Zillow is closing down its iBuying arm, Zillow Offers, citing “unpredictability in forecasting home prices.” Zillow had previously announced it would not buy more homes in 2021, and instead turn its focus to renovating and selling its backstock of inventory. “We’re operating within a labor and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces,” Chief Operating Officer Jeremy Wacksman said of the move. “We have not been exempted from these market and capacity issues.” But Zillow CEO Rich Barton later acknowledged Zillow’s failure was its inability to predict home-price appreciation. Now, two weeks later, it is shuttering altogether. The company dropped the news as part of its third-quarter earnings report. Zillow Offers lost $381 million last…
Good Morning! Today is Election Day, 2021, Tuesday, November 2. Voters will elect governors in Virginia and New Jersey, and mayors in New York City, Boston, and Atlanta. Senator Joe Manchin said he would not support President Biden’s spending plan without “greater clarity” about its economic effects. World leaders at the climate summit in Scotland agreed to a deal to reverse deforestation by 2030.And in mortgage and housing news… Forbearances Drop To Lowest Rate Since March 2020: The volume of loans in forbearance dropped this week, with Fannie and Freddie seeing forborne loans dip below 1%. CRA Requirements For Nonbanks: Gov. New York expanded the state’s version of the Community Reinvestment Act to apply anti-redlining law to nonbank mortgage lenders.…
New York Governor Kathy Hochul signed legislation expanding the Community Reinvestment Act (CRA) ‘s anti-redlining requirements to non-depository lenders. The New York Senate delivered the bill to Governor Hochul on Friday. Now that the bill is signed, it will become law in 90 days. The CRA is national legislation enacted in 1977 in response to the redlining of poor and minority communities by banks during the 1960s and 1970s. Several states, including Massachusetts, Illinois, and New York, have their own versions. New York’s largely mirrors the federal law. It mandates that banks help meet the credit needs of communities in which they take deposits, specifically in low- and moderate-income neighborhoods. The expansion diverges from federal law, however. A New York…
Forbearances continued to drop last week, with the total number of loans in protection down to 2.15% of servicers’ portfolio volume, according to the Mortgage Bankers Association’s (MBA) latest survey. The estimated number of homeowners in forbearance plans remains around 1.1 million. “For the first time since March 2020, the share of Fannie Mae and Freddie Mac loans in forbearance dropped below 1%. A small decline for this investor category was matched by similarly small declines for Ginnie Mae and portfolio/PLS loans,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. “Forbearance exits slowed at the end of October to the slowest pace since late August. With so many borrowers having reached the end of their 18-month forbearance term,…
Good Morning! Today is Monday, November 1. World leaders are gathering in Glasgow for a climate summit. American Airlines scrubbed more than 1,900 flights over the weekend, the latest in a series of cancellations to disrupt travelers’ plans. White House Press Secretary Jen Psaki tested positive for Covid-19. And in mortgage and housing news… Rocket Mortgage Partners With Salesforce: Rocket Mortgage announced a new partnership with Salesforce in a bid to expand its market share. 60% Of Households Priced Out Of New Construction: Prices for newly-constructed homes outpaced median income, pricing out most Americans, according to a study from real estate tech firm Knock. Haunting History: Halloween may be over, but it’s never a bad time to find out how many deaths have been reported in your home. New CFPB Leadership: The…
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,”…
Rocket Mortgage announced a new partnership with Salesforce to make its origination technology available as an end-to-end “mortgage-as-a-service” product. The service will be available to lenders with licensed mortgage loan officers through Salesforce Financial Services Cloud. “We recognize the important and personal role local banks and credit unions play with so many Americans – they have a trusted relationship with their customers,” said Jay Farner, Vice Chairman and CEO of Rocket Companies. “Financial institutions can now combine those relationships they’ve already established while leveraging Rocket Mortgage’s transformational platform powered by Rocket technology.” Rocket Mortgage will handle loan processing, allowing loan officers to use the company’s technology as their point-of-sale and loan origination system. In some cases, officers will be able…
Good Morning! Today is Friday, October 29. Congressional Democrats failed to get enough votes to pass the basic infrastructure bill on Thursday as President Biden requested. Andrew Cuomo was charged with a misdemeanor sex crime, forcible touching. Facebook changed its corporate name to Meta, a reference to the online “metaverse.” And in mortgage and housing news… Black Knight: The number of loans in forbearance rose marginally this week, while forbearance starts ticked up. “They’re Coming To Get You, Barbara”: A new report from ATTOM shows a drop in the number of vacant “zombie” properties, but suggests increases to come. Pending Home Sales Down: Pending home sales fell in September, down in every region both year-over-year and month-over-month. Americans Priced Out: …
The number of “zombie” foreclosures hardly budged this quarter, though increases are expected to come, according to a report from ATTOM Data Solutions. Properties that are both vacant and in the foreclosure process, known as “zombie” properties, make up 3.3% of foreclosures. Zombie properties are most common in the Northeast and Midwest. New York has the highest rate, followed by Ohio, Florida, Illinois, and Pennsylvania. And 7,432 property owners vacated their homes in Q2, down from 7,538 in Q3 2021 and from 7,612 in Q4 2020. That number is down both quarter-over-quarter and year-over-year (YOY) in 25 states. Georgia saw a 29% drop in zombies from Q3 to Q4, while Kentucky, Illinois, Connecticut, and Oklahoma all saw drops of over…
Good Morning! Today is Thursday, October 28. The Biden White House announced a framework for the $1.75 trillion in social spending known as “Build Back Better.” Iran said it would rejoin negotiations to revive the 2015 nuclear deal. The Taliban have allowed some teenaged girls to go back to school. A study found that a cheap anti-depressant may reduce the chance of hospitalization for those with Covid-19. And in mortgage and housing news… Freddie Mac: Interest rates rose again this week, reaching 3.14%. Fraud On The Rise: Mortgage fraud is back up to pre-pandemic levels as low-risk refinances lose favor and purchase applications tick up. Pace of Home Sales Picking Up: One-third of houses sold in the last four weeks…
