By TYRONE TOWNSEND and KIMBERLEY HAAS The metaverse is attracting a lot of attention from real estate investors, but they are not the only ones looking to the virtual world for a source of profit. Criminals are watching as well. Non-fungible tokens are reportedly the target of widespread criminal activity, with schemes including fraudulent giveaways, browser wallet hacks, and social engineering, posing risks to participants. Scams, in general, such as fake airdrops and phishing URLs, are also a cause for concern. The theft of cryptographic assets is expected to account for more than 99 percent of all illicit activities. How much money are we talking about here? The metaverse is expected to be worth $13 trillion by 2030, according to…
Housing inventory is increasing as mortgage rates are locking some buyers out of the market, but re-balancing comes with sacrifices for both buyers and sellers. Redfin reported that there were 2.9 months of home supply during the four weeks ending September 11. This is up from 1 month a year ago and the highest level since June 2020. Less than four months’ supply is typically considered a seller’s market, while four to six is a balanced market and six or more is a buyer’s market. The pandemic seller’s market peaked at a 1.8 months supply. In May, supply sat at 2 months, meaning the surge to 2.9 in September has happened quickly. Interest rates have skyrocketed since the beginning of…
Mortgage rates exceeded 6% last week for the first time since 2008, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 6.02%, up from 5.89% last week. A year ago at this time, the 30-year FRM averaged 2.86%. “Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week, exceeding six percent for the first time since late 2008,” said Sam Khater, Freddie Mac’s Chief Economist. Inflation rose more than expected in August, up 8.3% YOY, though prices are down some from record highs earlier this year. Analysts had anticipated an 8.1% YOY increase. “Today’s evidence of a peak in US CPI might be welcome but the figure of 8.3% was…
By KIMBERLEY HAAS Officials at the U.S. Department of Justice say that a Bay area rapper was sentenced to more than seven years in prison for his role in orchestrating a complex loan fraud and identity theft conspiracy. Mark “Kafani” Hicks, aka Amir Rashad, 42, of Oakley, Calif., allegedly admitted to being at the center of a conspiracy in which he directed a team of criminals who stole approximately $2 million from banks and lending institutions. According to a press release, during a two-year period, Hicks impersonated victims in over a dozen phone calls with banks, lending institutions, and gold dealers. Over $480,000 of the illicit gains were recovered from a safe deposit box controlled by Hicks’s relatives, authorities said.…
By KIMBERLEY HAAS The senior vice president of business development at Rocket Mortgage says their partnership with Boston-based Santander Bank is an example of the kind of relationship they hope to cultivate. Tom Dempsey recently sat down for an interview with The Mortgage Note. He said partnering with Rocket Mortgage gives companies access to their technology. “We’re offering partnership models that externalize our models and systems,” Dempsey said. “The key thing is that at Rocket we’ve created a number of partnership models for banks and credit unions.” Dempsey called this a holistic approach to offering customers what they are looking for as lenders pull into and out of markets. On Aug. 5, leaders at Santander Bank and Rocket Mortgage announced…
As the housing correction continues, most Americans have a gloomy outlook for the market’s future. A ConsumerAffairs survey found that 78% of Americans expect the housing market to crash and soon. More than half of baby boomers said they believe 2023 will bring a housing crisis. Most Zoomers went so far as to say they’re hoping for one– 84% want a market crash because they believe it will help them buy their first home. Gen Zers overwhelmingly want to own their own homes, with 59% identifying homeownership as a sign of success. But many are worried they may never be able to afford a home if prices continue rising as they have in the last two years. “Non-homeowners cite insufficient…
As the housing cooldown continues, New Jersey, Illinois, and inland California have the highest concentration of at-risk markets, according to a new report from ATTOM. The Special Housing Risk Report spotlights county-level housing markets that are more or less vulnerable to declines, based on affordability, unemployment, and other measures from Q2 2022. The largest clusters of at-risk markets are around the NYC and Chicago metros, while Southern and midwestern starts have the least at-risk markets. The top 50 at-risk markets include nine in and around New York City, six in the Chicago metro area, and 13 throughout the entirety of California. The rest are spread throughout the country, with three around Philadelphia. These counties have elevated levels of unaffordable housing,…
Mortgage loan application volume fell last week as mortgage rates topped 6% for the first time since 2008, nearly doubling year over year. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 1.2%. The adjusted purchase index rose 0.2%, while the unadjusted purchase index dropped 12% and was 29% lower YOY. The refinance index dropped by 4% and was 83% lower than the same time last year. Refis made up 30.2% of total applications. “Higher mortgage rates have pushed refinance activity down more than 80 percent from last year and have contributed to more homebuyers staying on the sidelines. Government loans, which tend to be favored by…
Faced with inflation pressure and rising rates, many borrowers are seeking lower monthly mortgage payments in the form of ARMs or longer terms. But lower monthly payments come with a price. LendingTree analyzed 380,000 loans to determine how much more borrowers with 30-year loans pay than those with 15-year loans. They found that borrowers with 15-year fixed rate mortgages saved an average of $215,000 in interest across the loan’s lifetime. Of course, 15-year loans also required borrowers to pay an average of $572 more a month in order to rack up those savings. One reason shorter-term loans save borrowers so much money is that their interest rates are typically lower. The 30-year fixed rate averaged 5.89% last week, while the…
Mortgage fraud risk dropped 7.5% YOY in Q2 2022, with one in 131 mortgage applications containing instances of fraud, CoreLogic reported. In contrast, Q2 2021 saw fraud in 1 in 120 applications. Mortgage fraud is defined as the deliberate act of lying or omitting information that is used by an underwriter or lender to fund, purchase, or insure a mortgage loan. CoreLogic’s Mortgage Fraud Risk Index showed fraud risk in mid-2022 coming down from a point of high risk in 2021. The company said it is also partly due to a recalibration of its sourcing model in Q1 2022. After the update, the index showed higher risk during certain months in Q2. For example, while overall fraud risk fell, income…
