Press Release

Apache is functioning normally

Apache is functioning normally

Foreclosure activity increased eight percent in July from June and was up 55 percent from the same period a year earlier, according to the latest report from RealtyTrac.

A total of 272,171 properties were in some stage of foreclosure last month, with one in every 464 households in the nation receiving a foreclosure notice in July.

And while preliminary filings like notices of default accounted for much of the activity, the final stage of the process is also exploding.

“Bank repossessions, or REOs, continued to be the fastest growing segment of foreclosure activity in July, posting a 184 percent year-over-year increase — compared to a 53 percent year-over-year increase in default notices and an 11 percent year-over-year increase in auction notices,” said James J. Saccacio, chief executive officer of RealtyTrac, in a press release.

“The sharp rise in REOs, combined with slow sales, has resulted in a bloated inventory of bank-owned properties for sale. RealtyTrac now has more than three quarters of a million properties in its active REO database, a number that represents approximately 17 percent of the inventory of existing homes for sale reported in June by the National Association of Realtors.”

As always, Nevada led the nation with the highest foreclosure rate of one filing per 106 households, followed by California at one per 182 households, and Florida at one per 186 households.

More startling however, was the fact that bank repossessions were up 384 percent in Nevada, 427 percent in California, and a whopping 627 percent in Florida, compared to the same period a year ago.

The highest foreclosure rate among 230 metro areas tracked by RealtyTrac was Cape Coral-Fort Myers, FL with one filing per 64 households, followed by Merced, CA with one in every 73 households, and Stockton/Modesto, CA with one in every 82.

That’s a lot of missed mortgage payments…

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

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

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

By:
Rob Chrisman

7 Hours, 56 Min ago

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

Lender and Broker Software, Products, and Services

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

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

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

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

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

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

Broker and Correspondent Products

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

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

Capital Markets

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

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

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

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

Employment

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

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

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

Existing home sales increased 43.4 percent last month in California as the median price plummeted 40.3 percent, the California Association of Realtors reported today.

The group said the seasonally adjusted annualized sales rate of existing single-family detached homes totaled 489,080 during July, up from a 341,130 sales pace a year ago.

Sales during the month were also up 15.3 percent from June 2008 as the year-over-year median home price fell at a record pace to $350,760, down from a revised $587,560 median in July 2007.

“Once again, the 40.3 percent year-to-year decrease in the median price of a home was an all-time record, surpassing the previous record set in June with a 37.9 percent decrease,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young, in a press release.

“Since the statewide median remained in the $585,000-$595,000 range through August of last year, the market will continue to experience significant year-to-year adjustments through August even if the median price holds steady over the next few months,” she said. “The statewide median was last in the $350,000 range in early 2003.”

C.A.R. President William E. Brown said “deeply-discounted, distressed sales” (foreclosures) drove volume higher in much of the state, and noted that jumbo conforming loans likely had an impact as well.

“Year-to-year increases in the number of transactions ranged from a 6.7 percent increase in the San Francisco Bay Area to a 176.5 percent increase in the Riverside/San Bernardino region,” he said.

That led to a significant drop in unsold inventory, which fell to 6.7 months supply last month, down from 10 months in July 2007.

Homes also sold more quickly last month, with the median number of days it took to unload a property falling to 47.5 days from 50.7 days a year ago.

New Home Sales Off 35.3 Percent Nationwide

Meanwhile, the Commerce Dept. said new home sales rose 2.4 percent last month from June to a seasonally adjusted annual rate of 515,000 units, but still remain 35.3 percent below the July 2007 pace of 796,000.

The median sales price of a new home sold in July was $230,700, down 6.3 percent from $246,200 a year earlier.

Last month, supply fell to 10.1 months from 10.7 months in June, but still far exceeds the 8.3 months of supply seen in July 2007.

Source: thetruthaboutmortgage.com

Apache is functioning normally

Our way of honoring first responders is by educating our podcast listeners, readers and coaching clients in the real estate industry about how to help those who helped all of us and are still being of service every day. We all owe a debt of gratitude to those who have our backs in times of need. 

One of the best ways to help first responders is to be of service yourself, as a professional real estate advisor. Listen to all of these really great mortgage programs (most agents and buyers don’t know about these!) for first responders and consider doing any or all the following: 

1. Make a video about some of the special programs available. Send it to your database, post it on your social media and submit a press release to your local media sources. 

2. Take that information and provide a Facebook Live session or a series of Facebook Lives, invite your friends and followers to learn more about these loan programs. You can split the programs up and do a weekly series. 

3. Work with a lender who specializes in first responder types of loans, FHA, VA and HUD programs and interview them for a video, Facebook live session or if you have a podcast. 

