12 housing markets forecast to explode, LoanDepot, SitusAMC, Cenlar announce leadership hires & more of the week's top news
July 16, 2021 5:44 PM
Stanislav Davydov - stock.adobe.com
12 housing markets expected to boom into 2022
While perhaps not as robust as 2020 ’s record-shattering volume, the rest of 2021 and 2022 are expected to see high demand for home purchases, especially as consumers look to secure low mortgage rates and younger generations reach home buying age.
Using a model that combines the historic price levels, current market values and supply conditions, Zillow forecasted the year-over-year home price growth by May 2022 in the 100 largest metro areas. From the Sun Belt to the West, local lenders from the top 12 housing markets in expected appreciation rates talk about what makes their cities ripe for a boom.
Read thefull story here.
Using a model that combines the historic price levels, current market values and supply conditions, Zillow forecasted the year-over-year home price growth by May 2022 in the 100 largest metro areas. From the Sun Belt to the West, local lenders from the top 12 housing markets in expected appreciation rates talk about what makes their cities ripe for a boom.
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LoanDepot, SitusAMC, Cenlar and more announce leadership hires
Retail lender loanDepot appointed George Brady, former chief technology officer at Capital One, as chief digital officer, a new role for the company based in Foothill Ranch, California.
New York-based SitusAMC, a provider of technology and outsourcing services in the commercial and residential real estate industries, named Garry Herdler chief financial officer.
Evolve Mortgage Services announced the closing of its acquisition with E-Notary Seal, a digital tool streamlining the signing andnotarization of mortgage documents from any device. With the deal, Felicia Grimes, who founded E-Notary Seal in 2019, becomes vice president of Evolve’s eMortgage division.
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New York-based SitusAMC, a provider of technology and outsourcing services in the commercial and residential real estate industries, named Garry Herdler chief financial officer.
Evolve Mortgage Services announced the closing of its acquisition with E-Notary Seal, a digital tool streamlining the signing and
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Guaranteed Rate, Compass partner to create new originations business
Retail mortgage lender Guaranteed Rate and national residential brokerage Compass announced Tuesday they had entered an agreement to form a new mortgage origination company.
The new firm, called OriginPoint, will integrate Guaranteed Rate’s digital mortgage capabilities with Compass’s cloud-based software, allowing Compass’s clients — as well as those of other brokerages — to connect with loan officers. The combined venture aims to streamline the home buying andmortgage origination process . Entering the lending market is a new endeavor for New York-based Compass, which began trading as a public company earlier this year.
“OriginPoint brings together two digital-first companies to deliver a mortgage product that provides a seamless and transparent experience for agents and their clients, which ultimately leads to a simpler real estate transaction for everyone involved," said Robert Reffkin, Compass CEO, chairman and founder.
Read thefull story here.
The new firm, called OriginPoint, will integrate Guaranteed Rate’s digital mortgage capabilities with Compass’s cloud-based software, allowing Compass’s clients — as well as those of other brokerages — to connect with loan officers. The combined venture aims to streamline the home buying and
“OriginPoint brings together two digital-first companies to deliver a mortgage product that provides a seamless and transparent experience for agents and their clients, which ultimately leads to a simpler real estate transaction for everyone involved," said Robert Reffkin, Compass CEO, chairman and founder.
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Fannie Mae, Freddie Mac loan modifications reach a pandemic high
Modifications of loan terms for financial hardships at Fannie Mae and Freddie Mac in April topped 5,000 for the first time since the coronavirus arrived in the United States, according to the Federal Housing Finance Agency’s latest monthly report.
The number of mortgages modified by the two government-sponsored enterprises rose to 5,271 from 4,849 in March and 4,528 in April 2020, the FHFA’s Foreclosure Prevention and Refinance report shows. Monthly modifications at the GSEs were last this high in March 2020 when they totaled 5,570.
