In second-quarter 2024, high home prices and soaring mortgage rates caused more homeowners to struggle with their loan payments. But data shows a slight recovery as mortgage delinquencies fell in the third quarter.That silver lining comes from the Mortgage Bankers Association (MBA)’s National Delinquency Survey. According to the MBA, the seasonally adjusted rate for residential property (one- to four-unit) delinquencies dropped to 3.92% at the end of September. That’s down from 3.97% at the end of June, but it is up 30 basis points from one year ago. Delinquency rates include loans at least 30 days past due.The quarterly survey reviews late-payment and foreclosure rates based on loan type, geographical information and demographic data. MBA uses the survey to track and forecast mortgage performance trends in the housing market. Surveyed loan types include Federal Housing Administration (FHA) loans, U.S. Department of Veterans Affairs (VA) loans and conventional loans. FHA loans had the largest delinquency rate decrease in the third quarter, falling by 14 basis bps to 10.46%. The rate for VA loans declined by 5 bps to 4.58% and the rate for conventional loans shed 1 bps to 2.63%. Year over year, delinquency rates for all loan types increased, with FHA loans rising by 96 bps, VA loans by 82 bps and conventional loans by 13 bps. MBA also reported that 30-day delinquencies saw the largest decrease during the quarterly, dropping by 14 bps to 2.12% of all loans. The 60-day delinquency share declined by 3 bps to 0.73%, with the 90-day-late rate falling 7 bps to 1.08%. According to Marina Walsh, MBA’s vice president of industry analysis, lenders and consumers should remain cautious heading into Q4 2024.“Mortgage delinquencies have inched up over the past year,” Walsh said in a statement. “Even though there was a small, third-quarter decline in the overall delinquency rate compared to the previous quarter, this was driven by a decrease in 30-day delinquencies. Later-stage delinquencies rose last quarter, and overall delinquencies were up thirty basis points from one year ago.”The share of loans in foreclosure — calculated separately — rose to 0.45%, up slightly on a quarterly and yearly basis.Geographically, the five states with the largest delinquency rate increases during the quarter included Texas (+24 bps), Arkansas (+14 bps), Florida (+13 bps), Arizona (+12 bps) and Wyoming (+9 bps).Declining delinquency rates could indicate that homeowners are gradually recovering from tough market conditions caused by high mortgage rates and other factors. But the MBA noted that going into Q4 2024, the impacts of hurricanes Helene and Milton are likely to effect the results of the next survey in the Southeast.

Finance of America (FOA), the reverse mortgage industry’s leading lender, announced its third-quarter 2024 earnings results on Wednesday evening. It delivered adjusted net income of $15 million, or $0.67 per share.The company noted that Q3 2024 marked the fifth consecutive quarter of improved operating performance, including a recovery from the second quarter in which it posted a net lossof $5 million.“Our performance this quarter is the culmination of a number of strategic and operational initiatives we’ve undertaken over the last year to strengthen the business,” FOA CEO Graham Fleming said on the earnings call. “These efforts are now paying off as we focus on continued execution of our strategic plan.”Key metrics improveAll of the company’s key earnings metrics — net income, adjusted net income, EBITDA and associated earnings per share — were brought into positive territory from June through September, Fleming noted.Graham Fleming, CEO of Finance of America Companies." data-image-caption="Graham Fleming" data-medium-file="https://img.chime.me/image/fs/chimeblog/20241108/16/original_cb0e29cb-71ad-4333-9dcf-d91525d56afb.jpg?w=268" data-large-file="https://img.chime.me/image/fs/chimeblog/20241108/16/original_cb0e29cb-71ad-4333-9dcf-d91525d56afb.jpg?w=801" tabindex="0" role="button" src="https://img.chime.me/image/fs/chimeblog/20241108/16/original_cb0e29cb-71ad-4333-9dcf-d91525d56afb.jpg?w=801" alt="Graham Fleming, CEO of Finance of America Companies." class="wp-image-435655" style="width:200px" srcset="https://img.chime.me/image/fs/chimeblog/20241108/16/original_cb0e29cb-71ad-4333-9dcf-d91525d56afb.jpg 801w, https://img.chime.me/image/fs/chimeblog/20241108/16/original_cb0e29cb-71ad-4333-9dcf-d91525d56afb.jpg?resize=134,150 134w, https://img.chime.me/image/fs/chimeblog/20241108/16/original_cb0e29cb-71ad-4333-9dcf-d91525d56afb.jpg?resize=268,300 268w, https://img.chime.me/image/fs/chimeblog/20241108/16/original_cb0e29cb-71ad-4333-9dcf-d91525d56afb.jpg?resize=768,860 768w" sizes="(max-width: 801px) 100vw, 801px" />Graham FlemingSome of the positive performance was helped by a successful reverse stock split performed early in the quarter. This brought the company’s share price into compliance with the New York Stock Exchange (NYSE)’s continued listing standard and finalized an exchange offer with notes originally scheduled to come due in 2025.Fleming also mentioned the company’s future plans, highlighting the recently reshaped HomeSafe Second second-lien reverse mortgage product. This has been a source of focus and wider interest in the reverse mortgage industry since it was brought back in 2023.“We are focusing on market segments where we see the most growth potential, such as consumers 55 and older seeking second-lien mortgage loans as a way to access their home equity without refinancing away from low-rate conventional mortgages,” he said. “Our HomeSafe Second product could be a valuable solution for this population.”Consolidated platform, second-lien productFOA President Kristen Sieffert expanded on some of what was said during the Q3 earnings call regarding the consolidated platform built from the company’s Finance of America Reverse (FAR) and American Advisors Group (AAG) brands, which were united under the FOA banner.Kristen Sieffert, president of leading reverse mortgage lender Finance of America Companies." data-image-caption="Kristen Sieffert" data-medium-file="https://img.chime.me/image/fs/chimeblog/20241108/16/original_e1456c8e-4c59-4c8d-a4c8-32f550509d0d.jpg?w=213" data-large-file="https://img.chime.me/image/fs/chimeblog/20241108/16/original_e1456c8e-4c59-4c8d-a4c8-32f550509d0d.jpg?w=726" tabindex="0" role="button" src="https://img.chime.me/image/fs/chimeblog/20241108/16/original_e1456c8e-4c59-4c8d-a4c8-32f550509d0d.jpg?w=726" alt="Kristen Sieffert, president of leading reverse mortgage lender Finance of America Companies." class="wp-image-434830" style="width:200px" srcset="https://img.chime.me/image/fs/chimeblog/20241108/16/original_e1456c8e-4c59-4c8d-a4c8-32f550509d0d.jpg 726w, https://img.chime.me/image/fs/chimeblog/20241108/16/original_e1456c8e-4c59-4c8d-a4c8-32f550509d0d.jpg?resize=106,150 