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Thanksgiving decor can look just as good outside the home as it can inside. From beautiful wreaths and garlands, to pumpkins and cozy lights, these festive decorations are all about making your home look and feel more cozy, special, and seasonal. 

The beauty of outdoor Thanksgiving decor is that you can use a lot of the same items that you would use for outdoor fall decor and even outdoor Halloween decor, so many of these decoration ideas can be embraced from the beginning of fall all the way through to Thanksgiving – then it’s time to start getting creative with outdoor Christmas decor.

Spruce up your outside space with outdoor Thanksgiving decor

fall flower and foliage inspiration for your front door, or are looking to decorate with pumpkins on your front porch, our ideas can elegantly elevate your exterior so it’s beautifully in sync with the season.

1. Pumpkins

(Image credit: Studio McGee)

This seasonal squash is synonymous with fall, Halloween, and Thanksgiving decor, and is probably the most traditional and popular seasonal decoration of them all. 

Whether you style your outside space with pumpkins freshly picked from a day out at the pumpkin farm, or opt for a more contemporary look with stylish faux pumpkins that can be used year after year, it doesn’t get easier than placing a pretty pumpkin by your front door.

Here, interior designer Shea McGee from Studio McGee has created a beautiful blend of traditional Thanksgiving decorations with more modern color palettes. The scattered pumpkins in a palette of pastel shades perfectly complement the planters and their home’s white exterior. Shea says of the design, ‘our wreath (currently sold out but our Oversized Fall Leaf Wreath can create a simple effect) is from our Target for Threshold line, we tied a pretty fall-hued ribbon around the top of it to add some more interest.’

For some further inspiration, take a look at Shea’s similar Halloween porch look below.

Faux Pumpkins & Gourds

Lit Woven Pumpkin

Full Moon Pumpkins (Set of 5)

Studio McGee, with her husband Syd in 2014. They later launched their e-commerce brand, McGee & Co, and starred in their very own Netflix show, Dream Home Makeover.

2. Wreaths and garlands

(Image credit: Balsam Hill)

A traditional festive decoration that beautifully celebrates the colors of fall and seasonal plants and flowers, a wreath or garland can add wonderful texture, color, and shape to your outside space. Wreaths are perfect for sitting pretty on a front door, and garlands can be used to decorate door frames and porch railings.

Whether you fancy embracing a Thanksgiving craft and having a go at making your own Thanksgiving wreath from flowers, branches, and foliage gathered from your yard and garden, or opt for an artificial design (we love Balsam Hill’s Autumn Abundance collection) you can never go wrong with styling your outside space with stylish natural accents.

Autumn Abundance Foliage – Wreath

Autumn Abundance Foliage – Garland

Autumn Abundance Foliage – Swag

fall planters filled with fall flowers and plants for fall color’ says designer, Chantelle Malarkey. ‘It’s great to get bunches in reds, oranges, and purples.

‘Or, for a more modern Thanksgiving decor idea, why not try styling your outside space with some pretty pampas grass? It’s one of my all-time favorites to style with, both indoors and outdoors, and can add a unique, neutral texture to your Thanksgiving decor.’ Pampas is perfect for using in a minimalist Thanksgiving scheme.

In this colorful outside space by @carlosriveracruet, the front porch area has been elegantly uplifted by pumpkins, a unique hanging foliage basket on the door (a great alternative to a wreath), and pretty pots filled with orange, yellow, and white flowers.
 

Chantelle Malarkey

Outdoor Fortune lanterns from Pottery Barn are great for using all year round too, creating a wonderful seasonal scene that can look just as good at night as it can during the day.

Designer and landscaping expert Ward Dilmore also suggests, ‘as the sun sets, create a cozy and warm atmosphere with string lights. Hang them across your outdoor area or wrap them around porch railings. These lights not only provide illumination, but will add a magical touch to your Thanksgiving gathering.’ These Connectable String Lights from Balsam Hill are perfect – and they can be used for your outdoor Christmas lighting ideas too.

Ward Dilmore

Liz Marie Galvan has created at her farm, featuring cushions, throws, and decorations from the Target x John Derian Thanksgiving collection.

Square Pillow Fall Pumpkin, 18″

Quilted Throw Blanket Fall Mums, 50″x70″

Assorted Fall Paper Decor Pack

fall porch ideas for some further outdoor seasonal inspiration.

Embracing festive window decor, similar to Halloween window decor ideas, can also help to elevate your outdoor Thanksgiving scheme. Hang wreaths and lights in the window or style a window ledge with a stack of pumpkins, perfect for creating a cozy seasonal display that can be appreciated both inside and outside of the home.

Source: homesandgardens.com

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Hedging, Webinars, HELOC, Prequal Tools; STRATMOR on Servicing; Lunches and RESPA

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Hedging, Webinars, HELOC, Prequal Tools; STRATMOR on Servicing; Lunches and RESPA

By:
Rob Chrisman

Thu, Oct 26 2023, 12:32 PM

It is said that if all the hunters on opening day(s) of deer season in Wisconsin were grouped together, they would comprise the sixth largest army in the world! Sometimes lenders feel that they have a target on their backs, and here at the WMBA’s 49th Annual Real Estate & Finance Conference in Milwaukee, some of the informal talk in the hallways is about avoiding redlining, a focus of audits and exams. Another is RESPA. When does “As you wish” or “intent” figure into lending? “Rob, is it true that the same business lunch can either be a RESPA violation, or not?” I am not an expert in compliance, but yes, that is true. If you’re an LO who takes a real estate agent to a nice lunch as a thank you for sending business your way, that is seen as a thing of value and would be a RESPA violation. If the same nice lunch is used to discuss new programs and training that your company offers real estate agents, then it is copacetic. Make sense? (For more RESPA tips, read this edition of attorney Brian Levy’s Mortgage Musings focused on Ted Lasso.) Today’s podcast can be found here, sponsored by Visio Lending and its top notch broker program. Visio is the nation’s premier lender for buy and hold investors with over 2.5 billion closed loans for single-family rental properties, including vacation rentals. Listen to an interview with Selene Finance’s John Vella on revenue targets and P&L examinations going on at mortgage companies and what is setting apart successful from less successful mortgage service providers at a time like this.

Lender and Broker Software, Products, and Services

Great mortgage professionals aren’t always great marketers, and most mortgage companies’ in-house marketing teams lack the bandwidth to create new creative content week after week, month after month and year after year. ICE understands these challenges, which is why its Surefire℠ CRM and Mortgage Marketing Engine creative team works nonstop to deliver an ever-growing library of timely, relevant, on-brand content that captures borrower interest and keeps relationships warm long after close. With turnkey automated marketing campaigns, a single marketing administrator can automatically customize and deploy award-winning, multi-channel campaigns for hundreds of loan officers. Schedule a demo with the ICE team to discover how Surefire works around the clock to help keep loans coming in.

Uplist Unveils Revolutionary Real Estate Technology to Empower Loan Officers. In a difficult market where efficiency and speed are more crucial than ever, Uplist is setting a new standard in real estate technology for lenders. The platform’s unique suite of features eliminates the need for loan officers to spend time on mundane tasks, like updating listing flyers with accurate rate and payment information. The patent-pending technology, with real-time rates thru Uplist SmartView™ listing flyers, makes it easier for homebuyers to receive immediate, accurate payment information, thereby accelerating the sales process and cultivating stronger business relationships. Loan officers who are interested in taking their business to the next level with Uplist can visit GetUplist.com to schedule a demo. Don’t like forms? Email your questions at [email protected].

If Amazon were a mortgage lender, do you think its borrowers would have to call loan officers to get payment and closing cost summaries? Do you think its borrowers would have to wait around on nights and weekends to get updated PDF pre-approval letters? Obviously not. The good news is that you can stay ahead of the curve with QuickQual by LenderLogix. It’s already integrated into Encompass® by ICE Mortgage Technology™ and you can be up and running in days. Check it out here and they’ll text a sample to your phone.

A Consumer Rewards program at The Loan Store?! That’s right, word is that TLS is enabling its mortgage broker and non-delegated correspondent partners to offer homebuyers up to 40 bps in pricing enhancements (plus other money-saving rewards) on first-lien loans. It’s clear that The Loan Store is in a giving mood with its wholesale loan originator partners, considering this program PLUS the fact that TLS is compensating originators 200 bps on HELOCs. Make your money on HELOCs, and save your customers money on first-liens, by getting signed up with The Loan Store!

Training and Webinars

Lending operations leaders who care about driving greater efficiency and profitability, while optimizing the borrower journey, join your tribe in this live event. We will dive into specific examples that lenders can take back to their teams, today, and improve their businesses. Some of these strategies are saving 50-80 percent per month on the larger costs that lenders face. Others allow for greater automation, reducing the load on reduced teams, and allowing them to do even more. Efficiency and optimization aren’t the keys to winning in this market. They are the requirements to survive! On November 2, 2023 at 1 PM EST, Join Femi Ayi, EVP of Operations at Revolution Mortgage, Kirill Klokov, CEO at TRUV, and Jason Perkins, CEO at Bonzo as they break down efficiency and optimization strategies that you can put into practice today!

