Republicans Continue To Fight Mortgage Fee Changes

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.…

Learn More About The Construction Lending Market With CEO Brian Mingham

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 Rolls Out 1% Down Payment Program

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…

Closing The Gap: Fannie Mae’s Credit Building Program Finds Success

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…

Snapdocs Founder Talks About The Value Of Digital Closings

By KIMBERLEY HAAS The founder and CEO of the digital closing platform Snapdocs says adopting a technology strategy that reduces costs can help mortgage lenders now and as the market bounces back. Aaron King recently sat down with The Mortgage Note to talk about the value of digital closings. He said Snapdocs, headquartered in San Francisco, is a national company founded in 2012 on the observation that these closings require all of the parties involved in a real estate transaction to connect seamlessly. “While the technologies existed, there was too much fragmentation between parties and the transactions themselves were too dynamic to apply these technologies until you worked on connecting all the parties. The vision of Snapdocs is we build…

Leaders React To Mortgage Fee Changes As Debate Continues

By CHUCK GREEN Industry leaders and economists are sharing their opinions about changes to fees for loans backed by Fannie Mae and Freddie Mac after reports 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. The changes to the loan-level price adjustment matrix by officials at the Federal Housing Finance Agency went into effect on May 1 and are the target of two bills in Congress. Rep. Stephanie Bice of Oklahoma, vice chairwoman of the Republican Main Street Caucus, introduced the Free Market Mortgage Act. She said the changes will force homebuyers with good credit to pay more for their mortgages to subsidize loans…

Unique Opportunities: A Look At The Spring Season In Nontraditional Markets

By CHUCK GREEN Tradition dictates that April and May are the hottest months for the housing market but there are unique opportunities in parts of the country where that isn’t necessarily the case. Rick Sharga, president & CEO of CJ Patrick Company in Trabuco Canyon, California, says that although there is truth to the idea that home sales increase as the weather improves, there are exceptions to the rule. “Markets with a late spring – cold weather states in particular like Alaska or North Dakota – might have a later start to the traditional home selling season, while markets with more temperate clients like California and Hawaii may not be quite as dependent on changing seasons to encourage home buyers…

Listen To The Mortgage Note’s Spring Podcast

The Mortgage Note’s team has been tracking national trends and the ways companies are working to attract buyers and sellers to the market this spring. Editor Kimberley Haas interviewed industry leaders to learn more about what they are seeing and what products are being offered for this podcast. If you would like to participate in future episodes, please email us at [email protected]. Read Articles Featuring The Guests: Sun Belt Success And Stress: One-On-One With Troy Williamson Support For Multifamily Homebuyers On The Rise Innovations In Lending: One-On-One With Knock CEO Sean Black Growing Enterprises: Presale Home Renovation Company Revive Continues National Expansion Follow Us On Twitter: The Mortgage Bankers Association's National Advocacy Conference is taking place in Washington, D.C. What…

Fed Raises Rates Another Quarter Point as Powell Hints at Possible Pause

By PATRICK LAVERY Incremental but persistent increases in the Federal Open Market Committee’s policy interest rate have now officially entered a second year, with Federal Reserve Chair Jerome Powell announcing another quarter-percentage point hike on Wednesday. The target rate is now 5.25%, up five full points since April 2022. Powell reiterated in his prepared remarks that the Fed’s objective is returning inflation to 2%, its historic target. Unfortunately, Powell acknowledged, interest rates remain stubbornly high. Powell said that for the 12 months ending with this past March, total Personal Consumption Expenditures prices rose 4.2%, excluding food and energy prices which tend to be more volatile, while core PCE prices were up 4.6%. “Inflation has moderated somewhat since the middle of…

Rocket Mortgage EVP: Addressing Affordability Is A Top Priority

By KIMBERLEY HAAS As the housing market moderates after a whirlwind pandemic ride, affordability continues to be a chief concern for consumers and mortgage providers are responding with a variety of programs to encourage potential buyers to get off the sidelines. Leaders at Rocket Mortgage say that a major hurdle on the path to homeownership for their clients is saving for closing costs and earlier this month they announced a national program where buyers can receive help through BUY+, a collaboration with Rocket Homes. Buyers can receive a credit of 1.5% of their loan amount – up to $10,000 off their closing costs – by working with a Rocket Homes Partner Agent. Those working with an unaffiliated real estate professional…