The single-family home construction industry might be headed for a slowdown. Data from the U.S. Census Bureau shows that single-family building permits dropped 7.7% year over year in October, hitting a seasonally adjusted annual rate of 1.416 million units. Housing starts didn’t fare much better, dropping 4% from one year ago.While single-family housing completions were up 16.8% year over year, the data for starts and permits suggests there are relatively few units coming online in the coming months.“Builders continue to face headwinds, including high construction costs and skilled labor shortages,” Odeta Kushi, deputy chief economist at First American, said in a statement. “However, demand for new homes remains a bright spot in the broader housing market, contrasting sharply with weakness in existing-home sales. Builders’ ability to offer incentives and higher inventory of new homes for sale supports this relative strength.”The data compared to September shows a pullback as well, with permits (-0.6%), starts (-3.1%) and completions (-4.4%) all falling month over month.Regionally, housing starts in the Northeast took a 28.7% dive relative to September but are up 9.8% year over year. Starts in the South sagged 10.2% month over month, while figures in the Midwest (+4.6%) and West (+4.6%) rose compared to September.Newly built homes have been a bright spot in the housing market as builders have adopted a speculative building strategy. Big builders can offer better financing terms with rate buydowns and other options.But the election of Donald Trump clouds the outlook for builders. Trump offered few details of a housing plan during the presidential campaign, althought it’s expected that deregulation, tax cuts, the release of federal land and the prospect of lower mortgage rates will be part of it.While this could benefit some parts of the housing market, Trump’s policies on tariffs and immigration could make life difficult for builders. Data from the American Immigration Council shows that 13.7% of construction labor jobs in 2022 involved undocumented workers. Mass deportations would exacerbate a labor shortage that’s already a problem for builders.Trump has proposed a 10% blanket tariff on all foreign goods, a 60% tariff on all Chinese goods and as much as a 100% tariff on all Mexican goods. While it’s hard to parse how these would specifically impact construction inputs — or how serious Trump is about implementing tariffs this high — it’s all but a given they would raise the prices for some materials.Still, homebuilders are optimistic about the new administration, as the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) has risen for three straight months, including the November reading taken after the election.“Builders are expressing increasing confidence that Republicans gaining all the levers of power in Washington will result in significant regulatory relief for the industry that will lead to the construction of more homes and apartments,” NAHB Chairman Carl Harris said in a statement about the HMI. “This is reflected in a huge jump in builder sales expectations over the next six months.”

In preparation for widespread credit scoring changes, leading credit-score and data analytics company VantageScore has launched a Mortgage Resource Center to support lenders transitioning to the VantageScore 4.0 credit model.The new resource provides tools and guidance to facilitate integration and aligns with the growing adoption of VantageScore 4.0 by a number of industry players. These include the U.S. Department of Veterans Affairs (VA) and the Federal Home Loan Banks (FHLBs) in New York, Chicago and San Francisco.The initiative comes as the mortgage industry prepares for mandatory adoption of VantageScore 4.0 by October 2025, as required by the Federal Housing Finance Agency (FHFA). The updated model replaces traditional FICO scores and leverages alternative data points — such as rental payment history — to better assess borrower creditworthiness. Tony Hutchinson, the senior vice president of industry and government relations at VantageScore, described the Mortgage Resource Center as a critical tool for lenders as they continue working with Freddie Mac and Fannie Mae. “An immediate transition ensures lenders remain well-positioned to continue doing business with Fannie Mae and Freddie Mac, as well as the other principal GSEs that can accept VantageScore mortgages right now,” Hutchinson said in a statement. “If you are a lender, you need to be implementing VantageScore 4.0 now or risk losing access to key mortgage GSEs.”VantageScore’s Mortgage Resource Center provides a step-by-step playbook for integrating the new credit-scoring model. Lenders also gain access to CreditGauge, Inclusion360, RiskRatio and MarketGain to evaluate consumer health, highlight underserved consumers, evaluate default levels and survey market opportunities. In 2024, VantageScore 4.0 integration surged among lenders. FHLBank of New York adopted the model late last month to serve 3.1 million potential borrowers in New York, New Jersey, Puerto Rico and the U.S. Virgin Islands. VantageScore claims to have aided at least 33 million more consumers when compared to traditional credit scoring models, including 4.1 million minority borrowers with credit scores below 620.

What will the housing market look like in 2025? We already see many signals for what to expect, including last week’s data on inventory, new listings and price reductions, which I analyze below. For a more comprehensive look, read our 2025 Housing Market Forecast covering home prices, home sales volumes and more.Last week, there were 9% more newly pending home sales than the same week a year ago and home sales are ticking down for the season. Mortgage rates continue to move higher and that’s impacting buyers.Housing inventory There are now 722,000 unsold single-family homes on the market around the U.S. That’s a tiny bit more than a week ago and almost 27% more inventory than last year at this time. Inventory peaked for this year back in October and in most of the country the number of unsold homes on the market is moving lower for the season.Below is the 10-year view of inventory trends in the U.S. You can see the recovery of inventory over the past three years and that we probably still have a few more years before we fully recover to the levels that we had in the last decade. It took just two years of ultra-low interest rates to eat up all the unsold inventory and will probably take five years for it to rebuild. One of the conclusions of our forecast is that we’ll see inventory growth in 2025 again, with about 17% more homes on the market by the end of next year.New listingsOne way reason it will be hard for inventory to grow more than 17% next year is that there are still not enough sellers to get there. Last week there were 52,000 new listings for single-family homes unsold. That’s 6% more than the week before and nearly 7% more than a year ago. When we add back in another 7,500 new listings with immediate sales — those are already in contract and not added to the active inventory — overall that’s just 3% more sellers than a year ago.Frankly, it feels like the housing market is contracting a bit now in November. After the hurricanes, we got hit with spiking mortgage rates and then the election. We saw a little rebound in the new listings rate after the election, but it was actually less of a rebound than I anticipated. A few more sellers emerged, but my gut says that many are done for the season and maybe will try again next spring.Home salesWe counted 53,000 new contracts pending for single-family homes last week, with another 11,000 condo sales. That’s a bounce up of almost 3% for the week after the election pause.The recent average weekly single-family home sales is down to 56,000 newly pending single-family home sales per week. Home sales are averaging almost 10% more than last year but October of 2023 was really weak for transaction volume.We are still forecasting slight growth overall in home sales in 2025 — probably just 5% more than in 2024. In the chart below, I’ve used a four-week rolling average of home sales to smooth out the weekly noise, but you can see that sales are running just a bit ahead of last year. There’s not a ton of growth here: 52,000 new listings in a week and 53,000 sales.Home pricesThe median price of new sales started last week was $380,000 again — no change from the week before. So new listings bounced up, inventory ticked up, the sales rate improved but the price stayed unchanged. Home prices by this measure are about 4% more than last year at this time. Price reductions Below is a view of list-price reductions I don’t think I’ve shared before. Normally we talk about the percent of homes on the market that have taken a price cut. That percentage has peaked for the year and is now 38.8% of the homes on the market. But rather than the percent of listings, let’s look at how much those listings need to cut price and see if that gives us any new information.Currently home sellers taking a price cut have dropped just over $15,000 from the original list price on average. If you think about the median priced home in the US, which is $430,000 now, that’s 3.5% price cut.In this chart we have the absolute level of price cuts to watch and the change in the amount. And right now, fewer dollars are being cut and it’s seeing a seasonal declining ahead of the last two years. This is another signal for home-price stability as we look forward to the housing market of 2025. Mike Simonsen will be a featured speaker at the Housing Economic Summit in Dallas on February 26. Find out more here.