Do your borrowers need payment relief? Newfi Wholesale designed the Graduated Payment Mortgage to help! This 30-Year Fixed solution has lower initial payments than the interest only option and can be used on purchases or refinances. More brokers and loan officers are asking about this product than ever…to learn more call John Wise EVP, Sales at (818) 391-4131 or register to join our free webinar Wednesday, November 1st!

Mortgage lenders are at a pivotal juncture. The MBA forecasts that next year interest rates will soften after an extended bout of exceptionally challenging market conditions. To help you take the reins of fresh opportunity, TrustEngine is proud to present the final part of its Path to Profitability webinar series. On Thursday, November 9 at 2 pm ET, join Dave Savage, Steve Majerus of Synergy One Lending, and Brett Brumley of Lender Toolkit, for a session on how AI will be critical to conversion in 2024. Tune in for expert insights, best practices and actionable steps leaders can be taking to leverage emerging opportunities in the year ahead. Register now to grab a front row seat.

STRATMOR on Servicing Strategies

It’s no secret that lenders are not making enough money on originations to sustain their organizations. Many are losing money on each loan originated and need to leverage revenues earned from servicing rights to balance profitability. This is why developing and deploying an effective servicing strategy is a mission critical priority. In STRATMOR Group’s October Insights Report, Senior Partner Michael Grad offers insight into creating a sustainable servicing strategy. Grad discusses the servicing quadrant model that STRATMOR employs in the strategy development process and provides an overview of what’s involved in a transfer of servicing. Lenders, if you would like to discuss your servicing strategies, contact us, and don’t miss Grad’s article, “Maximizing Lender Profitability: Transferring the Servicing Asset” in the October Insights Report.

Capital Markets

Maintaining optimal hedge coverage mitigates the risk between mortgage rate lock and funding. This forecast equation is one of the most important responsibilities of the Secondary Manager (and their hedge advisor). In this article, Pipeline Pull Through Rate Analysis Explained, MCT reviews key concepts related to pull-through rate analysis, mortgage pipeline forecasting, and its importance in deriving an accurate mortgage pipeline hedging recommendation. For additional information on improving pipeline profitability, view MCT’s recent webinar on maximizing loan trading profits. In the webinar, panelists provide a current market overview and review strategies for improving loan sale performance. You’ll leave ready to analyze performance and make actionable changes to boost profitability.

Well, with the election of a Speaker of the House the odds of a government shutdown have lessened. There’s a tentative autoworker’s strike end. Both of these pieces of news would help the economy. Jobs and housing drive the U.S. economy, so what’s going on there?

We learned yesterday that new home sales jumped 12.3 percent in September and 34 percent year-over-year to a seasonally adjusted annualized rate of 759k units, according to the Census Bureau. This marks the largest monthly jump in over a year and the highest level of new home sales since February 2022.

Even though the series is notoriously volatile (there was a decline of 8.2 percent in August), it points to continued resilience in the new home sales market. Of note is that the year-over-year change in the median sales price was -12.3 to $418,800, the largest decline since February 2009 and consistent with anecdotes of homebuilders offering price discounts and mortgage rate buydowns to drive sales and further changing the mix of homes being offered to more modest products.

Keep in mind that new home sales make up a much smaller chunk of overall sales in the housing market than existing home sales, where the trailing 12-month average has been on a downward trend since May 2021 (when it reached 898k). The September reading of existing home sales came in close to the trailing average this millennium (699k) to show the housing market is holding up despite higher mortgage rates. Markets do receive the release of pending home sales later this morning, which will provide more housing market clarity after the figure was down almost 19 percent year-over-year in the last report.

Today’s economic calendar kicked off with the European Central Bank leaving its rates unchanged. In this country, we had the first look at Q3 GDP (4.9 percent growth rate, stronger than expected), durable goods orders (+4.7 percent for September), and weekly jobless claims (210k, up from 200k, 1.79 million continuing claims). In addition to the Pending Home Sales Index, today also brings Kansas City Fed manufacturing for October, a Treasury auction of $38 billion 7-year notes, Freddie Mac’s latest Primary Mortgage Market Survey, and more earnings from Wall Street. We begin the day with Agency MBS prices unchanged from Wednesday, the 10-year yielding 4.95 after closing yesterday at 4.95 percent, and the 2-year at 5.11.

Jobs

Are you ready to enhance your company’s marketing and success? Meet an experienced marketing leader on the lookout for their next career opportunity! This executive-level marketing professional is known for energy, passion, and an impressive track record of increasing growth, engagement, revenue and volume (generating over $425 million). They have a proven history of building marketing teams, focusing on loan officer needs, brand building and development, creative design and content marketing, and their hands-on experience with leading mortgage technology tools plus a keen eye for reputation management can elevate your company’s marketing efforts. Plus, their cross training in multiple marketing disciplines guarantees they are never afraid to get their hands dirty. If you’re looking for a new SVP/VP/CMO to bring fresh energy and expertise to your team, reach out to Anjelica Nixt (specify the position) for a confidential discussion. Please note that this professional is interested in remote opportunities but is open to occasional travel to corporate headquarters and branches as needed.

Please join us in congratulating Steven A. Milner on being named the new Chairman of the Lender Board of The Mortgage Collaborative! With decades of experience and outstanding leadership as the Founder and CEO of US Mortgage Corporation, Steven is the perfect fit for this important role. As Chairman, he will help guide The Mortgage Collaborative’s continued growth and innovation in connecting top mortgage lenders with premier service providers. We are thrilled to see Steven take on this position and know that under his direction, The Mortgage Collaborative is sure to achieve even greater success. His commitment to helping Lenders operate at a high level is invaluable. Congratulations on this well-deserved appointment, Steven! We look forward to seeing all that will be accomplished under your leadership as Chairman and your continued success as the Founder & CEO Of US Mortgage Corporation. Feel free to send a congratulatory note to Steve directly.

An independent mortgage bank is searching for a Servicing Manager to lead its servicing group. Qualified candidates should have a minimum of 5 years of direct hands-on servicing experience with FNMA, FHLMC and GNMA loans as well as sub-servicer oversight. This is a remote position and confidential inquiries should be sent to Anjelica Nixt for more details and specify this opportunity.

Independent Mortgage Banker owners: If you are uncertain how you will survive this winter if rates remain higher, please confidentially contact us to discuss a win-win opportunity. We are a very well-established and privately owned mortgage banking company that has been in business for 30 years, a direct seller with Fannie and Freddie and issue our own government securities. We do service the majority of our closed loans, and offer a full marketing team, social media team, and a media/video production team to provide best in class support to our loan officers and referral partners. Our history and culture are exceptionally important so let’s have a conversation to see if we may be a fit. We are large enough to offer exceptionally sharp pricing, products, a dedicated marketing team, and an exceptional operational team, yet, we have a boutique feel where you may talk to the owner of the company at any time. Partner with a company where your voice and input is valued! We have a successful history of incorporating other companies into our model. For a confidential conversation please contact Anjelica Nixt and specify this opportunity.

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

Source: mortgagenewsdaily.com

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The world’s central banks have unleashed the steepest series of
interest-rate increases in decades during their two-year drive to tame
inflation—and they may not be done yet. Policymakers have raised rates by
about 400 basis points on average in advanced economies since late 2021,
and around 650 basis points in emerging market economies.

Most economies are absorbing this aggressive policy tightening, showing resilience  over the past year, but core inflation remains elevated in several
of them, especially the United States and parts of Europe. Major central
banks therefore may need to keep interest rates higher for longer.

In this environment, risks to the world economy remain skewed to the
downside, as we detail in in our Global Financial Stability Report. Though this latest assessment of vulnerabilities is similar to what we
noted in April, the acute stress we saw in some banking systems has since
subsided. However, we now see indications of trouble elsewhere.

One such warning sign is the diminished ability of individual and business
borrowers to service their debt, also known as credit risk. Making debt more
expensive is an intended consequence of tightening monetary policy to
contain inflation. The risk, however, is that borrowers might already be in
precarious positions financially, and the higher interest rates could
amplify these fragilities, leading to a surge of defaults.

Eroding buffers

In the corporate world, many businesses suffered closures during the
pandemic, and others emerged with healthy cash buffers thanks in part to
fiscal support in many countries. Firms were also able to protect their
profit margins even though inflation had picked up. In a higher-for-longer
world, however, many firms are drawing down cash buffers as earnings
moderate and as debt servicing costs rise.

Indeed, the GFSR shows increasing shares of small and mid-sized firms in
both advanced and emerging market economies with barely enough cash to pay
their interest expenses. And defaults are on the rise in the leveraged loan
market, where financially weaker firms borrow. These troubles are likely
going to worsen in the coming year as more than $5.5 trillion of corporate
debt comes due.

Households too have been drawing down their buffers. Excess savings in
advanced economies have steadily declined from peak levels early last year
that were equal to 4 percent to 8 percent of gross domestic product. There
are also signs of rising delinquencies in credit cards and auto loans.

Headwinds also confront real estate. Home mortgages, typically the largest
category of household borrowing, now carry much higher interest rates than
just a year ago, eroding savings and weighing on housing markets. Countries
with predominantly floating rate mortgages have generally experienced
larger home price declines as higher interest rates translate more quickly
into mortgage payment difficulties. Commercial real estate faces similar
strains as higher interest rates have resulted in funding sources drying
up, transactions slowing, and defaults rising.

