Even as artificial intelligence (AI) becomes more prominent in the mortgage industry, most millennial and Generation Z homebuyers are hesitant to rely solely on a fully automated application process to get a loan, according to a new study. A survey from mortgage technology firm Cloudvirga, conducted in September, gathered insights from more than 1,000 millennial and Gen Z respondents, the majority of whom were first-time buyers under the age of 40. Although most respondents expressed satisfaction with the digital tools offered by lenders — and expect more automation in future transactions — 60% said they would switch lenders if AI played a significant role in the process.  Cloudvirga CEO Maria Moskver highlighted an important nuance in homebuyer expectations, urging lenders to take a balanced approach between new technology and automation while still offering human assistance during the application process.“They want the ease and efficiency of automated platforms and a borrower-friendly user interface, but they are still relying on loan officer involvement,“ Moskver said in a statement. “Clearly, while AI is an increasingly major component of digital mortgage origination, it’s still not a trusted system for many borrowers.“Moskver referred to a key result in the survey indicating that homebuyers still want human assistance despite a growing desire for more tech. About 58% of respondents still relied on loan officers to guide them through the process. Moskver expects that percentage to decrease over time as digital tools become more common.Aside from AI, technology and automation is still favored by first-time homebuyers, with 63% wanting a better digital experience and 77% who prefer a fully digital process. Moskver attributes these stats to a growing number of tech-savvy, first-time buyers who expect a high standard of digital quality that matches their everyday lives. Digital tools played a significant role in simplifying the loan application process for homebuyers. Homebuyers received real-time updates on loan status, automated document submission and access to e-signature tools. Digital document submission tools stood out as the most valued among homebuyers, with 91% using these features to update all of their documents.The survey clearly suggests that homebuyers desire a digital experience augmented with human support for loan applications. As AI continues to save lenders time and money, only time will tell if they take heed. According to Fannie Mae, 30% of lenders have adopted or tested AI software — and this number could grow to 55% in 2025. 

Retirement benefits for recipients of the U.S. Social Security program must be scaled back by 2033 if there is to be any chance of sustaining full retirement benefit payouts, but a consistent lack of attention by both chambers of Congress could necessitate a benefit cut if inaction persists over the next nine years.This is according to a new report by CNBC, citing recent research from the American Enterprise Institute (AEI) and discussions with members of the Bipartisan Policy Center (BPC).Current projections from the Social Security Administration (SSA) say that full benefit payments will need to be reduced by 2033. If Congress does nothing by that time, then benefits will need to be reduced across the board by 21%.For a nation already embroiled in what many are calling a “retirement crisis,” the benefit cut would play havoc with the finances of those living on a fixed income. The cut would “double the elderly poverty rate and reduce median senior household income by nearly 14%,” CNBC said based on AEI research.But if executive action is taken prior to 2033, then the benefit cut may not need to happen at all, AEI said. Benefits could be reallocated so that poverty increases for low earners could be avoided, and the effect on the middle class could be minimal, according to Andrew Biggs, senior fellow at AEI and co-author of its report.“It means big cuts on very rich people, but it avoids what you might think of as a retirement crisis, where everything is thrown into upheaval,” Biggs told CNBC.The hope, Biggs said, is that a new president and new Congress will more proactively address these challenges once they enter office starting in January.Shai Akabas, executive director of the BPC’s economic policy program, agreed. The cuts would be “untenable and unsustainable, both politically and financially from a household perspective,” he told CNBC.If a consensus is not reached by Congress, the president in 2033 could choose to cap payments at $2,050 per month to avoid the worst impacts of reduced benefits, according to the AEI report. This would reduce benefit payments for people who typically get more than that amount, but it would also preserve full payments for roughly half of all beneficiaries, the report noted.

According to ATTOM’s third quarter 2024 Home Equity and Underwater Report, 48.3% of mortgaged residential properties in the U.S. are considered equity rich. In the first quarter of 2024, homeowners across the U.S. saw a remarkable surge in their equity, gaining an impressive $28,000 on average. According to CoreLogic, total home equity skyrocketed to an astounding $33.8 trillion by May 2024—up from just $19.5 trillion in 2019, marking a staggering 73% increase. With the first mortgage market in a state of flux, the competition for consumers’ home equity business has reached unprecedented levels.This sets the stage for an exhilarating showdown: Who will emerge victorious in the home equity battle?Download the paper today.In this latest HousingWire Research report, you’ll discover:The driving forces behind this intense competition as independent mortgage banks (IMBs) and financial institutions—think community banks, regional banks, and credit unions—compete for market share.Strategies to boost your home equity volume and stay ahead of the curve.The challenges and opportunities that await lenders who recognize the critical need to expand their home equity offerings.Dive in and equip yourself with the insights needed to thrive in this evolving landscape!Download the paper today.

The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund announced on Wednesday that it has awarded 48 organizations a total of $246.4 million to develop affordable housing and community facilities.The funding is expected to result in some 26,400 new housing units, which will primarily serve low-income families and communities that “need additional investment,” the department said in its announcement. Of this total, 750 will be “homeownership units,” with the remaining 25,600 being rental units.The awards, distributed through the fiscal year (FY) 2024 round of the Capital Magnet Fund (CMF), will support “financing for the preservation, rehabilitation, development, or purchase of affordable housing, as well as related economic development facilities, including day care centers, workforce development centers, and health care clinics.”A total of 48 recipients were named, and they will serve needs in all 50 states, the District of Columbia, and U.S. territories including Guam and Puerto Rico.The Treasury noted that recipients are ”required to leverage their awards with other private and public investment by at least 10 to one.” The recipients announced this week estimate that they will leverage about $6.8 billion in privately sourced capital. More than half (52%) of these organizations said they plan to focus a portion of their funds on rural areas, with 12 of them promising to commit at least 25% of their awards to locations with more limited infrastructure than urban or suburban areas. Of the 48 recipients, 25 are CDFIs and 23 are nonprofit housing organizations.“Today’s awards will increase affordable housing supply and expand access to child care and health care for families across America,” Treasury Secretary Janet Yellen said in a statement. “These awards are projected to leverage nearly $9 billion in private and public sector resources to spur development in communities that need additional investment to create opportunities for communities to get ahead.”“The awardees were selected pursuant to a competitive review of applications submitted from 136 organizations that requested more than $1.06 billion from the FY 2024 Capital Magnet Fund round,” the department said.

