Weighing The 100% Commission Split

By ERIN FLYNN JAY Mortgage companies are fighting to recruit and retain top performers, even offering 100% commission splits. Could these programs gain traction as the industry continues to change? NEXA Mortgage, one of United Wholesale Mortgage’s top partners, made headlines when they announced in May that they are creating partnerships with loan officers where the LOs keep up to 100% of commission splits. The program is titled NEXA100. Michael Neill, director of correspondent lending at NEXA, said: “This is probably the boldest program we’ve launched because it goes against the fear that, if you give too much of the split to loan officers, you do not have anything left to run the company. We don’t believe that.” Founder and…

With Multiple Low Down Payment Options, Are Americans Saving For A Home?

By ERIN FLYNN JAY In the past year, 1% down payment options have become popular. United Wholesale Mortgage has even announced a 0% down plan with a second lien loan as opposed to a grant. But do these programs disincentivize buyers who would otherwise feel pressure to put money aside for a house? Matt Walsh, assistant director and economist at Moody’s Analytics, said these programs likely help people on the margins, removing one of the largest hurdles to homeownership, but given the cost, many buyers still choose to make a down payment. He said that based on data from the National Association of Realtors, the median percent down payment has not changed much over the last three years, with first-time…

Father And Son Lending Teams Work Together To Provide Decades Of Experience

By ERIN FLYNN JAY This Father’s Day, father and son lending teams across the country will be celebrating their family bonds, success, and ability to work together as teams. At Rock East Funding, Michael Haberman works alongside his father Alan, as well as his brothers, Howard and Richard. “Because we are a family business, we treat all of our clients like family,” said Haberman. “We believe a good deal is one where everybody wins and makes money, not when only the lender makes money. If a deal doesn’t look like it’s good for the client, we won’t do it — and we’ll try to help them either find a solution or get out of the deal.” Haberman said his father…

When Are You Too Old Or Young For A Mortgage?

By ERIN FLYNN JAY Age matters when it comes to making important financial decisions, but when is someone too old or young to obtain a mortgage? Millennials make up 38% of the home-buying market, but Baby Boomers make up 31%, and Generation Z is starting to show interest in homeownership at 3% of buyers, according to the National Association of Realtors. The Mortgage Note reached out to Neil Anders, host of the Emmy-nominated television program “Financing the American Dream” on CNBC and Bloomberg, and Andy Kolodgie, owner of Sell My House Fast to get their perspectives. Typically, individuals must be at least 18 years old to enter a legally binding contract, including a mortgage agreement. But Anders said being of…

Buyers Can Overcome High Home Repair Costs By Planning Ahead

By ERIN FLYNN JAY Home repair costs continue to increase nationwide, but buyers can budget for that by working with lenders who build renovation costs into a mortgage. According to the Q1 2024 Verisk Remodel Index, the cost of home repairs and remodeling in the first quarter rose by just over 4% from the same time last year. Costs set new highs for the past decade, rising over 61% from the first quarter of 2014. The index tracks costs for 31 different categories of home repairs, comprising over 10,000-line items ranging from appliances to windows. Data are compiled monthly in over 430 local market areas across the country. Of the six largest categories of expenditures, framing was the only one…

Property Taxes, Insurance Costs Squeeze Homeowners

By ERIN FLYNN JAY Rising property taxes and insurance costs are putting pressure on homeowners across the country. Last week, Newsweek reported that polling conducted for them by Redfield & Wilton Strategies found that property taxes and/or insurance costs have risen for most homeowners within the past year. The poll found that 65% of Americans saw increased property taxes, while 69% paid more for home insurance. They surveyed 1,500 eligible voters on May 1, according to the report. In April, ATTOM released its property tax analysis for 89.4 million U.S. single-family homes, which showed that $363.3 billion in property taxes were levied in 2023, up 6.9% from $339.8 billion in 2022. The increase was almost double the 3.6% growth rate…

Female Lending Teams Take Center Stage With Mother’s Day Near

By ERIN FLYNN JAY This Mother’s Day, mother-daughter lending teams across the country will be celebrating their teamwork, business success, and love for each other. We spoke with two mother-daughter lending teams who said their unique platform gives them an advantage in a competitive market. Senior Loan Originator Dawn Morgan started working with her daughter, Melena Miller, an associate loan originator, in 2018, and they joined forces as the mother-daughter team Melena Dawn Mortgage Group in Parkville, Missouri, on May 1, 2023. They just celebrated their one-year work anniversary. “A mother-daughter lending team like ours brings a unique blend of experience and fresh perspective,” said Morgan. “With my two decades of expertise and Melena’s six-plus years of working directly with…

Mortgage Industry Leaders React To Crackdowns On “Junk Fees”

By ERIN FLYNN JAY As the Biden administration’s war on “junk fees” continues, mortgage industry leaders are saying closing costs are not the source of home affordability challenges. In March, leaders at the Consumer Financial Protection Bureau asked for input in a blog post aimed at challenging these costs. “Families who manage to save up for a down payment and get approved for a mortgage often get an unwelcome surprise: closing costs that all too often are full of junk fees,” the post by Julie Margetta Morgan said. Closing costs are paid on the day a buyer finalizes the purchase of their home. They include title insurance, credit report costs, appraisal fees, origination fees, and more. According to the CFPB,…

Dutch-Style Mortgages: Could They Work In America?

By ERIN FLYNN JAY The Dutch offer home mortgages with interest rates that go down automatically as the loan gets paid off. The premise is that as the loan amount reduces and the property’s value increases, the risk associated with the loan decreases. Dutch-style mortgages recently arrived in the United Kingdom and have been making headlines here in the United States as people ask whether these types of mortgages could be a solution to the housing market’s woes. Nathan Hartseil, branch manager for Main Street Home Loans in Hingham, Mass., doesn’t think so due to the fact our mortgages are based on a secondary market. “Most of our loans are transferred or sold to a secondary market, and that’s what…

Home Flippers Hit Hard By Interest Rates, Inflation

By ERIN FLYNN JAY Home flipping activity is down across the nation as people who work in the industry see reduced returns on investments due to high interest rates and inflation. Last month, ATTOM released its 2023 U.S. Home Flipping Report, which showed that 308,922 single-family homes and condos in the United States were flipped last year. That was down 29.3% from 436,807 in 2022 and is the largest annual drop since 2008. The report further revealed that as the number of homes flipped by investors declined, so did flips as a portion of all home sales, from 8.6% in 2022 to 8.1% percent last year. Rob Barber, ATTOM’s CEO, said high interest rates and inflation have elevated costs for…