Higher interest rates also are challenging governments. Frontier and
low-income countries are having a harder time borrowing in hard currencies
like the euro, yen, US dollar and UK pound as foreign investors demand
greater returns. This year, hard currency bond issuances have occurred at much
higher coupon—or interest—rates. But sovereign debt concerns do not only apply to low-income countries, as the recent surge in longer-term interest rates in advanced economies has demonstrated. 

By contrast, major emerging economies largely do not face this predicament
given better economic fundamentals and financial health, although the flow
of foreign portfolio investment into these countries has also slowed.
Material amounts of foreign investment have left China in recent months as
mounting troubles in its property sector have dented investor confidence.

Spillover effects

Most investors appear to have shrugged off mounting evidence that borrowers
are having repayment troubles. Along with generally healthy stock and bond
markets, financial conditions have eased as investors appear to expect a
global soft landing, in which higher central bank interest rates contain
inflation without causing a recession.

This optimism creates two problems: relatively easy financial conditions
could continue to

fuel inflation, and rates can tighten sharply if adverse shocks occur—such as an
escalation of the war in Ukraine or an intensification of stress in the
Chinese property market.

A sharp tightening of financial conditions would strain weaker banks
already facing higher credit risks. Surveys from several countries already
point to a slowdown in bank lending, with rising borrower risk cited as a
key reason. Many banks will lose significant amounts of equity capital in a
scenario where high inflation and high interest rates prevail and the
global economy tips into recession, as we explore in a
forthcoming GFSR chapter. Investors and depositors will scrutinize the
prospects of banks if their stock-market capitalization falls below the
value of balance sheet, causing funding problems for the weak bank. Outside
of banking system, fragilities are also present for nonbank financial
intermediaries, such as hedge funds and pension funds, that lend in private
markets.

Reassuringly, policymakers can prevent bad outcomes. Central banks must
remain determined in bringing inflation back to target—sustained economic
growth and financial stability is not possible without price stability. If
financial stability is threatened, policymakers should promptly use
liquidity support facilities and other tools to mitigate acute stress and
restore market confidence. Finally, given the importance of healthy banks
to the global economy, there is a need to further enhance financial sector
regulation and supervision.

Source: imf.org

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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Credit card shimming is an updated version of skimming that reads credit card chip information, allowing the card to be duplicated or its information to be sold illegally.

Chip-enabled cards were designed to prevent instances of identity theft and fraud by adding an additional layer of security. That is, until criminals began credit card “shimming.”

Shimming is an updated version of skimming that reads credit card chip information, allowing the card to be duplicated or its information to be sold illegally.

Shimming vs. skimming

Before chip-enabled cards, skimming was a method of identity theft that would read a card’s magnetic stripe. Shimming is largely the same concept, but instead of reading the stripe, skimmers read the information in the card’s chip.

Both skimming and shimming require the fraudster to attach or insert a mechanism into a card reader in order to gather the information. These can be tricky to spot for unsuspecting consumers, but understanding how they work will help you be more aware the next time you insert your credit or debit card.

How credit card shimming works

Credit card shimming works by inserting a small device called a “shim” into a card reader. Unlike skimmers—which were typically bulky and easily detectable if you knew what to look for—shims are small and subtle.

Whenever a chip-enabled card is inserted into the reader, the shim collects its data. Then, the scammer collects this data by inserting what looks like a regular card into the reader. This makes it difficult to spot suspicious activity, as it appears the scammer is making a regular transaction.

As the technology currently stands, scammers aren’t able to create an exact duplicate of chip-enabled cards based on the shimming data they collect. They are, however, able to create a version of the card with a magnetic stripe only—which many retailers still accept.

How to spot a credit card shimmer

It can be quite difficult to spot a credit card shimmer or skimmer, but there are key questions to help you determine your risk at any transaction:

  • Does the card slot look misaligned?
  • Does it take more effort to insert your card?
  • Does the credit card reader move around when you touch it?
  • Does it look like anything is blocking the credit card slot? Has something already been inserted?
  • Are the buttons on the card reader hard to push?
  • Does anything about the reader look unusual (colors, font, etc.)?
  • Is there security tape on the card reader? Is it broken or tampered with?

If you’re doubtful about whether an ATM has been affected, it’s best to try another ATM or go to a bank teller if possible. If you’re unsure about a transaction, consider paying in cash or using a contactless payment method, such as your mobile device’s virtual credit card wallet.

How to keep your card secure

While identity theft is not always avoidable, there are some habits you can incorporate to make sure you’re as protected as possible.

  • Consider contactless payment. The best way to protect against skimmers that steal your card information is to simply avoid them altogether. Contactless payment—like Apple Pay, Android Pay and Google Pay—make paying simple and streamlined.
  • Choose your ATM strategically. Only use ATMs that are in high-traffic areas or banks to reduce the chances of them being compromised.
  • Check for tampering. Wiggle the card reader or slot before inserting your card. A traditional skimmer will come off. If your card doesn’t go into the slot smoothly, this could be a sign of a shim inside. Consider choosing a different ATM.
  • Be cautious at the pump. If you choose to pay at the pump, choose a pump that is closest to the store and in direct view of an employee. If you’re skeptical, the safest option may be to pay the attendant inside.

3 action items for victims of shimming

Banks have some fraud detection technology in place that may catch suspicious activity before it becomes problematic, but it doesn’t catch everything. Luckily, the Fair Credit Billing Act says you’re not responsible for any unauthorized charges once you report your card as stolen. So, if you suspect you’ve fallen victim to skimming or shimming, you’ll want to act swiftly.

  1. Contact your credit card issuer right away. They’ll cut off card access and send you a new card if needed.
  2. Call the business where you think the shimming happened so that they can check their card readers for signs of tampering.
  3. Alert your local law enforcement and the Federal Trade Commission. They may be able to notice a wider pattern and stop other consumers from becoming victims.

FAQ

How does credit card shimming work?

Shimmers are devices that scan the chip in credit cards to replicate and store financial data. Someone can use this to create a knockoff of your card and sell your financial information.

What’s the difference between skimming and shimming cards?

Credit card skimming and shimming are both activities that lift the financial information from your credit card, but they target different places where the information is stored. Credit card skimmers target the magnetic strip on traditional credit cards, while shimmers target the chip you’ll find in newer credit cards.

Can chip cards be shimmed?

Chip cards can be shimmed because shimmers target chips specifically. As of the writing of this article, contactless payments are the most secure way to use your cards.

What do card skimmers look like?

Card skimmers and shimmers are made to look exactly like the regular ATM or card reader. Look for signs of poor craftsmanship or misalignment in the credit card slot because this means it may have been tampered with.

Taking extra safety precautions may seem like a burden at first, but protecting your finances is worth the effort. Remember to pause before you make any transaction to ensure the conditions are safe, even if you’re in a hurry.

Identity theft and fraud can temporarily wreak havoc on your credit, but the effects don’t have to be permanently devastating. Work with a credit repair firm to help challenge any inaccurate items caused by a scammer to help you work to get your credit back to where it should be.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Reviewed By

Sarah Raja

Associate Attorney

Sarah Raja was born and raised in Phoenix, Arizona.

In 2010 she earned a bachelor’s degree in Psychology from Arizona State University. Sarah then clerked at personal injury firm while she studied for the Law School Admissions Test. In 2016, Sarah graduated from Arizona Summit Law School with a Juris Doctor degree. While in law school Sarah had a passion for mediation and participated in the school’s mediation clinic and mediated cases for the Phoenix Justice Courts. Prior to joining Lexington Law Firm, Sarah practiced in the areas of real property law, HOA law, family law, and disability law in the State of Arizona. In 2020, Sarah opened her own mediation firm with her business partner, where they specialize in assisting couples through divorce in a communicative and civilized manner. In her spare time, Sarah enjoys spending time with family and friends, practicing yoga, and traveling.

Source: lexingtonlaw.com

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It took a while, but Bank of America announced today that it intends to mail out principal reduction offers to some 200,000 homeowners.

The first letters should be arriving in mailboxes this week, with most mailed by the third quarter of this year.

The principal reduction program is part of the national foreclosure settlement, which was finalized back in February. It called for at least $10 billion to go toward reducing mortgage balances.

The other big banks will need to get on board as well, since that settlement also involved Ally/GMAC, Chase, Citi, and Wells Fargo.

Are You Eligible?

This program isn’t for those with a Fannie Mae, Freddie Mac, FHA, or VA loan. So that eliminates quite a few borrowers right there.

The loan must be owned and serviced by Bank of America, or serviced by an investor that has given BofA the authority to carry out such modifications.

Additionally, you must owe more on your mortgage than the property is currently worth. In other words, you must hold an underwater mortgage.

You also have to be delinquent on your mortgage, but don’t go missing payments just to participate. You must have been 60 days behind as of January 31, 2012.

Finally, your total housing payment must total more than 25 percent of gross household income (debt-to-income ratio).

How It Works

Assuming you qualify, Bank of America will first reduce your principal balance to “as low as” 100% loan-to-value.

After that, they’ll lower the mortgage rate, and possibly forebear additional principal to meet the target payment amount of 25 percent of gross income.

A calculation, known as positive net present value, will be used to ensure the cost of the loan modification does not exceed the cost of foreclosure.

So some borrowers may get huge principal and interest rate reductions, while others who are just barely underwater, and can afford more, will only see minimal reductions.