106w, https://img.chime.me/image/fs/chimeblog/20241108/16/original_e1456c8e-4c59-4c8d-a4c8-32f550509d0d.jpg?resize=213,300 213w" sizes="(max-width: 726px) 100vw, 726px" />Kristen Sieffert“I’m pleased to share that our third-quarter results indicate that these ROI maximization initiatives are having the intended impact,” Sieffert said. “We surpassed our volume expectations and continued optimizing operations while staying dedicated to enhancing the customer experience and expanding our market presence.”The company’s retail channel saw a 38% improvement from Q2 to Q3 as measured by production per loan officer. October was FOA’s “largest submission and funding month of 2024,” Sieffert added.She said that the July consolidation of the FAR and AAG brands has proven successful. It has helped to “set the stage for modernizing our approach to customer experience and acquisition,” while “developing a digital-first channel with a modern advertising strategy is vital for mainstreaming our products and enhancing production efficiency.”Building out the company’s proprietary product suite has been a focus for some time. And the strength of HomeSafe Second’s potential value proposition for homeowners 55 and older was a point of emphasis on the Q3 earnings call.“In the third quarter, we saw an 89% increase in HomeSafe Second loans compared to Q2, and we anticipate further growth in this area as we intentionally invest more capital and resources to the product,” Sieffert said. “While home equity lending nationwide is on the rise, recent HMDA data shows people 55 and older face denial rates eclipsing 35%. Many have considerable home equity but struggle with tighter credit conditions affecting qualifications.”Digging into the detailsMatt Engel, FOA’s chief financial officer, emphasized improved financial performance across several metrics.“Comparing our performance to the previous quarter, we saw notable improvements across the board,” he said. “Revenue increased from $79 million in Q2 to $290 million in Q3, driven by higher origination volumes and significant fair value gains on our residual assets. “Net income rose to $204 million in Q3 from a loss of $5 million in Q2, largely due to favorable fair value adjustments from improving market inputs and model assumptions combined with increased operational efficiencies.”Engel added that the company is eyeing sustained profitability into 2025 by investing in “growth opportunities,” the company’s origination platform and maintenance of an “optimized fixed cost structure.” The recent completion of the unsecured note exchange has also “bolstered our capital structure and extended our debt maturities, which have greatly enhanced our ability to focus on growth,” Engel said.He also indicated confidence in the overall trajectory of the reverse mortgage industry.“Looking ahead, we are encouraged by the favorable trends in the reverse mortgage market and the strength of our proprietary product offerings,” he said. “Our ability to adapt to changing market conditions, combined with a strong balance sheet following the successful debt exchange and improving liquidity position provides a solid foundation for future growth.”In the Q&A session after the main earnings presentation, Engel said that the company did more than $500 million in originations during the third quarter and expects “something in that same ballpark” in the fourth quarter.Earlier this week, credit ratings agency Fitch noted the success of the exchange agreement by upgrading the company’s issuer default rating after an initial downgrade.

Guild Mortgage CEO Terry Schmidt said during a third-quarter earnings call on Wednesday that Guild’s reverse mortgage division continues to contribute to companywide strategies, and that additional interest in reverse has been observed.Guild’s current reverse lending division, built off its 2023 acquisition of Cherry Creek Mortgage, has expanded its reverse mortgage activities this year. The California-based lender recently introduced a revised branding effort, the “Flex Payment Mortgage“ suite, that is designed to broaden the appeal of its reverse offerings to more potential partners.When asked during the earnings call about what the company sees in the home equity lending space, Schmidt said that the opportunities in reverse stand out.“We have a pretty broad product base, and the reverse, we’re seeing that tick up in recent months, so it’s going in the right direction,” she said. “Our second (lien) programs have been really successful, so those (homeowners) that have equity, we’ve got an option there if rates do stay at an elevated level.”Schmidt added that Guild is “really focused” on first-time homebuyers and the “homebuyer of the future,” emphasizing the importance of local presence in communities to capture a share of the market.“We think there’s a lot more opportunity and we’re going to keep focusing on that as well,” she said.In the past, Schmidt has characterized the company’s involvement in the reverse channel as a key contributor to Guild’s “customer-for-life” strategy. It wants options available to first-time buyers as well as age-appropriate offerings for a person’s later years. These include products for tapping home equity and reverse mortgages that are accessible to homeowners 62 and older through the Home Equity Conversion Mortgage (HECM) program.“With Cherry Creek, [our interest] was reverse,” Schmidt said earlier this year at The Gathering by HousingWire. “Now, we have a good reverse mortgage division at Guild, and they do really great recruiting there, so we’re learning a lot.”The reverse channel, she said, provides a chance for Guild to serve more clients for a longer period of time.“There’s a big portion of those customers that are getting to that age where [a reverse mortgage] may be their next type of transaction,” she said. “The aging and demographics [provide] great opportunity. It’s a great product to have, so we see it as a growing niche.”Jim Cory, managing director of Guild’s reverse division, previously told HousingWire’s Reverse Mortgage Daily (RMD) that the company’s overall investment in reverse is evident inside the division itself.“The company’s made a huge investment in reverse,” Cory said in September. “We service most of our own loans on the traditional side as well as the reverse side. ‘Customer for life’ is something Guild talks about a lot, even before this reverse division was added, and this is a perfect pairing [to earn the business] of a customer for life.”The inclusion of reverse is essential to this business strategy, he added.“I always like to say that you can’t really present ‘customer for life’ if you don’t have a reverse mortgage offering,” Cory explained. “So, our division fits in perfectly with that. And our marketing team is world-class and does all kinds of amazing stuff, and we’re just starting to tap into that with reverse mortgages.”