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The number of mortgages modified by the two government-sponsored enterprises rose to 5,271 from 4,849 in March and 4,528 in April 2020, the FHFA’s Foreclosure Prevention and Refinance report shows. Monthly modifications at the GSEs were last this high in March 2020 when they totaled 5,570.
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Recreational marijuana is a gateway drug to higher home prices
If you want to get high property value appreciation, look no further than housing markets with legalized marijuana.
From April 2017 to April 2021, home prices grew by an average of $17,113 more in states that permit recreational cannabis sales over those where it’s prohibited or strictly only available for medicinal use, according to Clever Real Estate. While the marijuana industry has already boostedincreased home prices through job creation and subsequent buyer demand, it’s pushing up values now through tax dollars.
Eight states collected taxes on the sales of it in 2020, generating $2.3 billion in combined revenue. California led the eight with over $1 billion, followed by $469.2 million in Washington and $387.5 million in Colorado.
Read thefull story here.
From April 2017 to April 2021, home prices grew by an average of $17,113 more in states that permit recreational cannabis sales over those where it’s prohibited or strictly only available for medicinal use, according to Clever Real Estate. While the marijuana industry has already boosted
Eight states collected taxes on the sales of it in 2020, generating $2.3 billion in combined revenue. California led the eight with over $1 billion, followed by $469.2 million in Washington and $387.5 million in Colorado.
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JPMorgan Chase's Q2 mortgage income may be a harbinger for others
If JPMorgan Chase's results for its home lending business lending are an indicator, mortgage companies could be seeing significant quarter-to-quarter declines in origination revenue due to competitive pressures.
"JPMorgan Chase's mortgage banking results were generally a bit weaker than our expectations as strong, resilient volumes were overshadowed by a sharp reduction in gain-on-sale profitability," Bose George of Keefe, Bruyette & Woods wrote in a flash note, adding the "slightly negative" change to the bank's mortgage servicing rights valuation was in line with his expectations. "While we view the read-across from JPMorgan Chase as useful, we think earnings from Wells Fargo tomorrow should be a broader indicator of industry trends."
The company's total mortgage fees and related income, taking into account both origination and servicing activities, was $548 million for the second quarter, compared with $703 million the previous quarter and $917 million forthe second quarter of 2020.
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"JPMorgan Chase's mortgage banking results were generally a bit weaker than our expectations as strong, resilient volumes were overshadowed by a sharp reduction in gain-on-sale profitability," Bose George of Keefe, Bruyette & Woods wrote in a flash note, adding the "slightly negative" change to the bank's mortgage servicing rights valuation was in line with his expectations. "While we view the read-across from JPMorgan Chase as useful, we think earnings from Wells Fargo tomorrow should be a broader indicator of industry trends."
The company's total mortgage fees and related income, taking into account both origination and servicing activities, was $548 million for the second quarter, compared with $703 million the previous quarter and $917 million for
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Bank 2Q mortgage production up 7%, but financials slip
Bank lenders that have reported results so far saw higher mortgage production but lower financial returns in the second quarter.
"While volumes were largely consistent with industry expectations, the notable data point was the sharp decline in gain on sale margins," said Keefe Bruyette & Woods analyst Bose George. These banks that George covers — Wells Fargo, Bank of America, Citigroup and First Republic — followedthe pattern of JPMorgan Chase.
Mortgage originations actually increased by 7% bothquarter-to-quarter and year-over-year for those banks on average, although Citi did less business in the second quarter compared with three months prior.
Read thefull story here.
"While volumes were largely consistent with industry expectations, the notable data point was the sharp decline in gain on sale margins," said Keefe Bruyette & Woods analyst Bose George. These banks that George covers — Wells Fargo, Bank of America, Citigroup and First Republic — followed
Mortgage originations actually increased by 7% both
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Better to enter U.K. mortgage biz with Trussle acquisition
Following up on plans to bring its services to the international consumers, Better.com is acquiring London-based online mortgage broker Trussle Lab.