4. Submit an article to your online and offline news publications about these available programs. 

5. Create a First Responder seminar or webinar, in person or online. Present at local firehouses, police stations and more Bring your first-responder-program lender specialist with you. 

In all cases, close the video, article or session with a call to action: For more information about these and other special programs, call or text today at: enter your phone number.

Let’s take a look at some available programs to help our special first responders.  

You all know people who can benefit from these programs. What a great way to be of service yourself!  

FHA mortgage programs 

The Federal Housing Administration (FHA) provides easy-to-qualify government insured loans. These loans have lower down payment requirements and more forgiving credit requirements. For example, first responders who qualify for  this plan may be able to place a minimum down payment as low as 3.5%. 

Requirements for these loans are typically: 

-Two years of stable employment, ideally at the same job. 

-Fewer than two, 30 day late payments over the past two years. 

-30% of the buyer’s gross income should be available to use towards their  mortgage payments. 

-Monthly debt payments cannot be more than 43% of income. 

Of course, other restrictions and overlays may apply. Loan requirements are fluid and we, like  you, are disclosing that we are not mortgage lenders! Ask your professional loan originator for  the details and refer your clients to someone who specializes in these programs.

Good Neighbor Next Door 

Good Neighbor Next Door is a mortgage program by the U.S. Department of Housing and Urban Development (HUD) which is offered to public servants, such as first responders. This program allows qualified applicants to purchase homes in revitalized communities. 

The Good Neighbor Next Door Program allows someone who qualifies to purchase a home for 50% of the appraised value based on where the house is located. 

The HUD provides a listing of properties that you may check to find which houses and locations are available. Check HUD.gov for lots of details on this and tons of other great programs. They’re a little known resource for many Realtors. Be the one who’s in the know! 

Did you know that HUD has an online search where you can find homes for sale  all over the country that qualify for different special programs? You can even search for investors, first time buyers, first responders, etc. Stop relying so heavily  just on your MLS!

To qualify, the buyer must comply with HUD’s program regulations and meet  the first responder requirements. They must be employed, for example, as a full time firefighter, or an EMT, paramedic or law enforcement officer by a fire department, EMS unit or law enforcement agency, a unit of general local government or an Indian tribal government. They must be serving in the locality in which the home is located. Think of how much value you would bring when you present these programs locally to firehouses and police stations. 

VA mortgage program 

Many first responders have military experience. This service record may qualify for a Veteran Affairs (VA) loan. VA loans are not well understood by many Realtors. When you really know the benefits, you’ll be more of an advocate of these loans both on your buyer sides as well as when you’re a listing agent  considering accepting a VA loan. 

VA loans have no down payment requirement. Additionally, qualified borrowers do not need to pay for mortgage insurance, unlike with FHA mortgage plans. These features make VA loans one of the most attractive loan programs available in the  industry. 

Did you know that: In addition to first responders with previous military service, VA loans are also available for active-duty service members, qualified  spouses and other veterans. 

Your buyers can apply for a VA loan if: 

-They or their spouse served 181 days during peacetime or 90 consecutive days in  wartime. 

-They or their spouse served for six years with the National Guard or Reserves.

Other great things about VA loans: 

No Prepayment penalties, sellers can contribute to closing costs, refinancing can  happen up to 100% of the home’s value and repayment workouts if the veteran has  payment issues. 

The more you know about these special mortgage programs, the more you’ll talk about real estate and offer value. Don’t just learn about these things, get out there and present a seminar, a Facebook live session, videos, press releases and social media. Add the links to your website.

Tim and Julie Harris host a podcast for real estate professionals. Tim and Julie have been real estate coaches for more than two decades, coaching the top agents in the country through different types of markets.

Source: housingwire.com

Apache is functioning normally

Even with the uptick in inflation, most observers are expecting the Federal Open Market Committee not to raise short-term rates at its next meeting. But that doesn’t mean mortgage rates this week were immune to the report.

The Consumer Price Index rose 0.6% on a seasonally adjusted basis in August, compared with a 0.2% increase in July. Unadjusted, the index was up 3.7% on an annual basis, the Bureau of Labor Statistics said.

If this report was a weather forecast, the outlook for the home lending business would be partly cloudy, said Marty Green, principal at mortgage law firm Polunsky Beitel Green, in a statement.

“I don’t think it alters the Fed’s path at its next meeting, where they will talk tough but leave rates unchanged,” Green said. “However, their path at the November and December meetings is still unclear, as they telegraphed the possibility of another rate increase in 2023.”

This report will not change investors’ minds about the mortgage rate environment, he said.

They are elevated based on expectations that rates will be falling next year. “So there is an increased likelihood that mortgages originated today will not stay on the books for very long,” Green said. “Accordingly, investors require a premium to make the investment.”