After delivering two straight quarterly losses to start this year, mortgage technology company Blend Labs predicted correctly that it would soon move into the black by one key accounting measure, finally delivering a non-GAAP operating profitability third-quarter 2024 earnings.The earnings report, released Wednesday, revealed that Blend’s GAAP loss from operations improved to $13.3 million in the third quarter of this year compared to $36.2 million in the same period last year.“The third quarter resulted in several big wins for Blend, including the signing of multi-year deals with new customers in both mortgage and consumer banking as well as the significant milestone of achieving non-GAAP operating profitability ahead of our fourth quarter target,” Nima Ghamsari, head of Blend, said in the earnings release. “Reaching this milestone now positions us to enter the next phase of our growth strategy. Our focus will be on generating profitable growth and ensuring our platform continues to deliver even more value for our customers over time.”Ghamsari also cited new customer growth as a vital part of Blend’s profit-forward quarter, namely a multi-year mortgage and home equity deal with Pentagon Federal Credit Union, the nation’s second-largest federal credit union by asset size with nearly 3 million members. He added, “The positive outlook for mortgage mixed with our accelerating consumer banking business, which generated more than 50% year-over-year revenue growth in the third quarter, and the achievement of our non-GAAP operating profitability goal makes now an exciting time to be building at Blend.”Total company revenue for the quarter was $45.2 million, composed of Blend platform segment revenue of $33.1 million and title segment revenue of $12.1 million.Within the Blend platform segment, the company reported that mortgage suite revenue increased by 6% year over year to $21.5 million. Consumer banking suite revenue totaled $9.5 million in the third quarter, a record increase of 54% compared to the prior-year period. Lastly, professional services revenue totaled $2 million in the quarter, down slightly compared to last year.Blend’s GAAP and non-GAAP gross margins improved to 58% in the third quarter, up from 54% and 55% in 3Q23, respectively. The GAAP Blend Platform segment gross profit rose to $24.5 million, and non-GAAP reached $24.8 million, both up from the prior year. Software platform gross margins were stable at 80%. Operational losses decreased significantly, with GAAP losses at $13.3 million compared to $36.2 million in 3Q23, and non-GAAP income turning positive at $0.04 million. Net losses per share also narrowed. “Looking ahead, the mortgage tech firm forecasts a non-GAAP net operating loss of $4 million to $7 million in the third quarter,” the company said regarding Q4 expectations.

One day after Donald Trump’s victory in the U.S. presidential election, officials at the Federal Reserve announced their decision to cut the benchmark interest rate by 25 basis points to a target range of 4.5% to 4.75%, a move that aligned with market expectations. The reduction, made public on Thursday afternoon, was more modest than the 50-bps cut imposed after the Fed’s September meeting, which can be attributed to mixed signals from the U.S. economy.“Recent indicators suggest that economic activity has continued to expand at a solid pace,“ Fed officials said in a statement. “Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low. Inflation has made progress toward the Committee’s 2% objective but remains somewhat elevated.“The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.“Inflation is slowly cooling as the Consumer Price Index — the Fed’s preferred inflation gauge — fell by 0.1 percentage points from August to September to an annual increase of 2.4%. Meanwhile, the labor market has slowed as only 12,000 nonfarm payroll jobs were added in October, unchanged from the prior month. Monetary policy watchers see modest rate cuts — or no cuts at all — on the horizon as a Trump administration is likely to expand government spending and boost consumption. This could put more pressure on the Fed’s mission to bring annual inflation back to its 2% target.  Fed Chair Jerome Powell told journalists that the Fed is “not on any preset course” and “will continue to make decisions meeting by meeting.”“In the near term, the election will have no effects on our policy decisions,” Powell said. “We don’t know what the timing and substance of any policy changes will be. We, therefore, don’t know what the effects on the economy would be, specifically, whether and to what extent those policies would matter for the achievement of our goal variables, maximum employment and price stability. “We don’t guess, we don’t speculate and we don’t assume.”Typically, the Federal Open Market Committee (FOMC) adjusts rates in 25-bps increments. Prior to this week’s meeting, the CME Group‘s FedWatch tool showed that 98% of interest rate traders expected officials to lower rates by 25 bps, while the rest projected rates to remain unchanged. Despite the Fed’s moves, yields for the 10-year Treasury have increased, reflecting Trump’s more expansive fiscal agenda. On Wednesday, following the election results, yields reached 4.45%. Consequently, the 30-year fixed mortgage rate went up to 6.94% on Thursday, per HousingWire’s Mortgage Rates Center. Regarding the moves in the bond market, Powell said they appear to be related to the predicted likelihood of stronger economic growth. “We do take financial conditions into account if they’re persistent and if they’re material,” he said. “But I would say we’re not at that stage right now, which is something that we’re watching.” Future meetingsFed officials are scheduled to meet again in mid-December and most traders expect another 25-bps cut. But the perception that the Fed may leave rates at the current level is increasing. “We view greater uncertainty with monetary policy with the Trump victory, especially with concerns related to a potential wave of inflation with the Trump trade, tax, and immigration policies,” wrote a team of analysts at Raymond James in report released Wednesday. “There may be offsets that prevent the second wave of inflation, but the Fed may be more cautious in the upcoming months as it digests the impacts of Trump’s policies.”  First American senior economist Sam Williamson agrees that additional upside surprises on inflation or employment data could influence the Fed to consider taking a December cut off the table. But, in contrast, accelerated economic weakness or a rapid slowdown in inflation could prompt the Fed to take a more dovish approach to policy normalization“However, over the next year we anticipate further, though gradual, declines in mortgage rates, consistent with the Fed’s longer-term projections on the future path of interest rates, which should help stimulate demand, and to a lesser extent, supply,” Williamson said.Powell said that the Fed is loosening policy over time to a more neutral level but is also prepared to adjust as the outlook evolves. According to him, if the labor market deteriorates, the Fed will be ready to move more quickly. Alternatively, as the Fed approaches plausibly neutral or close-to-neutral levels, it may be appropriate to slow the pace at which it is dialing back restrictions. But a decision has yet to be made, he added. Looking at Fed officials themselves, Keefe, Bruyette & Woods analysts forecast potential replacements for Powell and Vice Chair Michael Barr when their terms end in 2026. Potential successors are Christopher Waller, a member of the Fed Board of Governors; Kevin Warsh, a former Fed governor; and David Malpass, a former president of the World Bank Group. “The Trump victory will usher in the largest change in federal financial regulators in the history of the U.S. The only federal financial regulators that will remain is the leadership at the Federal Reserve,” the Raymond James analysts wrote. “The fate of Chairman Powell will also be debated. We will be watching to see Trump’s selection for Treasury Secretary. The more Trump’s Treasury Secretary can back-channel communications, the greater probability Powell will finish his term.” Powell declined to comment on fiscal policy or concerns that a Trump administration would affect the Fed’s independence. Journalists asked whether he would leave under pressure from the newly elected president, and he said no, adding that he’s not legally required to do so.Mortgage pros’ mindsetAccording to Phil Crescenzo Jr., vice president for the Southeast division at Nation One Mortgage Corp., the market was favorable prior to the Fed’s September meeting, with some clients locking in a mortgage at rates below 6%. Those who waited saw “all the savings just go right out the window because rates moved up so quickly.”Now, “because we’re going the opposite way, maybe the meeting, the announcements, the election, all these things may swing it back positive,” Crescenzo added. In a market he calls “unpredictable,” he tells clients who can afford to purchase to move forward with their applications.“We are trying to be safe and cautious but also not missing opportunities,” Crescenzo said. Shannon Hoff, a senior mortgage adviser at American Pacific Mortgage — a lender with 1,685 sponsored LOs and 426 active branches — said that there are those waiting for rates to go down and those doing business as usual. “Everything is a mindset. It has definitely been a rough couple of years, but people continue to buy homes and still need refinances to pay off debt or fix up their home,” Hoff said.  Editor’s note: This is a developing story and will be updated.

