved it in the prospectus).
To control the price, the underwrite can short up to 15% more shares than were part of the original IPO offering.
Let’s say a company’s initial public offering is going to be 10 million shares. The underwriters can sell up to 15% over that amount, or 1.5 million more shares, thus giving underwriters the ability to increase or decrease the supply as needed — adding to liquidity and helping to control price stability.
💡 Quick Tip: Investment fees are assessed in different ways, including trading costs, account management fees, and possibly broker commissions. When you set up an investment account, be sure to get the exact breakdown of your “all-in costs” so you know what you’re paying.
What the Greenshoe Option Means for IPO Investors
The greenshoe option is an important tool for underwriters that can help with the success of an IPO and bring additional funds to the issuing company. It reduces risk for the issuing company as well as investors. It can maintain IPO investor confidence in a newly issued stock which helps to build a long-term group of shareholders.
Although buying IPO stocks can be very profitable, stock prices don’t always increase and sometimes they can be volatile. It’s important for investors to research a company, look at the IPO prospectus, understand what the stock lock-up period and greenshoe options are before deciding to buy.
The Takeaway
Buying shares in IPOs can be a great way to invest in companies right when they go public. Although IPO investing comes with some risks, and IPO stock can be volatile, investment banks and companies going public use tools such as the greenshoe option to minimize volatility.
Whether you’re curious about exploring IPOs, or interested in traditional stocks and exchange-traded funds (ETFs), you can get started by opening an account on the SoFi Invest® brokerage platform. On SoFi Invest, eligible SoFi members have the opportunity to trade IPO shares, and there are no account minimums for those with an Active Investing account. As with any investment, it’s wise to consider your overall portfolio goals in order to assess whether IPO investing is right for you, given the risks of volatility and loss.
For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.
Photo credit: iStock/AzmanJaka
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Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. IPOs offered through SoFi Securities are not a recommendation and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation.
New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For SoFi’s allocation procedures please refer to IPO Allocation Procedures.
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Lowest Rates in Over a Month. Upcoming Inflation Data Casts a Critical Vote
It was a hotly anticipated week for interest rates due to the arrival of the first batch of big ticket economic data since the Inflation report that came out on February 13th. This week’s data was much more friendly, but next week’s data is even more important.
The first major report of the week was the Non-Manufacturing index from ISM (or ISM Services). While this may not be a household name report, it frequently moves markets. In general, lower index values are better for rates, and that’s what we got. Even though the drop wasn’t very big, it fits inside the cooling trend of the past two years.
The ISM Services data includes other components as well. One closely watched component is the “prices paid” index which speaks to inflation trends. As always, lower inflation is good for rates and vice versa. With that in mind, this week’s report was a relief because it undid a potentially alarming spike seen in the last installment.
The following morning, another big ticket report corroborated the notion of economic cooling. The Job Openings survey measures the labor market from a slightly different angle than the big jobs report that headlined the week, but it has increasingly caused volatility in rates over the past few years. This week’s release didn’t have a huge impact, but it didn’t have a bad impact either!
Another component of the job openings data known as the “quits” rate measures the amount of workers voluntarily ending their own employment. It’s regarded as a good indicator of a shift in economic momentum because people are less likely to quit their jobs if the economy is contracting.
One important caveat on the labor market data is the notion of “right sizing.” Employment metrics exploded higher after lockdowns ended and, in many regards, have only just returned in line with the previous trend. Everything’s relative.
Even though job openings data has been surprisingly relevant recently, nothing compares to the big jobs report when it comes to employment data moving the market. Friday’s example was incredibly interesting and perhaps even downright confusing. Nonfarm Payrolls (NFP), the headline component of the jobs report is simply a measurement of jobs added or lost on any given month. It frequently comes in significantly higher or lower than expected and it’s frequently revised by just as much in the 2 months after the initial release.
Friday’s release was indeed much higher than expected at 275k vs a median forecast of 200k, but last month’s super high reading of 353k was revised lower by even more, down to 229k. That went a long way in offsetting the damage we might have otherwise seen on Friday. The counterpoint is that job counts are still elevated relative to their pre-pandemic range.
But other components of the report helped the bond market work through the data without rates losing any ground. These included things like wage growth coming in 0.4% lower and the unemployment rate ticking up 0.2%. It’s an open question as to whether we’re seeing signs of a classic parabolic shift in the unemployment rate or merely one of the sorts of “ledges” seen decades ago.
Taken in conjunction with Thursday and Friday’s economic data from last week, these 7 business days have been almost exclusively good for interest rates.