UWM has debuted a new cash-out refi product without mortgage insurance." data-medium-file="https://img.chime.me/image/fs/chimeblog/20241024/16/original_855a87e5-23c2-4b7a-91bd-df62c0544949.jpg?w=300" data-large-file="https://img.chime.me/image/fs/chimeblog/20241024/16/original_855a87e5-23c2-4b7a-91bd-df62c0544949.jpg?w=1024" tabindex="0" role="button" src="https://img.chime.me/image/fs/chimeblog/20241024/16/original_855a87e5-23c2-4b7a-91bd-df62c0544949.jpg?w=1024" alt="_UWM's-new-cash-out-refinance-product (1)" class="wp-image-488384" srcset="https://img.chime.me/image/fs/chimeblog/20241024/16/original_855a87e5-23c2-4b7a-91bd-df62c0544949.jpg 1200w, https://img.chime.me/image/fs/chimeblog/20241024/16/original_855a87e5-23c2-4b7a-91bd-df62c0544949.jpg?resize=150,84 150w, https://img.chime.me/image/fs/chimeblog/20241024/16/original_855a87e5-23c2-4b7a-91bd-df62c0544949.jpg?resize=300,169 300w, https://img.chime.me/image/fs/chimeblog/20241024/16/original_855a87e5-23c2-4b7a-91bd-df62c0544949.jpg?resize=768,432 768w, https://img.chime.me/image/fs/chimeblog/20241024/16/original_855a87e5-23c2-4b7a-91bd-df62c0544949.jpg?resize=1024,576 1024w" sizes="(max-width: 1200px) 100vw, 1200px" />UWM has debuted a new cash-out refi product without mortgage insurance. Is the juice worth the squeeze?United Wholesale Mortgage (UWM) has the mortgage industry abuzz over its latest product, a higher-risk, cash-out refinance at a time of economic uncertainty. On Wednesday, UWM unveiled a new cash-out refinance product—dubbed Cash-Out 90—that allows borrowers to refinance with a loan-to-value ratio of up to 89.99% without requiring mortgage insurance (MI). The product is targeted at borrowers with a minimum FICO score of 680 and debt-to-income (DTI) ratio of up to 50% and is available for primary homes with 30-year fixed-rate terms. Loan amounts, however, cannot exceed conforming limits.Alex Elezaj, UWM’s chief strategy officer, said that “there’s no MI on it,” which means the lender is not subsidizing the mortgage insurance. Despite eliminating MI, the company has set credit scores and DTI limits that its investor partners are comfortable with to balance risk while expanding the product’s appeal.Cash-out refis have gained popularity due to record-high home equity levels in recent years. UWM’s new offering arrives during a period of declining interest rates and growing competition in the mortgage refinance market. Optimal Blue data for September showed that rate locks for cash-out refis rose by 6% month over month and 55% year over year.By offering higher LTVs without charging mortgage insurance, UWM aims to attract more borrowers, including those who need to consolidate student and medical debt or renovate their homes, for example. However, given the increased risk, analysts expect UWM to compensate with higher mortgage rates, which could narrow profit margins.Eric Hagen, an analyst at BTIG, acknowledged UWM’s creative approach in attracting more borrowers by assuming greater risk. The real advantage of this product lies in UWM’s aggressive marketing to mortgage brokers. However, “There’s no free lunch. UWM is simply taking a lower margin, effectively,” he added. One caveat: Hagen believes UWM has the margin flexibility to remain profitable while offering products like Cash-Out 90. “The framework by which they price loans and originate is a reflection of their objective to not necessarily earn the highest margin but to have the highest volume. They still aim to be profitable, and we think they will remain profitable. That being said, they emphasize the volume and retain their title as the number one mortgage lender in the country.”How much will borrowers pay? As for the product’s mortgage rates, Elezaj said they are more competitive than HELOCs (home equity lines of credit), traditionally a market dominated by credit unions and depository banks.“Mortgage rates have picked up just about a week ago, they’re in the high 5s, and now they’re in the low 6s. So, this [the product rate] is a little bit more than that, but it’s less than HELOCs,” Elezaj said Monday. “It’s a great opportunity for people to tap into their home equity and then do a rate-and-term refinance in six months, taking advantage of even lower rates, as hopefully they come down.”Andi Numan, president of Swift Home Loans, a mortgage broker shop that has maintained 75%-80% of its portfolio in refinances, said that quotes to 90% LTV cash-out refis were as low as 6.625% on Tuesday, compared to HELOC rates around 10%.In addition, he said, “Comfortably speaking, borrowers are saving $100 to $300 a month alone just for not having mortgage insurance.” “This was rolled out last week, but we are getting close to closing our first two. We have borrowers from 680 all the way up to 780 credit scores,” Numan added. Todd Bitter, chief sales officer at UMortgage, said that the loan can be a “lifesaver” to people that need to consolidate debt, even if it’s just a small percentage of clients who need it. Bitter said that the rate for this product is approximately “0.5 to 0.75 points higher than the typical 80% LTV rate-and-term refinance, and about 0.375 to 0.5 points higher than an 80% LTV cash-out refinance.”“I would see it as a low-risk [product] for the simple fact that these are borrowers that have maintained good credit,” Bitter said. “I’ve been in business for almost 30 years, so I don’t see this product as the pre-2008 days; I don’t see people that are going on vacations with this or buying jet skis.” Ann Sullivan, team lead and loan officer at brokerage firm Lending Heights Mortgage, agreed that the rates on Cash Out 90 are a bit higher than your normal primary purchase rates. She said that the lack of PMI can be a game-changer for a borrower. “This can be a huge savings for someone that had slightly less credit when they purchased a year ago and racked up some credit card debt,” she said.Hagen believes the risks associated with Cash-Out 90 are mitigated by UWM’s practice of selling mortgage servicing rights (MSRs), which reduces their exposure to interest rate credit risk. Whether UWM plans to hold these loans in its portfolio or sell them to private investors remains unclear. Fannie Mae and Freddie Mac generally do not buy loans with LTVs above 80% unless mortgage insurance is included or, as in the case of Freddie Mac, they may not acquire such cash-out refinances at all. UWM did not disclose its secondary market strategy, which is typical for the company.When asked if other lenders might introduce similar products, Hagen said, “We do think that other lenders have the flexibility to do what they’re doing, to an extent, but scale in these companies matters a lot.” 