With Donald Trump’s victory now secured, housing advocates and experts are closely watching for signs of what his second term as president could mean for the nation’s growing housing crisis. Housing was a key topic throughout the presidential election cycle, and it was one of the policy areas discussed by Trump and Vice President Kamala Harris during their September debate. But much is still unknown, including Trump’s nomination for director of the U.S. Department of Housing and Urban Development (HUD), as well as a detailed housing plan. Throughout his campaign, Trump focused on deregulation, tax cuts and reducing mortgage rates. In speeches, including one at the Economic Club of New York in September and a press conference in August, Trump reiterated his promise to reduce regulatory barriers and vowed to make federal land available for extensive housing projects.Politico reported in August that proposals to sell federal land to developers for housing construction have notably appeared in both the Republican National Committee’s 2024 platform and in President Joe Biden’s housing plan, when he was still in the running. Harris also included housing construction and affordable housing initiatives in her agenda. Other administrations have attempted this feat, but the plans are easily vetoed.“I think that, politically, it’s always been easy to kill because people who live near those lands like them nice and empty, and they can oppose affordable housing while enjoying their own as well as the benefit of living near federal lands,” said David Dworkin, president and CEO of the National Housing Conference. “When we talk about affordable housing, it’s something that people are often happy to have in somebody else’s neighborhood or community, but not their own, and it’s a hypocrisy we see both in blue states and blue communities as well as red ones.”If the plan were to move forward, the federal government — which controls about 650 million acres of land — would invite developers to bid on parcels, provided they commit to maintaining a percentage of units at affordable rates for local communities.“We’re generations past the federal government building affordable housing because we found that the private sector does a better job at it and can leverage the investment better,” Dworkin said. “Having the private sector do this work actually makes a lot of sense and that, by definition, means the private sector is going to make a private profit. And there’s nothing wrong with that, as long as the housing is affordable to working-class people.”Redfin chief economist Daryl Fairweather said that Trump’s plans for housing are “small potatoes” compared to two main policies — neither of which are directly related to housing — that would impact the industry the most. Trump has a tentative plan for tariffs and has repeatedly promised increased levels of deportation of undocumented immigrants. “A lot of construction labor is undocumented labor,” Fairweather said. “If you look at non-citizens working in the construction industry, according to the census, it’s about a third of construction workers. And it could be quite disruptive. … For the construction industry, that can mean that you think a certain person will show up to work today, and they just don’t show up. So, it’s not even something that can be prepared for.”The plan is hard to imagine, Dworkin said, because the amount of land that actually can accommodate infrastructure is unknown. But he said the western U.S. has plenty of open land — even in unsuspecting, high-priced areas of the country like San Francisco. Some federal land isn’t feasible for a host of reasons, said Andrew Jakabovics, vice president for policy development at Enterprise Community Partners. He argues that rural areas should be taken out of the land-use equation. “[It starts] obviously with environmental impact but also just the cost of trying to build, bringing materials out to the middle of nowhere, and the labor force out to the middle of nowhere, which is not going to be feasible. But there is a lot of federally controlled land that’s already within municipal boundaries, that’s already within metro areas, that is underutilized,” Jakabovics said.Intention with land use is imperative, he added, but also it’s too soon for the incoming administration to have a plan. “I think it’s about building more in the places where we’ve already got housing and we’ve already got infrastructure and we’ve already got schools and shopping centers, and the amenities that make places livable,” Jakabovics said.Dworkin agrees that balancing developers’ profit motives with sensible land use is critical. “Developers will naturally target the most viable opportunities,” he said. “The government needs a process that’s fair, equitable and efficient.”The need for affordable housing is pressing. “Homelessness grows daily, fueled by the lack of affordable housing,” Dworkin noted. “Addressing this crisis requires building more affordable housing in places where it’s needed — not just in coastal cities but in places like Phoenix, Boise, Omaha and Nashville.”Jakabovics said that using federal land for the purpose of building more homes hasn’t worked on a wider scale before because state and federal officials are playing hot potato with the issue of affordable housing. “[Land use] has largely been seen as a state and local issue. We’ve typically left the development to the market to produce, you know, and even the way we build affordable housing right is through incentivizing the private sector to build right with targeted affordability,” he said.Fairweather is doubtful that Trump’s plan could come to fruition. “If you look at [Agenda] 47, he specifically says he doesn’t want to bring low-income housing to the suburbs. So, I don’t think he’s talking about putting subsidized housing on post offices, the way that Harris was,” she said. “And builders are very profit motivated, and I’m not sure how much of federal land has market value.”In a related development, the Biden-Harris administration last month announced the sale of 20 acres of public lands, for just $100 per acre, to build affordable housing projects in southern Nevada. The Bureau of Land Management sold the land, valued at nearly $20 million, to Clark County for $2,000. The county plans to develop 210 single-family homes for households earning $70,000 or less. Located in southwest Las Vegas, the project known as Cactus Trails will also create more than 100 jobs.“There’s a lot of bipartisan ground to make progress on — and this is one of them,” Dworkin said.

The National Association of Realtors (NAR) has spent much of the past few years having its dirty laundry aired across public domain and in courtrooms. Now a new report is taking aim at compensation for NAR executives.On Monday, The New York Times published an expose about the lavish perks enjoyed by NAR’s executives. Chief among them is the salary of former CEO Bob Goldberg, who earned $1.2 million per year that later ballooned to $2.6 million.Additionally, the Times reported that Goldberg’s contract entitled him to things like memberships to exclusive country clubs, first-class airfare for personal travel, expensive car allowances, money for his dog to travel with him and even tickets to “Hamilton” at the height of the musical’s popularity.NAR could be running afoul of tax law given that it is a nonprofit trade association, the report claimed.“It is highly unusual — I would even say virtually unheard-of — for volunteer leaders and officers to receive compensation at those levels,” Jeff Tenenbaum, a nonprofit lawyer in Washington, D.C., told the Times. “Many of us who practice association antitrust law have always wondered, ‘How can they get away with this?’”Using NAR funds for personal benefit might be a violation known as “private inurement,” even if the spending is related to business travel. Private inurement could result in NAR losing its tax-exempt status.The Times sourced its story through tax disclosures and former NAR executives and members who requested anonymity because they feared potential retaliation.NAR has already been under fire from its membership for its handling of the $418 million commission lawsuit settlement agreed to in March. Frustration also appears to be boiling over with costly dues and unpopular membership rules.Some Realtors question what they get out of their NAR memberships, but rules imposed by NAR and affiliates at the state and local levels force them to be members. Real estate agents don’t have access to a local MLS if they’re not part of the trade association.The cost of fighting antitrust litigation — in addition to the $418 million in settlement money — has observers questioning whether courtroom battles are an extinction event for the trade group. Goldberg resigned a year ago, just days after NAR lost the Sitzer/Burnett commission lawsuit in Missouri.The trade group has also been accused of discrimination, sexual harassment, intimidation and blackmail by a host of former employees, which led to the resignation of President Kenny Parcell in August 2023.

People often disregard reverse mortgages as being too complex. However, I argue they are simply unfamiliar. When explained properly, borrowers can easily understand the concept of a reverse mortgage. However, the loan terms and language are unfamiliar to most existing homeowners.Therefore, when lenders and loan originators decide to offer reverse mortgage products, the first step is to learn the terminology that makes those loan products different.Do you speak reverse?Let’s explore just a few of the key terms not commonly found with traditional mortgages:Principal Limit Factors (PLF)Traditional loan originators use the term “Loan to Value” or LTV to describe the percentage of the home’s value for which a borrower may qualify. We do not. This is because reverse mortgages take into consideration the borrower’s age and expected interest rates. Based on these two factors each applicant will have a PLF based on U.S. Department of Housing and Urban Development (HUD) tables.Mandatory obligationsThese are items that must be paid off at closing, like existing loan balances and closing costs. Reverse mortgages use this term because it may determine the amount of principal available to the borrower during the initial disbursement period. For most Home Equity Conversion Mortgages (HECMs), this is the first 12 months after closing.Financial assessmentReverse mortgage loans go through a unique underwriting process to determine if the loan provides a sustainable solution for the borrower and their household. We call this process financial assessment, and it involves reviewing each borrower’s credit history (not FICO score), property charge history, and residual income.Life Expectancy Set-Aside (LESA)Because the lender cannot require a monthly payment to build an escrow account, the lender may need to set aside a portion of the borrower’s principal limit to pay property taxes and insurance charges each year. This so-called LESA may eventually run out, at which time the borrower would be responsible for payment of those charges.Non-recourseAll reverse mortgages in America are non-recourse, meaning the borrower and their estate will never owe more than the value of the home at the time it is sold. This should give homeowners peace of mind that they won’t be leaving their heirs with a bill if loan balances rise above the home’s value or if property values decline.November 2024 updateSince October 8th, the 10-year CMT weekly average has increased by 60 basis points from 3.83% to 4.43% (effective 11/19/24 through 11/25/24). Remember, this added to the lender margin when calculating HECM expected rates. Unfortunately, this has resulted in lower principal limits for new applicants.You’ll notice the spread between the 10-year and the 1-year weekly average is no longer inverted. For our purposes in the reverse mortgage space, short-term rates are lower than long-term rates for the first time since July 11, 2022. This ends the longest yield curve inversion in my lifetime.Graphics by Dan Hultquist. This column does not necessarily reflect the opinion of HousingWire‘s Reverse Mortgage Daily and its owners.To contact the author of this story: Dan Hultquist at dan@understandingreverse.comTo contact the editor responsible for this story: Chris Clow at chris@hwmedia.com

The Federal Housing Finance Agency (FHFA) on Monday announced that it will raise the 2025 multifamily loan caps for purchases by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac to $73 billion each. This represents a total of $146 billion in multifamily market support for next year, an increase of more than 4% from 2024 levels.FHFA establishes these caps every year, and as was the case for 2024, “multifamily loans that finance workforce housing will be excluded from the 2025 limits,” the announcement explained.FHFA Director Sandra Thompson said that the new caps highlight the agency’s efforts to make rental housing more affordable. “Additionally, the ongoing workforce housing exemption will continue to enhance the Enterprises’ ability to support properties that preserve affordable rents, including properties preserved or created through corporate-sponsored affordable housing initiatives,” Thompson said.Workforce housing was first exempted from the caps last year. Since that point, “both Enterprises have seen encouraging growth in this critical market segment,” the FHFA said. “In addition, FHFA is continuing to require that at least 50% of the Enterprises’ multifamily businesses be mission-driven,” which continues a requirement unveiled last year.FHFA said it will continue to monitor the multifamily mortgage market and reserves the right to raise the caps again to support market liquidity, if it’s deemed necessary. But in an effort to prevent disruption, “if FHFA determines that the actual size of the 2025 market is smaller than was initially projected, FHFA will not lower the caps,” the agency explained.FHFA has set the caps on the GSEs’ conventional multifamily businesses since 2015. While some previous exclusions were in effect, FHFA in 2019 moved to revise the cap structure to apply to all multifamily business, removing many of the previous exclusions and tightening the criteria for loans that are eligible for exclusion.