In the bigger picture, these 7 business days are going a long way to push back against the rising rate trend that dominated the first 2 months of the year.
Mortgage rates are getting in on the improvements as well.
The chart above shows room to run before challenging the recent lows, but also plenty of room to rise overhead. The most critical deciding factor between those two outcomes has been and continues to be the true state of inflation in the U.S. The most important economic report when it comes to inflation is the Consumer Price Index (CPI), and we’ll get the next monthly installment this coming Tuesday. If CPI comes in hot, rates will likely shoot back up toward last week’s highs. If it comes in lower than expected, rates could continue to improve.
A week later, the Fed releases its next policy announcement and updated rate projections. It’s not an overstatement to say that a big enough surprise in CPI could have a meaningful impact on those projections as well as the words the Fed uses to discuss the prospect of rate cuts later this year. While it’s true that the Fed Funds Rate doesn’t dictate mortgage rates, the market’s expectations for the Fed Funds Rate are much more correlated. CPI arrives on Tuesday morning at 8:30am ET.
Hedging, Renovation, QC, Validation, Verification Products; Investor and Correspondent News and Metrics
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Hedging, Renovation, QC, Validation, Verification Products; Investor and Correspondent News and Metrics
By: Rob Chrisman
6 Hours, 35 Min ago
“I saw a woman at Walmart with March Madness teeth… She was down to the final four.” No one is talking about 30-year mortgage interest rates heading down into the 4’s; many would be happy if they came down into the 5’s. Heck, forget about mortgage interest rates because they’re going to do what they’re going to do. Originators are equally interested in potential or existing borrowers. New data reveals that Americans are spending nearly as much on interest payments for credit cards and other kinds of consumer debt as they are on mortgage interest. But hey, if your client has their debt under control, LOs can help them by passing along Home Facts so that they can do an analysis of where they might like to live. (Found here, this week’s podcast 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. Hear an interview with Lending Tree’s Jacob Channel on the rent-versus-buy debate and just how far people should stretch their finances to achieve the dream of homeownership.)
Lender and Broker Services, Products, and Software
Collecting interim servicing payments is a pain, but not with Fee Chaser. With its seamless integration into Encompass® by ICE Mortgage Technology™, Fee Chaser automates upfront fee collection and can handle those pesky interim servicing payments as well. Check out Fee Chaser by LenderLogix here.
Today’s mortgage landscape demands greater efficiency. Xactus, a leading verification innovator, makes it easy to obtain all the verifications lenders need to be more efficient and advance the modern mortgage. For example, with its ICE Mortgage Technology Encompass Partner Connect™ integration, you can streamline your consumer verifications. Encompass Partner Connect provides direct access to Xactus verification products including Credit ReportX, Flood ReportX, Undisclosed Debt VerificationX, Tax TranscriptX, Employment VerificationX, Income VerificationX, Fraud ReportX, and Social Security VerificationX. In fact, Xactus was the first third-party service provider to integrate credit with Encompass Partner Connect, and won the 2023 ICE Innovation Award for Lenders’ Choice for Innovative Service Provider. Heading to the ICE Experience in Las Vegas? Experience Xactus’ award-winning innovation. Stop by Xactus’ booth or email [email protected] to schedule a meeting. For the latest updates and news about important industry innovations, follow Xactus on LinkedIn.
If you thought McDonald’s® invented the combo meal, you’d be wrong. The honor actually belongs to defunct fast-food chain Burger Chef, which introduced the classic trio of burger, fries and a drink as one meal. Known as “The Triple Threat,” it sold for just $0.45. While that kind of pricing belongs to a bygone era, lenders using Fannie Mae’s Desktop Underwriter® (DU®) validation service can enhance their validation processes by leveraging AccountChek by Informative Research to validate income, employment and assets with a single report. By using direct deposit banking data to evaluate income and employment, lenders can streamline borrower eligibility. Additionally, current AccountChek users don’t have to change their process. The AccountChek report they have been using for years already provides the needed transaction data to DU. To get started, visit Fannie Mae’s webpage, and submit the request form to begin the activation process.
Most lenders are painfully aware of rising loan origination costs, which is a common trend in a down market. But certain costs like credit (surging by 400 percent) and verifications (up by 141 percent) have soared disproportionately, with incumbent providers exploiting their market dominance as virtual monopolies. Yet some lenders are fighting back… Like Lower, which has found a way to save as much as 80 percent on these operational line items and win more loans. Sign up for this exclusive webinar taking place on March 21 at 2pm ET, featuring Rob Chrisman, James Duncan and Donielle Geiser (Lower), and Richard Grieser (Truv), where they’ll share their take on today’s market and how they’ve reduced costs on operational line items previously thought to be beyond a lender’s control. RSVP today!