Terms of the deal were not disclosed.
International home finance makes up $3.6 trillion of the over $15 trillion market for Better’s services, according to an estimate from a June investor presentation prepared for Better HoldCo'supcoming merger with Aurora Acquisition , a special purpose acquisition company. That amount topped the $3 trillion opportunity expected in the U.S. in 2021 and 2022, based on Fannie Mae forecasts .
Both Better and Trussle have some high profile investors on their respective rosters.American Express andSoftbank are among Better's backers, while Rabo Frontier Ventures (a unit ofRabobank ) and Goldman Sachs have put money into Trussle, according to Crunchbase.
Read thefull story here.
Terms of the deal were not disclosed.
International home finance makes up $3.6 trillion of the over $15 trillion market for Better’s services, according to an estimate from a June investor presentation prepared for Better HoldCo's
Both Better and Trussle have some high profile investors on their respective rosters.
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What federal policy changes mean for mortgage servicing in H2 2021
While the potential benefits from the Biden administration’s consolidated control of housing agencies are less clear for servicers than lenders , some believe second-half opportunities await loan workout experts who run tight ships.
Foreclosure bans and payment suspensions put in place amid the pandemic were quickly tracked by several federal policymakers fora phase-out after the administration established its control of the Federal Housing Finance Agency in late June. That creates a challenge for servicers: finding ways to handle post-pandemic policy transition in a timely, compliant and cost-effective way.
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Foreclosure bans and payment suspensions put in place amid the pandemic were quickly tracked by several federal policymakers for
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Bidding wars lessen in June as buyer fatigue hits housing market
Home buyer competition declined slightly in June as listings increased and price surges discouraged a growing number of consumers .
The overall share of properties facing bidding wars dropped for the second month in a row, to 65%from 72.1% in May and the all-time high of 74.1% in April, according to Redfin. It marks a year-over-year jump from 56.8% and it’s the 14th month in a row with over 50% of listings receiving multiple bids.
The drop in bidding wars falls in line with Fannie Mae’s June Home Purchase Sentiment Index, which found that a larger share of potential home buyersfelt market conditions were unfavorable , compared to May.
Read thefull story here.
The overall share of properties facing bidding wars dropped for the second month in a row, to 65%
The drop in bidding wars falls in line with Fannie Mae’s June Home Purchase Sentiment Index, which found that a larger share of potential home buyers
Read the
Interfirst launches product targeting private non-owner-occupied loans
Interfirst’s new program for non-owner occupied mortgages, “One” aims for simplicity, said Chief Strategy Officer Bryan Filkey.
"That has been a philosophy of mine ever since looking at the difference between the iPhone and the Android," Filkey said. "I couldn't care less about all the different things Android can do for me. I don't have the time to dig into it," he added, pointing out that he still has a single-button iPhone.
Mortgage brokers should aim for that kind of simplicity when working with borrowers, he said.
"If their experience is complex, you're not as good at your job as you think that you are," Filkey said. "And so I took it upon myself to say, can I take this vision on simplicity to the private market, but also keep the prudent rules and risk parameters that we want to have as an organization?"
Read thefull story here.
"That has been a philosophy of mine ever since looking at the difference between the iPhone and the Android," Filkey said. "I couldn't care less about all the different things Android can do for me. I don't have the time to dig into it," he added, pointing out that he still has a single-button iPhone.
Mortgage brokers should aim for that kind of simplicity when working with borrowers, he said.
"If their experience is complex, you're not as good at your job as you think that you are," Filkey said. "And so I took it upon myself to say, can I take this vision on simplicity to the private market, but also keep the prudent rules and risk parameters that we want to have as an organization?"
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Bloomberg New
FHFA ending fee meant to cover Fannie, Freddie’s COVID-related losses
The Federal Housing Finance Agency will eliminate a fee that lenders have paid since December to offset potential losses caused by the coronavirus pandemic, the agency said Friday.