Home prices continue to rise, but they’re rising in slightly fewer areas of the country.Data released Thursday by the National Association of Realtors (NAR) shows that during the third quarter of 2024, home prices grew in 87% of the 226 metropolitan areas analyzed. That share is down from 89% in the second quarter.In addition, 7% of metro areas analyzed experienced double-digit home-price growth, which is down from 13% in Q2 2024. While home prices grew, falling mortgage rates during the third quarter brought the typical mortgage payment down 2.4% year over year. The median home price was up 3.1%.“Home prices remain on solid ground as reflected by the vast number of markets experiencing gains,” NAR chief economist Lawrence Yun said in a statement. “Even with the rapid price appreciation over the last few years, the likelihood of a market crash is minimal. Distressed property sales and the number of people defaulting on mortgage payments are both at historic lows.”NAR’s report is the latest in a string of evidence tied to slowing home-price appreciation. The August S&P CoreLogic Case-Shiller Index posted a 4.2% year-over-year gain, less than the 4.8% gain from July. The monthly index fell by 0.1%.The U.S. Census Bureau‘s new-home sales report for both August and September showed year-over-year declines in home prices. September’s existing-home sales report from NAR shows a 3% annualized increased gain in median prices.In terms of single-family home sales, the South accounted for 45.1% of all transactions in Q3 2024 as prices there rose only 0.8% year over year. Prices were up the most in the Northeast (+7.8%), followed by the Midwest (+4.3) and the West (+1.8%). Of the 10 metro areas with the highest year-over-year home-price growth, four were in Illinois. The highest growth was in Racine, Wisconsin, with a 13.7% gain. Of the 10 most expensive markets, eight were in California, with the other two being Honolulu and Boulder, Colorado.

Ginnie Mae announced on Thursday that it will allow relief from its risk-based capital ratio (RBCR) requirements for any mortgage-backed securities (MBS) issuers that effectively hedge the value of their mortgage servicing rights (MSRs). One housing advocacy group said the move will create flexibility for independent mortgage banks (IMBs).A new memorandum reiterates that beginning on Dec. 31, 2024, “certain issuers and applicants will also be required to maintain a Risk Based Capital Ratio (RBCR) of 6% which is a function of risk weighted assets to Adjusted Net Worth.” Because MSRs are “generally a significant portion of the issuer’s assets and their values fluctuate due to changes in interest rates,” issuers can reduce their interest rate risk exposure by hedging the MSRs on their books, which helps to “reduce fluctuation in MSR values,” according to the memo.“Therefore, Ginnie Mae will offer Risk Based Capital requirement relief to Issuers that demonstrate successful hedging over time,” the memo stated.“As we have said previously, Ginnie Mae will continue to look for ways to adjust our RBCR, where industry practice reflects demonstrable risk mitigation,” Sam Valverde, the company’s acting president, said in a statement. “With RBCR set to go into effect at the end of the year, we are pleased to provide this relief for proven hedging strategies.”Ginnie Mae will oversee the standards for what constitutes “effective” MSR hedging by “leveraging data submitted quarterly on the issuer’s Mortgage Banking Financial Reporting Form (MBFRF).” It defines “hedging efficiency” as “the proportion of derivative gains/losses used to hedge MSRs relative to the change in MSR values due to market and model changes, as defined in the MBFRF.”To be eligible for risk-based capital relief, issuers must have hedged at least one of the most recent four quarters, and at least four of the most recent 12 quarters, according to the policy announcementThe Community Home Lenders of America (CHLA) lauded the new development in a statement released Thursday.“CHLA commends Ginnie Mae for allowing eligible issuers to qualify for RBCR and creating more flexibility for IMBs in the face of Risk-based Capital requirements,” CHLA executive director Scott Olson said. “This initiative will not only increase access to Ginnie Mae for nonbanks, but will also increase access to credit for first-time, minority, and other underserved borrowers.”The rule reduced the minimum risk-based capital ratio from 10% to 6%. But it also put a 250% risk weight on the MSR asset and the dollar-for-dollar deduction from capital for excess MSRs. The guidance was originally set to go into effect at the end of 2023.But Ginnie Mae in 2022 announced that the implementation date would be pushed to the tail end of 2024, much to the delight of industry voices who had expressed concerns about the new requirements.