Introducing the All-New Quarterly Conversations About QC Newsletter! Get the latest quality control news delivered directly to your inbox with QC Ally’s new email newsletter. Designed to be your trusted loan quality resource, you’ll get the latest industry headlines, helpful tools designed to inspire your business, and regulatory updates each quarter. Recent features include eGuides to strengthen your QC processes, webinars discussing how to successfully implement new requirements, and industry conference takeaways. Sign up today to stay in-the-know on updates designed to spark discussion and inspire your business!
TPO, Broker, and Correspondent Product News
Renovation lending fuels loan production, boosts profits, and fortifies housing inventory in competitive markets. Explore the rising demand for renovation loans with Planet Home Lending’s Guide to Renovation lending, tailored for correspondent lenders. From seizing opportunities to fostering robust partnerships, it offers a step-by-step roadmap. Request your exclusive copy today.
Freedom Mortgage Wholesale reminded brokers that it is historically, currently, and forever wholesale, and has posted some solid numbers about its status. In 2023 Wholesale increased its sales force by 20 percent, 25 percent of whom were rehires. Wholesale increased its Ops staff by 125 percent, 70 percent of whom were rehires. Freedom doubled its production two months in a row and is still growing.
But not to be overlooked is that Freedom is very active in the philanthropic arena through Freedom Cares. Last year it donated $660,000, used a holiday toy drive to raise $60,000 to support Children’s Hospital of Philadelphia (CHOP), The Salvation Army, and Toys for Tots, has, for 11 years, donated over $100,000 and nearly 2,000 backpacks (with school supplies) to Rucksacks to Packpacks. Freedom Mortgage’s employees and vendors raised $50,000, providing 500,000 meals for people facing hunger through Feeding America’s “Freedom from Hunger, and in 2023, through Project Gratitude, sent 1045 handwritten and video thank you messages to active-duty service members. And let’s not dismiss the 2,300 logged hours of employee volunteer engagement.
The real estate investment trust affiliated with Angel Oak Companies posted a $28.6 million profit in the fourth quarter. For the full year of 2023, the REIT generated a profit of $33.7 million; all but forgotten is 2022’s reported loss of $187.8 million. Angel Oak REIT participated in four non-qualified mortgage securitizations in 2023, contributing $662 million in unpaid principal balance to the issuance. The REIT’s earnings increased after it sold off non-QMs with relatively low interest rates. Its statistics reflect the industry’s: The REIT held $380 million in whole loans at the end of the fourth quarter, up from the $284 million held at the end of the third quarter. The company increased the weighted average coupon on its whole-loan portfolio to 6.78 percent as of the end of the fourth quarter compared with an average WAC of 5.83 percent at the end of the third quarter. As of the end of February, the WAC on the REIT’s portfolio had increased to 7.14 percent.
One should know the big news from Fannie Mae: Lenders now will be able to validate assets, income, and employment with a single 12-month asset report in Desktop Underwriter®. That same asset report will also identify the borrower’s positive rent payment history and cash flow history. This could be a boon for both lenders and homebuyers: Think faster cycle times, less paperwork, and enhanced access to credit, not to mention the ability for lenders to get Day 1 Certainty®, which can help improve loan quality and reduce the risk of repurchase. “Fannie Mae is continually focused on modernizing the mortgage finance experience and exploring new ways to help our lenders open more doors for aspiring homeowners in a responsible and sustainable way. With this new update in Desktop Underwriter, we are removing a hurdle from the loan application process and bringing greater speed, simplicity, and certainty to both lenders and borrowers,” said Cyndi Danko, Fannie Mae’s SVP and Single-Family Chief Credit Officer. The enhancement goes into effect in DU on March 29. Reach out to your Fannie Mae representative for help getting started.
Capital Markets
Interested in learning more about moving from best efforts to mandatory loan sales? Maybe you’ve already moved to mandatory and are looking for even more pickup and ways to mitigate risk? Join MCT’s Moving to Mandatory Loan Sales webinar on April 4th at 11am PT to learn how mandatory loan sales is helping lenders improve profitability while reducing risk. In this webinar, MCT’s Scott Holtz, Vice President of South Regional Sales, will discuss how to leverage mandatory loan sales to improve profitability, manage risk with pipeline hedging, and operational changes needed for the transition. Register for the webinar or join MCT’s newsletter to receive the latest educational content.