Still, the ability to refinance to a lower mortgage rate is a huge benefit, even if the principal balance isn’t reduced significantly.

Ironically, borrowers will want to prove they’re making less money to get the most benefit, a stark contrast to the stated income days that led up to the mortgage crisis.

If you can afford your existing mortgage payment, and simply aren’t making it for one reason or another, Bank of America will tell you to go jump in a lake.

Average Savings of 30%

Bank of America expects the average homeowner to save 30 percent on monthly mortgage payments.

They actually piloted the program in March, and have already sent out 5,000 trial modification offers, which have the potential to total more than $700 million in forgiven principal.

Back in 2010, the bank came up with “earned principal forgiveness,” a program that offered interest-free forbearance of principal and rewarded borrowers who stayed current on payments.

But it’s unclear how successful that initiative was. And it’s uncertain how well widespread principal reductions will perform given the high cost.

Unfortunately, there are probably tons of current borrowers out there with interest-only loans poised to reset that don’t have a solution.

And their mortgage payments will surge once they’re making fully amortized payments with a shorter mortgage term.

Assuming many of these types of loans were taken out around 2004-2006, there may be another huge wave of problems in a few years that don’t yet seem to be addressed.

Source: thetruthaboutmortgage.com

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You may not think of saving money as being a creative pursuit, but with a little effort, you can find fresh (and even fun) ways to help you stash away some cash. This can make the pursuit more engaging and motivating.

Perhaps your goal is to save for the down payment on a house or build up your kid’s college fund or simply take a great vacation next year. You can try some clever methods to make saving money more interesting and maybe a bit exciting.

Read on to learn such tactics as partnering up with a savings buddy and tapping your DIY skills. You’ll also learn ways to make the most of the cash you sock away. Get set to save more.

15 Creative Ideas to Save Money

You are probably familiar with some of the usual tactics for saving money, such as comparison shopping and clipping coupons. If you’re ready to mix things up and try some less common tactics, consider the following 15 quirky but effective ideas.

1. Identifying Your Saving Goals

2. Finding a Saving Buddy

3. Seeking Out Free Activities

4. Getting Creative and DIY

5. Gamifying Savings

6. Swapping Goods and Trading Skills

7. Increasing Income

8. Switch Your Bank

9. Split Your Direct Deposit into Checking and Savings

10. Change Your Due Dates for Bills

11. Save Every $5 Bill

12. Take Advantage of Cash Back Credit Cards

13. Round Up Your Purchases Automatically

14. Consolidate Credit Card Debt with a Personal Loan

15. Automate Your Savings into an Investment Account

💡 Quick Tip: An online bank account with SoFi can help your money earn more — up to 4.60% APY, with no minimum balance required.

1. Identifying Your Saving Goals

Not sure how to make saving money fun or prioritize it? You could start by identifying your goals. Are you saving up for a big purchase, like a down payment on a house? Are you saving for your child’s future education?

Once you’ve figured out what you want to accomplish, you could determine a target amount of money you’d like to save. While this number might change over the course of your savings journey, you can always readjust your plan.

If you have an idea of how much money you’d like to work toward saving, you can consider diving deeper into your finances to pinpoint realistic objectives. You can use a tracking and budgeting tool, such as SoFi Insights, to get a big-picture snapshot of your money and drill down on ways to save.

Once you’ve reviewed your individual financial circumstances and have a better idea of your savings goal(s), you could try these fun ways to save money.

2. Finding a Saving Buddy

With the right company, even the most mundane tasks can be enjoyable. You could talk about your savings goals with your friends and family members to potentially identify a saving buddy with similar objectives.

An ideal saving buddy will be supportive of your financial goals, offer good advice, and have a positive money mindset.

Checking in with your buddy regularly could help keep you both stay on track and you can celebrate each other’s accomplishments. This person might also be able to talk you down if you’re on the verge of making a big impulse buy. If you’re stressed about how to make saving money fun, you could brainstorm creative tactics with your saving buddy and implement them together.

3. Seeking Out Free Activities

Saving money does not have to be synonymous with missing out on exciting opportunities around you. You could enjoy free activities offered in your area.

Perhaps your local park offers free theater performances or concerts in the summer, or your area bookstore hosts interesting literary panels and author discussions with no attendance fee. Think about the resources provided by your local library, such as book clubs, language exchange programs, craft nights, and movie screenings.

This can be a great option to pricey movie or concert tickets. And here’s a way to save money on streaming services: You could try a free service like Hoopla or Kanopy, which are offered at no cost to library card holders.

4. Getting Creative and DIY

Here’s another clever way to save money: Adopt a DIY (do-it-yourself) attitude. You could create things using materials you already own instead of buying new products. You can save money on food by meal-prepping for the week ahead; think about recipes that incorporate ingredients you already have in your pantry.

You could make your own household cleaners out of vinegar, lemon rinds, and herbs or face masks using fresh ingredients like avocado, tea, honey, and oatmeal. There are ways to reuse materials that might otherwise be thrown out or recycled: Newspapers and coupon booklets could make fun wrapping paper, for instance.

5. Gamifying Savings

If you’re looking to break up the monotony of saving, you could consider incorporating games and challenges into your overall savings plan. A friendly competition with your saving buddy could be seeing who can save the most money every week, month, and/or year.

Creating small rewards for reaching your goals might be an incentive, too. (Bonus points if these rewards are free!) No-spend weeks, where you refrain from spending any money for seven days, also might help with saving. If you succeed at that, you might want to ramp up to a 30-day no-spend challenge. You can tailor this to cut down on all discretionary spending or just a single category, such as dining out.

6. Swapping Goods and Trading Skills

Getting serious about saving money doesn’t mean you need to give up “luxuries” such as exercising, new clothes and accessories, or home goods. Trading skills and swapping goods are two potential examples of how to make saving money fun while not depriving yourself of the things you want.

You could go to your favorite yoga studio and ask if they have a work-trade program where you can do administrative duties in exchange for classes. A clothing swap with your friends could refresh your closet at no cost.

You might also consider an informal exchange with skilled friends. For example, if you’ve been eyeing an original painting from your artist pal but don’t have the funds to pay her, you could offer your website design services (or some other helpful skills) for the painting.

7. Increasing Income

Sometimes, cutting down on expenses might not be the most effective way to reach a savings goal. It might be easier, in some cases, to make a bit more money than to reduce costs, especially if you are spending more than 50% of your income on non-discretionary expenses like groceries and debt payments. (That’s the figure established by the popular 50/30/20 budget rule, that half of your take-home income goes toward necessities.)

You could reflect on your particular skills and/or hobbies to see if there is a way to translate one of them into an income stream. For example, if you love to knit, you could start an online store for your yarn creations. Or you could offer your writing or editing services in a freelance capacity. A successful low-cost side hustle could help bring additional money into your bank account and add more fun and enjoyment in your life.

Recommended: 39 Passive Income Ideas to Build Wealth

8. Switch Your Bank

If your financial institution seems to be charging you endless fees and offers little interest on your savings account, consider switching banks.

You might consider an online bank. Because these institutions don’t have brick-and-mortar locations to fund, they can pass those savings along to customers in the form of lower or no fees and higher interest rates.

You might also consider a credit union instead of a big name bank. Credit unions are run as financial co-ops, meaning each member has a stake in business. As nonprofits, they are designed to serve their members, typically paying higher interest rates on deposits and charging lower fees.

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9. Split Your Direct Deposit into Checking and Savings

If you have regular paychecks, one of the easiest ways to start saving a bit more money is to guarantee some automatically ends up in a separate savings account, making it that much harder to spend. If you have a checking account, odds are you have a savings account too, or at least access to one.

Maybe you find it hard to remember to put some money away into savings or harder still to force yourself to part with it. If so, splitting your direct deposit into two accounts helps make sure your savings grows every paycheck, without you needing to worry about transferring the money. Check with your HR department or your online pay system to see if you can add a bank account and designate a certain amount of each paycheck to go into your savings account as part of your direct deposit.

Most banks also have the option to set up recurring transfers yourself between your accounts. If you don’t have the option to split up your paycheck or would prefer not to, your bank can likely automate your savings with a transfer the day after you get paid. You won’t have to think twice about stashing money away.

💡 Quick Tip: As opposed to a physical check that can take time to clear, you don’t have to wait days to access a direct deposit. Usually, you can use the money the day it is sent. What’s more, you don’t have to remember to go to the bank or use your app to deposit your check.

10. Change Your Due Dates for Bills

Having extra money in your savings account doesn’t help if you are constantly pulling from it to pay bills.

If you are overdrafting frequently or borrowing from savings, especially at certain times of the month when big payments are due, consider this unique way to save money: Change the due dates of some of your bills. Sometimes spreading out your larger payments — like credit card bills or student loans — throughout the month can help when those more inflexible due dates, like rent, roll around.

By changing the date of some of your bills, you will hopefully avoid overdraft or NSF fees. This will encourage you to not touch your savings account, as opposed to pulling from it every time your checking account balance gets precariously low.

11. Save Every $5 Bill

This is a classic adult remix of the piggy bank you had as a kid. Only this time, instead of squirreling away quarters, take every $5 you get and put it in a separate drawer at home. Keep all of these $5 in the back of a closet somewhere, tucked away and out of sight.

Once you get into the habit of identifying $5 as “no spend” bills, you’ll find it can really be a creative way to save money — depending on how much cash you use in a typical day, of course.