The Freddie Mac Primary Mortgage Market Survey noted the average for the 30-year fixed rate loan increased for the first time in three weeks to 7.18%, from 7.12% one week ago. A year ago, it was at 6.02%.

But the average for the 15-year FRM was down 1 basis point to 6.51%. It was at 5.21% for the same week last year.

Rates “remain anchored” above 7%, said Sam Khater, Freddie Mac chief economist, in a press release.

“The reacceleration of inflation and strength in the economy is keeping mortgage rates elevated,” he continued.

However, Zillow, which tracks rates based on offers made through its website, reported the 30-year FRM at 6.94% on Thursday morning, down three basis points from Wednesday and 7 basis points from last week’s average of 7.01%.

Orphe Divounguy, senior macroeconomist at Zillow Home Loans, said the decline reflects investor expectations of slower consumer activity and weaker economic growth in the future.

“The August uptick in inflation — a key driver of Treasury yields and the mortgage rates they influence — was mostly due to supply factors that pushed energy prices higher,” Divounguy said in a Wednesday night statement. “However, declining wage inflation coupled with continued strength in employment growth are bringing demand and supply into better balance, putting the U.S. economy on a more sustainable growth path.”

Most investors are still expecting the U.S. economy to enter into a recession. In that case, mortgage rates should go down. However, consumer spending is moderating, not crashing, and productivity is on the rise.

“This will likely push longer term Treasury yields higher, preventing any further declines in mortgage rates,” Divounguy said.

Right now things are moving sideways, as at noon on Thursday, the 10-year Treasury yield was at 4.28%, up just 3 basis points from Wednesday’s close, 2 basis points higher than at the end of the day on Sept. 7 and down 1 basis point from Sept. 6 close.

Source: nationalmortgagenews.com

Apache is functioning normally

An $18.4 million mortgage-subsidy fund resulting from the 2022 Trident Mortgage redlining settlement is now open to eligible borrowers in three Eastern states.

After a combined state and federal investigation last year found Trident — one of the largest mortgage lenders in the Philadelphia area before it ceased originations in 2020 — had regularly engaged in practices to discourage minority borrowing, the now-defunct company agreed to establish the fund under conditions of the settlement. The fund will support Black borrowers and majority-minority neighborhoods in a region that includes parts of Pennsylvania, New Jersey and Delaware. 

“This subsidy program will make a difference to many hundreds, possibly thousands, of families impacted by historic redlining practices in Philadelphia,” said Pennsylvania Attorney General Michelle Henry in a press release. 

The fund, called Pathway to Prosperity, includes two different programs — HomeAssist and HomeAccess — which will provide as much as $10,000 in financial assistance per qualifying mortgage. The rollout comes after Trident conducted a study to determine the needs of majority-minority communities in the Philadelphia area. Trident is contracting with nonbank lender Prosperity Home Mortgage to administer the fund. 

HomeAssist will provide funding for the purchase or refinance of a primary residence located in a qualifying census tract. HomeAccess, meanwhile, is aimed at assisting current residents living in eligible neighborhoods to purchase a primary residence located in any state Prosperity is licensed. 

“For too long, companies have avoided offering mortgages in neighborhoods that are home to predominantly people of color, denying them equal access to mortgage credit. This is one small step toward correcting that injustice,” Henry said.

Per the settlement, Trident will also provide consumer financial education and engage in community development partnerships within affected communities. Prosperity will open offices in some minority neighborhoods as well. 

Although no longer conducting business as a home lender, Trident had agreed to continue operations to implement terms of the settlement. Both Trident and Prosperity are mortgage subsidiaries of Berkshire Hathaway-owned HomeServices of America, a consortium of companies serving real estate interests. 

Following a four-year investigation, Trident was fined a total of $24.4 million, which included a penalty of $4 million owed to the Consumer Financial Protection Bureau for various violations. Among the investigation’s findings were derogatory language, including racial slurs, used in emails between Trident staff, and marketing campaigns that excluded minority consumers. More than half the population of Philadelphia is Black or Hispanic.

Attorneys general of the three affected states participated in the investigation, along with the CFPB and the U.S. Justice Department. All voiced approval of Trident’s program.

“The launch of this important loan subsidy fund marks a critical step in our efforts to redress Trident Mortgage Co.’s mortgage redlining practices, and to begin the process of making whole the communities that have been harmed by generations of systemic housing discrimination,” said New Jersey Attorney General Matthew J. Platkin.

“It will take generations to truly repair that harm — but this subsidy program will make a real, tangible difference for hundreds of redlining’s victims,” added Delaware Attorney General Kathy Jennings. 

Redlining, defined as a systematic practice of underserving or discriminating against predominantly Black, Hispanic or other ethnic neighborhoods, has been prohibited since the 1960s with the enactment of the Fair Housing Act. But violations continue decades later, with multiple financial institutions this year involved in redlining lawsuits. 