Between Fed Chair Powell testifying before the House Financial Services Committee and the latest Beige Book, there was a lot of Fed news for investors to digest yesterday. A slew of stronger-than-expected economic data has raised concerns that the FOMC is preparing to walk back its anticipated 75 basis points of easing in 2024, and the Fed Chair told the House panel that he’s in no rush to lower rates, though doing so will probably be appropriate “at some point this year.” He repeatedly stated that he does not see a risk of recession right now. Powell will be back on Capitol Hill today to appear before the Senate Banking Committee, though the potential for market-moving remarks is low.
The Fed’s Beige Book for March described overall economic activity since the last report as having “expanded at a modest pace since earlier in the year.” Consumers showed more sensitivity to rising prices and spending softened in recent weeks as businesses found it harder to pass through higher costs to their customers. Leisure and hospitality sectors varied from District to District, the Fed said in its survey of regional business contacts. Manufacturing activity was little changed while residential real estate demand improved. Employment rose at a slight to modest pace while price pressures persisted. If the economy evolves broadly as expected, the Fed is likely to begin dialing back policy interest rates 25 basis points between three and four times this year.
Ahead of February payrolls this Friday, we received a couple of labor market indicators yesterday. Job openings fell slightly in January to 8.86 million, and the number of job openings per unemployed worker was little changed at 1.45. The ADP Employment Change report pointed to the addition of 140k payrolls in February, slightly less than 150k expectations, while the January increase was revised up to 111k from 107k. The JOLTS data signal that the jobs market is slowly settling down, consistent with wage inflation pressures cooling and without a troubling slowdown in net job creation and overall economic activity. The gradual softening in the labor market will likely keep the FOMC comfortable in waiting a little while longer before beginning to cut rates.
Today’s economic calendar kicked off with Challenger job cuts for February: U.S.-based employers announced 84,638 cuts in February, up 3 percent from last month and 9 percent higher than the 77,770 cuts announced in the same month in 2023. Markets have also received the latest European Central Bank decision and remarks from ECB head Lagarde in her press conference, the latest jobless claims (217k last week, unchanged from 217k), trade deficit (high at $67.4 billion, a subtraction from growth), and productivity and unit labor costs (3.2 and .4 percent respectively). Chair Powell will be back on Capitol Hill before the Senate Banking Committee to testify on the Monetary Policy Report later this morning, and other releases of note include Treasury releasing the details of the mini-Refunding consisting of $56 billion 3-years, $39 billion reopened 10-years, and $22 billion reopened 30-years, remarks from Cleveland Fed’s Mester, Freddie Mac’s Primary Mortgage Market Survey, and January consumer credit. After the initial salvo of news, we begin Thursday with Agency MBS prices better .125-.250, the 10-year yielding 4.07 after closing yesterday at 4.10 percent, and the 2-year at 4.53.
Employment and Transitions
Unlock success with PrimeLending’s East Meets West Podcast! Join EVPs Karen Blakeslee and Al Velasco, the production leaders from the Eastern and Western divisions, for a lively discussion about the pulse of the housing market. Discover how PrimeLending empowers our loan officers to compete and win. Karen and Al also discuss leveraging new products to create more opportunities. Tune in for exclusive access to the wisdom of Dallas-based Branch Manager and perennial top producer, Mark Raskin (NMLS# 176513). Mark shares invaluable insights and proven tips, providing a backstage pass to success in today’s market. Check out East Meets West to learn why PrimeLending loan officers rank our engaged, experienced leadership as a game-changer. If you’re a top producer ready to turn up the volume on your career, contact Nic Hartke today!
Landmark Bancorp, Inc. announced that it has appointed Abigail (Abby) Wendel to serve as president and chief executive officer of the Company and Landmark National Bank, its wholly owned bank subsidiary, effective March 29. Wendel also will join the respective boards of directors of the company and bank, and succeeds current President and CEO, Michael Scheopner, who will serve in a non-executive role until his retirement at the end of the year. Congratulations!
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Today’s big to-do was the ISM Non-Manufacturing data at 10am ET. Of the two ISM reports, this is typically the bigger market mover, but that wasn’t the case this time around. One potential reason for that is the fact that markets had already gone on a fairly good run even before the data was released. Rationale is multifaceted and debatable for that initial rally. It includes things like European econ data, risk-off trading surrounding NYCB issues, and corrective momentum in equities. To be sure, ISM packed the biggest punch among TODAY’s events, both in terms of volume and bond market momentum, even though it only accounted for about a quarter of the overall movement. Still… it’s a strong showing considering bonds are making gains when yields are already at 3 week lows.