What had previously been a surprisingly mild 2024 hurricane season closed with two devastating storms that hammered Florida and North Carolina.While assessing the full scale of the damage could still take months, the short-term effects on the two state’s housing markets were immediately visible — the markets came to a complete halt.In the days right before and after Hurricane Milton battered central Florida, two highly responsive metrics went into free fall. Take the Tampa metropolitan area, which was one of the parts of Florida hit most directly by Milton. New home listings stood at 770 on Oct. 11 and have now dropped by a shocking 78.8% to 163.The state more broadly saw precipitous drops in new pending home sales, and the western coast of Florida experienced the sharpest declines. In the week following the hurricane, new pending home sales in the Port Charlotte area dropped by 70.7%, while Cape Coral (52.7%), Tampa (59.5%) Sarasota (66.7%) also cratered.It’s anyone’s guess how long it will take the housing markets in those areas to reboot, but data in North Carolina can be instructive for when and to what extent it could happen.In the Asheville metropolitan area — located in the Western North Carolina region that was hammered the most by Hurricane Helene — new home listings sat at 120 on Sept. 20, then bottomed out at 14 on Oct. 11, an 88.3% fall. However, new listings snapped back sharply to 82 just a week later. Sources told HousingWire that out-of-town investors were among the most interested buyers. While listings have roared back, new pending home sales in most ares of North Carolina are still down by substantial percentages. Asheville sales remain down by 50%, while Boone (82%), Roanoke Rapids (78%), North Wilkesboro (71%) and Brevard (65%) are down by even more.These cities are either in the general area of Asheville or are near bodies of water.While a lot of variables will come into play in Florida’s housing recovery, data from North Carolina suggests it could be awhile before things get back to something resembling normal.

Mortgage data and workflow solutions provider FirstClose is launching a new feature for its automated home equity point-of-sale system. The Austin-based company has added the Digital Loan Product Wizard to the system, according to a recent announcement. The new feature will help customers to quickly consolidate high-interest mortgage debt. Borrowers can determine down payment amounts, monthly payment limits, and interest rates for home equity lines of credit (HELOCs) or home equity loans with a five- to 10-day closing process. Early trials of the feature yielded a 10% increase in applicant conversion rates.“Credit card, auto and student loan debt are currently at all-time highs, and so it is not surprising that debt consolidation is the fastest-growing category in home equity lending,” FirstClose chief product officer Ramiro Castro said in a statement. He referred to a recent report from the Mortgage Bankers Association, which showed that debt consolidation accounted for 33% of the use cases for home equity loans funded in 2023. “Our new debt consolidation feature lets consumers get a real sense of what they could save by paying off higher interest debt and do it on a self-serve, no pressure basis,” Castro added.Customers must enter basic information — including their name, date of birth, address and loan purpose — to access the feature and map out the details of a new loan. Eligible debts include construction loans, personal loans, credit cards, auto loans and student loans. The Digital Loan Product Wizard performs a soft credit pull to present available levels of home equity. The company partners with the three major credit bureaus — Experian, Equifax and TransUnion — to pull accurate credit reports via the FirstClose platform. Consumers can choose specific credit lines to pay off, input a down payment amount and select a preferred monthly payment. From there, the Digital Loan Product Wizard lets borrowers select several HELOC and home equity products to evaluate through several third-party institutions—including Evolve Mortgage Services and American First Credit Union. The tool then sends consumer information to a lender to start the underwriting processFirstClose emphasizes that the technology is not designed to replace traditional loan officers but to facilitate a smoother, more informed borrowing experience. The announcement also reflects a recent effort from FirstClose to expand its reduced turn times in home equity lending. In July, the company partnered with Neighborhood Credit Union to streamline the lender’s home equity operations. 

The third-quarter financials for Pennymac Financial Services illustrate the double-edged sword of declining interest rates for mortgage companies. It can improve loan production and acquisitions but hurt their servicing portfolios.When factoring both impacts on its earnings, the California-based lender delivered a profit of $69.4 million from July to September. That was less than its $98 million profit in the second quarter of 2024, according to filings with the Securities and Exchange Commission (SEC) on Tuesday. With lower rates and more opportunities to refinance mortgages, Pennymac generated a pretax income of $108 million in Q3 2024 in its production segment, up from $41.3 million in Q2 2024 and $25.2 million in Q3 2023.This was a reflection of more volume rather than higher margins. In total, loan acquisitions and originations had an unpaid principal balance (UPB) of $31.7 billion in Q3, up 17% quarter over quarter and 26% year over year. By segment, production in its correspondent channel increased 19% on a quarterly basis to $28.3 billion in Q3 2024, with margins rising from 30 basis points to 33 bps. In the broker channel, volumes rose 23.2% from the second quarter to reach $5.3 billion, but margins dropped from 103 bps to 97 bps. The consumer direct channel had a 92% increase in production to $5.2 billion, with margins declining from 393 bps to 323 bps. “Our production segment pretax income nearly tripled from last quarter as lower mortgage rates provided us the opportunity to help many customers in our servicing portfolio lower their monthly mortgage payments through a refinance,” Pennymac chairman and CEO David Spector told analysts in an earnings call. “At the same time, our servicing portfolio — now near $650 billion in unpaid principal balance and nearly 2.6 million customers — continues to grow, driving increased revenue and cash flow contributions and providing low-cost leads for our consumer direct lending division.”The company’s servicing segment delivered a pretax loss of $14.6 million in Q3 2024, compared to pretax gains of $88.5 million in Q2 2024 and $101.2 million in Q3 2023. Lower mortgage rates resulted in the decline of the fair value of its servicing assets by $402.4 million, which was partially offset by $242.1 million in hedge gains. When rates drop, prepayments increase as borrowers refinance, hurting the fair value of these assets. The pretax income was $151.4 million, excluding the valuation and non-recurring items. “Interest rates exhibited significant volatility during the quarter. The 10-year Treasury yield declined approximately 60 basis points during the third quarter and ranged from a high of 4.5% to a low of 3.6%,” chief financial officer Daniel Perotti told analysts.Perotti said the company will “seek to moderate the impact of interest rate changes on the fair value of our MSRs through a comprehensive hedging strategy,” and it also will consider “production-related income, which was up significantly this quarter versus last quarter.”Executives said the company still targets a hedge coverage ratio of about 80% on its mortgage servicing rights. Servicing assets will continue to be used to create more refinance opportunities. “As of Sept. 30, approximately $200 billion in unpaid principal balance, more than 30% of the loans in our portfolio, had a rate above 5%, $90 billion of which was government-insured or guaranteed loans, and $108 billion of which was conventional and other loans,” Spector said. The company’s refinance recapture rate is 52% for government loans and 34% for conventional loans. “We expect these recapture rates to continue improving given our multiyear investments, combined with the increased investment in our brand and use of targeted marketing strategy,” Spector said. He added that Pennymac made the decision earlier this year to increase capacity and will continue to look to grow, “just given the natural growth in the portfolio.”The company’s total expenses were $317.9 million in Q3 2024, up from $272.3 million in the prior quarter. This increase was “primarily due to increased production segment expenses due to higher volumes and stock-based compensation expense,” the company said.