The benefit of this method is that $5 isn’t really enough to miss if you are just putting away a bill or two, but that at the end of the year, it can easily add up to enough cash to help with holiday shopping, a loan payment, or even a nice charity donation without having to touch your savings in the bank.

12. Take Advantage of Cash Back Credit Cards

Need another clever way to save money? Simply put, if you have a credit card that has a decent rewards program, you can likely get your rewards in cash. While getting cash back won’t boost your savings directly, it can allow you to spend rewards points instead of your savings.

However, if you tend to carry over a balance on your credit card, cash back cards may not be a good solution for you right now.

13. Round Up Your Purchases Automatically

There are plenty of apps available to round up your purchase to the nearest dollar and then save the change for you. Your bank may offer this kind of savings tool, which can be an easy way to save money automatically.

The amount these apps save for you is small, so you aren’t likely to notice $1 or even a few cents when it transfers, but it can add up to hundreds stashed away per year.

14. Consolidate Credit Card Debt with a Personal Loan

If your credit card debt is preventing you from saving as much as you would like, you might use a personal loan as a creative way to shake up your finances.

If you owe money on more than one credit card or have a high balance relative to your credit limit, the rates on a personal loan could help lower your monthly payments. Often, taking out one personal loan to pay off credit cards can help you with savings in the long run. While you’ll still be paying off the personal loan, the interest rate is likely to be significantly lower than that of the credit cards. That means you can probably pay off the total sooner, leaving more cash free for savings.

15. Automate Your Savings into an Investment Account

It’s the age-old financial advice worth repeating here: If your company offers a match on your 401(k) savings, take advantage of it! If your company match is 6%, you should set your contribution for at least 6% to get the most out of your retirement funds.

It can be simple to creatively save money using the following technique. Most company wealth management accounts can be set to automatically deduct contributions from your paycheck, but you can schedule other automatic investments too. You can make scheduled, recurring transfers between your bank account and your wealth management account.

You get to select the dollar amount, the date and the frequency you want. This is a great way to put your savings to good use — send it into an investment account. There are plenty of other technologies available to help make this easy, too.

Why Is Making Saving Money Fun Important?

Trying tactics like the ones above can help make it fun to save money. That’s important for a couple of good reasons. Shaking up your savings routine can make socking away cash seem fresh and more engaging, meaning you are more likely to get the job done. Basically, it can rev up your motivation to save money.

Also, when you find a technique that is fun, such as a no-spend challenge, it can help encode the new savings behavior in your routine. If it’s enjoyable, you are more likely to keep up the good work.

How Can You Make the Most of the Money You Save?

When you save money, you likely want it to grow over time, not just sit there. One good way to do that is to stash your money in an interest-earning account. This will be especially effective if the financial institution where you save charges low or no fees and doesn’t have high minimum opening deposit or balance requirements.

You might look for a high-interest or high-yield savings account. These can pay a significantly higher rate than standard savings accounts, and your money will be accessible and likely insured by the Federal Deposit Insurance Corporation, or FDIC, or NCUA (the National Credit Union Administration).

Optimizing Your Savings

Beyond the creative ways to save that you just learned, there are other important ways to optimize your savings.

•   Budgeting wisely can help you better understand your personal finances. It can help you get a grip on your earnings, spending, and savings. When you see where your money goes, you can tweak your spending to help funnel more towards savings.

•   Putting a spending limit on your credit card (or cards) can help you rein in spending, which can reduce high-interest credit card debt and allow you to save more.

•   Lastly, it you are struggling to put away money, one dramatic move that can help you save more is to move to an area with a lower cost of living. Whether that means moving across town or across the country, it could make a major difference in your finances.

The Takeaway

Putting away money for your future does not need to be a boring task; there are countless fun ways to save money that could be customized to your specific financial needs and wants. From finding a savings buddy to gamifying your saving, creative tactics can help enhance your motivation and your ability to put away cash.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with up to 4.60% APY on SoFi Checking and Savings.

FAQ

What is a clever way to save money?

There are several clever ways to save money. Automating savings so you don’t have to remember to transfer funds is one good tactic; so is giving yourself a no-spend challenge, finding free activities, and doing a skills swap to reduce spending.

How can you save $1000 in 30 days?

To save $1,000 in 30 days, you can try a spending freeze, a savings challenge, and/or use a card that gives you cash back. Make sure you are keeping the money you save in a high-yield savings account.

What is the 50 30 20 rule?

The 50/30/20 budget rule is a popular technique for managing your money. It advises spending 50% of your take-home pay on the needs of life (housing, food, healthcare, etc.), 30% on the wants in life (such as dining out, Ubers instead of public transportation, travel, and so forth), and 20% goes into sayings.

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Apache is functioning normally

Interest rates on 30-year fixed-rate mortgages have hit yet another high, with lenders offering loans above 8% for the first time since 2000. Mortgage rates have gone up rapidly this year, rising two full percentage points from lows near 6% back in February.

That’s been brutal for home buyers, who have watched their buying power erode. At a 6% interest rate, a buyer looking to spend $2,000 a month on principal and interest could afford a loan of roughly $333,500. With interest rates at 8%, that same buyer can afford only $272,500. Their target home price has dropped $61,000 as more of that monthly payment has to go toward servicing interest.

Here’s why mortgage interest rates are so high, and why they could remain elevated. Still, there are ways that home buyers can contend with such a challenging housing market.

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Why mortgage rates climbed so high

A year ago, many housing economists, including in forecasts from Fannie Mae and the Mortgage Bankers Association, were anticipating that today’s mortgage rates would be in the 5%-6% range. Though that seems wildly off base now, at the time it looked pretty reasonable.

“Last year around this time, the Fed was in the midst of hiking interest rates very rapidly,” explains Chen Zhao, head of economic research at Redfin. “And most economic forecasters were really looking at this and saying, OK, this is most likely going to lead to a recession.”

A recession could have forced the Federal Reserve to cut interest rates, with mortgage rates likely falling, too. But that recession hasn’t arrived.

“Despite what the Fed has done, hiking rates at the fastest rate ever, the economy, especially the job market, has really just remained very resilient. As a result, investors are now expecting that the economy is going to avoid a recession and remain very strong for longer,” Zhao says. “And that means that the economy can sustain higher mortgage rates for a longer amount of time.”

Where are mortgage rates headed in 2024?

Looking at last year’s predictions for 2023, it’s clear that a lot can change in just a few months. With political upheaval in the U.S. and multiple wars overseas, there’s potential for tectonic shifts in markets and in economic policy.

“I would say that right now uncertainty is unusually high,” Zhao comments. “Maybe the most plausible forecast would be to say that rates are probably going to stay in this range for the near term or at least in the foreseeable future.” But Zhao also outlines scenarios for mortgage rates going lower — an economic downturn forcing the Federal Reserve to encourage economic activity by easing interest rates — or higher, if mortgage spreads remain elevated.

The mortgage spread is the difference between the 30-year fixed mortgage rate and 10-year Treasury rate. “Historically, the spread between the 10-year Treasury and the 30-year mortgage rates is about 1 3/4%,” explains Melissa Cohn, New York-based regional vice president and mortgage banker at William Raveis Mortgage. Because of economic and geopolitical volatility, “Those spreads have grown over the course of the past couple of years, and our mortgage rates are now trading at 3% or higher above the 10-year Treasury.”

That said, it’s also worth noting that while we haven’t seen mortgage interest rates this high in 23 years, prevailing interest rates are in line with longer-term historical averages. Interest rates collected by government-sponsored enterprise Freddie Mac, which go back to 1971, are widely used as the yardstick for mortgage interest rates. Over that half century, the average 30-year fixed interest rate has been 7.74%.

“Looking holistically at the entire history, we’re about where the average is,” comments Jessica Lautz, deputy chief economist and vice president of research for the National Association of Realtors. Lautz points out that recent history is fairly exceptional: “We don’t want to say that the interest rate of 18 is normal, but the interest rate of 2.5 is also not normal,” she says, referring to historic highs of the early 1980s and the low point of 2020. “Both of those were very unusual time periods for interest rates.”

How high rates might affect buyers’ plans

Higher interest rates have got home buyers scrambling to keep their budgets in line with costs. But buyers should also consider the wider effects that rates have on the housing market and how these could play out.

Cohn contends that those who can afford to buy now, despite high interest rates, are likely better off going ahead with a purchase, as home prices continue to rise. “Are you better off buying in the higher-rate environment today and paying hundreds of dollars more a month in a mortgage payment so that you can refinance in a year when rates are down instead of having to pay 5% more on the purchase price of that home in a year?” she asks. This argument assumes interest rates will drop, but it’s also worth noting that while today’s buyer waits for rates to fall, they’re building equity.

Lautz also leans toward acting now if you can, but for different reasons. With housing inventory limited, a drop in interest rates could bring currently priced-out buyers off the sidelines, driving up home prices. “I do think there is pent-up demand,” Lautz explains, “and so they may be facing a multiple-offer situation.” In other words, lower rates could lead to the return of bidding wars.

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What home buyers can do now

If you’re in the position to buy a home despite today’s mortgage rates, there are a few steps you can take to buffer the effects of high rates.

