By KIMBERLEY HAAS With the Federal Reserve raising interest rates seven times this year – and with more rate hikes on the way in 2023 – people are wondering if their policies to cool inflation are unfairly punishing those in the housing market. The Fed’s policy-setting committee raised its benchmark rate a half-point to 4.5% this week. The goal is to reach 2% inflation by controlling monetary policy. The chair of the Federal Reserve opened his press conference on Wednesday saying that he would like to underscore for the American people that they understand the hardship that high inflation is causing. Jerome Powell said the U.S. economy has slowed significantly from last year’s rapid pace. “Recent indicators point to modest…
Mountain America Credit Union is offering home equity through cloud banking software Blend, according to the companies. Mountain America will use Blend’s Instant Home Equity solution to provide members access to a fully digital end-to-end home equity solution that will cut down its application approval times. “Our focus is always on our members and providing them with the financial resources that help them define and achieve their financial dreams,” said Amy Moser, senior vice president and chief lending officer at Mountain America. “Working with Blend supports our prioritization of identifying ways to provide our members with personalized financial experiences in the context of home equity lending that help us achieve our goals and provide an outstanding member experience.” Users will…
Americans may idolize a white Christmas, but owning a home in the nation’s snowiest states costs a premium, according to a LendingTree analysis. Median-priced homes in the states that got the most snow in December 2021 cost $56,814 more on average than those in the states with the least snow. Alaska, Idaho, and Utah saw the most snowfall last December. Their median home values – $304,900, $369,300, and $421,700 – are 4.93 times higher than their median household incomes. Warmer states are typically less expensive than frigid Northern states, as evidenced by the flood of affordability-minded homebuyers to the Sun Belt. But this isn’t always the case. LendingTree noted that the median home value in Hawaii ($722,500) is at least…
Homebuyers are finally starting to see some moderation in prices as the market corrects. The cost of a new mortgage fell 4.8% in November as mortgage rates plunged, according to Zillow’s latest Market Report. This is only the second time mortgage costs have declined in the past 19 months. Falling home values and shrinking mortgage rates forced prices to cool. Rates dropped 57 basis points in November alone. The typical U.S. home saw its value shrink 0.2% from October to November, and is down 0.5% from a peak in June. Renters also reaped the benefits of declining values, with rents seeing their largest single-month drop in the seven-year history of Zillow’s data. Affordability remains a challenge. Monthly mortgage costs are…
Mortgage interest rates dipped modestly again last week, the fifth consecutive week of decline, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.31%, down from 6.33% the week prior. A year ago at this time, the 30-year FRM averaged 3.12 percent. The 15-year fixed-rate mortgage fell from 5.67% to 5.54%. A year ago, it averaged 2.34%. “Mortgage rates continued their downward trajectory this week, as softer inflation data and a modest shift in the Federal Reserve’s monetary policy reverberated through the economy,” said Sam Khater, Freddie Mac’s Chief Economist. “The good news for the housing market is that recent declines in rates have led to a stabilization in purchase demand. The bad…
Real estate and mortgage brokerage Flyhomes announced two new executive hires. Andrea Collins and Dan Richards joined the company, which offers buying and selling services as well as in-house finances, as Chief Marketing Officer and Executive Vice President of Mortgage. Both will serve on the Flyhomes Executive Committee and report to co-founder and CEO Tushar Garg. “Bringing in the level of experience and expertise Andrea and Dan possess to Marketing and Mortgage, respectively, fills key roles within our executive team and will empower us to drive major facets of the business in 2023,” Garg said in a press release. Collins will lead the marketing team, working to increase Flyhome’s demand through brand amplification, communications, and market strategy. She joins the…
By KIMBERLEY HAAS The attorney general of Pennsylvania announced on Wednesday that he is suing Florida-based MV Realty PBC, LLC and its founder, alleging the company scammed consumers. Attorney General Josh Shapiro said in a statement that Pennsylvania homeowners are falling victim to hidden terms in the Homeowner Benefit Program. “MV Realty is a scam that exploits Pennsylvanians in vulnerable financial situations, and my office isn’t buying it. My office will protect homeowners’ most important asset – the value of their real estate,” Shapiro said. Shapiro, a Democrat, won the race for governor of Pennsylvania in November. He will be sworn in on Jan. 17 in Harrisburg. MV Realty was founded by Amanda Zachman and has been doing business in…
By KIMBERLEY HAAS The CEO of an advanced analytics company says the latest version of their platform includes a new reporting tool that can help lenders and servicers navigate the current market. Augie Del Rio is the co-founder of Gallus Insights, headquartered in Chicago. They have satellite offices in Dallas and Buenos Aires, Argentina. Del Rio and Bernardo Loitegui started the company in 2021. Leaders at the company recently released information about the upgraded version of their cloud-based platform. It includes a Home Mortgage Disclosure Act reporting tool and comes on the heels of $1 million in pre-seed funding. Users can pull insights on the total market, specific geographies, products, and peer lenders. Data about borrowers, loans, and employees can…
Mortgage loan application volume rebounded last week, breaking a weeks-long streak of declines, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, increased by 3.2%. The adjusted purchase index rose by 4%, though the unadjusted purchase index decreased by 1% and was 38% lower YOY. “Mortgage rates increased slightly after a month of declines, as financial markets reacted to mixed signals regarding inflation and the Federal Reserve’s next policy moves. The 30-year fixed rate inched to 6.42%, which is still close to the lowest rate in a month,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. The Federal Reserve is expected to raise interest rates by half…
By KIMBERLEY HAAS A Los Angeles broker convicted of defrauding lenders to obtain more than $8 million in mortgage loans has been sentenced to five years and four months in prison. Alex Ashod Dadourian, 61, was a licensed mortgage loan broker whose company, Success Funding, doing business as Pride Funding, was located in Northridge, California. Investigators claim that Dadourian received more than $254,000 in fees and commissions by taking out 17 mortgage loans based on fraudulent applications and supporting documentation between 2017 and 2019. Dadourian was convicted on 91 felony charges of mortgage fraud, grand theft, identity theft, and conspiracy, according to a press release issued on Dec. 7. “We won’t stand idly by when bad actors take advantage of…
