By KIMBERLEY HAAS
A case study by FormFree highlights how one of the nation’s largest independent mortgage lenders is serving the credit invisible.
Leaders at FormFree estimate that millions of adults in the United States are credit invisible or credit unscorable. That makes it difficult for these potential homeowners to qualify for a mortgage.
Manual processes exist to underwrite mortgages for these borrowers but they are seldom used because people without a credit score often assume they cannot qualify for a home loan and industry professionals may be unaware of their options, according to the case study.
To provide loans for qualified credit invisible customers, San Diego-based Guild Mortgage Company introduced a Complete Rate program in July of 2022 that…
As mortgage rates are locking homeowners in their current houses, many are investing in renovations rather than moving.
A new survey from LendingTree found that 68% of homeowners started or completed a home improvement project in the last 12 months, while 63% plan to begin one in the next year.
Interior painting, landscaping, and bathroom remodeling are the most common projects, but homeowners have diverse reasons for renovating. Of the more than 2,000 respondents, 36% say they need the repairs because their house is aging, 27% say their improvements are relatively small, and 21% say they want to spruce up their home to sell.
Millennials homeowners are poised to take on the most DIY, with 78% engaged in renovation in…
In a move geared toward improving and streamlining credit access to qualified borrowers, the FHA is getting rid of the Mortgage Credit Reject screen.
Up until now, the FHA required lenders to flag information about denied applications due to a provision in its Single Family Housing Policy Handbook. That information was flagged for a six-month period, to be reviewed by one of the agency’s Homeownership Centers when applicants tried for an FHA-insured loan from other lenders.
Borrowers may have been denied a loan again because of this initial rejection, even if they qualified otherwise. FHA officials have concluded that the process “does not improve risk management and is often why other lenders will reject an applicant even when that applicant…
By ERIN FLYNN JAY
Return to the office mandates and the continued desire for a better quality of life are affecting Americans as they decide where to move in 2023.
Companies that allowed employees to work remotely during and immediately after the Covid pandemic are reversing course this year. On Sept. 5, Meta’s requirement that employees assigned to an office show up at least three days a week went into effect.
With the policy change, Facebook and Instagram’s parent company joined Google and other major employers that are pulling the plug on remote work despite advances in technology that allow people to log in from anywhere. Some analysts argue that it is a leadership preference, while others point out that…
Recent home price gains have helped some homeowners with underwater mortgages.
CoreLogic reported that only 2% of homeowners with a mortgage were in negative equity in Q2 2023, 6.3% fewer than in Q1 and on-trend with numbers from the last two years.
Home prices have risen this year after a months-long downturn. Though homeowners lost $8,300 (+5.2%) in equity YOY, their quarterly gains were nearly $14,000. As a result, 75,000 borrowers whose mortgages went underwater are back on dry land.
“While U.S. home equity is now lower than its peak in the second quarter of 2022, owners are in a better position than they were six months ago when prices bottomed out,” said Selma Hepp, chief economist for CoreLogic.
“Also,…
Mortgage rates dipped again last week but remain above the dreaded 7% threshold.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 7.12%, down from 7.18%. A year ago at this time, the 30-year FRM averaged 5.89%.
This is the second week of declines but the fourth straight week of 7%-plus rates.
The 15-year fixed-rate mortgage slipped to 6.52% from 6.55%. A year ago, it averaged 5.16%.
“The economy remains buoyant, which is encouraging for consumers. Though while inflation has decelerated, firmer economic data have put upward pressure on mortgage rates which, in the face of affordability challenges, are straining potential homebuyers,” said Sam Khater, Freddie Mac’s Chief Economist.
The median U.S. home sale price is up…
Consumer sentiment is stuck in the pits as mortgage rates remain elevated.
Fannie Mae’s Home Purchase Sentiment Index continues skimming its low-level plateau, increasing in August by 0.1 points to 66.9. The HPSI is up 4.9 points YOY.
Half of the index’s six components rose from July while the others stayed stagnant, resulting in a net negative outlook. Only 18% of respondents say it’s a good time to buy a home. The share of respondents who say it’s a good time to sell rose, however, to 66%.
Respondents largely believe that home prices will go up in the next 12 months (41%), though that number decreased by 2% from July.
“Consumers remain pessimistic toward the housing market in general and…
By KIMBERLEY HAAS
Build-for-rent communities have been growing in popularity as the housing landscape changes in the United States.
According to leaders at the National Association of Home Builders, developers are exploring new ways to meet continued housing demand and single-family build-for-rent properties provide a stepping stone between renting and buying for young families, as well as a good downsizing option for aging adults. They say many of the people who choose to live in these neighborhoods are renters by choice.
The concept has been getting national attention as people want the flexibility of renting but the amenities that come with homeownership such as more privacy and backyards. It is estimated that hundreds of build-for-rent communities are coming to the…
By JARED WHITLEY
Mat Ishbia is building his dream home in Michigan, and he’s tearing down five other homes to do it. It’s a display of extravagance that has housing advocates and social justice activists looking askance.
At a time when Michigan is expected to lose thousands of affordable housing units over the next few years, particularly in the hard-hit Detroit area, the United Wholesale Mortgage CEO is building a 60,000-square-foot mansion in the Motor City suburb of Bloomfield Township. To build his 14-acre estate, Ishbia is tearing down his current 22,000-square-foot house, which is just eight years old, as well as five neighboring homes.
Once completed, the Ishbia compound will include a trampoline park, reflecting pool, statues, tennis court,…
Good Morning! Today is Tuesday, September 5. Burning Man festival attendees in Nevada were able to leave yesterday after being trapped by heavy rains. North Korea’s Kim Jong Un is planning to visit Putin in Russia to discuss weapons supplies. Volodymyr Zelensky removed Ukraine’s defense minister after accusations of financial mismanagement.
The Mortgage Note Reports
Deciding Factors: As natural disasters become commonplace in areas with high climate impact, more homebuyers are factoring climate risk into their decisions.
Where To Find Price Cuts: Home prices are up despite high rates pushing demand down, but in these ten metros, sellers are slashing prices.
ICYMI: Last week, writer Chuck Green wrote about the historical significance of the Fannie Mae and Freddie Mac conservatorships,…