Get all the help you can: If you’re a first-time home buyer, look into state and local programs that provide down payment and closing cost assistance. These can be no- or low-interest loans or even outright grants. You may not even have to be a true first-timer: Many programs consider you a first-time home buyer if you haven’t had an ownership interest in a home in at least three years.

Consider a variety of home types: Rather than a detached, single-family home, a condo or townhouse might better suit your budget. New construction is worth a look, as newly built homes are nearly one-third of the current market. Home builders with robust inventories are often able to provide incentives that make new homes more affordable.

Be interest-rate-aware: When you’re researching sample interest rates at various lenders, read the fine print. With rates so high, many lenders are including discount points — prepaid mortgage interest — to make their sample rates appear lower. Buying points can be a good strategy, but there’s an upfront cost, so you want to know if they’re included when trying to decide which lender has the best rates for you.

Source: nerdwallet.com

Apache is functioning normally

HousingWire Editor in Chief Sarah Wheeler sat down with Nicolas Guillen, co-founder of BaseCap Analytics, to talk about data, AI and the problems we still need to solve.

Sarah Wheeler: Your background includes experiences in banking and capital markets, including working at Morgan Stanley as a credit risk manager. How do you leverage those experiences at BaseCap?

Nicolas Guillen: I met my co founder, Steve Smith, at Morgan Stanley during the financial crisis. And we spent a lot of late nights monitoring data to analyze it and then figure out: How do we prevent what will cause the next financial crisis? We did a very critical analysis. We testified at the Federal Reserve with the analysis we did to help other banks do the same type of analysis. But to get to the point where data was fit for purpose, it took a really long time. So we decided to start a software company that took the frameworks that we used and enhance data and validate data quicker.

We started working with financial institutions, just given our background. But we built the platform so that it could help validate data in any industry — we’re looking at use cases in the airline industry for example. But our first clients have all been either financial institutions or some type of mortgage company, whether it’s an investor, a servicer, or an originator — we validate mortgage data throughout the life of the loan.

SW: What are the major challenges that companies have with their data?

NG: The biggest challenge every company has is that the amount of data that’s created now is greater than all of the data created in history. And it’s because every single person is creating data. We’ve thought of data quality as business quality — it is critical for businesses to have good, accurate data to be able to make faster decisions.

In the 90s, I think the priority was to warehouse data, just have data sit somewhere. In the 2000s, the priority was making data accessible and having “big data,” if you will. But in the past five to 10 years, the priority is no longer just having access to data. Everyone’s using data, but it’s how you use it. And there have been a lot of AI companies coming out with models that help come up with insights from your data. But the pipes need to be really clean and the data needs to be completely accurate before attempting to use any type of data since business-critical business decisions will rely on this data.

That’s why at BaseCap we’re so proud of guaranteeing that data is accurate and fit for purpose before it’s used by the organizations.

SW: There are tons of people out there talking about data, there are less people who address using data to really impact your business.

NG: Yes, in fact, when we speak to clients, one of our strengths is that we relate to the pain that they’re experiencing. Business people are the ones feeling the pain, and they rely on their technology teams to be able to fix any type of data problems. Since there are so many philosophies behind treating data and managing data, we will always sit on top of databases, but which specific databases we need to sit on depends on the client. We see the data and technology teams as our partners internally and the business people as the major beneficiaries of our offering.

SW: All this data represents a lot of opportunity for mortgage companies, but also poses a lot of risk.

NG: Yes. Our first use case was heavily reliant on regulatory data — credit risk data that went out to the Federal Reserve and the OCC, and so our target was always governance, compliance, and making sure that banks are using accurate data for this type of critical analysis. As a business strategy, we’ve always targeted organizations that are heavily regulated, because data has become such a critical component of their compliance and ongoing operations. Our background empowered us to create a tool that’s built with that compliance and governance framework in mind.

SW: How is BaseCap utilizing AI?

NG: We are using generative AI to enhance the policies we use to find anomalies in data. It’s a critical part of the expansion we’re planning into new industries, which is going to be incredibly efficient because of the use of AI. The way we create all the policies to check on the accuracy of data for banks, has relied on expertise from industry experts and team members. Having the power of generative AI sourcing expertise for other industries with the proper guardrails, of course, is going to enable us to have a much leaner operation to scale.

SW: When you look five to 10 years out, what will be the next set of problems to solve?

NG: It’s hard to tell, but some of the discussions that we had at NAHREP‘s L’Attitude event involved understanding new platforms and new things being offered. And within those, we have blockchain, we have signature technology, we have background checks, credit checks that are done a lot more seamlessly nowadays. And all these things are huge innovations for the mortgage industry. And every industry is going through similar types of innovations.

But for us to be able to really see all of these come together, there needs to be a seamless and efficient integration. The orchestration of all these platforms is going to be what drives the actual change in how things are done.

SW: You mentioned NAHREP and L’Attitude, where you were part of the Matchup pitch competition last year, and they became one of your investors. What has that investment meant to BaseCap?

NG: L’Attitude has a set of partners that are incredibly influential, not only in the mortgage industry, but in tech and politics and in business. The former CEO of United Airlines is a partner. We have a team that’s incredibly involved. Gary Acosta, the co-founder and CEO of NAHREP and a partner at L’ATTITUDE Ventures, meets with us on a weekly basis to discuss sales pipeline and makes introductions from his industry network. And we have expertise sessions with finance experts and sales experts that help support our operation. It’s exactly what we were looking at in an investor: having that involvement and alignment that’s not limited to capital but that also adds day-to-day value to our operations.

Source: housingwire.com

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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

By 2028, women are projected to own 75 percent of discretionary spending in the United States. [Nielsen]

Considering women make up 51 percent of the U.S. population, female consumer trends have a strong influence on the economy. Collectively they make up a sizable growth market that can’t be ignored.

Women are increasingly invested in the quality of the items they buy and how well they fit their lifestyle. Since they’re more likely to shoulder the responsibility for things like household purchases, grocery shopping and meal preparation, convenience is a high priority in women’s spending habits and something they seek out in their everyday lives.

Businesses that fail to understand the unique characteristics of female consumers are ultimately losing out on a valuable market. Greater effort will be required to keep up with the evolving consumer landscape that is driven largely by women. By analyzing the statistics associated with women’s spending habits, we can gain insight into their preferences, values and thought processes when it comes to what and how they buy. Read on to learn more.

Note: We reference the most updated data available, but sometimes that information is from several years ago—check each individual source for specifics.

Table of contents:

An overview of female consumer trends

The impact of female consumerism in the U.S. is hard to understate, as they make the majority of all consumer purchases. This could be attributed to the fact that women often buy not only for themselves but also for their families and children.

With women leading the majority of household purchases, retailers could benefit from focusing on how they can best serve the vast number of female consumers who stimulate their sales year after year.

  • By 2028, women are projected to own 75 percent of discretionary spending in the United States. [Source: Nielsen]
  • Women make 91 percent of new home purchases. [Source: Girlpower Marketing]
  • An average of 89 percent of women across the world reported controlling or sharing daily shopping needs, household chores and food prep compared to an average of approximately 41 percent of men. [Source: Nielsen]
  • Women are the primary purchasers of everyday household items. [Source: Nielsen]
  • 61 percent of women in the U.S. believe that they are worse off or about the same compared with five years ago when it comes to finances. [Source: Nielsen]
  • 67 percent of women in 2019 were employed for pay. [Source: Civic Science]

Men’s vs. women’s spending habits

There are often notable differences between the minds of men and women, including what motivates them when it comes to their spending habits. While neither gender can be placed in a box and a broad range of characteristics exist for each, there are general patterns that can shed light on their financial lives and choices.

The answer to the question “Do women shop more than men?” is a bit complex. Women are often far more selective in their purchases than men and are willing to spend the time necessary to find products that fit their needs and requirements. While men are usually more straightforward and goal-oriented in their shopping, women are more detail-oriented, paying attention to the quality of an item before purchasing. The majority of men prefer to get in and get out of a store as quickly as possible, while women generally enjoy the shopping process as a whole.

Female buying behaviors indicate that they want a risk-free and convenient shopping experience, which goes hand in hand with their desire for their purchases to enhance their lifestyles. They frequently prioritize ensuring that their purchases check every box and fulfill their needs, and usually spend more time than men making sure of this before spending any money.

  • 43 percent of women and 52 percent of men prefer making technology purchases online. [Source: First Insight]
  • 74 percent of women report finding items on sale matters to them in their purchasing habits, compared to just 57 percent of men. [Source: Belvg]
  • 34 percent of women report caring about applying coupons and promotions to their purchases, compared to 26 percent of men. [Source: Belvg]
  • 14 percent of women are inclined to study promotional emails, compared to only 8 percent of men. [Source: Belvg]
  • 58 percent of women report checking products and prices on Amazon.com before looking elsewhere, compared to 64 percent of men. [Source: First Insight]
  • 42 percent of women are encouraged to buy online if free delivery is included, as opposed to 35 percent of men. [Source: Nielsen]
  • 91 percent of women buy food and groceries in-store, compared to 86 percent of men who do the same. [Source: First Insight]
  • Women are 48 percent more likely to use reusable shopping bags than men. [Source: Civic Science]
  • 30 percent of women are encouraged to shop online if they receive text or email updates on product availability, as opposed to 27 percent of men. [Source: Nielsen]
  • 42 percent of women are encouraged to buy online when the purchase includes a money-back guarantee, as opposed to 31 percent of men. [Source: Nielsen]
  • 67 percent of women examine food labels to determine if a product is healthy, while only 48 percent of men do the same. [Source: Nielsen]
  • Women are 13 percent more likely than men to deem a product premium based on whether it contains high-quality ingredients. [Source: Nielsen]
  • Slightly more women than men prefer to shop online at 72 percent, compared to 68 percent of men. [Source: Belvg]

Online vs. in-store shopping habits

While the digital shopping landscape continues to grow more robust and popular with each passing year, women are still making more in-store purchases than they are online. However, even though women consumers are more inclined to spend more in-store, they aren’t as inclined to visit a store in person unless they have a specific purchase in mind. Retailers can capture this opportunity by making sure they’re offering the exact products women are specifically searching for when they visit a store.