The agency mandated the "adverse market fee" last year on loans sold to Fannie Mae and Freddie Mac to address economic uncertainty from COVID-19. The fee was similar to one implemented by the two mortgage companies during the 2008 financial crisis.
The refinance fee will end Aug. 1, the FHFA said in a letter to lenders.
Read thefull story here.
The agency mandated the "adverse market fee" last year on loans sold to Fannie Mae and Freddie Mac to address economic uncertainty from COVID-19. The fee was similar to one implemented by the two mortgage companies during the 2008 financial crisis.
The refinance fee will end Aug. 1, the FHFA said in a letter to lenders.
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Mortgage rates drop for the third consecutive week
The 30-year fixed-rate mortgage dipped slightly this week, even as the latest government Consumer Price Index pointed to inflation climbing in June at its fastest pace in over a decade.
According to Freddie Mac’s Primary Mortgage Market Survey, the 30-year average came in at 2.88% for the weekly period ending July 15, falling to its lowest point since February, and down two basis points from 2.9%the previous week . One year ago, the 30-year rate averaged 2.98%.
Despiteprevious concerns that interest rates would rise , it marked the third weekly drop in a row, continuing a 2021 trend of major economic news leaving markets relatively unswayed. Although Treasury yields initially spiked after the June report was released, they then subsided — as has been the case after previous announcements — leading to the latest small decline.
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According to Freddie Mac’s Primary Mortgage Market Survey, the 30-year average came in at 2.88% for the weekly period ending July 15, falling to its lowest point since February, and down two basis points from 2.9%
Despite
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Polly and ICE Mortgage Technology team up with loan trading exchange
Polly extended its working partnership with ICE Mortgage Technology and will incorporate its Loan Trading Exchange onto the Encompass platform.
The adjunct will streamline secondary mortgage deals by allowing lenders to automate capital market loan sales and removing the manual bid tape process. This aims to save the companies’ joint customers time while boosting sales activity. Previously, Polly’s LTE was only available through an application programming interface. Terms of the deal were not disclosed.
“We’re proud to say that no other capital markets system can currently offer this type of functionality, and we believe that this go-to-market partnership will respectively benefit each of our customer bases,” a Polly spokesperson said in a statement to NMN. “Other systems still require the seller to ensure the buyer has their bid tapes mapped. With Polly's system, there is no additional work required for the seller to maintain the format with the buyer.”
Read thefull story here.
The adjunct will streamline secondary mortgage deals by allowing lenders to automate capital market loan sales and removing the manual bid tape process. This aims to save the companies’ joint customers time while boosting sales activity. Previously, Polly’s LTE was only available through an application programming interface. Terms of the deal were not disclosed.
“We’re proud to say that no other capital markets system can currently offer this type of functionality, and we believe that this go-to-market partnership will respectively benefit each of our customer bases,” a Polly spokesperson said in a statement to NMN. “Other systems still require the seller to ensure the buyer has their bid tapes mapped. With Polly's system, there is no additional work required for the seller to maintain the format with the buyer.”
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June’s mortgage lending activity rebounds after two atypical months
June lending activity bounced back following two down months in the typical heart of normal home buying season , according to Black Knight.
Aftertumbling in April and reaching a 13-month low in May , the Originations Market Monitor Report showed a 3.9% monthly rise in volume, as jumps of 5.9% in purchase activity and 9.9%, in cash-out refinances more than made up for the 3.9% drop in rate-and-term refinances.
However, overall lending plummeted 21.3% annually, given thetidal wave of refinances that resulted from the drop in interest rates last year . June’s rate-and-terms decreased 56.8% year over year while purchases and cash-out refis grew by 7.3% and 10.2% respectively. The 30-year fixed-rate held at an average of 3.16% from May and grew from 3.12% a year ago.
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After
However, overall lending plummeted 21.3% annually, given the
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