In a new episode of the “Real Estate Insiders Unfiltered Podcast,” hosts James Dwiggins and Keith Robinson are joined by Zillow Group CEO Jeremy Wacksman for a deep dive conversation that covers the role of technology in real estate and Zillow’s “Super App.”This conversation has been edited for length and clarity. To kick off the episode, Wacksman discusses the importance of technology in real estate.Wacksman: This team was obsessed and focused on solving consumer and customer problems with technology, which really spoke to me. That got me here in 2009 and kept me ever since. Six months after I got here, the app store launched on the iPhone, and we realized it was going to be how real estate and categories like ours went, so I got to work on that. Dwiggins: Give us a layout on where you are in the process of building the Zillow Super App.Wacksman: That’s the Zillow app for a buyer and a seller. We use the term “Super App” to reflect bringing a lot of disparate services together in one app. What does the buyer or seller want? They want to be able to open the app and do everything from start to finish inside, have it notify them, stay really transparent, be in control and do things digitally. This complex project management of a bunch of parties all need to come together to enable that one-stop shop. Dwiggins: Tell us a little bit about the acquisition of Virtual Staging AI and the strategy for that. Wacksman: It’s a great young company that has innovated a way to do virtual staging. And that’s, as you outlined, another example of us enabling the real estate industry to become more digital, integrated and productive. That requires generative AI and a floor plan that can perform a walkthrough, which sounds fantastic.Robinson: How would you help agents understand how you are positioning your technology for the good of the industry and for the good of the agent?Wacksman: Today’s innovation is tomorrow’s table stakes. That’s what technology does. We discover something new, we show our friends. We wake up and we expect it to work and be the default. That’s what internet, the mobile phone, have been doing for decades now. Technology pushes the consumer forward. One has to keep up with where the buyer and seller is going. That’s really our mission at Zillow. Technology and change can be scary. Agents have hard jobs and they’re really busy with what they’re doing. We have a phrase at Zillow. We say, ‘We do tech so you can do real estate.’ I think that would be my comment — let us do the tech. You don’t have to be well versed in all of the things that are coming.Robinson: What you all are doing is trying to get as far into the home as humanly possible, at a distance. How do you see that expanding?Wacksman: I actually think customers will take more tours and spend more time. Anytime you give consumers more tools, they become more empowered and efficient, but that efficiency doesn’t mean they spend less time dreaming and shopping. Dwiggins: With this app, how do you balance between what the agents and the brokerage want with the sellers’ wants?Wacksman: Consumer empowerment is agent empowerment to us.The consumer is nudging themselves down the funnel to become more transaction ready. For an agent, that’s a higher-intent lead, a more educated buyer in all these regulatory changes. You also have a more educated buyer on how commissions work. This gives good sales agents room to prove themselves.On the flip side, we’ve spent billions of dollars over the last decade building and developing — or buying and integrating — software for real estate agents and teams. To get the buyer and seller what they want, we have to have super agents, not just agents.The conversation closes with Wacksman sharing his thoughts on the National Association of Realtors‘ Clear Cooperation Policy (CCP).Wacksman: An open, free marketplace, it benefits everyone — consumers and agents. Things like Clear Cooperation ensure most listings are available to buyers and sellers. Private listing networks and the removal of CCP are bad for buyers, sellers and agents.

Who doesn’t have a podcast these days? Anyone with a microphone and a cup of coffee can wax poetic about the ebbs and flows of the industry. We dug for podcast gold to compile our list of the best real estate podcasts to help you level up your business in 2024 — whether you’re a newbie or a seasoned vet. Whether you’re looking to stay informed or motivated, gain market insights, or learn strategies from the masters — there’s something for everyone in our (always evolving) list of podcast favorites.SummaryThe Millionaire Real Estate AgentDrive with NARReal Estate Rockstars PodcastThe Tom Ferry Podcast ExperienceRealTrending by HousingWireElite Agent SecretsThe Listings Lab Podcast with Jess LenouvelReal Estate Training and Coaching School5AM CallKeeping it RealCrazy Sh*t in Real Estate with Leigh BrownReal Estate Insiders – UnfilteredThe full picture1. The Millionaire Real Estate AgentHost: Jason AbramsBest for: If you’re navigating the industry’s ins and outs, The Millionaire Real Estate Agent has 30-minute episodes that are digestible and informative. Whether you’re new to selling real estate or have decades of experience, everyone can learn valuable lessons and gain motivation from this podcast’s discussions with guests.Why it’s great: As any agent knows, being a real estate professional is about so much more than selling property. Abrams looks at the industry through the lens of fascinating guests, ranging from industry experts like former Keller Williams CEO Mo Anderson to billionaire entrepreneur Adam Hergenrother. But it also delves deeper, using guests to examine the internal struggles many agents face. Don’t miss a recent episode with author and motivational speaker Mel Robbins as she discusses her mantra and new book, The 5 Second Rule, and how agents can apply the lesson in their real estate career.Apple PodcastsSpotify2. Drive with NARHost: VariousBest for: Anyone looking for peer-to-peer guidance will find useful business-building tips from this National Association of REALTORS® podcast. However, the recent Safety Series deals with issues that all agents need to be aware of — from the physical hazards of selling aging homes to dealing with the loneliness of entrepreneurship.Why it’s great: With each episode lasting just over 20 minutes, Drive with NAR is perfect for gathering tips and tactics between listing appointments or while getting your daily steps in. Their sibling podcast, NAR’s Real Estate Today, is not directly for REALTORS, but it takes an intriguing look at industry trends.Apple PodcastsSpotify3. Real Estate Rockstars PodcastHost: Aaron AmuchasteguiBest for: If you’re looking to learn from the masters to level up your marketing, Real Estate Rockstars taps serious pros who can teach you to convert social media followers into clients. Hear the secrets and strategies of some of the most successful agents on Instagram.Why it’s great: One of the most popular podcasts in the industry, Real Estate Rockstars is friendly and aspirational — revealing the proven tactics and strategies of successful agents. In a recent episode, Nashville agent Marie Lee shares how she targets out-of-state buyers relocating to Nashville. Lee got her real estate license during the 2020 lockdown, and she shares that seventy percent of the $14 million she closed in 2023 came through her Instagram account.Apple PodcastsSpotify4. The Tom Ferry Podcast ExperienceHost: Tom FerryBest for: Anyone who wants a mindset shift in under 60 seconds should tune into The Tom Ferry Podcast Experience’s “Mindset Mondays” for a minute-long inspirational chats. Mindset is the name of the game for Tom Ferry, one of the most popular real estate coaches in the industry who famously hosts an annual agent.Why it’s great: Ferry has the goods to back it up and understands how mindset can be a game changer when it comes to succeeding in the industry. Check out Tom Ferry’s recently launched group coaching programs that include a Prospecting Bootcamp, a Fast Track Program for new agents, and a Recruiting Roadmap for those wanting to build a team.Apple PodcastsSpotify5. RealTrending by HousingWireHost: Tracey VeltBest for: This weekly podcast from HousingWire’s Tracey Velt provides useful information for agents who want to hear from brokerage leaders, industry experts, and fellow agents who have navigated challenging situations.Why it’s great: Game recognizes game, right? While we may be a bit biased, RealTrending by HousingWire packs a punch with the nitty-gritty details of the industry. Recent topics have included deep dives into the NAR commission lawsuit and settlement, as well as brokerage best practices (and mistakes to avoid) regarding recruitment and retention.Apple PodcastsSpotify6. Elite Agent SecretsHost: Andrew Dunn and Peter DunnBest for: Anyone hungry for trade secrets would do well to tune in to the popular Elite Agent Secrets podcast, whose hosts share the tips and tricks they gathered while proudly “rubbing shoulders with some of the best