  • 72 percent of women shop online. [Source: OptinMonster]
  • When shopping online, 77 percent of women say they add extra items to their carts that they didn’t originally intend to purchase. [Source: First Insight]
  • Adding extra unplanned items to their cart is more common among in-store shoppers, with 89 percent of women saying they sometimes or always do so when shopping in person. [Source: First Insight]
  • 69 percent of women choose in-store shopping when they need something specific. [Source: First Insight]
  • 56 percent of women choose online shopping when they have a specific need for something. [Source: First Insight]
  • 70 percent of women usually spend $50 or more when shopping in-store, compared to only 49 percent who spend more than $50 when shopping online. [Source: First Insight]
  • 33 percent of women spend over $100 during an average in-store shopping trip, while only 17 percent say they spend over $100 when shopping online. [Source: First Insight]
  • 91 percent of women buy food and groceries in-store. [Source: First Insight]
  • 47 percent of women shop on eBay, and 80 percent of women use Etsy. [Source: RepricerExpress]
  • 46 percent of women shop for clothing and sporting goods online. [Source: Belvg]
  • 25 percent of women purchase books, magazines and learning materials online. [Source: Belvg]
  • 10 percent of women buy medicine online. [Source: Belvg]
  • 35 percent of women spend on travel and holiday accommodations online. [Source: Belvg]
  • 30 percent of women purchase household items online. [Source: Belvg]
  • 26 percent of women purchase event tickets online. [Source: Belvg]
  • 16 percent of women buy music or movies online. [Source: Belvg]

What consumer goods are women buying?

With data pointing to women as most often responsible for the majority of grocery shopping and meal preparation, the food industry represents a significant opportunity for companies to find ways to connect with their female consumers.

Women also spend significant amounts on beauty products, clothes and travel. With clothing ranking as a top spending category among women, the continued evolution of the retail world represents a chance to lean further into the habits of women consumers.

Beauty and skin care spending 

Women have historically spent a considerable amount on personal care, cosmetics and skin care, and it’s no different today. While makeup and beauty products aren’t a part of every woman’s routine, almost everyone uses some type of skin care product—even if it’s just sunscreen or hand lotion. This sheds some light on the astonishing size and increasing growth of the skin care market, particularly among women.

While older consumers used to lead the demand for products in these industries, an increasing number of younger women now play a significant part. This could explain the shift in the market, indicating women’s increasing desire for more natural and organic products, which continues to go up as consumers become more knowledgeable about toxic ingredients in their products and factors like sun damage. Cosmetics and skin care brands that recognize these emerging values among their consumers will outgrow those that don’t.

  • The global skin care industry is estimated to reach $189.3 billion in the U.S. by 2025. [Source: Statista]
  • Natural cosmetics had a global market value of $34.5 billion in 2018, and are expected to increase in value to $54.5 billion by 2027. [Source: Statista]
  • Women who spend money on their appearance will spend roughly $225,360 in a lifetime. [Source: OnePoll]
  • When it comes to beauty-based purchases, women spend the most on facials, haircuts, makeup, manicures and pedicures. [Source: OnePoll]
  • Women spend $91 a month on facial products. [Source: OnePoll]
  • The fragrance industry will reach an estimated $91.17 billion globally by 2025. [Source: Health Careers]
  • Women in their 30s buy more anti-aging products than women between the ages of 40 and 60. [Source: OnePoll]
  • Women in their 20s make more makeup purchases than any other age group. [Source: OnePoll]

Household and grocery spending

Data shows that women do the majority of household spending, grocery shopping and meal preparation. With women generally spending more time on household duties than men, it’s no surprise that much of their spending is allocated to these categories.

  • Women are twice as likely to take charge of household grocery shopping than men. [Source: Civic Science]
  • 80 percent of women who have children and live with a spouse or partner say they are typically in charge of meal prep. [Source: Pew Research]
  • 75 percent of women without children who live with a spouse or partner say they are typically in charge of meal prep. [Source: Pew Research]
  • 80 percent of women who have children and live with a spouse or partner say they are typically the grocery shopper. [Source: Pew Research]
  • 68 percent of women without children who live with a spouse or partner say they are typically the grocery shopper. [Source: Pew Research]
  • Women spend more money per grocery shopping trip than men, averaging $44.43 per trip. [Source: Nielsen]

Clothing spending

Clothes have always been a large category of spend among women. The market value for women’s retail is expected to rise to around $394 billion by 2025, and retailers are becoming more aware of what women want in their clothing. They value versatility and functionality without sacrificing function and utilize their fashion choices as a source of empowerment and confidence.

Growth in the retail industry among women could be due to the fact that economically empowered female consumers who maintain the majority of control of spending in American homes have more purchasing power, much of which continues to be allocated toward clothes.

Digital trends are also impacting women’s shopping habits, and almost three-quarters of women now shop online. Women are increasingly utilizing social media platforms for fashion discovery, product inspiration and finding authentic reviews from their peers online.

  • On average, the clothes in a woman’s wardrobe equal between $1,000 and $2,500. [Source: CreditDonkey]
  • 9 percent of women have over $10,000 worth of clothing in their closet. [Source: CreditDonkey]
  • 32 percent of women in the U.S. own over 25 pairs of shoes. [Source: CreditDonkey]
  • Over half of women estimate that 25 percent of their wardrobe goes unworn. [Source: CreditDonkey]
  • Every three months, 73 percent of women refresh one quarter of their closet. [Source: CreditDonkey]
  • Around 15 percent of women don’t have clothes older than five years old in their closet. [Source: CreditDonkey]
  • Women who are 16 and older spend an average of 76 percent more on clothing than men every year. [Source: CreditDonkey]
  • Women between the ages of 45 and 54 spend $793 per year on clothing, the highest spent of any age group. [Source: CreditDonkey]
  • 75 percent of women over 18 would choose Target for undergarments over Victoria’s Secret. [Source: Civic Science]

Women’s purchasing values

Diversity and inclusion factors have a larger impact than ever on women’s shopping decisions and expectations. With diversity and inclusivity growing increasingly important in the world of retail and beyond, women consumers expect brands to evolve with the cultures they serve. Among women today there is more scrutiny of brands’ and retailers’ values, hiring practices, product-to-market placements and ability to truly listen to their customers.

Women, like all people, are driven by their values and habits, so understanding what’s important to them, what their day-to-day lives look like and what makes them unique is crucial in fostering a true connection that might influence purchasing behavior.

  • About half of women in the U.S. believe that having minority-held leadership positions is important and believe that retailers would benefit from hiring Chief Diversity Officer positions. [Source: First Insight]
  • 45 percent of women say cultural inclusivity in brands is important. [Source: First Insight]
  • 44 percent of women believe it’s important for influencers to represent diverse points of view. [Source: First Insight]
  • 67 percent of women say that inclusivity in extended sizing is the top diversity factor to consider. [Source: First Insight]
  • 55 percent of women in the U.S. say they would temporarily stop shopping at a brand or retailer who released an offensive product. [Source: First Insight]
  • 71 percent of women believe brands and retailers should make it at least six months without any offensive items released before they would feel comfortable purchasing from them again. [Source: First Insight]

Opportunities for financial success

Women who are active in their own financial planning are less stressed on average than those who avoid it. There are many ways to prioritize financial success such as committing to your retirement savings, learning investment strategies and managing your personal credit and debt.

Managing credit card debt or poor credit is an important starting point on the road to financial success. Taking responsibility for debt or bad credit will help you secure a more prosperous financial future, and utilizing the help of a credit repair team could help you manage the process. If you are a woman moving toward financial independence, know that it’s never too late to take steps toward a brighter financial future.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Reviewed By

Sarah Raja

Associate Attorney

Sarah Raja was born and raised in Phoenix, Arizona.

In 2010 she earned a bachelor’s degree in Psychology from Arizona State University. Sarah then clerked at personal injury firm while she studied for the Law School Admissions Test. In 2016, Sarah graduated from Arizona Summit Law School with a Juris Doctor degree. While in law school Sarah had a passion for mediation and participated in the school’s mediation clinic and mediated cases for the Phoenix Justice Courts. Prior to joining Lexington Law Firm, Sarah practiced in the areas of real property law, HOA law, family law, and disability law in the State of Arizona. In 2020, Sarah opened her own mediation firm with her business partner, where they specialize in assisting couples through divorce in a communicative and civilized manner. In her spare time, Sarah enjoys spending time with family and friends, practicing yoga, and traveling.

