By ERIN FLYNN JAY
Though it has existed since the early 1900s, the rent-to-own concept has gained popularity again and for people who want to buy a home but lack the funds, it can be an alternative route to homeownership despite the costs and risks.
Ritika Asrani, founder and head broker at St Maarten Real Estate, said with tightening lending standards many potential homebuyers are turning to rent-to-own as a way to overcome credit hurdles. She said it offers them a pathway to homeownership without the immediate need for perfect credit.
And while traditional renters typically do not build equity, rent-to-own tenants often accumulate a portion of their monthly payments as equity, which can be used toward the purchase.
What…
By ROB ZIMMER
As consumers and industry professionals weather a historically difficult housing market, it is more important than ever to foster a mortgage lending environment that supports the continued existence and growth of small lenders. The success of small lenders is not only in the best interest of consumers, but aligns with the goals of Congress and regulators.
In 2020, The Conference of State Bank Supervisors launched the State Examination System, which was designed for state regulators to supervise and monitor lenders. While the system is well-intentioned, in practice, these often-overlapping state exams have created proportionately larger costs and time burdens for smaller non-bank lenders (independent mortgage banks or IMBs) that must have licenses in every state they do…
By SCOTT KIMBLER
As business models in major cities have changed in the post-Covid economy, Atlanta is holding its own as companies and commercial property owners rethink the modern workplace.
Many companies in the metro Atlanta area have altered the workplace to a hybrid model, a work-from-home model, or even a don’t come in at all model, and that is beginning to affect those in the business of commercial real estate ownership.
“There have been some delinquencies in the commercial mortgage industry,” said Sergio Garate, assistant professor in the practice of finance and director of the real estate program and Emory University’s Goizeta Business School. “Especially in the Atlanta area, there have been loan delinquents to levels we haven’t seen…
By ERIN FLYNN JAY
Holiday home shoppers who are sensitive to mortgage interest rates near 8% may resist the idea of buying before Thanksgiving, hoping that Santa Claus brings relief, but is waiting until Christmas the answer this season?
On Wednesday, the Federal Reserve held its target range for the federal funds rate at 5.25% to 5.5%, and mortgage rates slipped in anticipation of the news. But Orphe Divounguy, senior macroeconomist at Zillow Home Loans, warned that investors will likely recalculate their inflation forecasts based on employment and wage growth data, “causing large swings in mortgage rates.”
That means uncertainty for homebuyers.
Matt Ronne, senior loan officer with Motto Mortgage Preferred Brokers in Athens, TN, said that this year, with…
By SCOTT KIMBLER
As the debate about returning to the office continues nationwide, people in the city of Atlanta and its surrounding communities are adapting to the reality that hybrid and remote work are likely here to stay.
Over six million people live in the Atlanta Metropolitan Statistical Area, which has long been a hot market for housing for a variety of reasons, including job opportunities with companies such as Delta Airlines, Coca-Cola, and UPS.
When the pandemic hit in 2020, a lot of changes happened as the region was introduced to shelter-in-place, which morphed into a work-from-home model. Now in the post-pandemic period, many companies have adopted a hybrid work schedule, with employees driving into the city about three…
By KIMBERLEY HAAS
The Mortgage Bankers Association’s chief economist and his team had some good news for those in attendance of their annual convention and expo on Sunday afternoon.
Total mortgage origination volume is expected to be $1.95 trillion in 2024, up from the $1.64 trillion projected for 2023.
At the same time, volume is predicted to increase 19% by loan count, with 5.2 million loans expected next year.
Michael Fratantoni, chief economist and senior vice president of research and industry technology, said members just have to make it through the winter.
“In terms of origination volume, we think 2023 is the low point,” Fratantoni said, adding that many lenders have had five or six quarters of production losses.
In…
By KIMBERLEY HAAS
As officials at the Federal Trade Commission continue to review the proposed acquisition of Black Knight by Intercontinental Exchange, the top Democrat on the House Financial Services Committee is reiterating her concerns about the merger.
U.S. Rep. Maxine Waters (D-CA) has said the two companies play a dominant role in the technology and data underlying the country’s mortgage markets and “such a monopoly would harm our nation’s consumers and our housing market.”
This week, Waters sent a letter to FTC Chair Lina Khan offering recommendations for a negotiated settlement agreement, saying there are anti-trust, financial stability, and consumer protection safeguard issues to be considered.
“In addition to potentially creating a housing finance conglomerate that would dwarf all…
By KIMBERLEY HAAS
It is being estimated that the average teacher can afford 12% of homes for sale within commuting distance of their school and just 27% of available rentals in the same area.
These numbers come from a Redfin analysis which looked at 2022 median teacher salaries in the 50 most populous U.S. metro areas. Commuting distance was defined as 20 minutes or less during rush hour and affordability was defined as no more than 30% of the metro’s median teacher income. For house sales, a 10% down payment was assumed.
In 2019, before the pandemic boom drove up prices, the average teacher could afford 30% of homes for sale within commuting distance of their school. A lack of…
By SCOTT KIMBLER
Mat Ishbia may only be 5’ 10”, but the CEO of United Wholesale Mortgage likes things big — including his house.
Already the majority owner of the Phoenix Suns NBA team and the Phoenix Mercury WNBA team, the mortgage business billionaire is well on his way to building the largest lived-in residence in Michigan, complete with an amusement park.
Ishbia will have to tear down five existing homes — including his current 22,000-square-foot house — to build his 63,000-square-foot mega-mansion on a 14-acre lot in Bloomfield Township. It took the township’s zoning board 18 months of negotiating over variances and changes before giving Ishbia’s palatial spread its unanimous approval.
And it’s not just a mansion in the…
Maui already had a housing crisis before wildfires ravaged the island, destroying up to 3,000 homes.
Hawaiian governor Josh Green declared a state of emergency over the lack of housing stock in July 2023 in response to worsening affordability. The pandemic housing boom resulted in a flood of wealthy buyers to the islands, pushing home sales worth more than $10 million six times higher in 2022 than in 2020.
“It’s like nothing anyone has ever seen before,” Matthew Beall, CEO of Hawaii Life, told the Wall Street Journal. “It’s almost like a hot nightclub. It’s not can you get a deal, it’s can you get behind the rope and to the door.”
Just days before the fire, the U.S. Department…