Farmers across America maintain retirement accounts at a higher clip than other types of workers, but they’re also saving less than the general population. (Image generated by AI in Midjourney)Farmers are more likely than the average American to maintain a retirement account of some kind, but their collective retirement balance is lower than the national average, according to data from the U.S. Department of Agriculture (USDA).Researchers from the USDA and the Economic Research Service analyzed data from Agricultural Resource Management Surveys conducted between 2018 to 2022 to get a picture of retirement preparedness among U.S. farmers and ranchers. They found that “median farm household income was higher than the median income of U.S. households in that period.”They also found that there were a greater share of farm households (61%) that maintained savings in different kinds of retirement accounts — including 401(k)s, 403(b)s and individual retirement accounts (IRAs) — than the overall percentage of U.S. households (54%) and nonfarm, self-employed households (52%).“When researchers narrowed their focus to farmers and ranchers at retirement age, they found that in 2021 around 45% of principal operators were 65 years old or older,” according to a summary report of the data. “Among this population, 57% held assets in retirement accounts, which is a higher proportion than the 47% of older U.S. households generally but lower than the 59% of older nonfarm self-employed U.S. households.”These findings point to differences in retirement savings across different household types, but also suggest that older farm households “were less likely than younger farm households to have retirement savings,” the report explained..But this cohort also maintained lower levels of retirement savings despite the higher likelihood of having a retirement account, the researchers found.“On average, older farm households had $247,600 in retirement savings compared with $260,900 for older U.S. households and $516,800 for older nonfarm self-employed households,” the report stated. “However, farm households had higher levels of total assets than the average U.S. household, although some of their assets may be more difficult to access during retirement.”Much of this cohort’s wealth is concentrated in farm operations. This means that drawing on farm assets in retirement likely comes with tax implications, which could complicate the decision to draw on these assets for funding various retirement needs.Recent data from Morningstar found that while there has been some improvement over time, retirement preparedness is lacking in general. While younger generations appear to be taking retirement preparedness more seriously, the average savings levels are far more adversely impacted by income than by age.The highest income brackets across Gen X, millennials and Gen Z hover between 86% to 89% readiness, but the lowest income brackets range between 14% and 34% — a more significant variation with the lowest figure belonging to Gen X.

The U.S. Department of Housing and Urban Development (HUD) on Monday announced a proposal to shift its Title I home loan programs to the use of the Uniform Residential Loan Application (URLA) that would more closely align them with broader industry standards.The proposal, now available for review on HUD’s Single Family Drafting Table portal for proposed policies, will be available for comments from industry stakeholders through Dec. 18. Title I loans currently require their own program-specific documentation for both property improvement and manufactured home loans.This draft policy “proposes to replace these two Title I-specific forms with the industry-standard loan application form, Uniform Residential Loan Application (URLA, Fannie Mae Form 1003/Freddie Mac Form 65), and the new HUD Addendum to the Uniform Residential Loan Application for Title I Loans (form HUD-92900-TI).”But with an eye toward expanding accessibility for these programs, HUD’s proposal would allow more common industry technology and infrastructure to accommodate these loan programs.“By replacing the Title I-specific forms with the more commonly used industry standard URLA, HUD seeks to simplify its Title I loan application process, enabling lenders to use existing origination system technology to collect borrower data, which eliminates the financial burden of acquiring multiple software licenses or manually completing a Title I program-specific application form,” the announcement stated.This will help to “encourage greater lender participation in the Title I program,” according to the Federal Housing Administration (FHA).The proposed guidance stems from 2022 requests for information by HUD that sought to “gain insight into barriers with the origination of both small-balance mortgages and Title I Loans.” Many comments on these requests indicated a “lack of parity between Title I and Title II loan requirements in many areas, including the forms required for each program,” according to the proposed Mortgagee Letter (ML).While the current forms reflect some of the unique characteristics of these loan programs, HUD wants to reevaluate the associated processes to better align them with common industry practices. In addition to moving Title I loans to the URLA, HUD also seeks to introduce an addendum to the URLA to accompany Title I loans, which would maintain recognition of the program’s unique attributes.The addendum would collect “information similar to [existing forms] for Title II loans and adds Title I specific questions,” the proposed ML reads. “Aligning Title I and Title II requirements by allowing the use of the industry standard URLA form will alleviate the additional burden previously imposed on Title I Lenders to use a program-specific application form.”Earlier this year, HUD announced that Title I manufactured housing loan limits would be increased. The goal is to align the FHA with market forces and to encourage more lenders to participate in the program.

The stock market was not the only thing that saw a boost after the presidential election earlier this month. Homebuilder confidence also rose in November, marking the third straight month of increases.The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) rose three points month over month to a reading of 46 in November. According to the data, builders expect market conditions to continue to improve after Republicans won control of the White House and Congress.The report also found that fewer builders are using incentives in November, with the share dropping from 62% to 60%. Additionally, the average price deduction fell to 5%, down from 6% a month prior, with 31% of builders reporting that they cut prices. This percentage has remained relatively flat since July.In addition, the NAHB reported that homebuilders’ gauge of current sales conditions rose two points to 49. The gauge measuring traffic of prospective buyers also posted a three-point gain to 32, while the component charting sales expectations over the next six months jumped seven points to 64.“Builders are expressing increasing confidence that Republicans gaining all the levers of power in Washington will result in significant regulatory relief for the industry that will lead to the construction of more homes and apartments,” NAHB Chairman Carl Harris said in a statement. “This is reflected in a huge jump in builder sales expectations over the next six months.”The three-month moving averages for the HMI rose from October to November in three of the four regions tracked by the index. The South gained one point for a reading of 42, the Northeast rose by four points to 55 and the Midwest jumped three points to 44. Meanwhile, the West held steady at a reading of 41.NAHB chief economist Robert Dietz noted that builders are not out of the woods just yet.“The industry still faces many headwinds such as an ongoing shortage of labor and buildable lots along with elevated building material prices,” Dietz said in a statement. “Moreover, while the stock market cheered the election result, the bond market has concerns, as indicated by a rise for long-term interest rates. There is also policy uncertainty in front of the business sector and housing market as the executive branch changes hands.”

Add American Neighborhood Mortgage Acceptance Company LLC, doing business as AnnieMac, to the list of mortgage lenders that have recently suffered a data breach from a cyberattack. The company notified state authorities that it became aware of “suspicious activity” of certain systems within its network in August. After an investigation, it concluded that cybercriminals infiltrated its systems, potentially accessing and acquiring files containing sensitive personal information of 171,074 customers. “The investigation determined that between August 21, 2024, and August 23, 2024, an unknown actor gained access to systems on AnnieMac’s network and viewed and/or copied certain files from these systems,” the company said in a written notification on Thursday to state authorities in Maine. “The type of information affected by this event includes name and Social Security number.” AnnieMac CEO Joseph Panebianco said, “Cyber threats are an unfortunate reality in today’s digital world.” However, he added, “Thanks to our team’s vigilance and proactive monitoring, we detected the attack early and acted swiftly to secure our systems, minimizing potential harm and notifying those affected.“While no information has been confirmed as taken, we are responding with the utmost caution. This includes offering complimentary credit monitoring and identity theft protection services to impacted individuals as part of our unwavering commitment to safeguarding our customers’ trust.”Individuals affected will have access to credit monitoring services for one year through CyEx, which the lender offers. The company said notifications were sent to customers, state and federal regulators, and the three major credit reporting agencies. New Jersey-based AnnieMac originated $2.5 billion in mortgage loans in the last 12 months, according to the mortgage tech platform Modex estimates. Most of it is conventional (52%) and purchase (75%) loans. AnnieMac has 447 sponsored loan officers and 74 active branches as of Monday, per the Nationwide Multistate Licensing System (NMLS). AnnieMac is now part of the group of mortgage lenders targeted by cybercriminals, which also includes Mr. Cooper Group, loanDepot, Fairway, Nations Direct Mortgage, and Fidelity National Financial Inc., parent of servicer LoanCare. 