Reverse mortgage educators Dan Hultquist and Jim McMinn brought their “Rules of the Game” presentation back to the National Reverse Mortgage Lenders Association (NRMLA) Annual Meeting and Expo this year in San Diego. After getting some of the preliminaries out of the way regarding the importance of focused information, they drilled deeper into certain topics related to reverse mortgage product features.The popular presentation is very interactive and features the presenters wearing referee shirts. In a change of pace from prior years, the “fouls” on certain incorrect example statements were called by members of the audience — who were equipped with their own whistles.Line of creditOne such misconception touched on during the event focused on the Home Equity Conversion Mortgage (HECM) line of credit feature.“Hello, Mrs. Smith,” McMinn began, playing the role of a reverse mortgage originator. “I understand you’re looking for clarification on the line of credit growth. It’s similar to the interest you earn on a bank account. …”The sentence was immediately interrupted by the shriek of a whistle, which surprised even the presenters themselves.“That’s not a good representation of the line of credit,” Hultquist said. “It’s mortgage growth, not income. We’re basically going to blow the whistle on some things we say in the industry — the line of credit growth is not income.”Dan Hultquist and Jim McMinn prepare to present “Rules of the Game” at NRMLA Annual 2024 in San Diego. Photo by Chris Clow." data-image-caption="Dan Hultquist and Jim McMinn prepare to present “Rules of the Game” at NRMLA Annual 2024 in San Diego. Photo by Chris Clow." data-medium-file="https://img.chime.me/image/fs/chimeblog/20241023/16/original_bf5d90ca-d163-4242-b0b6-81581643641b.jpg?w=226" data-large-file="https://img.chime.me/image/fs/chimeblog/20241023/16/original_bf5d90ca-d163-4242-b0b6-81581643641b.jpg?w=690" tabindex="0" role="button" src="https://img.chime.me/image/fs/chimeblog/20241023/16/original_bf5d90ca-d163-4242-b0b6-81581643641b.jpg?w=690" alt="Dan Hultquist and Jim McMinn prepare to present "Rules of the Game" at NRMLA Annual 2024 in San Diego. Photo by Chris Clow." class="wp-image-486006" style="width:200px" srcset="https://img.chime.me/image/fs/chimeblog/20241023/16/original_bf5d90ca-d163-4242-b0b6-81581643641b.jpg 690w, https://img.chime.me/image/fs/chimeblog/20241023/16/original_bf5d90ca-d163-4242-b0b6-81581643641b.jpg?resize=113,150 113w, https://img.chime.me/image/fs/chimeblog/20241023/16/original_bf5d90ca-d163-4242-b0b6-81581643641b.jpg?resize=226,300 226w" sizes="(max-width: 690px) 100vw, 690px" />Dan Hultquist and Jim McMinn prepare to present “Rules of the Game” at NRMLA Annual 2024 in San Diego. Photo by Chris Clow.Hultquist remembered walking through Midway Airport in Chicago when he received a call from an industry contact asking for his help to explain “how the line of credit earns interest.”“Yeah, that’s not exactly accurate,” he replied. Income, he explained, is generally taxed and doesn’t need to be repaid unlike loan proceeds.“I prefer to talk about cash flow instead of income in our space,” he said. “But the line of credit growth? It’s not ‘earning’ anything.”He offered the example of calling up a credit card company ahead of a shopping spree and asking them to extend an existing credit line by an additional $1,000. When that happens, a person is not earning $1,000.“Keep that in mind. It’s simply the greater capacity to borrow more money in the future, regardless of your property value,” he said.The U.S. Department of Housing and Urban Development (HUD) also advises counselors — although this applies to originators as well — that the line-of-credit growth is simply “increased access to borrowing power,” he said.‘Tax-free’ moneyMcMinn continued with another mock call as a reverse mortgage originator.“Hi, Mr. Moore,” he began. ”The last time we spoke, we were discussing the financial planning strategies of the reverse mortgage. One of the key advantages we discussed is that the reverse mortgage offers you tax free …”Once again, the sound of a whistle tore through the meeting room.This misconception often gets to the root of language that can be found in some reverse mortgage industry advertisements. But there needs to be a visible asterisk next to any claim of “tax-free cash” or “tax-free money,” Hultquist said.“It would be OK to say that disbursements are not taxed as income, from my perspective — again, I’m not a compliance officer or an attorney — but disbursements are not taxed as income in any state,” Hultquist said with clarification. “But you better put ‘generally’ or ‘typically,’ or whatever caveat, just in case.”A reverse mortgage itself is not a tax-free financial instrument, he explained. He referred to a recent move in Florida, where state tax stamps were reduced following legislation signed into law in May.“And intangible tax, depending on who you talk to or what county in Florida, may be taxed at a higher level,” he added.“So, there are significant taxes you’re going to pay to get a reverse mortgage, or any mortgage,” he explained. “Things like intangible tax, state tax — interest on drawn funds could be taxable. And in rare cases, there might be capital gains taxes. So, there aren’t a lot of taxes you pay to get a reverse mortgage, but the CFPB’s primary concern is that there are taxes you have to pay after a reverse mortgage, like property taxes.”The Consumer Financial Protection Bureau (CFPB) has taken action against players in the reverse mortgage space for not making this more explicit. Advertising “tax-free” money without mentioning the requirement of the HECM program to keep paying property taxes, homeowners insurance and other potential obligations (like HOA fees) could be considered deceptive, Hultquist explained.