in real estate.” If you prefer a casual, conversational style, this podcast might be for you.Why it’s great: Elite Agent Secrets is hosted by real estate agents who have generated billions of dollars in transactions. Elite Agent Secrets is a win if you prefer to take guidance from those who have done it before you. You’ll also gain free access to their content. From a free Masterclass training to an online course, they offer plenty of valuable content that won’t cost you a dime.Apple PodcastsSpotify7. The Listings Lab Podcast with Jess LenouvelHost: Jess LenouvelBest for: If you’re looking to scale your business with an astute marketing plan, Canadian agent Jess Lenouvel knows her stuff. Her approach is designed (and works best) for agents making around $250,000 who want to take their business into seven figures.Why it’s great: Informal yet informative, The Listings Lab Podcast with Jess Lenouvel gives you the straight goods on how to increase your revenue. But Lenouvel keeps it real, too. Take, for example, her recent episode where she shares that she drove the same old Honda CR-V until she was “doing multiple seven figures.”Apple PodcastsSpotify8. Real Estate Training and Coaching SchoolHost: Tim and Julie HarrisBest for: If you’re considering a real estate coach but aren’t quite willing to spend the money on one-to-one coaching, Team Harris pours out some cool and refreshing advice on their daily podcast and delivers fresh content via their newsletter.Why it’s great: Tim and Julie Harris’ Real Estate Training and Coaching School is densely packed with valuable information that both longtime agents and newbies can appreciate. Their advice is well structured, using step-by-step plans and useful tip lists. Don’t expect scintillating conversations with thought leaders. Instead, you’ll find this podcast heavy on tangible business advice you can actually use.Apple PodcastsSpotify9. 5AM CallHost: Byron Lazine, Tom Toole, Lisa Chinatti, Sarah Desamoiurs, Scott Kompa and moreBest for: Naturally, 5AM Call is a hit with morning people who want a dose of motivation to get their day going. Tuning into this podcast when it’s live can be a great way to start your day. That said, it’s got plenty of value no matter the time of day you tune in.Why it’s great: 5AM emphasizes resilience in the face of challenges and serves up a combination of good advice and motivation. Need someone to light a fire under you? This podcast reminds us that the tough times are just another step in our journey. If you love a dose of inspiration paired with motivational mantras (and you don’t cringe at refrigerator magnet wisdom like, “Every setback is feedback”), then 5AM Call might be for you.Apple PodcastsSpotify10. YES Talk for Real Estate AgentsHost: Kevin WardBest for: If listening to hour-long podcast episodes is your idea of hell, Ward moves with lightning speed through episodes clocking in at around 10 minutes. If you don’t mind a dose of intensity, YES Talk delves into the difficulties of navigating a challenging market with the high-octane intensity of a motivational speaker.Why it’s great: Ward is honest with YES Talk for Real Estate Agents listeners, explaining that he’s a much better coach than he was as an agent. His high-energy attitude can be motivational, yet filled with actionable information that can help you get more business. Apple PodcastsSpotify11. Crazy Sh*t In Real Estate with Leigh BrownHost: Leigh BrownBest for: Agents or soon-to-be agents who want to get an insider’s look into the issues that real estate professionals face on the daily. Brown promises to “shatter the HGTV-induced veneer of real estate” and dish up the real deal of the industry. Some of her content is for consumers (but if you’re agent, you probably live in a home of some kind, so it’s for you, too). She delves a broad array of topics affecting agents, like marketing your business, legal pitfalls, property auctioneering, market shake-ups, and more. Why it’s great: We love Leigh Brown’s Southern twang as she sits down to chat with a single industry expert for every episode. Her style is conversational, and she’s great at asking smart questions and letting her guests do the talking. Guests include developers, powerhouse agents and brokers, investors, coaches, lenders and more. Apple PodcastsSpotify12. Real Estate Insiders UnfilteredHosts: James Dwiggins and Keith RobinsonBest for: If you want more insights into sweeping market trends and broad industry issues, this podcast is for you. Dwiggins and Robinson tackle heady topics like agent empowerment, tech trends, launching a successful brand in times of crisis, the NAR settlement and politics, and cooperative compensation and transparency. Why it’s great: James Dwiggins and Keith Robinson are, respectively, the CEO and Chief Strategic Officer at NextHome, Inc., a national franchisor founded in 2014. It was recently named as one of the top franchises for veterans. Recent guests have included Gary Acosta, CEO of the National Association of Hispanic Real Estate Professionals (NAHREP) and in a separate episode, Steve Brobeck, Senior Fellow for the Consumer Federation of America. In short, they gave big convos on this podcast. Buckle up!Apple PodcastsSpotifyThe full picture: The best real estate podcasts for 2024Real estate podcasts are a convenient way to build skills and learn on the go. Successful real estate agents needs to consistently hone their skills and stay on top of industry trends, market conditions and economic news. While you’ll learn plenty of valuable skills working in the field, we hope our list of the top real estate podcasts provides valuable and unexpected sources for insights, expertise and knowledge that can help you take your career to the next level. By staying abreast of the latest industry trends and news, you’re ultimately laying the foundation for the future of your business. Related articles The best real estate coaching programs for 2024 Best real estate apps for agents in 2024 The best real estate companies to work for in 2024 (+ beyond)

A stagnant housing market hasn’t held back Zillow’s mortgage business.On its third-quarter earnings call Wednesday evening, the real estate portal giant reported that its mortgage revenue rose 63% year over year, driven by an 80% jump in purchase origination volume to $812 million. Compared to the first nine months of 2023, Zillow’s origination channel revenue grew 41% to $104 million.Zillow’s shareholder letter attributes the growth to its “integrated financing experience.” According to the company, 40% of shoppers begin the process by looking for a lender and 80% of them don’t have a real estate agent. Zillow believes its end-to-end service options are allowing it to convert more of these types of homebuyers.A more direct factor is that mortgage rates in the third quarter of 2023 approached 8%, whereas rates declined during much of Q3 2024, getting close to 6%.While Zillow’s growth is significant given the company only launched its mortgage business in late 2018, falling rates benefited every player in the mortgage industry. Many major lenders that were losing money returned to profitability in the third quarter of this year.While Zillow shares dropped 6.5% Wednesday after Donald Trump’s victory in the presidential election, shares were up 14% in after-hours trading.Zillow also touched on issues facing the real estate industry, including the Clear Cooperation Policy (CCP), the National Association of Realtors‘ (NAR) rule that requires Realtors to post properties on a NAR-affiliated multiple listing service within a day of signing a listing agreement with a home seller.Brokerages such as The Agency and Compass have been vocal in their opposition to CCP. Compass, in particular, has been vocal about its intent to build an exclusive listings inventory, to which CCP is a significant barrier.Zillow receives listings from MLS feeds, so naturally the company supports the policy and wants it to remain in place.“The U.S. real estate market is the most transparent market in the world because of policies like this, and we love to see those policies strengthen so we can build great businesses and consumer experiences on top of them, versus weakened [policies] that some can benefit from, trying to pull what is a pretty small share of listings behind a velvet rope for their own benefit,” CEO Jeremy Wacksman said on the earnings call.The company has also rolled out a form of buyer agent agreements that can be used prior to a home tour, and they are tailored to each state. Wacksman said on the earnings call that the agreements help agents set expectations for buyers throughout the transaction process, not just while touring homes.“We see this as a really healthy evolution in processing all these settlement changes to help start to educate the buyers on how this process works, to make sure when they meet these great agents, they’re even more educated on what to expect, both in the initial tour and then in what to expect in the relationship if they choose to move forward,” he said.