ISM Non Manufacturing
52.6 vs 53.0 f’cast, 53.4 prev
ISM Prices Paid
58.6 vs 64.0 prev
ISM employment
48.0 vs 50.5 prev
09:36 AM
Slightly stronger overnight with additional buying at the open. 10yr down 6.3bps at 4.154 and MBS up 7 ticks (.23)
10:39 AM
Stronger after ISM data, but at a tempered pace. MBS up 9 ticks (.28) and 10yr down 7.4bps at 4.143
02:30 PM
Sideways to slightly weaker into mid-day, but back near the highs now. MBS up 11 ticks (.34) and 10yr down 8.2bps at 4.135
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In a world where speed and convenience have been the siren song to consumers, there’s a movement toward buying more mindfully, sustainably, “slowly.”
You’ve heard of slow fashion. Slow food. Slow travel. And when it comes to the home, “slow decorating.”
A reaction against rooms filled with mass-produced “fast furniture,” slow decorating embraces a more deliberate approach that prioritizes a personal connection to the stuff we live with. It might mean giving new life to heirloom or found pieces. Or buying new things that have the quality to last.
The journey of creating a space is as important as the destination.
New York City designer Gideon Mendelson thinks the movement echoes the Japanese philosophy of “ikigai,” which centers around finding meaning and purpose. Applied to interiors, it’s about creating spaces that promote all-around well-being.
“To me, good design makes room for living and doing. Decorating with meaningful pieces isn’t about chasing an aesthetic, but curating spaces that resonate with authenticity and personal stories,” he says.
“It’s not just about how it looks; it’s about how you want to live.”
And you don’t have to spend a lot, he says. He framed some inexpensive yet eye-catching vintage deli signs, adding a playful element to the Hamptons dining room of a family of five.
The trend toward “slower,” more thoughtful interior design, Mendelson thinks, lies in subtleties: “The cherished heirlooms, and the intimate connection between a space and its inhabitants.”
TOSSING HAS BECOME TURNING
Fast furniture’s association with cheaper materials, excessive packaging and frequent replacement clashes with consumers’ growing interest in minimizing our lasting impact on the planet.
Now, we’re buying more mindfully, but we’re also having a lot of fun DIYing.
During the pandemic, slow assembly lines and stalled container ships meant a lot of brand-new homewares weren’t getting made or sent to market, so upcycling stuff we had or found became hobby, and often necessity.
If you could find a great credenza at a flea market or online reseller that just needed a little TLC, why not?
Not too long ago, decor trade shows would include a handful of studio labs offering reclaimed wood items and organic textiles. Today, at global fairs like Ambiente in Frankfurt, Salone in Milan and Paris’ Maison et Objet, hundreds of companies show new design made with environmental and social impact in mind. Fair trade manufacturing. Fast-growing renewables like hemp, bamboo and cork. Cushions made of soy-based foam instead of petroleum-based foam. Recycled glass and metal accessories.
Mid 20- and 30-somethings are seen as drivers of the slow design trend. TikTok and Instagram feeds are full of refinish-and-reveal videos, and modest abodes full of found treasures.
Stephen Orr, editor in chief of Better Homes & Gardens, says he’s spent the past couple of years renovating a 1760s house on Cape Cod.
“The first year was during the pandemic, so antiques and flea markets were a godsend considering all the supply chain disruptions,” he says.
“But during that process, we came to the realization that pieces with a patina of age better celebrate the house’s long history anyway.”
He also added some new, modern pieces “so it doesn’t look like we should be dressed in period Colonial Williamsburg costumes.”
SHOPPING TIPS
Furniture for sitting, sleeping and eating is where you should spend more money on quality, says Jillian Hayward Schaible of Susan Hayward Interiors.
“We encourage clients to invest in pieces like sofas/sectionals, beds, dining tables and upholstered items, because you can really feel the difference when these items are well-made,” she says.
Peter Spalding of the designer furniture sourcing platform Daniel House Club notes that imitations of Chippendale and other legacy-style pieces — think cabinets and wingback chairs, for example — were common in the ‘80s and early ’90s.
“Now, the imitations aren’t very valuable, but the originals remain highly sought after,” he says. “As you collect ‘slow furniture,’ buy the most authentic versions you can afford.”
Dan Mazzarini of BHDM Design and ARCHIVE echoes the advice.
“If you’re looking for a good investment, go straight to vintage. Things that have already stood the test of time often have another 50 years left in them! Side tables, desks, even cabinets are great pieces to look for,” he says.
Mendelson mentions a pair of vintage French plaster shell sconces in his Sagaponack, New York, home. He bought them 15 years ago “and they still feel fresh and relevant today.”