Source: lexingtonlaw.com

Apache is functioning normally

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Economists are scratching their heads and housing industry leaders are venting their frustrations as mortgage rates continue a relentless climb to new heights not seen in more than two decades, chasing yields on government debt that are being pushed higher by factors beyond Federal Reserve tightening.

The Optimal Blue Mortgage Market Indices, which track daily rate lock data, show rates on 30-year fixed-rate conforming loans hitting a new 2023 high of 7.59 percent Tuesday — an all-time high in Optimal Blue records dating to 2017.

At 7.95 percent, rates on jumbo mortgages that exceed Fannie Mae and Freddie Mac’s loan limits looked poised to push through the 8 percent benchmark, as paper losses mount at banks that fund most jumbo lending and Treasury yields rise.

National Association of Realtors Chief Economist Lawrence Yun vented his frustration with Fed policymakers, who have telegraphed their intention to implement at least one more rate hike this year.

“The Fed is overdoing the rate hike,” Yun said in a LinkedIn post Wednesday. “The economy is measurably slowing. Even the lagging indicator job gains are coming in light.”

Yun said he’s worried that rising interest rates could actually fuel inflation as would-be homebuyers throw in the towel, fueling more demand for rentals, and making housing more scarce as builders balk at paying higher rates on construction loans.

A weekly survey of lenders by the Mortgage Bankers Association (MBA) showed that applications for purchase loans were down a seasonally adjusted 6 percent last week when compared to the week before, and 22 percent from a year ago.

Joel Kan

“The purchase market slowed to the lowest level of activity since 1995, as the rapid rise in rates pushed an increasing number of potential homebuyers out of the market,” MBA Deputy Chief Economist Joel Kan said in a statement.

With rates on 30-year fixed-rate conventional loans rising for the fourth consecutive week to the highest rate since 2000, Kan said some borrowers searching for ways to lower their monthly payments are turning to adjustable-rate mortgage (ARM) loans.

Although ARM loans accounted for 8 percent of mortgage applications last week, they had an even bigger share when mortgage rates made a similar surge last fall. During the second week of October 2022, ARM loans accounted for 13 percent of applications, the highest share since March 2008.

Appearing on CNBC’s “Squawk Box,” Yun noted that rates on ARM loans aren’t much lower than those for more traditional 30-year fixed-rate conventional loans (according to the MBA survey, rates on ARM loans averaged 6.49 percent last week).
“My advice right now is go into the 30-year fixed, because even with that, one can always refinance once the interest rate goes down,” Yun said. “The mortgage rates are topping out now — hopefully there is some downward drift in the upcoming months.”

MBA CEO Bob Broeksmit expressed similar sentiments on CNBC Wednesday, urging the Fed to “be clear that they’re done with rate increases” and to also “make clear that they’re not going to sell mortgage-backed securities off their balance sheets.”

Jumbo mortgage rates spike

Homebuyers seeking jumbo mortgages exceeding Fannie and Freddie’s conforming loan limits — $726,200 for one-unit properties in most areas of the country — have been hit particularly hard by recent rate increases.

At this time last year, rates on jumbo mortgages were about half a percentage point less than for conforming loans. Now the situation has reversed, with the “spread” between jumbo mortgages and conforming loans widening to nearly 40 basis points on Wednesday, according to Optimal Blue rate lock data.

Conforming loans are largely financed by investors who buy mortgage-backed securities guaranteed by Fannie and Freddie. But jumbo mortgages are mostly provided by banks that hold the loans on their books. Stresses on regional banks sparked by the failures of Silicon Valley Bank, Signature Bank and First Republic Bank have made jumbo loans more expensive and harder to come by this year.

This week, Rocket Mortgage began offering some relief by pricing mortgages of up to $750,000 as conforming, in anticipation that Fannie and Freddie’s 2024 loan limits will go up by at least 3 percent on Jan. 1 to reflect home price appreciation over the last year.

Mike Fawaz

“The market has changed a lot, and jumbo pricing isn’t as favorable as it used to be,” Mike Fawaz, executive vice president of Rocket’s wholesale channel, Rocket Pro TPO, told Inman.

Banks that have large holdings of Treasurys are seeing the value of those assets decline as interest rates rise, helping push unrealized losses on bank balance sheets up by 8.3 percent during the second quarter, to $558.4 billion, according to the Federal Deposit Insurance Corp.

10-year Treasury yields at highest since 2007

Yields on 10-year Treasury notes, a barometer for mortgage rates, surged to a new 2023 high of 4.80 percent Tuesday, a level not seen since August 2007 on the eve of the subprime mortgage crisis.

While the Fed has tight control over short-term interest rates, rates on long-term assets like Treasurys and mortgage-backed securities (MBS) that fund most home loans are dependent on investor demand. When investors are eager to put their money in bonds and MBS, that pushes rates down. But when investors lose their appetite for those assets, that drives rates up.

The recent surge in long-term Treasury yields has defied many forecasters’ expectations, and economists are searching for reasons.

Last year’s rise in long-term rates was driven “by market expectations of higher short-term rates as the Fed tightened policy and by investors’ demands for extra compensation to hold longer-dated assets because of fears of higher inflation,” The Wall Street Journal’s Nick Timiraos reported Wednesday.

With inflation seemingly cooling and the Fed signaling that it’s done, or will soon be done, raising short-term rates, economists suspect flagging demand for Treasurys by foreign investors, U.S. banks and investment managers could be factors in the sustained rise in long-term rates, Timiraos reported.

Even if long-term rates have peaked, there’s increasing uncertainty over whether they’ll come down next year, as many economists and investors had been anticipating.

“What we’re seeing is a reappraisal of how the bond market prices uncertainty itself,” PGIM Fixed Income economist Daleep Singh told Timiraos. “The compensation required to underwrite potentially the new structural regime with more volatile growth and inflation and fewer predictable sources of demand to absorb record amounts of government debt issuance has clearly risen.”

Another factor crimping demand is that the Fed, which bought trillions of Treasurys bonds and MBS during the pandemic to bring borrowing costs to historic lows, is now letting those investments roll off its books.

Fed has trimmed $1 trillion from balance sheet

Source: Board of Governors of the Federal Reserve System, Federal Reserve Bank of St. Louis

The Fed’s Treasury and MBS holdings peaked at $8.5 trillion last year, but a shift to “quantitative tightening” has allowed the central bank to trim its assets by more than $1 trillion by allowing $60 billion in maturing Treasurys and $35 billion in MBS to roll off its books each month.

Broeksmit said that the spread between 10-year Treasury yields and 30-year fixed-rate mortgages is about 125 basis points higher than its historic norm and that the Fed is partly responsible.

“I still think some of the increase in the spread between the Treasury and the mortgages is a fear that the Fed would actually sell [MBS] in the open market,” Broeksmit said on CNBC. “So if they were to make clear that that’s not on the horizon, I think that that would help and the bank demand will, I think, come back. We’ve seen some increase in supply with some of the failed banks MBS being on the market, but I think that’s mostly been resolved.”

Where rates are headed next

Futures markets tracked by the CME FedWatch Tool put the probability of one or more additional Fed rate hikes this year at 37 percent, but see a one-in-five chance (19.6 percent) that the Fed will bring rates back down below current levels by March before the spring homebuying season kicks off.

The upcoming Nonfarm Payrolls report to be released Friday by the U.S. Bureau of Labor Statistics is likely to play a factor in determining where rates are headed next, as Fed policymakers see tightness in the labor market as a key driver of inflation.

Tuesday’s release of the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS) report seemed to panic bond market investors, sending yields on 10-year Treasurys up 12 basis points.

The JOLTS data, which showed job openings increased by 690,000 at the end of August, to 9.6 million, “was startling, but the data are very noisy and are subject to large revisions,” Pantheon Macroeconomics analysts said in their U.S. Economic Monitor report Wednesday.

“We don’t take JOLTS seriously, but the surge in yields and plunge in stock prices after the release of the data yesterday says a great deal about the pervasive nervousness of investors,” Pantheon economists Ian Shepherdson and Kieran Clancy wrote.

Bond market investors “appear to be taking seriously the Fed’s collective assertion that rates will stay higher for longer, despite the abundant evidence that the Fed’s interest rate forecasts are rarely correct,” they said.

‘Dot plot’ reflects Fed’s ‘higher for longer’ rate strategy

Fed policymakers voted unanimously on Sept. 20 to keep the central bank’s target for the short-term federal funds rate at 5.25 to 5.5 percent.

But looking at the Federal Open Market Committee’s latest “dot plot” — projections of where policymakers think the short-term federal funds rate will be in the future — most see the need for one more rate hike this year. By the end of next year, however, some think it will be as low as 4.375 percent or as high as 6.125 percent (hawkish Federal Reserve Governor Michelle Bowman could be the outlier on the high end).

That is an “enormous” spread of 1.75 percentage points, Shepherdson and Clancy wrote, “but markets for now are interested only in the upside risks.”

Betting that Treasury yields have peaked “seems extraordinarily risky,” the Pantheon economists concluded. “But unless you think the U.S. economy can grow at a real 2 1⁄2 percent pace forever, untroubled by the Fed, 10-year yields can’t be sustained at the current level. The market won’t flip, though, until the data shift, and Fed officials acknowledge the change.”

In the meantime, Pantheon economists say, “yields could overshoot further.”

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Source: inman.com