Guild Holdings Co., the parent company of Guild Mortgage, sustained a $66.9 million loss in the third quarter of 2024 after delivering a profit of $37 million in the prior quarter. Meanwhile, its origination volume increased to $6.9 billion, up 6% from the second quarter and 49% higher than the same period in 2023.This led its originations segment to “profitable” results, according to CEO Terry Schmidt.Net revenue dropped from $285.7 million in Q2 2024 to $159.3 million in Q3. The net loss attributable to Guild was $66.9 million, while adjusted net income was $31.7 million, according to an 8-K filing with the Securities and Exchange Commission (SEC). Adjusted EBITDA for the quarter stood at $46.4 million.Schmidt said in a statement that despite the loss, the company’s trajectory continues to reflect “positive momentum” based on investments it has made in prior acquisitions.Schmidt added that a “clear differentiator” the company has is “the realization of the growth platform” stemming from its acquisitions, which included Academy Mortgage at the beginning of the year. She added that originations are expected to grow regardless of the interest rate environment.“Our focus on achieving profitable, long-term market share gains, along with our balanced business model of originations and servicing, positions us for success throughout macroeconomic environments,” Schmidt said. “We are confident in our platform, products and people, and anticipate seeing enhanced production from our expanded origination network over time, while we will remain disciplined in order to deliver long-term value to our shareholders.”Amber Kramer, the company’s chief financial officer, went deeper into the company’s financial results on an earnings call Wednesday. The company’s servicing portfolio grew to $91.4 billion in unpaid principal balance (UPB), but it recorded a net loss of $74.6 million that is attributed to “the downward valuation adjustment of MSRs of $124 million reflecting the interest rate decline,” Kramer said said.The servicing portfolio’s UPB was up 3% compared to the $89.1 billion total at the end of June.“Our servicing portfolio continues to be a valuable source for ongoing cash flow, future opportunities for loan recapture, and it reinforces our customers-for-life strategy,” Kramer said. “Furthermore, our business model — which combines the originations in the servicing segments — provides for a natural hedge over time, as rate declines should translate into higher originations, both purchase and refinances.”The company’s cash and cash equivalents position was $106.2 million at the end of September, up $3.8 million quarter over quarter.In after-hours trading on Wednesday, Guild’s share price was down to $12.99 after peaking at $14.37 earlier in the day.

Fair Isaac Corp. (FICO), the company that retains the rights to the market’s widely adopted consumer credit-risk assessment methodology, announced on Wednesday that it has increased its wholesale royalty from $3.50 to $4.95 per score for mortgage originations. The mortgage industry is now bracing for additional hikes from the credit reporting bureaus and other companies downstream of FICO.“At this new per-score royalty, the amount collected by FICO will remain a small percentage of the cost of the tri-merge credit report and score bundle (on average approximately 15% of the $80 to well over $100 tri-merge bundle cost), which is itself an exceedingly small share of overall mortgage closing costs,” Jim Wehmann, FICO executive vice president, wrote in a blog post.Wehmann added that, after the change, “FICO’s share will remain only approximately two-tenths of one percent” of the total average closing costs of $6,000.In the blog post, Wehmann claimed there was “misinformation” across the Internet regarding the fee hikes, which some mortgage pros called “price gouging” and “junk fees.”“At $4.95 per score, the royalty collected by FICO for mortgage is entirely fair and reasonable, particularly considering the significant benefits it brings to the industry,” he said, adding that the new royalty is only the fourth royalty change in the mortgage industry in 30 years.“Importantly, after our upcoming royalty change, all amounts above $4.95 per score are collected and retained by the credit bureaus or their tri-merge resellers—not FICO. This means, after this change, any price increase greater than $1.45 per score is solely due to prices set by others who sell and distribute the scores.”Mortgage industry executives told HousingWire they expect the credit reporting bureaus and aggregators to pass on the FICO cost increases and pad their own fees on top. Those companies are threatened by revenue from trigger leads to drying up with new legislation.How we got hereAnalysts and mortgage executives expected an increase from FICO after the election. But the bets were at a higher level, at $5. However, the credit bureaus—TransUnion, Experian, and Equifax—were notified about the changes on Oct. 30, when they started communicating with some clients, FICO said. It’s the third straight year of increases in FICO scores, which has received criticism from the industry. The royalties rose to $0.50 to $0.60 per FICO score in 2018. In 2023, a tier-based structure of $0.60 to $2.75 per score was implemented, which increased prices for some lenders by up to 400%.After complaints from lenders, FICO returned to a fixed royalty of $3.50 per FICO score in 2024. But it collected the same per-score price for soft pulls and hard pulls.These moves come as Fannie Mae and Freddie Mac move away from the current Classic FICO credit score model. They will require lenders to use two credit scores generated by the FICO Score 10 T and the VantageScore 4.0 models, which are considered more inclusive than their predecessors.Reaction from the mortgage industryThe mortgage industry quickly responded with frustration at the news of a 41% increase from the prior year.Taylor Stork, the president of Community Home Lenders of America, said his organization, which represents small lenders, “remains concerned by FICO’s unnecessary and unwarranted price increases, combined with the bureaus’ mark-ups, that will no doubt be passed onto the borrower.”“Unfortunately, we’re likely in the early innings of the increase process,” said Greg Sher, the Managing Director of NFM Lending and a vocal critic of the fee hikes. “Until production picks up significantly, FICO is going to be counting on the mortgage industry to keep them profitable because they can. Who is going to stop them?”In a statement, Mortgage Bankers Association President and CEO Bob Broeksmit said the industry has voiced frustration with the “lack of transparency” behind the ongoing price hikes for tri-merge credit reports and other credit reporting products.“While FICO and the credit reporting agencies are private companies free to set their prices as they wish, raising prices once again would hurt consumers at a time of continued affordability challenges,” he continued. “Lenders are required to obtain FICO scores and three credit reports to make most loans to prospective homebuyers and homeowners looking to refinance. Charging more every year for a long-established product underlines the lack of competition in this space.”