“I think a desire for one-of-a-kind and bespoke is at least starting a conversation about handmade,” he says. “Quality vs quantity. Living with intention.”
STORES ON BOARD
Many retailers are getting seats on the slow train. West Elm, for instance, was early among home retailers in joining Fair Trade USA, which ensures that suppliers maintain good workplaces and wages, and support their communities.
The global reforestation project One Tree Planted gets part of every purchase from furniture brand Joybird. Herman Miller’s rePurpose program gets used furniture to nonprofit organizations. And Ikea has initiatives like moving to bio-based glue, and instituting a buy-back/re-sell program that saw 230,000 items given a new life in 2022.
For the past five years, the United Nations Refugee Agency’s MADE51 initiative has helped artisans partner with fashion and home accessories businesses worldwide to create sustainable, fairly traded goods.
—-
New York-based writer Kim Cook covers design and decor topics regularly for The AP. Follow her on Instagram at @kimcookhome.
For more AP Lifestyles stories, go to https://apnews.com/hub/lifestyle.
With ISM Manufacturing, Friday brought the only other reasonably important economic report of the week after Thursday’s PCE data, and it did not disappoint. Well, actually, it did disappoint anyone hoping to see strength and resilience in the sector which is why it did not disappoint those hoping to see lower rates. Not only did the headline dip well into contractionary territory, but the employment gauge was the 2nd lowest since breaking out of the covid lockdown period in mid 2020. Timing matters with the big jobs report looming next Friday. Prices also decelerated slightly. With that, bonds surged to the best levels in more than two weeks, effectively taking a lead-off before confirming a friendly range breakout. Caveat: that confirmation requires next week’s data to avoid crushing expectations.
ISM Manufacturing
47.8 vs 49.5 f’cast, 49.1 prev
ISM Prices
52.5 vs 53 f’cast, 52.9 prev
Consumer Sentiment
76.9 vs 79.6 f’cast, 79 prev
Inflation expectations
1y up 0.1
5y unchanged
10:24 AM
slightly weaker in the early AM, but rallying nicely after 10am data. 10yr down 5.5bps at 4.197. MBS up 5 ticks (.16).
12:38 PM
Rally accelerated into 11am and is holding gains. 10yr down 4.7bps at 4.197. MBS up 5 ticks (.16).
04:42 PM
Going out at the best levels of the day. MBS up 10 ticks (.31). 10yr down 7.2bps at 4.182.
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As I watch it snow here in the Sierra, hey, if you’re going to watch one video this week, watch this 15-second classic (with sound) on how our banking system works. You’ll watch it at least twice, and let your kids figure it out. Since its all-time high of 30,456 in 1921, the bank population in the United States had declined to only 4,377 at the end of 2020, a decline of about 86 percent. Thousands of residential lenders hope they’re not involved in the same trend. I mention this because, speaking of numerical trends, the United States is producing more oil than any country has ever produced in the history of the world: 13 million barrels per day. It’s been economically punishing for the countries in OPEC+, which has seen its global market share drop to a new low of 48 percent. This is an interesting issue when it comes to inflation, which helps drive mortgage rates, and will be a very interesting issue in the next eight months when it is expected that two octogenarians will be vying for the top job. (Found here, this week’s podcast is brought to you by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products – nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics – unite the people, systems, and stages of the mortgage process. Hear an interview with Nerdwallet’s Kate Wood on housing market supply and advice for potential homebuyers.)
Lender and Broker Services, Products, and Software
To access the largest subset of home buyers in the market, lenders are redefining their go to market strategy. Milestones’ homeowner engagement solution goes well beyond a “What’s my home worth?” assessment. It enables lenders to proactively guide consumers through the entire homeownership journey with weekly touchpoints that are relevant and specific to their home. With essential resources for home services, home improvements, home document storage, and a homeowner dashboard to monitor and track their activity in one place, this platform is the one-stop shop for all things home. What sets them apart is its fully white-labeled capabilities that provides a seamless consumer experience that keeps YOUR lending products and partners top of mind. Adopt the ultimate homeowner engagement solution to connect more meaningfully with your prospects and borrowers and uncover new opportunities to boost your revenue. Book a meeting with sales today.
“Innovation-Powered Precision, Time-Tested Excellence! With a foundation built on 43 years of experience, PCV Murcor brings a deep understanding of our clients’ goals that complements appraisal modernization. Over our long history, we have honed our processes to provide reliable and unparalleled appraisal management services, setting the standard for excellence in the industry. Our use of state-of-the-art AI technology ensures precision and efficiency in every aspect of our service. AI’s ability to enhance efficiency, accuracy, and flexibility is reshaping the way properties are evaluated with distinct advantages. To learn more about our future-ready solutions for today’s appraisal management, visit here.”
“PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), focuses on relationship-driven business with long-term success, by-the-way, have you heard about our BTW Services? We are pleased to offer all customers our Broker-Dealer, Treasury Management and Warehouse Lending (BTW) services. Our Broker-Dealers can help customers hedge their origination pipelines by buying and selling TBAs, specified pools and whole loan trading. Our Treasury Management team helps customers with escrow and cash management. Finally, the Warehouse Lending team provides customers with confidence to meet their loan funding needs. If you are interested in learning more about our BTW Services please contact Deric Barnett or Justin Tannen.”
TPO, Broker, and Correspondent Product News
“It’s been a busy first quarter for the Newrez Correspondent team! Delegated pilot programs for both 2nd Mortgages & Non-QM have been launched with more exciting news on the way. Enhancements to come include HomeReady® & Home Possible® $2500 grant products; FHLMC’s GreenCHOICE; FHA HUD 184/Heritage; Co-Issue offering, along with improvements to our Non-QM Smart Series programs, Enote expansion and more. Soon, our sales team will present our top 2023 clients their Premier Partner Plaques (PPP). This PPP award recognizes the partnership and is awarded to our lenders who finished at the top for loans funded in 2023. There are so many reasons to be aligned with a top tier partner, and Newrez Correspondent is that partner! For those not signed up with Newrez and looking to take advantage of these enhancements, or existing partners who want to become Premier, contact our sales team to learn more.”
Rocket Pro TPO has announced an update to its offerings, including its Credit Upgrade program. This initiative, previously exclusive, is now available to all partners. It provides a no-cost, rapid rescore service for clients with credit scores between 570 and 779, aiming to help them qualify for better loan products and rates. Additionally, Rocket Pro TPO offers a Home Equity Loan product that allows clients to protect their low mortgage rates while tapping into their home’s equity at a competitive rate. This option provides a fixed-rate, lump-sum payment, offering a stable alternative to variable-rate loans. For those interested in learning more about Rocket Pro TPO’s cost-saving products, the replay of their latest IGNITE Live seminar is available on their YouTube channel: IGNITE Live Replay. For more information on Broker or Non-Delegated Correspondent partnerships, contact Rocket Pro TPO to learn more.
Angel Oak Mortgage Solution is now offering Bank Statement Loans tailored specifically for self-employed individuals who have been in business for 1-year.
Reach more clients with LoanStream’s Non-QM Programs with loan amounts up to $4 Million. LoanStream NaNQ / Non-QM Programs are proprietary programs specifically created to fulfill mortgage program options for LoanStream brokers with non-prime programs.
The 5 Cs of Credit
A good trivia question for underwriters, or loan originators, is, “What are the 5 C’s?” The answer is character, capacity, capital, collateral, and conditions. Those are from a simpler time, but the fundamentals still apply despite all the hubbub about credit costs, scores, monopolies, hard pulls versus soft pulls, and… tri-merge versus bi-merge. I bring this up because it appears that the “new” scoring and bi-merge will be done at the same time, at the end of 2025. So, the industry has some to adjust and accommodate.
“Dear Stakeholders,
“Thank you for your continued engagement with FHFA’s Credit Score Initiative. As many of you likely saw, FHFA just announced a series of updates related to the implementation of the new credit score requirements for single-family loans delivered to Fannie Mae and Freddie Mac (the Enterprises). We are also pleased to announce the schedule for upcoming stakeholder forums to be hosted by FHFA, which is outlined below.
“Following valuable and thoughtful feedback gathered from the sessions held in late 2023, FHFA is aligning the implementation date for the bi-merge credit reporting option with the transition from the use of Classic FICO. This aligned transition is expected to occur in the fourth quarter of 2025. We expect this update will reduce cost and complexity for market participants.
“To better support the transition, the Enterprises are accelerating the publication of historical data on the VantageScore 4.0 model. This publication, originally targeted for the first quarter of 2025, is now expected early in the third quarter of 2024. FHFA and the Enterprises continue to work towards providing similar data to support the transition to the FICO 10T model.
“We would like to thank all those who participated in the stakeholder forums for sharing their perspectives on the sequencing of project milestones, as well as the expected uses of the historical data to support the new models. Your input helped inform the latest updates to the Credit Score Initiative.