Last week we were at risk of breaking a key level in the bond market, which could have sent mortgage rates much higher. We also had a lot of economic, political, and Fed news that could have pushed rates up. Despite all those negative headlines, we dodged a bullet for now; the key levels held, and we live to fight another day.10-year yield and mortgage ratesMy 2024 forecast included:A range for mortgage rates between 7.25%-5.75%A range for the 10-year yield between 4.25%-3.21%As we approach the end of the year, we can see that my forecast range for mortgage rates has held for most of 2024. As economic data gets weaker, rates fall, and as they improve, rates go higher. Last week, we had good economic data, slightly hotter inflation data and hawkish statements from Chairmen Powell, but we got lucky as the 10-year yield didn’t break a key level to send mortgage rates higher.Mortgage spreadsThe mortgage spread story has been positive in 2024, whereas it was negative in 2023. With the spreads improving, we got near 6% rates this year. Without better spreads, mortgage rates would be above 7.50% today.Unfortunately, the spreads have worsened slightly with the recent spike in mortgage rates. Still, if I took the worst spreads from last year, mortgage rates would be 0.72 % higher today, whereas if mortgage spreads were back to normal, you would see mortgage rates lower by 0.71%—0.81% right now.For those who want a deeper dive into what to expect on mortgage rates and housing policy under President-elect Trump, check out this recent HousingWire Daily podcast.Purchase application dataWhen looking at purchase application data, I always try to find the mortgage rate range that can make housing demand grow and figure out which levels will make demand softer. We aren’t crashing in home sales anymore like we did in 2022. However, we only see growth when mortgage rates head toward 6%.Last year, when mortgage rates fell from 8% to the mid-6% level, we saw demand pick up, but it wasn’t spectacular. However, lower rates did push home sales to grow by a combined 500,000 in two months earlier this year. So, starting this week, I will see if we can get a traditional seasonal run in purchase apps earlier than average.This week, purchase apps were up 2% weekly and 1% year over year. The shallow bar in year-over-year data from rates headed toward 8% last year is now officially over.When mortgage rates were running higher earlier in the year (between 6.75%-7.50%), this is what the purchase application data looked like:14 negative prints2 flat prints2 positive printsWhen mortgage rates started falling in mid-June, here’s what purchase applications looked like:12 positive prints 5 negative prints1 flat print3 straight positive year-over-year growth printsWith mortgage rates up again, here is where we are:3 negative prints2 positive weekly prints5 straight weeks of positive year-over-year data, but the bar is low for this. Weekly pending salesBelow is the Altos Research weekly pending contract data to show real-time demand. This data line is very seasonal, as seen in the chart below. Even with elevated mortgage rates, this data line still shows steady year-over-year growth. Remember that the second half of 2022 had the biggest crash in home sales ever, and last year rates headed toward 8% late in the year. Even so, it’s nice to see this data line continue to show growth year over year.Weekly housing inventory dataTwo weeks ago, housing inventory fell a bit more than I anticipated and so did the new listings data. I assumed that maybe the election held some people back from listing their homes. With that assumption, I anticipated a bigger snap back in inventory last week, looking for numbers between 4,500-4,800, but it turned out to be less than 1,000.If you want to know why inventory data looks a little different now (and want to answer your  Uncle Dave at Thanksgiving, who only reads the headlines and says it’s housing 2008 all over again), this article is for you. Weekly inventory change (Nov. 8-Nov. 15): Inventory rose from 721,576 to 722,032The same week last year (Nov. 10-Nov. 17): Inventory rose from 566,882 to 569,898The all-time inventory bottom was in 2022 at 240,497The inventory peak for 2024 so far is 739,434For some context, active listings for this week in 2015 were 1,135,684New listings dataI thought new listings data would show more growth last week than we got, but that didn’t happen either; we are also in the seasonal decline here. Still, it is a big positive for the housing market that we’ve seen growth in 2024, but context is critical since it’s the second-lowest year ever. 2024: 51,8322023: 48,6102022: 46,916Price-cut percentageIn an average year, one-third of all homes take a price cut — this is standard housing activity. When mortgage rates rise, the price-cut percentage grows. When rates go lower and demand picks up, this data line can cool down, as it has recently. Here are the price-cut percentages for last week over the previous few years:2024: 38.8%2023: 39%2022: 43%The week ahead: Housing data and the Fed’s Austan GoolsbeeThe critical data for next week is the housing data; the builder’s confidence and housing starts data are essential to my economic cycle work. Housing permits and starts are already at early COVID-19 recession levels, and we are working through the backlog of orders. So, this week, I want to see how the builders feel about higher mortgage rates because, according to my economic models, when residential construction workers start losing their jobs, the recession isn’t far away. This is something I brought up on CNBC recently. I also recently discussed what to expect for housing in 2025 on the Top of Mind podcast with Mike Simonsen. This week I will also be watching what Chicago Fed President Austan Goolsbee has to say; he is probably the most dovish of all the Fed presidents, even questioning why long-term rates are rising. Stay tuned.

The housing bubble crash theory has failed once again as we approach the end of 2024, but it’s always important to know why something didn’t happen. This week, we got the updated New York Fed credit data report and it shows the strong position of homeowners — especially in comparison to the years before the Great Financial Crisis. This is the kind of information you need as we get close to Thanksgiving and share the dinner  table with Uncle Dave who says (for the 13th year) that we’re seeing 2008 all over again. This is the person who says everyone should sell their homes so they can rent while they wait until home prices crash. The typical response is to take Uncle Dave to bed for his nap. However, I will give you all the charts to show Uncle Dave that housing credit doesn’t look like it did in 2008 because the qualified mortgage (QM) law makes that impossible.Foreclosure data The chart below shows that the 2008 housing crisis started years before the 2008 recession. The credit markets were toxic back then, featuring loans with big recast payments which meant that you could have two people working full-time and still be at a credit risk. As you can see in the chart below, the credit markets broke in 2005, 2006, 2007 and 2008, and then the job-loss recession of 2008 started, which made things much worse.None of that action has been happening for 14 years because the credit market changed after the 2010 qualified mortgage rule. Now, most loans are 30-year-fixed mortgages and people’s wages rise almost every year. We had multiple refinancing waves in 2012, 2016, 2020 and 2021. Foreclosure data fell quarter to quarter in Q3. Ladies and gentlemen, stop dancing with a ghost.FICO score data The FICO score data is the sexiest economic data in America — it’s been hot since 2010! As homeowners age, their wages have grown and their cash flow has improved. People buying homes have very high FICO scores — this has always been the case. Thirty-year fixed loans, better underwriting standards and more cash flow mean homeowners are in excellent financial shape, and their credit data shows that.Credit stress dataWhen the next job-loss recession happens, we will see a rise in credit stress data and I am 100% sure the doomers of America will sit on their useless YouTube and X accounts, pushing their negative narrative nonstop. However, now that you have all the data, you can see that the credit stress data we saw in the 2008 crisis will never happen again as long as we have qualified mortgage in place. My crusade in the last decade was about ensuring lending standards are never eased because standards are already liberal today, but not crazy anymore.The reason I fought hard for this premise is that when we do have economic stress such as we saw early in COVID-19 and with the big burst of inflation, homeowners will be shielded with their boring vanilla 30-year fixed mortgages.With the data line below, I anticipated that we would return to pre-COVID-19 levels of credit stress by the end of 2024, but that never happened. Again, everyone pushing housing 2008 needs to snap out of it.Please use these updated charts on credit data for your Thanksgiving dinner conversation and remember why this is so important. The new listings data we track with Altos Research is trending at the lowest levels ever during the past few years, while back then it was running at accelerated levels. Here is an example with our Nov. 9 data. Look at the difference between this week in 2024 versus the same weeks in 2009-2011. We had a lot of stressed sellers back then!New listings data this week: 2024: 48,863 2009: 274,614 2010: 359,5342011:  315,915 These credit-stressed sellers did not turn around and buy another home, so they created years of elevated distress supply in the marketplace. This hasn’t happened once over the last decade, nor will it until we see a job-loss recession. Also, back in 2010, over 23% of homes were underwater; today, it’s the lowest percentage ever.Something else to consider: over 40% of homes right now don’t even have a mortgage and the loan-to-value levels for those that do are under 50% on average. In 2008, the loan to value was nearly 85%. Also, the median downpayment data for this year is 15%, which means homeowners have more skin in the game than back then.Hopefully, all these charts will clear up the confusion for your Uncle Dave or any other Thanksgiving guests who think we’ll see another housing crash like 2008. The credit data for homeowners tells a different story.

