By JARED WHITLEY
Storm clouds continue to hang over some U.S. markets. Four real estate titans have recently lost their Fortune 500 status. There are dire predictions specifically for the commercial real estate sector. Forbes summed up the housing market this week with, “Despite being well into the spring homebuying season, the housing market is still experiencing a winter chill.”
But for one company, the bad news is much worse.
Two lawsuits have been filed against Michigan-based United Wholesale Mortgage, with former underwriters accusing the company of a variety of misdeeds, including:
· Retaliation
· Hostile workplace environment
· Gender/sexual harassment
· Failure to pay minimum wages and overtime
This is the latest of a long list of accusations against…
By KIMBERLEY HAAS
As the commercial real estate market continues to change, office space is down, but not out, according to an economist who says a majority of companies are still committed to having a place where the “secret sauce” of their business is created.
Richard Barkham, global chief economist for CBRE in Dallas, said it may take up to nine years for the office market to fully recover but it is important to remember that not all of that sector has been badly hit by drops in value.
Barkham said that a large portion of the vacancies are in a minority of the stock, with 80% of the rise in vacancies in 10% of office buildings.
The office buildings…
By KIMBERLEY HAAS
As artificial intelligence continues to dominate news headlines, real estate leaders are speaking about what this wave of technology means for the future of their market.
Glenn Phillips, CEO of Lake Homes Realty, said AI is a “massive game changer” during the National Association of Real Estate Editors conference in Las Vegas on Tuesday morning.
“In real estate, there is going to be a massive transition of who’s going to get consumer’s attention,” Phillips said.
Phillips said AI is going to enhance how they look at consumer behavior and suggested that industry professionals form partnerships to bring themselves to scale.
Michael Gerrity, founder and CEO of Global Listings, said they’re already planning to flip the whole listings…
Tennessee now has more than seven million residents and a senior loan officer who works in the eastern half of the state says inventory and affordability issues have hit the communities he serves.
According to U.S. Census Bureau information, the population of Tennessee grew by 2% between April 1, 2020, and July 1, 2022. The latest population estimate is that 7,051,339 people live in the Volunteer State, a nickname earned because of Tennessean’s eagerness to step forward in times of war.
Athens, the county seat of McMinn County, is located near the eastern border between the cities of Knoxville and Chattanooga.
The population in Athens has grown from 14,086 residents in April 2020 to 14,371 in July 2022 and data…
By CHUCK GREEN
To home sellers who agonizingly watched the prices of their abodes recede recently, leaving a nasty gash in profits, there’s little to say but “ouch.”
Want a touch of solace? Apparently, the waters are rippling with plenty of others in the same predicament.
A first quarter 2023 U.S. Home Sales Report released by ATTOM showed that on median-priced single-family home and condo sales across the country, profit margins dipped to 44.2%, sagging from 48.7% in the fourth quarter of last year.
A silver lining is that the typical investment return stayed relatively high. In fact, it was nearly double where it was four years ago. From the peak of 56.1% in the second quarter last year, the…
By KIMBERLEY HAAS
After a 27-year career, Rocket Companies CEO Jay Farner is retiring this week and he will be remembered as a keen businessman who helped make mortgages more accessible to average Americans as technology pushed transactions out of traditional offices and onto mobile devices.
Leaders at the company announced Farner’s retirement on February 13, saying that he had stepped down from his position on the Rocket Board of Directors and would begin transitioning his roles and responsibilities as CEO to longtime Rocket executive Bill Emerson. Emerson will assume the role of chief executive officer on an interim basis on June 1, according to the press release.
Farner, who is 50 years old, said in a statement that he…
By KIMBERLEY HAAS
Changes to fees for loans backed by Fannie Mae and Freddie Mac continue to be a hot topic as Republicans push to repeal them.
The changes to the loan-level price adjustment matrix by officials at the Federal Housing Finance Agency went into effect on May 1 and critics are opposed to the notion that homebuyers with good credit scores and substantial down payments will pay more so fees for borrowers limited by income or wealth can be reduced.
Rep. Warren Davidson, R-Ohio, who introduced the Middle Class Borrower Protection Act on Monday, again attacked the policy on Wednesday. He refers to it as “a socialist redistribution of wealth.” Biden’s mortgage fee is a socialist redistribution of wealth.…
The CEO of a national end-to-end risk mitigation company says their platform opens doors to lenders that want to enter the construction market.
Leaders at CFSI Loan Management in Colorado say that at most lending institutions, construction loans make up less than 10% of originations due to the challenges and complexities of managing these transactions.
The company has completed more than 150,000 project inspections, 50,000 funding draws, and 25,000 project feasibility reviews. More than $15 billion in construction projects are being managed through CFSI’s construction lending platform, according to a press release.
Brian Mingham, founder and CEO of the company, was working in the mortgage business when the idea for CFSI was conceived. He says he saw the value in…
Rocket Mortgage is launching a product for low-to-moderate income borrowers to help get them on the ladder of homeownership.
With ONE+, homebuyers pay a down payment of 1% of the purchase price. Households with income equal to or less than 80% of their area median income are eligible.
Rocket will then kick in the remaining 2% required for a loan. ONE+ covers the monthly mortgage insurance fee required if a buyer places less than 20% down.
The program is available for single-family home purchases, including manufactured homes, and it is expected that more than 90 million Americans can save thousands of dollars.
Bob Walters, CEO of Rocket Mortgage, said in a statement that no other lender has an option that…
By KIMBERLEY HAAS
A Fannie Mae program designed to help build the credit scores of renters is finding success.
Launched in September, the Multifamily Positive Rent Payment Reporting pilot program allows property owners to share timely rent payment data with the three major credit bureaus. The goal is to accelerate the adoption of rent payment reporting so renters and prospective homebuyers with no or little credit can establish or improve their credit history.
Lenders can incorporate that data when evaluating potential homebuyers.
Leaders at Fannie Mae report that more than 263,000 rental units have been onboarded as of April 30. Over 10,000 renters in properties participating in the program have established credit for the first time and 58% of residents…
