Black Knight Launces AI Valuation App For HELOC Lending

Black Knight introduced a new app to speed up applications for home equity lines of credit, the company announced. The app, Validate, allows borrowers to include photos of their property as part of their application. The photos are then analyzed with AI to calculate the home’s condition in real-time, speeding up the approval process. Borrowers complete a questionnaire to verify public record data and list any necessary repairs after submitting photos, Black Knight said. Photos are time-stamped and GPS verified to ensure current property condition and location are accurate. The address is then scored based on comparable properties to create a condition-adjusted valuation model. Lenders receive the property value and available equity immediately via API or PDF, saving time and…

IMBs Lost Money On Every Origination In 2022

For the first time since at least 2008, independent mortgage banks and mortgage subsidiaries of chartered banks lost money every time they originated a loan. The Mortgage Bankers Association’s Annual Mortgage Bankers Performance Report found that IMBs lost an average of $301 on each loan in 2022. This puts production profits down 15% YOY, a series low. The decrease was driven by low loan origination volume coupled with skyrocketing expenses. Volume was down 20% YOY. At the same time, loan balances increased by 5%, the largest single-year increase in the data’s history, resulting in higher production costs. “The stellar profits of the previous two years dissipated because of the confluence of declining volume, lower revenues, and higher costs per loan,”…

Mortgage Applications Rise Again, But Will It Last?

Mortgage applications increased for a third week as buyers take advantage of retreating rates. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – rose by 3%. Mortgage rates fell for a second week as a wobbly banking sector pushed treasury yields down. The average interest rate for 30-year fixed loans fell from 6.71% to 6.48%. This is its lowest level in a month. “Both purchase and refinance applications increased for the third week in a row as borrowers took the opportunity to act, even though overall application volume remains at relatively low levels,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. Adjusted purchase applications increased by…

Loan Volume Up As Rates Rise To 6.25%

Mortgage loan application volume increased by 3.8% last week, breaking a multi-week pattern of steep declines, despite rates rising to their highest point since October 2008. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index, a measure of mortgage loan application volume, rose by 3.8%. The results include an adjustment for Labor Day. The adjusted purchase index rose 1%, while the unadjusted purchase index increased 11% and was 30% lower YOY. The refinance index rosed by 10% and was 83% lower than the same time last year. Refis made up 32.5% of total applications. “Treasury yields continued to climb higher last week in anticipation of the Federal Reserve’s September meeting, where it is expected that they…

Loan Applications Down

Mortgage loan application volume fell 1.2% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped 1.2%. The adjusted purchase index fell 1%, while the unadjusted purchase index fell 2% and was 8% lower YOY. The refinance index fell 3% and was down 49% YOY. Refinances made up 48.4% of total applications. Rising mortgage rates continue to impact application activity. Rates reached 4.27% last week, their highest since May 2019, and are adding to investor uncertainty. They’re also having an outsized impact on refis, which declined for both conventional and government loans. Refinances bounced up last week due to a brief drop in rates, though it was…