Guaranteed Rate Affinity announced a promotion on Tuesday as the joint venture company named 22-year industry veteran Mark Rawls as vice president of mortgage lending.Rawls is the latest addition to a leadership team of seven executives at the developing company. Guaranteed Rate Affinity was formed in 2017 through a partnership between Rate, formerly branded as Guaranteed Rate, and Anywhere Real Estate, formerly known as Realogy. The company is in expansion mode, bolstering its offerings to meet new market demands.Guaranteed Rate Affinity highlighted Rawls’ promotion as a key development in their partnership with New Jersey-based real estate franchise Coldwell Banker, a subsidiary of Anywhere. Rawls will leverage his communication and leadership skills to help the company grow its homebuyers clientele in North Carolina.“We are thrilled to welcome Mark to the Guaranteed Rate Affinity team,” Jay Crowder, Southeast divisional manager for Guaranteed Rate Affinity, said in a statement. “His extensive experience, industry accolades, and client-first approach make him a perfect fit to lead our North Carolina team and strengthen our partnership with Coldwell Banker.”Coldwell Banker’s leadership team also praised Rawls for his commitment to community and real estate, highlighting his presence as a key component to speeding up the mortgage process for consumers. “Mark’s passion for real estate and community, combined with Guaranteed Rate Affinity’s proven platform and talented loan officers, is a recipe for continued success in providing our clients with a fast, seamless mortgage experience,” said Lance Branham, managing broker for Coldwell Banker in Charlotte.Rawls’ prior experience spans several companies — including Movement Mortgage and WR Starkey Mortgage. At Movement, Rawls started as a loan officer before taking over as producing bank manager. He also received the company’s Presidents Club award six times for top performance. Scotsman Guide recognized Rawls as a top 1% originator for four straight years.Guaranteed Rate Affinity currently has three branches in North Carolina. The company has offered more than $100 billion in funding since its inception, and Rate holds a majority stake of 50.1%.

eXp Realty continues to add agents and teams at a fast clip. The company announced the addition of the Maine-based Realty ONE Group, a 36-agent team that has closed 338 transactions totaling $128 million in sales volume so far this year.The team is led by Steven Brackett, who has been part of Realty One Group for six years. According to eXp, the group specializes in residential real estate, fix-and-flips and investment properties.“I’ve realized that my greatest strength lies in seeking, recognizing, and partnering with great people and companies that excel at providing world-class training, education, tools, and technology to help agents grow and succeed,” Brackett said in a statement. “This allows me to focus on what I do best: finding, developing, and nurturing top talent.”eXp has been busy on the recruiting trail this year. In October, Prime Real Estate Team, which serves the Sacramento area, joined eXp. The 21-agent team closed 211 sides for a total volume of $126 million in 2023.In September, CanZell Realty, which operates in 20 states, joined eXp along with New York-based Grand Lux Realty.“We are thrilled to welcome Steven Brackett and his accomplished team to eXp Realty,” eXp CEO Leo Pareja said in a statement. “Steven’s dedication to fostering talent and driving innovation aligns perfectly with our mission. His team’s exceptional track record speaks volumes, and we look forward to supporting their continued success.”

A new study from Morningstar focused on U.S. retirement readiness illustrates that while there has been some improvement over time, general retirement preparedness is lacking.Using data from the Federal Reserve’s Survey of Consumer Finances, Morningstar researchers analyzed data from 3,442 households before projecting 1,000 possible “life paths” for each of them. The company used savings rates, withdrawal patterns, job turnover and health care expenses to reach its conclusions.The authors previously published two separate papers on their findings earlier this year. The bottom line, they say, is that despite certain variations across generational cohorts and income classifications, preparedness is not where it needs to be.One positive that emerged from the results is that younger generations appear to be taking retirement preparedness more seriously. The overall rate of preparation — derived from the researchers’ modeling — shows Gen X preparedness at 53% versus 56% for millennials and 63% for Gen Z.But the averages are far more adversely impacted by income than age. The highest income brackets across all three generations hover between 86% to 89% readiness, but the lowest income brackets range between 14% to 34% — a more significant variation with the lowest figure belonging to Gen X.“Traditional corporate pensions may have largely vanished, but their twin replacements of 401(k) and IRA plans appear to have filled the retirement-planning gap nicely — that is, for those who have means,” said John Rekenthaler, a vice president of research at Morningstar who summarized the findings.But there is additional nuance to be found when taking into account that financial outcomes are not “binary,” Rekenthaler said.“Managing a 99% retirement-funding ratio is a modest failure, if at all. In contrast, a 50% ratio is disastrous,” he explained. “Determining when a disappointing retirement outcome becomes life-altering is admittedly arbitrary, but the task should be attempted. I have set that mark at 80%, which I call the ‘floor’ ratio.”On that basis, generational readiness improves to about 75% of Americans having a “recognizable retirement,” he said, although certain habits and spending may need to be curtailed to achieve it.