Chrissi Callaghan Rhea, co-founder of Mortgage Investors Group and member of the Mortgage Bankers Association (MBA) board of directors, died on Nov. 8, at the age of 73. “Chrissi was a pioneer in the industry, co-founding MIG in the late 1980s and leading the company until just a few months ago,” MBA president and CEO Bob Broeksmit said in a statement. Rhea co-founded Knoxville-based MIG in 1989. But in addition to her position as president and CEO at the company, she held various roles for the MBA, including current board member and chair of the MBA residential board of governors in 2023. She was also an engaged member of the IMB executive council.One of her contributions to the industry was being a “driving force” behind MBA’s efforts to ban abusive mortgage trigger leads, Broeksmit said. Rhea was a HousingWire Woman of Influence in 2021. When COVID-19 hit, she swiftly implemented a work-from-home program for over 300 employees across multiple states. “My heart is heavy for her family and her colleagues. She was just a tremendous leader for the industry, and someone we’re going to greatly miss as both an industry leader and an advocate for the MBA,” said Gene Lugat, executive vice president of PrimeLending and Rhea’s successor as residential boards of governors chair in 2024.“We first crossed paths in a peer group meeting around 2015. She was one of the few women in the room,” added Kate deKay, CEO of Eustis Mortgage. “She was a true force–a leader who had the utmost respect, yet was unpretentious, warm and wonderfully real.” Rhea’s son, Kevin Rhea, who worked with her at MIG for over two decades, said she was a “force in mortgage banking.” “Starting Mortgage Investors Group with a handful of people in 1989, she built it into one of the Southeast’s leading mortgage lenders, all while championing fair lending and affordable housing.”As of Friday, per the Nationwide Multistate Licensing System (NMLS), the mortgage lender had 150 sponsored loan officers and 43 active branch locations. According to tech platform Modex, the lender has originated about $940 million in loans over the last 12 months. 

