Loosening lending standards are making it easier than ever for gig workers to finance homes. These workers often make enough money to qualify for a loan, but often have a difficult time proving that to lenders. “It is a phenomenon with this gig economy where people can drop in and have an Amazon play, and they’re pulling in $10,000 a month from it. So, these are not traditional type borrowers,” Eric Morgenson, VP of business development at Angel Oak, said on a panel discussing loans for gig workers. Self-employed borrowers are typically asked for contract work 1099s, copies of the last 12 to 24 months of business and personal bank statements, and year-to-date profit-and-loss statements that report revenue, expenses, and…
As first-time buyers struggle to find an affordable home, many Millennials say they are willing to co-buy in order to access bigger mortgages. Pairadime, a new fractional ownership solution with a focus on co-buying, surveyed 1,000 Millennials who say they don’t want to wait for marriage to co-buy a home. Instead, they want to co-buy with their parents, friends, or other family members in order to afford a house in current market conditions. Only 4% of respondents said they would wait until marriage to buy with another person. “During the pandemic, people have been renting and they may have wanted more space, and so they looked at, perhaps, their roommate and decided, ‘Let’s go buy a home together,'” Jessica Lautz,…
Denise Miller has been promoted to Vice President, Controller, at Monroe Community Credit Union. The company announced in a press release that Miller will oversee the financial and regulatory functions of the credit union while managing the accounting, payment strategies, and payment solutions departments. Her experience includes more than two decades in the financial institution industry, including as an auditor. She has a Bachelor of Science in Business Administration with a double major in Accounting and Finance from Central Michigan University, and her MBA from Walsh College. “Since joining the credit union in April of 2020, Denise’s responsibilities have steadily increased in the financial operations of the credit union,” said Kristine Brenner, President/CEO of MCCU. “As a former auditor, her…
Refinance lending fell 36% from Q1 to Q2 2022, eclipsing increases in other lending areas, according to ATTOM’s second-quarter 2022 U.S. Residential Property Mortgage Origination Report. The report found that 2.39 million mortgages secured by residential property were originated in Q2 2022, down 13% from Q1 and 40% YOY. This is the fifth consecutive quarter of falling originations and the biggest annual drop since 2014. Though purchase originations and home-equity lending actually increased 8% and 35%, respectively, they were heavily outweighed by the double-digit refi drop. The total number of mortgages issued was down 13.2% from Q1 and 40% YOY, dropping at their fastest pace in eight years. Lenders issued $807.8 billion worth of mortgages overall in Q2, down 11%…
Mortgage Lenders lost money on every loan originated for the first time since 2018 in Q2, according to the Mortgage Bankers Association’s (MBA) Quarterly Mortgage Bankers Performance Report. Independent mortgage banks and mortgage subsidiaries of chartered banks lost an average of $82 on each loan they originated in the second quarter of 2022, down from gains of $223 per loan in Q1. The average pre-tax production loss was 5 bps, a complete turnaround from Q1’s average net production profit of 5 bps. Average production volume totaled $705 million per company, down from $808 million in Q1. Only three other quarters in the survey’s history saw net production losses: Q1 2014, Q1 2018, and Q4 2018. “The second quarter of 2022…
Inflation jumped by 9.1% YOY in June, more than analysts predicted and the largest gain since 1981, according to data released by the Labor Department today. The Consumer Price Index showed inflation rising 1.3% month-over-month, its largest jump since 2005. Predictions ahead of the data’s release forecast a 1.1% rise from May and an 8.8% increase YOY. This is the fourth consecutive month that analyst predictions fell short. Another month of skyrocketing inflation suggests that officials will be forced to continue aggressively raising interest rates. But rate hikes have stoked fears of a recession. Strategists at Goldman Sachs recently upgraded their recession probability to 30% from 15%. “We now see recession risk as higher and more front-loaded,” Goldman Sachs Chief…
Multiple new executives have joined Better.com to bolster its leadership team and forge long-term growth, the company announced in a press release. Better’s biggest pulls are Sushil Sharma as Chief Growth Officer, the first for the company, and Steve Riddell as Head of Sales. Sharma is an industry veteran with two decades of experience in product management and software engineering. Prior to Better, he served as Chief Product Officer at both LendingTree and Match. “Better’s mission to make homeownership simpler, faster, and more affordable instantly drew me in,” said Sharma. “A home is much more than a place to live: it provides stability to raise a family and is one of the biggest financial assets an individual can own. I…
Waterstone Mortgage has announced the opening of a new branch in Franklin, Tennessee. The branch will be led by David Gatheridge. He brings more than two decades of mortgage lending and financial services experience to the branch. Gatheridge’s past experience includes Branch Manager positions at Novus Home Mortgage and First Community Mortgage, and Sales Manager with loanDepot. He is a Certified Mortgage Advisor. “[T]he biggest reason I joined was due to the leadership at the top – they are ultra-sensitive and responsive to what we go through at the branch, which is how they drive growth for the organization,” Gatheridge said. He also noted that Franklin and its surrounding communities are the perfect areas to buy a home. “Franklin is…
April’s existing-home sales slipped for the third consecutive month, falling 2.4% from March to a seasonally adjusted rate of 5.61 million, the National Association of Realtors (NAR) reported. Sales were down 5.9% year-over-year, with each of the four major regions seeing declines. The median price for existing homes of all types was $391,200, up 14.8% YOY. This is the 122nd consecutive month of YOY price growth, the longest-running streak on record. “Higher home prices and sharply higher mortgage rates have reduced buyer activity. It looks like more declines are imminent in the upcoming months, and we’ll likely return to the pre-pandemic home sales activity after the remarkable surge over the past two years,” said Lawrence Yun, NAR’s chief economist. Housing…
Overall residential lending activity dropped 32% YOY, the fastest decline in eight years, according to ATTOM’s Q1 U.S. Residential Property Mortgage Origination Report. The report found that 2.71 million mortgages secured by residential property were originated in Q1 2022. This is a drop from Q4 and the fourth consecutive quarter of declines. Refinances were down 22% and purchase mortgages fell 18% quarter-over-quarter. Lenders originated $892.4 billion in loans in Q1, down 17% from Q4 and 27% YOY. The quarterly dip in dollar volume was the largest in five years, and the annual dip was the largest in eight years. Declining refis drove the declines, with only 1.45 million residential loans refinanced during Q1 2022, down 22% from Q4 and a…