Mortgage rates continue to rise, serving as a bucket of cold water for lenders and consumers that were warming to lower borrowing costs just a few months ago.According to HousingWire‘s Mortgage Rates Center, the average 30-year conforming rate was 6.61% on Tuesday. That was up 15 basis points (bps) from one week ago and 30 bps higher than on Sept. 18, when the Federal Reserve lowered benchmark rates by 50 bps.The 15-year conforming rate has increased even more sharply since the Fed’s decision, rising from 5.7% on Sept. 18 to 6.15% on Tuesday.Data from Altos Research shows that higher mortgage rates aren’t necessarily keeping sellers from listing their homes. For-sale inventory of single-family homes is up 33% from a year ago. New pending sales are also on the rise, with the 60,000 homes going under contract last week representing a 9% increase from the same week last year and an 11% increase from the same week in 2022.“We’re just very slowly adjusting to this new normal of higher mortgage rates,” said Mike Simonsen, founder and president of Altos Research. “The current pending sales got a boost from lower mortgage rates last month, but those mortgage gains are gone now. This progress is just good enough to show some year-over-year gains and it may be fleeting.” Last week, following the release of construction data for September from the U.S. Census Bureau, HousingWire Lead Analyst Logan Mohtashami wrote that homebuilders are having some of the same headaches as consumers when it comes to the cost of borrowing. While the Fed’s policy rate range of 4.75% to 5% is lower than where it was for the past year, it is still much higher than what many market observers consider a neutral rate needed to spur borrower demand.“We are at recessionary levels for housing permits for five-unit housing. Anyone who thinks we are on the verge of a housing construction boom is kidding themselves, with the policy still this restrictive,“ Mohtashami wrote.“… I had anticipated better growth in single-family permits because the recent uptick in mortgage rates shouldn’t have been fully felt here yet. However, we know that mortgage rates above 6.75% have made the builders less enthusiastic about issuing many single-family permits.“Recently released data from Zillow shows that housing starts were down for a second straight year in 2023, although activity remains above pre-pandemic levels. The real estate listings giant reported that builders have pivoted toward condominiums and townhomes in their efforts to create more starter-home supply at lower price points.Zillow reported that starts for detached single-family homes dropped by 8.9% in 2023, but starts for attached properties rose by 3.2% and condo starts jumped 8.1%. The same trend was evident in housing completions as the number of detached homes fell by 5.1% while attached homes were up 9.6%.Some parts of the country appear poised for significant supply growth in the near future. Zillow said that single-family permits grew in most major metro areas from January through August compared to the same period last year. Permits jumped by 25% or more in Indianapolis, Phoenix, San Diego, San Antonio and Milwaukee.On top of higher mortgage rates, home-price appreciation continues to hamper affordability. Redfin reported Tuesday that prices rose 0.5% from August to September on a seasonally adjusted basis. That was fastest monthly rate of growth since April. On a yearly basis, prices grew by 6%. Mortgage affordability improved in September when rates dropped as low as 6.08%, but home prices are continuing to tick up because demand outweighs supply.“There are around 20% fewer homes on the market today than there were five years ago, mainly because so many homeowners locked in a low mortgage rate during the pandemic,” Redfin senior economist Sheharyar Bokhari said in the report. “With mortgage rates back above 6.5% this month — and unlikely to drop below 6% this year — home prices will likely continue their consistent climb until more inventory comes onto the market in the spring.”

The Federal Housing Administration (FHA) this week announced two temporary policy waivers as the response to hurricanes Helene and Milton continues.The FHA’s 203(k) rehabilitation mortgage program currently has a requirement that “when a repair is considered ‘major,’ it becomes ineligible to be financed” as part of the 203(k) limited option, ”if the repairs prevent the borrower from occupying the property for more than 15 days.”This requirement has been temporarily dropped as part of the ongoing response to the back-to-back disasters in the Southeast.As a result of Helene and/or Milton, “many properties were severely impacted or destroyed and are now in serious need of rehabilitation and/or repair,” the agency stated. “FHA believes a temporary waiver of its definition of ‘major repair’ related to the 15 days (or 30 days after November 4, 2024) needed for repair completion is crucial“ for ensuring that homeowners in these presidentially declared major disaster areas (PDMDAs) can rebuild.The temporary waiver, issued on Monday, applies to FHA-insured limited 203(k) mortgages closed on or before Aug. 31, 2025.Importantly, the temporary waiver impacts the 15-day occupancy requirement in the specified disaster areas, but a requirement that “at least one borrower resides in the property within 60 days remains the same,” FHA added.Another policy applying to PDMDAs typically requires “damage inspection reports“ for properties in these areas. These reports must be done after the closure date of the “incident period” — the date(s) that a disaster took place on — or at least 14 days from the start of an incident period, whichever is sooner.A new temporary waiver of a second 14-day incident period applies for inspection reports stemming from the Hurricane Milton disaster area, which was officially declared on Oct. 11. But due to the responses to both Helene and Milton — which “severely impacted similar regions within a 14-day period” — the current policy requiring separate 14-day waiting periods for damage inspections and reports after each event “has created the potential for extensive repair/rehabilitation delays for homebuyers and sellers.”Since the Federal Emergency Management Agency (FEMA) is currently deployed in these disaster areas, FHA believes there is “enough stability and risk mitigation to eliminate the requirement for a second 14-day waiting period for inspection and damage reports associated with the Hurricane Milton PDMDA.”This waiver applies only to the 14-day requirement to conduct the damage inspection report. Other requirements — including the need to “conduct a damage inspection report, and other inspection and repair escrow requirements, for all properties with pending mortgages or endorsements in the PDMDAs” — remain the same.The waivers announced this week are effective immediately.

