Job Cuts Hit The Mortgage Industry

By CHUCK GREEN An apparently not so uncommon sight these days in the mortgage industry: empty desks. Not that their occupants are taking five for a foam latte. Instead, they might well have either been steeped in the pink slip blues or were compelled to submit their resignation. Over the past three months in the industry, there have been more than 3,500 job cuts, according to globalsg.com. In February, Bloomberg reported U.S. home mortgage lenders might have no other choice during the coming months that to initiate layoffs. Similarly, earlier this month, wolfstreet.com reported that not only are layoffs among mortgage lenders taking place, but they will also continue. “Layoffs and forced resignations are certainly imminent in the mortgage banking…

Divvy Homes Joins zavvie’s Brokerage Marketplace

Divvy Homes and zavvie have teamed up to bring Divvy’s rent-to-own program to zavvie’s expanded brokerage marketplace, the companies announced in a statement. Divvy Homes, a property-technology startup valued at $2 billion, provides a rent-to-own buying option to real estate brokers and agents. Through the program, buyers pay rent on a home to Divvy, part of which is put aside to save for a downpayment. When buyers have saved enough for a 10% downpayment, they can then buy the home from Divvy. The program is currently available in 16 major metros. “The path to homeownership is more challenging today than ever before,” said Divvy Homes Co-Founder and CEO Adena Hefets. “Divvy is leveling the playing field by accelerating one’s ability…

Mortgage Applications Up From September, Down YOY

Mortgage applications for new home purchases fell 15.2% year-over-year (YOY) in October but increased 6% month-over-month (MOM), according to the Mortgage Bankers Association’s (MBA) latest Builder Application Survey. The increase from September puts MBA’s estimate of new home sales at its strongest pace since January 2021. “Purchase activity continues to be dominated by higher loan balance transactions, which pushed the average new home loan size up to over $412,000, another new record in the survey,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.  “Recent U.S. Census data show an increasing share of new sales are for homes yet to be built or still under construction, and a shrinking share of completed homes. Housing demand remains strong,…

60% Of US Households Can’t Afford Newly Built Homes

As potential homebuyers struggle to find affordable houses, new construction may not be a reliable fix. Prices for newly-constructed homes outpaced median income, pricing out most Americans, according to a study from real estate tech firm Knock. Knock reported that prices for newly-constructed homes are unseasonably high, with August’s median new home price staying the same from July at $390,900. That price outpaces the national median household income, which has dropped 2.9% to $67,521 from 2019 to 2020. It is the first decline since 2011, and early forecasts show only small rebounds in 2021. “To put things in perspective, the minimum total household income for a mortgage on a $390,900, with a 6% down payment, typically falls just under $80,000,”…