This past spring, Pennsylvania-based Essa Bank and Trust was also fined $3 million for purported infractions in the Philadelphia area. And in January, City National Bank of Los Angeles resolved allegations against it by agreeing to pay more than $31 million, the largest redlining settlement in history. Allegations have similarly hit the likes of KeyBank and HSBC in 2023.  

Source: nationalmortgagenews.com

Apache is functioning normally

A significant portion of the millennial generation now believes they will not have the opportunity to be a homeowner, indicating that mortgage originators may need to provide more education as part of their marketing.

Affordability remains the big hang-up, a Redfin survey found. But it’s not just millennials that are being impacted; besides the 18% of this cohort no longer thinks they will buy a house, 12% of the up-and-coming Gen Z, one already described as the largest and most diverse to enter the housing market, believe similarly.

First-time buyers already have a significant share of purchases this year, Zillow previously reported.

Breaking the list of affordability-related responses down further, high home prices, which have endured even as the U.S. economy has slowed, was the most cited reason why both groups felt this way.

A separate Redfin report issued on Thursday found that home prices gained 4.5% year-over-year for the four-week period ended Sept. 3.

As a result, the typical monthly mortgage payment of $2,612 is $18 below the all-time high set in May.

“If folks can figure out a way to buy instead of rent, they will,” Redfin agent Niko Voutsinas said in the home price release. “Some buyers are cutting back on other expenses to up their housing budgets because they believe home prices are only going to increase.”

Negative perceptions about their ability to save enough to make a down payment was cited by 46% of millennials and 33% of Gen Z. More than a third of both groups said mortgage rates are currently too high.

Meanwhile paying off student loan debt will take precedence for 21% of Gen Z and 16% of millennials over the purchase of a home, the survey found.

Of those survey participants that are planning to buy in the next 12 months, 36% of millennials and 41% of Gen Z members are working a second job in order to fund the down payment.

A cash gift from a family member is expected to help contribute to the down payment from 23% of millennials and 28% of Gen Zers.

Over 20% of both groups said they will tap into their investment portfolios by selling stock, while 15% will divest cryptocurrency.

“Many young people don’t have a choice between renting and buying,” said Daryl Fairweather, Redfin chief economist, in a press release. “They’re renting their home because even though rent payments have increased, too, it’s still more affordable than buying in much of the country–and renters don’t need a down payment.”

In turn, with private mortgage insurance, consumers can get a conforming loan with only 3% down. For first-time and other buyers, various forms of down payment assistance programs are available. Yet awareness of these alternatives has been lacking among the target audience.

“We’re very proud of the fact that we can enable people to buy a home with less than 20% down, we’ve been doing that for a long time,” Radian Group CEO Rick Thornberry said in an interview. “But it’s also something that we feel a strong corporate purpose to do, not just for the sake of volume, but to do it responsibly and sustainably from a borrower perspective.”

The Redfin survey was conducted in May and June; this portion of the study just concentrates on responses from 1,340 Gen Z and 1,973 millennial participants.

As of the end of the second quarter, it was cheaper for households to rent versus owning both on a nationwide basis and in 27 of the top 50 U.S. markets, a First American Financial analysis found.

But there’s no blanket answer to this challenge.

“Given current dynamics, more young households may choose to rent in the near term as the cost to own, excluding house price appreciation, has unequivocally increased,” a posting from First American Economist Ksenia Potapov said. “Yet, once you factor in house price appreciation, or depreciation in some markets, to the cost of homeownership, the decision to rent or buy will depend on local real estate market dynamics, which will determine if a home is likely to cost more or less in the near future.”

The conundrum about the housing market in general is recorded in Fannie Mae’s Home Purchase Sentiment Index for August, which at 66.9 is 0.1 higher than it was in July. Compared with August 2022, the HPSI was up 4.9 points.

“The overall HPSI is maintaining the low-level plateau set a few months back, and we don’t see much upside to the index in the near future, barring significant improvements to home affordability, which we also don’t expect,” Fannie Mae Chief Economist Doug Duncan said in a press release. “While renters are slightly more pessimistic than homeowners, for two years now a large majority of both groups have told us that it’s a bad time to buy a home, and they’ve continuously cited affordability concerns as the primary reason.”

Only 18% of those surveyed said August was a good month to buy a home, unchanged from July. But those that called it a good time to sell increased by two percentage points to 66%.

Ironically, the shares of respondents that believe rates will go up in the next year increased by 1 percentage point to 46%, while those that think they will move lower gained two percentage points to 18%.

That is because fewer respondents, 34% versus 38% in July, now think rates will remain unchanged.

Source: nationalmortgagenews.com