The Real Brokerage is keeping attendees of RISE, its third annual agent conference, on their toes. From the RISE stage in Las Vegas, Real unveiled three new products for agents and clients on Tuesday.The first product launched is an upgrade to Leo, the AI assistant the firm first debuted during the summer of 2023. The upgrade, known as Leo CoPilot, will serve as an agent command center and will also become the main interface agents use to manage reZEN, Real’s agent platform.Leo CoPilot can help agents generate automated marketing materials by leveraging data from an MLS. It automatically scans documents for errors before they are submitted to the broker. It can also explain an agent’s payout on any transaction and is integrated with Real Academy, which will give agents access to the brokerage’s entire catalog of training sessions and workshops. Using Leo CoPilot, agents will be able to retrieve specific information from recorded presentations, finding the exact answers they need.“Technology is the backbone upon which Real was built, and we continue to push the limits when it comes to leveraging artificial intelligence to deliver solutions that provide our agents and their clients with a strategic advantage,” Tamir Poleg, the CEO and chairman of Real, said in a statement. “Leo has been a game-changer since Day 1, and its new CoPilot capabilities will further transform how Real agents operate.”But Real agents are not the only ones receiving upgraded AI technology. Real also unveiled Leo of Clients on the RISE stage Tuesday. It is scheduled to launch in 2025, and it allows consumers to directly communicate with Leo through standard text messaging, such as SMS and iMessage. Through the product, clients will be able to receive recommendations for available properties based on their search criteria, access open house information, schedule tours and initiate a mortgage application. 
“By automating routine tasks and providing instant, personalized service, we empower agents to focus on what truly matters — building relationships and closing deals,” Real President Sharran Srivatsaa said in a statement. “This represents the future of real estate — seamless, efficient and client-centered — and we are proud to lead the charge.”The final product Real unveiled at RISE is Real Wallet, a financial platform designed to help agents control and manage their finances. Through Real Wallet, the firm said agents can access their earnings faster and gain real-time insights into their professional net worth. The product is currently available to select agents in the U.S. and Canada. U.S.-based agents can sign up for a business checking account with Thread Bank, which includes a Real-branded debit card. Canadian agents will have access to a credit line based on their earnings history with Real, according to the company announcement.“Real Wallet is designed specifically for agents of the future, addressing a critical need by helping them better manage their finances and reinvest in their businesses,” Poleg said. “By merging fintech with real estate, we give agents the autonomy and flexibility needed to control their financial futures.”Looking ahead, Real said it aims to unify these features, making Real Wallet a comprehensive financial solution for all of an agent’s business banking needs. Additionally, the brokerage said it expects that Real Wallet users will have the opportunity to earn promotional rewards points that are redeemable toward reduced brokerage and transaction fees. The brokerage is also expecting to integrate the product with Apple Pay and Google Pay. 
“Real Wallet represents a key step forward by integrating AI-powered insights with fintech tools, enabling agents to make more informed and efficient decisions,” Pritesh Damani, Real’s chief technology officer, said in a statement. “By harnessing the power of data and AI, we’ll soon provide agents with real-time analytics, personalized financial forecasting and tools for tax and retirement planning all designed to help them strategically grow their businesses and maximize their earnings potential.”

If there’s one word that best encapsulates the current political climate, it might be “polarized.” People who are active in the political process are often tribal about their beliefs on how the country should be run, and that tribalism has manifested into political polarization that seems to be striking everywhere.But with only two weeks remaining until the Nov. 5 general election, a new survey has shown that people can agree on something — the need for more affordable housing, and even for the government to do more to address the issue. This is according to the Program for Public Consultation (PPC) inside the University of Maryland’s School of Public Policy.The new survey was conducted across six swing states that are widely expected to decide the presidential race next month: Arizona, Georgia, Michigan, Nevada, Pennsylvania and Wisconsin.Polls in these states have consistently shown that either major party presidential candidate that has managed to take the lead over the past few months has largely done so within a margin of error of 3% to 5%. This fuels the perception that the race remains incredibly close across these critical battlegrounds.But when it comes to the needs for addressing housing affordability, there is majority support in each of these states for the federal government to take action. And in many cases, these majorities are bipartisan, especially when it comes to addressing the needs of low- and middle-income households.Respondents to the PPC survey were given information about the current level of activity the federal government is engaged in regarding affordable housing. They were told that “housing is considered affordable when it costs the household no more than 30% of their income to live there.”They were then offered a series of proposals that would expand government involvement in the affordable housing sector beyond its primary focus on low-income people, including $40 billion in grants to repair or rehabilitate housing units for low-income families, and to expand support for low-interest loans to homebuilders.These proposals are favored by margins of 69% to 73% in each swing state, the survey results explain. This includes a majority of Republicans (57% to 63%) and Democrats (79% to 89%). At the national level, a bipartisan majority (74%) expressed support, including 86% of Democrats and 63% of Republicans. Another proposal involves a tax credit for building and/or repairing rental housing “on the condition that 60% of them are affordable to middle-income households,” the results explained. This proposal is favored by margins of 69% to 73% within the swing states, with slightly lower majorities of Republicans and slightly higher majorities of Democrats indicating support. These results also largely conform with national support beyond the swing states.“In the swing states, bipartisan majorities want the Federal government to pursue an active and multi-pronged approach to deal with the high cost of housing.” PPC director Steven Kull said in a statement.Some of the most common housing talking points from the major party candidates were also surveyed. These include a proposal for $25,000 in downpayment assistance to first-time homebuyers that has served as a cornerstone of Vice President Kamala Harris’ housing plan.“Providing assistance — up to $25,000 — to help first-time homebuyers cover the down payment on a home, with more assistance for people whose parents never owned a home, is favored by majorities in every swing state (63-68%),” according to the survey results.This includes a vast majority of Democrats (81% to 87%), but there is more variation among Republicans. For those who identify as GOP voters, “a majority is in favor in Georgia (54%), [but] views are closely divided in Arizona, Nevada, and Pennsylvania, and less than half are in favor in Michigan and Wisconsin (43-44%).”Nationally, 67% are in favor of the down payment assistance proposal, but the majority — while present — is “bare” on the Republican side at 52%.Majorities of respondents also responded favorably to reducing large corporate ownership of single-family homes, and in continuing federal incentives for communities that have more favorable zoning laws that allow for more denser housing, including mixed-use properties.Majorities in the swing states and nationally also favor expanding housing voucher access to more people to the tune of $24 billion. But a recent lawsuit filed in California also shows that some housing professionals may be averse to accepting such vouchers.

