Origination

The collapse of Zillow Group Inc.’s home-flipping operation is highlighting the close ties between tech-powered real estate companies and the Wall Street landlords hunting for rental houses.

The majority of prospective home sellers want to list their properties in the next six months, according to a recent survey by Realtor.com.

The company’s servicing operations also reported a quarterly profit, with its portfolio increasing by 20% annually.

But overall, customers are less satisfied with their origination experience compared with the 2020 survey, according to J.D. Power.

The average for a 30-year loan was 2.98%, down from 3.09% last week, Freddie Mac said in a statement Thursday.

The weekly gain was the largest since July, but overall activity still remains close to early 2020 lows.

After its most formidable competitor exited the business in the face of mounting losses, the company is seeking to reassure investors and consumers that its bid to re-engineer the $2 trillion U.S. housing market is still on track.

Nearly half of the company’s revenue comes from sources outside of the traditional home lending market, CEO Patricia Cook told analysts during the company’s earnings call.

The Federal Housing Administration’s changes seek to bring guidelines for specialized Title I programs in line with current borrower and market needs.

However, it remains 30% tighter than pre-pandemic levels, according to the Mortgage Bankers Association.