Vetted by HousingWire  |  Our editors independently review the products we recommend. When you buy through our links, we may earn a commission.You’re probably aware that each state has its own real estate license requirements, unique laws and regulations around real estate licensure. So, should you want or need to move to another state, does this doom you to a life of re-taking exams? Not necessarily, thanks to two key concepts of real estate licensure we’re breaking down for you in this article — real estate license reciprocity and real estate license portability.Real estate license reciprocity means an agent or broker’s ability to get licensed and operate or practice in a new state, whereas real estate license portability refers to an agent or broker’s ability to conduct a single transaction across state lines. Portability is distinct from reciprocity in that it’s not a long-term solution, but rather, it enables an agent or broker to help a client outside of their own state of licensure (where permitted). Let’s dig into the specifics to help you better understand where you can practice and transact.if (window.addEventListener){ window.addEventListener("message", function(event) { if(event.data.length >= 22) { if( event.data.substr(0, 22) == "__MM-LOCATION.REDIRECT") location = event.data.substr(22); } }, false); } else if (window.attachEvent){ window.attachEvent("message", function(event) { if( event.data.length >= 22) { if ( event.data.substr(0, 22) == "__MM-LOCATION.REDIRECT") location = event.data.substr(22); } }, false); } What is real estate license reciprocity? Real estate license reciprocity allows agents licensed in one state to apply for a license in another state without taking all of the state-required prelicensing real estate courses, and in some cases, that state’s real estate licensing exam. Real estate license reciprocity varies by state. Some states do not have any reciprocity agreements at all. We’ll break down the real estate license reciprocity and portability rules for each state below, but before we can do that, we have a few more terms to clarify for you.Types of real estate license reciprocityDepending on the state, agents may receive different levels of reciprocity with their real estate license. Generally, there are three types: Full reciprocity, partial or selective reciprocity and no reciprocity.Full Reciprocity: This means that a real estate agent licensed in any state can obtain a license in a full reciprocity state without having to retake the licensing exam or complete additional prelicensing education.Partial or Selective Reciprocity: A state with partial or selective reciprocity allows for the transfer of real estate licenses between specific states, often those with similar real estate laws and regulations.No Reciprocity: This is exactly what it sounds like. If you’re looking to practice in a state with no reciprocity, prepare to go through that state’s entire licensing process — from start to finish.To illustrate, if you’re moving from California to New York, you’re out of luck, since California does not have reciprocity agreements with any other state. But if you’re planning a move to Colorado or Delaware from any other state in the nation, you’ll have a smooth transition, since both states offer full reciprocity with all other states.What is real estate license portability? Real estate license portability allows agents to work with clients in another state without being licensed there. Consider this more of a short-term solution. If you’re planning on regularly working in another state, don’t depend on this option. As with reciprocity, there are several classifications of portability.Types of real estate license portabilityAs with license reciprocity, there are several classifications of portability. Cooperative: A state with cooperative portability allows real estate agents from another state to conduct business there, provided they partner in the transaction with an agent licensed in that state.Physical Location: A state with a physical location real estate license portability law allows agents to represent clients in out-of-state purchases or sales. But the agent must do it remotely. Agents can’t be located in the state in which they want to conduct business during the transaction.Turf: Turf states don’t allow any form of portability. Like no reciprocity states, you cannot work on any transactions if you don’t have a real estate license in their state.To illustrate, if you have a client who wants to buy a vacation home on Maui or on Cape Cod, you can represent them in a transaction in either Hawaii or Massachusetts, since both states have license portability based on physical location (you can represent your client in those states as long as you’re licensed in your state and conducting business remotely).Suppose that same client opts to purchase a vacation property on the Georgia coast instead. In that case, you’ll need to cooperate with a licensed Georgia agent and jointly represent your client in a property purchase in GA. If your client decides they want to buy a second home in Utah, instead, you’d need to refer them to a Utah licensed real estate professional who could represent them on the buy side, since Utah is a turf state.Related articles The best online real estate school for every learning style & budget Real estate broker vs. an agent? Key differences explained Real estate license reciprocity & portability: A state-by-state guideSo where can I work and conduct real estate transactions, you’re wondering? We’ll break it down for you state-by-state in this next section. Click on your state, below, to learn more about where easily move with your current real estate license — and in which states you can currently help clients beyond your state’s borders.AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyomingAlabamaReciprocity: Full reciprocity. Agents will need to take a six-hour course and apply for an Alabama real estate license.Portability: CooperativeFor more information, visit Alabama’s Real Estate Commission page.AlaskaReciprocity: None. To participate in real estate transactions in Alaska, you will need to go through the state’s entire licensing training and exam.Portability: Physical LocationFor more information, visit Alaska’s Real Estate Commission page.ArizonaReciprocity: It’s complicated. Arizona does not have formal reciprocity with other states, however, it does recognize out-of-state licenses, provided that the agent is an Arizona resident and has held an out-of-state license for at least one year. Agents will still need to pass a state-specific course and prove residency.Portability: CooperativeFor more information, visit Arizona’s Department of Real Estate page.ArkansasReciprocity: Partial. Arkansas has reciprocity with Alabama, Colorado, Florida, Georgia, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, Pennsylvania, South Dakota, Washington, and West Virginia.Portability: Physical LocationFor more information, visit Arkansas’ Real Estate Commission page.CaliforniaReciprocity: None. To obtain a license in California, out-of-state agents must go through the required steps, including passing a  written exam.Portability: Physical LocationFor more information, visit California’s Department of Real Estate page.ColoradoReciprocity: Full reciprocity. Agents licensed in any state may practice in Colorado as long as they have been licensed for at least two years. They will need to pass the state portion of the Colorado Real Estate Broker’s Exam.Portability: CooperativeFor more information, visit Colorado’s Division of Real Estate page.ConnecticutReciprocity: Partial. Connecticut has reciprocity with Alabama, Colorado, Florida, Georgia, Illinois, Indiana, Massachusetts, Mississippi, Nebraska, New York, Ohio, Oklahoma and Rhode Island. However, agents from Florida, Illinois, Indiana and Ohio are required to take the state portion of the Connecticut Real Estate Examination.Portability: CooperativeFor more information, visit Connecticut’s Department of Consumer Protection page.DelawareReciprocity: Full reciprocity. Agents from any state only need to submit an application and required paperwork.Portability: Physical LocationFor more information, visit Delaware’s Real Estate Commssion page.FloridaReciprocity: Partial. Florida has reciprocity with Alabama, Arkansas, Connecticut, Georgia, Illinois, Kentucky, Mississippi, Nebraska, Rhode Island and West Virginia. Agents will need to pass the state portion of the Florida Real Estate Exam.Portability: Physical LocationFor more information, visit Florida’s Department of Business and Professional Regulations page.GeorgiaReciprocity: Full reciprocity. Agents from any state, with the exception of Florida, only need to submit an application and required paperwork. Florida applicants must pass a supplemental exam.Portability: CooperativeFor more information, visit Georgia’s Real Estate Commission page.HawaiiReciprocity: None. To obtain a license in Hawaii, out-of-state agents must go through the required steps, including passing the state’s real estate exam.Portability: Physical LocationFor more information, visit Hawaii’s Real Estate Branch page.IdahoReciprocity: None, with a few caveats. Idaho does not have formal reciprocity with any state, but it waives the national portion of the licensing exam, and a few other item as applicable,  if you are licensed on active status in another state.Portability: Physical LocationFor more information, visit Idaho’s Real Estate Commission page.IllinoisReciprocity: Partial. Illinois has recirprocity with Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Nebraska and Wisconsin. Agents from these states will still need to pass the Illinois portion of the licensure examination.Portability: Physical LocationFor more information, visit Illinois’ Department of Financial and Professional Regulation page.IndianaReciprocity: None. To participate in real estate transactions in Indiana, you will need to go through the state’s entire licensing training and exam.Portability: CooperativeFor more information, visit Indiana’s Real Estate Commission page.IowaReciprocity: Partial. Iowa has reciprocity with Arkansas, Georgia, Louisiana, Massachusetts, Minnesota, Mississippi, and North Dakota. Even if you are not licensed in one of those states, you can still apply to have the national portion of the exam waived.Portability: Physical LocationFor more information, visit Iowa’s Professional Licensing Bureau page.KansasReciprocity:  None. To participate in real estate transactions in Kansas, you will need to go through the state’s entire licensing training and exam.Portability: CooperativeFor more information, visit Kansas’ Real Estate Commission page.KentuckyReciprocity: Partial. Kentucky has has reciprocity agreements with Florida, Illinois, Ohio, Tennessee and West Virginia. The reciprocity requirements vary for each of these states and includes a 40-hour reciprocal license law course for all.Portability: TurfFor more information, visit Kentucky’s Real Estate Commission page.LouisianaReciprocity: Partial. Louisiana has reciprocity agreements with Alabama, Arkansas, Colorado, Georgia, Iowa, Mississippi, New Mexico, Oklahoma and Pennsylvania. No additional training or exams are required.Portability: CooperativeFor more information, visit Louisiana’s Real Estate Commission’s page.MaineReciprocity: It’s complicated. Out-of-state agents from any state may apply for a license, but everyone is required to take the full licensing exam for the State of Maine. While no pre-licensing training is listed as a requirement, we certainly recommend it in advance of the exam. Heads up: A non-resident licensee must be affiliated with a Maine licensed real estate agency to be eligible to perform brokerage services.Portability: Physical LocationFor more information, visit Maine’s Real Estate Commission page.MarylandReciprocity: Partial. Maryland has reciprocity with Oklahoma and Pennsylvania. Maryland does things a bit differently, offering out-of-state license recognition for applicants from all other states. Agents’ education and experience are reviewed for transferability, individually for each applicant.Portability: CooperativeFor more information, visit Maryland’s Department of Labor page.MassachusettsReciprocity: Partial. Massachusetts has reciprocity with Connecticut, Rhode Island, West Virginia, Nebraska, Iowa, Tennessee, Mississippi, Colorado, Georgia, Pennsylvania and New Mexico. Additionally, brokers licensed for two years from New York and Oklahoma may also receive reciprocity.Portability: Physical LocationFor more information, visit Massachusetts’ Board of Registration of Real Estate page.MichiganReciprocity: None. To participate in real estate transactions in Michigan, you will need to go through the state’s entire licensing training and exam.Portability: Physical LocationFor more information, visit Michigan’s Department of Licensing and Regulatory Affairs page.MinnesotaReciprocity: Partial. Minnesota has reciprocity agreements with Colorado, Iowa, Nebraska, North Dakota, South Dakota and Oklahoma. Agents must contact a Minnesota-licensed primary broker in order to submit an application. No additional training or exams are required.Portability: Physical LocationFor more information, visit Minnesota’s Commerce Department page.MississippiReciprocity: It’s complicated. Mississippi does not have formal reciprocity with any state, but it does have an application for non-resident brokers to obtain a license.Portability: CooperativeFor more information, visit Mississippi’s Real Estae Commission page.MissouriReciprocity: Full reciprocity. Agents from any state may apply for a license. They will need to pass the State portion of the Missouri real estate licensing exam and complete the 24-hour Missouri Real Estate Practice Course (MREP).Portability: TurfFor more information, visit Missouri’s Division of Professional Registration page.MontanaReciprocity: None. To participate in real estate transactions in Montana, you will need to go through the state’s entire licensing training and exam.Portability: Physical LocationFor more information, visit Montana’s Board of Realty Regulation page.NebraskaReciprocity: It’s complicated. Nebraska does not have formal reciprocity agreements with any state, but it does have unique steps to licensure for non-resident agents. This includes a three-hour course approved by the Commission specific to the Nebraska Real Estate License Act, among quite a few other requirements.Portability: TurfFor more information, visit Nebraska’s Real Estate Commission’s page.NevadaReciprocity: Partial. Nevada has reciprocity with Arizona, Delaware, Illinois, Iowa, Louisiana, Oklahoma, Texas, Washington, Colorado, Idaho, Indiana, Kentucky, Minnesota, South Carolina, Utah and West Virginia. Agents will still need to pass the Nevada Real Estate Exam, but a substantial amount of training is waived.Portability: CooperativeFor more information, visit Nevada’s Real Estate Division page.New HampshireReciprocity: Full reciprocity. Agents from any state only need to submit an application and required paperwork, in addition to passing a portion of the state exam.Portability: CooperativeFor more information, visit New Hampshire’s Real Estate Commission page.New JerseyReciprocity: None. To obtain a license in New Jersey, out-of-state agents must go through the required steps, including passing a  written exam.Portability: TurfFor more information, visit New Jersey’s Real Estate Commission page.New MexicoReciprocity: Partial. New Mexico has reciprocity agreements with Massachusetts, Louisiana and Georgia. Agents outside of these states will need to pass the exam.Portability: TurfFor more information, visit New Mexico’s Real Estate Commission page.New YorkReciprocity: None. To obtain a license in New York, out-of-state agents must go through the required steps, including passing an exam. Agents with qualifying education may request a waiver of the courses required for a New York Real Estate License.Portability: Physical LocationFor more information, visit New York’s Department of State website.North CarolinaReciprocity: It’s complicated. North Carolina does not have official reciprocity agreements with any state, but it does have “limited license recognition” agreement with all 50 states. This means that an agent with an active status within the previous three (3) years and that is equivalent to North Carolina’s provisional or “full” broker license can waive certain prelicensing courses and the national portion of the North Carolina real estate license examination.Portability: CooperativeFor more information, visit North Carolina’s Real Estate Commission page.North DakotaReciprocity: Partial. North Dakota has reciprocity with Georgia, Iowa and Minnesota. Agents from these states may waive the exam.Portability: CooperativeFor more information, visit North Dakota’s Real Estate Commission page.OhioReciprocity: Partial. Ohio has reciprocity with Arkansas, Connecticut, Kentucky, Mississippi, Nebraska, Oklahoma, West Virginia and Wyoming. Agents will still need to pass the state portion of the Ohio real estate exam.Portability: CooperativeFor more information, visit Ohio’s Department of Commerce website.OklahomaReciprocity: Partial. Oklahoma has recriprocity with Alabama, Arkansas, Iowa, Louisiana, Maryland, Nebraska, North Dakota and South Dakota. No additional training or exams are needed for agents from these states.Portability: Physical LocationFor more information, visit Oklahoma’s Real Estate Commission page.OregonReciprocity: Partial. Oregon has reciprocal agreements with Alabama, Georgia, Nebraska and South Dakota. However, its Real Estate Commission website also states that, “The requirements for reciprocal licensing are specific,” and asks that agents contact the Oregon Real Estate Agency for more information.Portability: CooperativeFor more information, visit Oregon’s state website.PennsylvaniaReciprocity: Partial. Pennslyvania has reciprocity with ​​Arkansas, Georgia, Louisiana, Maryland and Massachusetts. No additional training or exams are required for agents from these states.Portability: TurfFor more information, visit Pennslyvania’s Real Estate Commission page.Rhode IslandReciprocity: Partial. Rhode Island has reciprocity with Connecticut and Massachusetts. However, agents from those states will still need to quite a few things unique to Rhode Island, including a Lead Poisoning/Lead Hazard Mitigation Certificate of Completion for a three-hour course.Portability: CooperativeFor more information, visit Rhode Island’s Department of Business Regulation website.South CarolinaReciprocity: Partial. South Carolina has reciprocity with Georgia and North Carolina, but the requirements vary between the two. Agents from Georgia may skip the exam, while North Carolina agents must pass that state portion of South Carolina’s real estate exam.Portability: CooperativeFor more information, visit South Carolina’s Real Estate Commission website.South DakotaReciprocity: None. South Dakota does not have any formal reciprocity agreements across the U.S. However, it does allow non-resident licensed agents to apply for a license and potentially only require them to pass the state portion of the exam.Portability: CooperativeFor more information, visit South Dakota’s Real Estate Commission page.TennesseeReciprocity:  None. To participate in real estate transactions in Tennessee you will need to go through the state’s entire licensing training and exam.Portability: CooperativeFor more information, visit Tennessee’s Real Estate Commission website.TexasReciprocity: None. To participate in real estate transactions in Tennessee you will need to go through the state’s entire licensing training and exam. In some cases, you may be able to skip the national portion of the exam.Portability: Physical LocationFor more information, visit Texas’ Real Estate Commission website.UtahReciprocity: Partial. Utah has ​​reciprocity agreements with Georgia and Mississippi. No additional training or exam is required. Agents from other states may be able to waive the national portion of the exam.Portability: TurfFor more information, visit Utah’s Department of Commerce website.VermontReciprocity: None. Vermont has no formal reciprocity agreements with any state. However, the state does offer “​​Fast Track Endorsement” for agents who have been licensed for three years or more. Portability: Physical LocationFor more information, visit Vermont’s Office of Professional Regulation website.VirginiaReciprocity: Full reciprocity. Agents from any state only need to submit an application and required paperwork and pass the state portion of the VIrginia real estate license exam.Portability: Physical LocationFor more information, ​​visit Virginia’s Department of Professional and Occupational Regulation website.WashingtonReciprocity: Full reciprocity. Agents from any state only need to submit an application and required paperwork and pass the state portion of Washington’s real estate license exam.Portability: CooperativeFor more information, visit Washington’s Real Estate Commission website.West VirginiaReciprocity: None. West Virginia does not have full reciprocity with any other state. Out-of-state agents may be be exempt from the national portion of the exam, however, they must take the West Virginia state portion. Portability: Physical LocationFor more information, visit West Virginia’s Real Estate Commission page.WisconsinReciprocity: Partial. Wisconsin has reciprocity with Illinois and Indiana. Agents in these states ​​are exempt from Wisconsin’s education requirement. Agents from any other state must complete the 13-hour education requirement.Portability: Physical LocationFor more information, visit Wisconsin’s Realtors Association website.WyomingReciprocity: Wyoming has no formal reciprocity with any state. Out-of-state agents must complete and pass the Wyoming Law Course and the Salesperson II Course as well as the Wyoming State Exam for Salespersons.Portability: Cooperative For more information, visit Wyoming’s Real Estate Commission webpage.Real estate license reciprocity & portability: FAQSIs there any license that allows me to work in all 50 states?No, every state requires that you are licensed in that state. However, if you’re looking to practice real estate in a state with full reciprocity, you can forgo most training and simply apply for a license. States with full reciprocity include Alabama, Colorado, Maine, Mississippi and Virginia.Where can I find good training resources for states requiring a new license or additional training?The CE Shop and Colibri Real Estate Education offer real estate prelicensing training in all 50 states. Both schools are highly accessible, with online prelicensing, continuing education and broker licensing courses nationwide. You can take your required hours for licensure at your pace and don’t have to be locked in to certain class times. Check out our top picks for real estate education to help you get licensed quickly and efficiently: The best online real estate school for every learning style & budget.Is there a limit to how many states I can get licensed in?No, get licensed in all 50 states if you want! We think your time could be better spent, but it is an option.Related articles Real estate exam prep: The ultimate guide to acing your state’s real estate exam Free real estate practice exam + 7 study hacks to ace the real estate exam Back to TopjQuery(document).ready(function($) { $('.vetted-accordion-header').click(function() { var content = $(this).next('.vetted-accordion-content'); if (content.hasClass('active')) { // Collapse the section if it's already active content.removeClass('active').css('max-height', '0'); $(this).removeClass('open-toggle'); // Remove class from header } else { // Expand the clicked section content.addClass('active').css('max-height', content.prop('scrollHeight') + 'px'); $(this).addClass('open-toggle'); // Add class to header } });}); (function() { document.addEventListener('DOMContentLoaded', function() { const backToTopButton = document.getElementById('backToTop'); if (backToTopButton) { const toggleButtonVisibility = () => { const scrollPosition = window.scrollY; const windowHeight = window.innerHeight; const documentHeight = document.documentElement.scrollHeight; const scrollPercentage = (scrollPosition / (documentHeight - windowHeight)) * 100; // Show or hide the button based on the 20% threshold if (scrollPercentage > 20) { backToTopButton.style.display = 'block'; } else { backToTopButton.style.display = 'none'; } }; window.addEventListener('scroll', toggleButtonVisibility); backToTopButton.addEventListener('click', function(event) { event.preventDefault(); // Prevent default action in case the button is wrapped in a link window.scrollTo({ top: 0, behavior: 'smooth' }); }); } }); })();