In a recent episode of “The Loan Officer Podcast,” co-hosts Dustin Owen and John Coleman discuss key tips for loan officers when engaging in small talk with prospective clients. Owen and Coleman explore common discussion topics, conversational nuances and best practices for communicating with clients from different backgrounds. These questions and responses have been lightly edited for length and clarity. To start the conversation, Owen and Coleman dive into the first tip, which involves asking for a client’s area code to learn about their backstory. Owen opens up with an explanation.Dustin Owen: We all have an area code, right? That area code tends to tell us something about each other and that’s, well, where are we from? Sales is built on trust; it’s based on relationships. The first thing I have to do is get someone to like me.Look at the area code. Is it local or is it from out of the area? If it’s from out of the area, do you recognize it? If it’s from out of the area and you don’t recognize it, sweet. That’s your very first question. Where’d you go to high school? What did you do after high school? And every time, I’m giving someone the opportunity to talk about themselves, I’m asking good, basic questions. The more they talk, I can look for opportunities for us to eventually transact something together.Coleman then moves the conversation forward with a question for Owen.John Coleman: Because you are good at remembering people’s names, and what they say, is that something that you practice, or is that just one of your traits that you have as an individual? Owen: Truth be told, I suck at remembering names. But I genuinely love to learn a new story. And what I also love, like some people, I love how people work. I love how businesses work. And as you tell me, I’m concocting my own story. Coleman: What advice do you have for those awkward loan originators? Because they do exist, you know, the socially awkward ones.Owen: Find your people. At the end of the day you have to find your people. If you have some quirks, or your freak flag flies higher and faster than other people’s freak flag, just go find more people like you, because you will attract your ideal client. To end the conversation, Owen offers the last tip involving vulnerability and establishing trust in a conversation. Owen: Small talk is fake because people won’t be vulnerable. If you want to truly get someone to like you, to trust you, it’s because you showed them a piece of you that they feel is special, right? Me being vulnerable, willing to talk about my quirks, my fears, my anxieties and some life experiences, I think that’s when small talk goes to the next level.

Another regulator has sued Rocket Mortgage for allegedly discriminating against a Black homeowner by undervaluing her home during an appraisal in Colorado three years ago. And the Detroit-based lender believes it’s a “massive overreach.” On Monday, the U.S. Department of Justice—following a move made by the U.S. Department of Housing and Urban Development (HUD) in July—filed a lawsuit against the lender, appraiser Maksym Mykhailyna and his company, Maverick Appraisal Group, and the appraisal management company Solidifi U.S. Inc..The document states that the plaintiffs undervalued a homeowner’s property based on her race in an appraisal made in 2021 in Denver. In addition, Rocket is accused of retaliating against the homeowner by canceling her refinance application when she reported the discrimination. “Under federal law, mortgage lenders are required to work at arm’s length during the appraisal process, partnering with independent appraisal management companies who assign the work to state-licensed professional appraisers,” a spokesperson for Rocket told HousingWire. “The law’s intent is to determine the home’s value without any input or bias from the lender or any other party with interest in the transaction.”The spokesperson continued: “It is clear the government isn’t interested in their own rules, or facts, and are simply including us in this case to score headlines based on our strong brand and prominent position in the industry. We look forward to exposing the government’s massive overreach in this matter.”The DOJ lawsuit was filed in the U.S. District Court for the District of Colorado.  “This lawsuit is part of our ongoing efforts to bring an end to appraisal bias which prevent Black communities and other consumers of color from accessing credit and benefitting from homeownership,” Assistant Attorney General Kristen Clarke of the DOJ’s civil rights division, said in a statement. The homeowner applied for a mortgage refinance at Rocket in January 2021. According to the complaint, during the appraisal process, Mykhailyna used sales from properties in further away neighborhoods with large Black populations and discarded sales of homes less than a mile from the homeowner’s property. It resulted in an appraisal of more than $200,000 lower than one made at the same property less than a year before, despite home prices surging 25% in Denver during the same period. After she complained to Rocket Mortgage, the company canceled her refinance application. The homeowner submitted a complaint to the HUD, which concluded that the defendants violated the Fair Housing Act, and referred the matter to the DOJ.  This is the second appraisal bias case involving a top-10 lender and a powerful regulator. loanDepot in March settled a civil case in which a Black Maryland couple alleged they were low-balled on the appraisal by the local appraiser and subsequently discriminated against by the lender. The DOJ and CFPB filed a statement of interest in the case. loanDepot ultimately admitted no fault and the settlement contained an overhaul to its appraisal policies and procedures. The changes include communicating to applicants that they have the right to request a reconsideration of value (ROV); explaining why an ROV is denied or the valuation is unchanged; and training its credit, valuation and customer service staff on the topic. The document states that loanDepot “should not utilize appraisers who have previously been found to have discriminated in an appraisal by a regulatory body of court of law.”

As the year comes to a close, states are adding more down payment assistance (DPA) programs to help first-time buyers achieve homeownership.Down Payment Resource — a national database for connecting prospective homebuyers to financial assistance programs — recently released its newest Homeownership Program Index (HPI) report based on data collected in third-quarter 2024.The report found 29 new DPA programs — a 1.2% increase from the prior quarter and an 8% increase from the end of last year. The total number of programs sits at 2,444. California stands out with the most first-time buyer programs and available funding. Programs designed specifically for first-generation homebuyers also increased by 5% between the second and third quarters. DPR pointed out that first-time buyers have been “singled out” by presidential candidate Kamala Harris in her housing policy proposal. Harris’ plan would include the addition of 3 million affordable housing units, $25,000 in down payment assistance for first-time buyers and additional resources.Rob Chrane, founder and CEO of Down Payment Resource, said that more programs equate to better, more targeted assistance for first-time buyers. “We are pleased to see a growing number of these programs, and think they are becoming a targeted way to help first-time and first-generation homebuyers struggling to save for a down payment get into a home they can afford,” Chrane said in a statement. “Our data shows the average DPA benefit is roughly $17,000. That can be a nice jump-start for saving for a down payment and other costs of homeownership.”Newly added DPA programs also target first-time homebuyers through access to homes that are priced below market rates.The report highlighted an 8% quarterly increase in below-market-rate (BMR) and resale programs. BMR homes are sold with deed restrictions — including rental limits and fixed resale prices — in exchange for lower prices. Grant-funded programs also grew by 7% from the second quarter. Municipalities still lead as the primary source of DPA funding, comprising 39% of all sources, followed by nonprofits at 21% and housing finance agencies at 19%.Borrowers seeking help for multiunit homes also have more options compared to the second quarter. DPA programs that supported the purchase of two-, three- and four-unit properties rose by 7% in Q3 2024.Down Payment Resource reported an increase in first-time buyer assistance programs for each quarter of this year. But with the election season winding down and mortgage rates continuing to fluctuate, program numbers could also shift.