“FHFA will be hosting the next series of virtual stakeholder forums in the coming weeks. The schedule is planned as follows: Bi-Merge Implementation Considerations (Tuesday, March 12, 3:00-4:00pm Eastern), Bi-Merge Implementation Considerations (cont’d) (Tuesday, March 26, 3:00-4:00pm Eastern), Transition Period Loan Delivery Considerations (Tuesday, April 9, 3:00-4:00pm Eastern), and Transition Period Loan Delivery Considerations (cont’d) (Tuesday, April 23, 3:00-4:00pm Eastern).
“As a reminder, these virtual stakeholder forums are open to the public, but they are not intended for media purposes. FHFA will provide agendas, materials, and links to access the sessions as they approach. Thank you again for your continued engagement. If you have further questions or thoughts, please contact us at [email protected].”
After 2023’s jarring price hikes, the credit bureaus and FICO are raising their credit reporting costs once again, passing this on to credit reporting agencies (CRAs). This latest price increase affects both hard and soft pull credit reports. In response, CRAs everywhere have updated their pricing options, allowing the customization of lender’s prequalification options to suit budgets.
And compliance departments noted that the FTC, which has authority to enforce the Equal Credit Opportunity Act (ECOA) against most types of non-depository financial services providers, issued a report in February describing its enforcement actions and related activity under ECOA during 2023: Annual Report on Its ECOA Enforcement and Policy Development Activity.
Capital Markets
The Fed has been preaching patience from markets when it comes to enacting rate cuts, a sentiment that was further bolstered yesterday after the central bank’s preferred price gauge rose in January at the fastest pace in almost a year (2.4 percent). Inflation rose 0.4 percent month-over-month compared to a downwardly revised 0.1 percent increase in December. The core rate increased 2.8 percent year-over-year. Personal Incomes rose 1.0 percent in January, which was also much higher than expected, driven primarily by growth in the annual cost of living increase in social security. Fed policymakers took the data in stride, repeating that easing can begin in the summer and there is room to be patient.
Yesterday also saw the release of a weaker-than-expected Chicago PMI for February and a disappointing Pending Home Sales report which came in down 4.9 percent for January. Initial jobless claims for the week ending February 24 increased to 215k, which is still a relatively low number for this series. Continuing jobless claims for the week ending February 17 increased by 45,000 to 1.905 million, which is the highest level for that series since November. It has become more challenging to find a new job right away, which indicates that the labor market is not running as tight as it once was. The four-week moving average for continuing claims of 1,879,750 is the highest since December 11, 2021
Today’s economic calendar contains no “first tier” scheduled market-moving news but has no fewer than seven Fed speakers scheduled. Go ahead and add in the final February S&P Global manufacturing PMI, ISM manufacturing PMI for February, January construction spending, and Michigan sentiment for February. (Unemployment data, normally released on the first Friday of the month, is next Friday.) After the 10-year yield rose 28 basis points in February, we begin March with the 10-year yielding 4.23 after closing yesterday at 4.27 percent, Agency MBS prices better about .125, and the 2-year at 4.59.
Jobs
Mark Pasternak appointed as the newest SecurityNational Mortgage Company VP to Spearhead Operational Excellence. In a significant move to bolster its leadership team, Security National Mortgage Company has announced the appointment of Mark Pasternak as Vice President of Mortgage Operations. Pasternak joins the company with over three decades of industry experience, including his most recent tenure serving as EVP of Operations at Academy Mortgage. His leadership background in both sales and operational management is sure to provide an operational edge for SecurityNational Mortgage. Andrew Quist, President of SecurityNational Mortgage Company, stated: “Mark is joining us with a wealth of experience and his innovative nature will be highly valuable to our operations team. Even in this challenging mortgage rate environment, SecurityNational is still dedicated to recruiting elite industry talent like Mark that align with our growth focused business objectives. We’re excited to see the impact Mark will have in our operations.” The addition of Mark Pasternak to the SecurityNational team underscores the company’s commitment to recruiting top talent to lead its strategic initiatives. With Pasternak at the helm of operations, SecurityNational is poised to enhance its operational capabilities and achieve new milestones in service and efficiency.
In the Northwest and California, Banner Bank is searching for Mortgage Loan Officers looking to create lasting Realtor and builder relationships at a bank focused on the market today. Banner has opportunities for lenders looking for local decision making with FHA, VA, USDA, state bond and true Portfolio lending opportunities along with servicing retained Fannie and Freddie loans to assist in client retention. Additional highlighted products cover CRA lending with private label no payment down payment assistance to help assist all borrowers with the right opportunity. Banner is the right fit for an established team, or the individual looking to grow their business and take the next step in their career. Please send resumes to Aaron Miller.
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