Rocket Mortgage in 2025 aims to acquire servicing rights to capitalize on its 85% recapture rate." data-image-caption="Rocket Mortgage in 2025 aims to acquire servicing rights to capitalize on its 85% recapture rate." data-medium-file="https://img.chime.me/image/fs/chimeblog/20241116/16/original_f312192f-285a-4ea9-8b47-34eff00d8e9f.jpg?w=300" data-large-file="https://img.chime.me/image/fs/chimeblog/20241116/16/original_f312192f-285a-4ea9-8b47-34eff00d8e9f.jpg?w=1024" tabindex="0" role="button" src="https://img.chime.me/image/fs/chimeblog/20241116/16/original_f312192f-285a-4ea9-8b47-34eff00d8e9f.jpg?w=1024" alt="ocket-Mortgages-servicing-strategy" class="wp-image-493440" srcset="https://img.chime.me/image/fs/chimeblog/20241116/16/original_f312192f-285a-4ea9-8b47-34eff00d8e9f.jpg 1200w, https://img.chime.me/image/fs/chimeblog/20241116/16/original_f312192f-285a-4ea9-8b47-34eff00d8e9f.jpg?resize=150,84 150w, https://img.chime.me/image/fs/chimeblog/20241116/16/original_f312192f-285a-4ea9-8b47-34eff00d8e9f.jpg?resize=300,169 300w, https://img.chime.me/image/fs/chimeblog/20241116/16/original_f312192f-285a-4ea9-8b47-34eff00d8e9f.jpg?resize=768,432 768w, https://img.chime.me/image/fs/chimeblog/20241116/16/original_f312192f-285a-4ea9-8b47-34eff00d8e9f.jpg?resize=1024,576 1024w" sizes="(max-width: 1200px) 100vw, 1200px" />Rocket Companies’ third-quarter earnings call offered a glimpse into a key element of its 2025 strategy for Rocket Mortgage — driving profits through ridiculously high recapture rates and an expanding servicing portfolio.When mortgage rates dropped into the low 6% range in early September, most lenders struggled to truly capitalize on the two-week window. But Rocket Mortgage pounced, quickly identifying which borrowers in its growing servicing portfolio were ‘in the money,’ and using a combination of humans and machines to execute refis, all while decreasing fixed costs, executives said this week.“Our scalable tech platform is what empowers us to navigate dynamic markets with agility. From my perspective, the most powerful benefit of AI is the boost it gives to operational efficiency and productivity. Simply put, it’s about achieving more with the same resources,” CEO Varun Krishna said on the earnings call. “Today, we have the capacity to support $150 billion in origination volume without adding a single dollar of fixed costs. We proved that this quarter. Not only did we handle more volume—net rate lock volume was up 43%—but we did so with 7% fewer production team members, year over year.”Rocket’s strategic expansion into the mortgage servicing arena—where it boasts an eye-popping 85% recapture rate—also represents more than just a simple revenue hedge against a still-choppy originations market. In the midst of a servicing acquisition spree, the company now has millions of potential new customers in its ecosystem, and executives say its technological advancements allow for faster decision-making and better outcomes, creating efficiencies others can’t match when the refis do come. It appears to be a compelling model in an era of muted home sales and high origination costs, and it positions Rocket to compete against other large servicers with high recapture rates—Freedom Mortgage, Mr. Cooper, Pennymac and NewRez—as rival lenders without servicing increasingly get boxed out on repeat business.Here’s HousingWire’s early look at Rocket Mortgage’s 2025 recapture play strategy.The promise of Rocket’s flywheelOn the earnings call, Krishna highlighted the significance of a recent subservicing deal with real estate investment trust Annaly Capital Management, framing it as a growth driver that leverages Rocket’s servicing flywheel model to bring new origination clients into its ecosystem. By collecting payments, managing escrow accounts, and handling customer queries with limited friction, Rocket can throw big data at its tech engines— which includes Rocket Logic Synopsis and Navigator—to learn more about customer behavior and capture the next origination.  “MSRs are an attractive way to acquire future origination clients together, our origination and servicing businesses form a powerful homeowner supply wheel that allows us to source new clients and organically create new MSRs,” Krishna said.While Rocket doesn’t appear motivated to become a massive subservicer, its historic strengths in servicing and refinancing offer an intriguing value proposition to prospective asset manager partners.“Recapture rate allows an asset manager to protect against CPR or prepayment risk, and it will be a big part of our strategy going into 2025,” said Brian Brown, the company CFO.Rocket Mortgage, which also has a subservicing deal with Charles Schwab, only disclosed that it will service “a portion of the mortgage servicing rights held by Annaly” starting in December.Krishna framed the Annaly deal as part of a larger strategic vision. “We ended the third quarter with $3 billion of available cash and $6.8 billion of mortgage servicing rights,” he said. “Together, these assets represent a total of $9.8 billion of value on the balance sheet…[Having MSRs] is just showcasing the power of the platform, and it’s just something that illustrates how we scale beyond our four walls because we’ve earned the right to take these capabilities to benefit others like Annaly.”A shift in Rocket Mortgage’s MSR strategyThrough the third quarter, Rocket has already acquired or committed to over $70 billion in unpaid principal balance for its servicing portfolio—a 15% increase over year-end 2023. That’s 220,000 customers added through Q3. In all, Rocket Mortgage has about 2.6 million customers and $546 billion in unpaid balance servicing rights. In 2023, when losses mounted, Rocket was one of the largest net MSR sellers, HousingWire previously reported. Now, however, the lender looks to pivot to a buyer role, signaling a shift in strategy as it builds out its servicing portfolio for long-term gains. This shift comes as other major players, such as Wells Fargo, reduced their MSR holdings at the start of 2024, and hundreds of IMBs sell servicing rights to free up cash for originations. All the while, companies like Mr. Cooper and Lakeview Loan Servicing have expanded their portfolios. Independent mortgage banks and private capital investors remain highly active in the MSR market, using servicing rights as a cash-flow tool.Brown expects Rocket to grow its servicing presence even further in 2025. “I expect us to continue to double down there on those opportunities, both from the bulk acquisition market, but I think this subservicing aspect is also very interesting to us because if you were in a seat where you didn’t have an in-house capability, protecting those cash flows has to be your number one priority,” he said.In a call with HousingWire, Brown said that Rocket’s value proposition in the MSR space is twofold. “We’ve learned that if you provide the client the best experience on the servicing side, they do come back to you for their next loan. And strictly from a financial perspective to a company like us, the value of capturing the client’s next loan can be 10 to 20x of just owning that servicing asset,” he said.Rocket Mortgage is prioritizing a high recapture rate over cost efficiency. “We’ve never set out to be the lowest-cost servicer. We’ve always set out to be the best servicer and take care of those clients and earn their business back,” Brown said.The MSR acquisition market remains a competitive space, said Tom Piercy, CGO at Incenter Capital Advisors.“The MSR asset is still an extremely attractive alternative investment for capital,” he said, noting that low-coupon MSRs from the 2020 and 2021 origination boom are in high demand but limited supply, leading to a slowed bulk MSR sales market.As the bulk servicing market “wanes,” Piercy says that recapture efforts are at the top of mind. “If I’m not good at recapture, I’m going to sell it because I’d rather have the cash and not the risk,” he said. “I’m not sure you are going to see large volume trade, few and far between within the next six months.”With economic uncertainties on the horizon, Rocket executives said the company is primed for a strong year in 2025. Krishna expressed confidence in the housing market’s fundamentals, pointing to increasing inventory levels and high homeowner equity. “Obviously, the housing market is a big part of the GDP. And the good thing there is that we’re seeing some signs of rejuvenation. You’ve got more inventory, you’ve got more homes that are selling at or below the listing price, and you’ve got equity at an all-time high. And when you look at housing inventory, we went from 3.4 months to 4.3 months,” he said. Krishna added, “The most important thing we look at is our ability to execute in any market… we feel tremendously confident in our super stack, which we see as a tailwind that gives us an edge against competitors.”

The U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) reported a solid year of financial performance for the Mutual Mortgage Insurance (MMI) Fund, covering FHA’s Title II Single Family Mortgage Insurance programs.The FHA’s MMI Fund achieved a capital reserve ratio of 11.47% as of Sept. 30, a year-over-year increase of roughly 0.9% from 2023, according to FHA’s Annual Report to Congress released on Friday. The report marked the ninth consecutive year the ratio has exceeded its 2% statutory minimum.The performance of the forward book of business posted a stand-alone capital ratio of 10.88%, another slight increase of 0.68% compared to a year ago.“The financial performance of the forward mortgage portfolio remained strong this past fiscal year,” the report said.FHA also detailed that the percentage of first-time homebuyers using FHA insurance was 82.64% of total recorded FHA forward-mortgage purchase endorsements, roughly on par with the same figure in 2023.This is despite “numerous challenges in the mortgage and housing markets that began in FY 2023 and continued during the majority of FY 2024,” according to the report.The total figure still saw a slight reduction when compared to 2022’s level of 82.97%, but remains solid despite industry-wide challenges faced throughout much of 2023 and 2024. In the announcement of the report’s publication, FHA emphasized that it shows more than 790,000 Americans were supported by the agency’s homeownership programs.Adrianne Todman, the head of HUD, credited the work of the Biden administration as working to “have expanded access to homeownership,” due to “historic reforms to help hundreds of thousands of Americans buy and keep a home” in spite of ongoing affordability and inventory challenges.“The exceptional team of public servants at FHA and throughout this administration continued to deliver a world-class mortgage program to support the nation’s homebuyers in fiscal year 2024,” said FHA Commissioner Julia Gordon.“Through our work, we have demonstrated that FHA can facilitate homeownership and wealth-building opportunities for hundreds of thousands of households and provide support for homeowners facing hardships while maintaining a financially sound Mutual Mortgage Insurance Fund.”The Community Home Lenders of America (CHLA) lauded the Fund’s performance in a statement, particularly calling out the cut last year to the annual mortgage insurance premium (MIP).“The FHA report demonstrates the effectiveness of the February 2023 cut of 30 basis points in annual FHA premiums, and we reiterate our call for FHA to find a way to end life of loan premiums, which currently overcharge borrowers,” the group saidAdditionally, Mortgage Bankers Association (MBA) president and CEO Bob Broeksmit attributed the strength of the Fund to “quality underwriting and effective risk management and loss mitigation efforts by HUD, FHA lenders, and mortgage servicers.” But the association and its membership remain concerned about affordability given the continued elevated rate environment.“At 11.47%, the [MMI] Fund is more than five times the statutory minimum reserve ratio,” Broeksmit said. “While it is sensible to have a healthy cushion above the 2% minimum reserve, qualified borrowers should not be charged higher mortgage insurance premiums (MIP) than necessary.”Borrowers could experience “meaningful payment relief from FHA eliminating its life of loan premium requirement and making another reasonable cut to the MIP,” Broeksmit added. Additionally, more “program enhancements to boost housing supply and affordability” would be beneficial, holding up changes to the 203(k) renovation loan program this year as an example.In addition to pursuing more program enhancements to boost housing supply and affordability, such as this year’s 203(k) program updates, borrowers would see meaningful payment relief from FHA eliminating its life of loan premium requirement and making another reasonable cut to the MIP.Editor’s note: Find performance coverage for the Home Equity Conversion Mortgage (HECM) book of business on HousingWire’s Reverse Mortgage Daily.

Should the goal of marketing technology be to make it so that a loan officer never needs to log in? Or, should LOs be encouraged to engage with marketing tools as much as possible in order to help them build their own brand and connections?I started in the mortgage industry in 2015, working for large banks that were heavily invested in using technology to simplify the loan process for everyone involved. Ordering an appraisal was as easy as pushing a button. Loan conditions were discussed via live chat and uploaded to an online portal where employees at another location I had never seen processed them and ensured conditions were satisfied.While this might look efficient on paper, it led to a harsh reality check when I transitioned to producing for an IMB and realized I didn’t know how a loan moved from application to closing.I didn’t understand the difference between an agency guideline and an overlay.I had no idea what happened when I clicked “Order Title,” and I had zero relationships with local title companies as a result. This was especially problematic because the company I joined didn’t have an “Order Title” button.Back then, you might have argued that the entire industry was headed in the direction those big banks had already implemented: simplifying the loan process at the cost of comprehensive understanding to reduce errors and lower labor costs.But fast forward to today, and there are still only a handful of companies capable of that level of loan process simplification. Knowledge of how a mortgage is originated, fulfilled, sold in secondary markets, and serviced remains crucial for an originator who values having options on where to hang their license.Those banks have since scaled back their role in the mortgage industry significantly. Their approaches to production and efficiency didn’t age well.Not only did they invest millions into their technology, but they also fostered a culture of fragmented responsibility, creating a salesforce of LOs who didn’t know enough about the loan process to assist clients even if they wanted to.So what can we take away from this about providing originators with the tools they need for success now and in the future? And how can we apply these lessons when deciding what marketing tools to equip LOs with?First off, when it comes to a CRM—the lifeblood of a digitally savvy LO’s business—we shouldn’t be choosing solutions that minimize LO involvement. Too often when discussing CRMs with mortgage executives, I hear some variation of:“Well, the loan officers won’t use it no matter how good it is, so whatever we pick needs to do everything for them automatically.”Today, “CRM” encompasses far more than just contact management. Platforms like HubSpot or HighLevel combine CRM functions with powerful marketing capabilities, allowing an LO to manage essential aspects of their business from one place.This type of technology, empowering loan officers as individual brand owners, is more affordable than ever and only getting cheaper.Authenticity and individual connections are valued by consumers more today than they have been since the early days of the internet.And yet, companies still lean into an originator’s tendency to want everything done for them automatically.Instead of assuming that removing LOs from the marketing and communication process is what’s best for production, we should provide tools that allow producers to market themselves effectively—and back it up with the education they need to thrive.From personal experience, I know it’s more challenging to empower hundreds or thousands of LOs than it is to just handle it for them. And yes, a significant portion of originators, particularly those further into their careers, may prefer to rely on traditional methods until they become obsolete.There’s certainly a case for offering both a done-for-you and done-with-you experience. But don’t be the company that provides an automated solution with zero support for the next generation of top producers who crave more control over their marketing.The future belongs to those who equip their loan officers with not just tools but the skills to use them to their fullest potential. Empowerment, not detachment, is the path forward.Michael McAllister is the President of Empower LO.This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.To contact the editor responsible for this piece: zeb@hwmedia.com.