Donald Trump has won the 2024 presidential election and will become the 47th President of the United States. But what could a change in administration mean for the real estate industry that is keeping a close eye on Nov. 26, when the National Association of Realtors’ (NAR) commission lawsuit settlement agreement is slated for a final approval hearing?“I don’t think it is going to change the settlement at all,” said Chuck Cain, an attorney and the president of Alliance Solutions. “The Sitzer/Burnett lawsuit was filed during the Trump administration and it has been disclosed by the plaintiffs’ counsel that the Federal Trade Commission and the Department of Justice helped and participated in the plaintiffs’ case as far as evidentiary provisions, and that was the Trump DOJ and Trump FTC.”Marx Sterbcow, the managing attorney of Sterbcow Law Group, is also confident that the settlement will be approved.“That settlement is going through,” Sterbcow said. “That is a private civil action that these companies, plaintiffs and trade associations entered into independently, so it will have no impact, whatsoever.”In addition to what lawyers think, Judge Stephen Bough’s track record on the commission lawsuits also indicate that the settlement’s track to final approval is already clear.In the past six months, Bough has granted final approval to the settlements reached by Anywhere ($83.5 million), RE/MAX ($55 million) and Keller Williams ($70 million) in the Sitzer/Burnett suit. He also approved settlements in the combined Gibson/Umpa suit for Compass ($57.5 million), The Real Brokerage ($9.25 million), At World Properties ($6.5 million), Douglas Elliman ($7.75 million, but may pay up to an additional $10 million), Redfin ($9.25 million), Engel & Völkers ($6.9 million), Realty ONE Group ($5 million), HomeSmart Holdings ($4.7 million) and United Real Estate ($3.75 million).In his approval order for the Gibson suit, Bough addressed many of the objections filed against the settlement, which mirror those filed against the NAR settlement. In addressing objections about the effectiveness of the class notification, Bough noted that the settlement administrator was able to reach more than 97% of identified Gibson class members and that so far, more than 463,000 claims had been made. Additionally, Bough highlighted that only eight objections were filed and only 46 class members chose to opt out of the settlement class.Both the Gibson and NAR settlements have also received criticism for being nationwide settlements, when the claims involved originated in Missouri.“A nationwide settlement was a necessary condition of obtaining any settlement for the benefit of the class, a nationwide settlement will conserve judicial and private resources, and Class members were fully apprised of the settlement class definition through the notice process,” Bough wrote.Bough also addressed the inclusion of all MLSs in the deal, regardless of their affiliation with NAR. He called the choice “both justified and necessary to achieve any settlement for the Settlement Class. Moreover, the only way that the Settlements were possible was if they provided for a nationwide recovery and release.”Objectors to the settlements have also taken issue with the small amount of monetary damages awarded to individual home sellers who are part of the class — especially after the plaintiffs’ attorneys take their 33% cut of the settlement pot. In response, Bough noted that no settlement amount would have provided class members with the full extent of damages they claim.“The applicable standard is whether the settlements are fair, reasonable, and adequate — not whether they provide complete relief to all Class members,” he wrote. “The Settlements provide a significant financial recovery to the Settlement Class in light of the strengths and weaknesses of the case and the risks and costs of continued litigation, including appeal, and the Settling Defendants’ financial resources.”And Bough highlighted the business practice changes outlined in the settlements, noting that these also had to be considered as part of the reparations being made to the settlement class.Notably, Bough addressed the objections raised by James Mullis, who is a plaintiff in the Batton homebuyer commission lawsuits. The judge wrote that the claim that Mullis bought a home after selling a home, making him potentially part of two separate classes, is not unique.“[E]very class member sold a home during the class period, and most also bought homes,” Bough wrote. “After all, few people sell a home without first buying it. And most home sellers then buy a different home with the proceeds because they need somewhere to live. “Thus, most Class members had possible claims both as home sellers and home buyers. Yet Settling Defendants quite reasonably balked at paying large amounts in settlement only to have the same people they just paid sue them again for the same alleged antitrust conspiracy.”Bough noted that class members had the ability to opt out of the settlement, writing that the homebuyer plaintiffs should not be able to sue the defendants “twice for the same wrong.”While the Mullis and Batton plaintiffs have claimed that the settlement prevents them from pursuing their own litigation, Bough wrote that the “sole limitation imposed is that people who accept settlement benefits here cannot turn around and pursue a second recovery for the same conduct. This is not a case where anyone is releasing claims without compensation.”Although Bough’s rulings should give the real estate industry some confidence heading into Nov. 26, real estate and legal experts don’t believe it is completely out of the woods yet, even with a new administration coming into office.Given the industry’s current focus on NAR’s Clear Cooperation Policy and the still ongoing practice of cooperative compensation — despite the DOJ’s strong stance against it — experts believe future legal battles under the second Trump administration could focus on these issues.“I fully expect the FTC and the DOJ to change, and I think they are going to be more focused on consumer harm,” Sterbcow said. “Where they may be forced to intervene is post-NAR settlement in creating some normalcy for the entire industry if NAR doesn’t. And I don’t think many of the big brokerages have much trust left in NAR. “The first place will probably be in addressing cooperative compensation and then Clear Cooperation, because if that is handled poorly, it could lead to fair housing issues.”While Cain shares a similar view to Sterbcow, he believes much of it will be tied to who is named as the next attorney general.“We’ll have to see how vigorous this Department of Justice is, and a lot of that will have to do with who the new attorney general is and what their priorities are. And I don’t know that this will be a priority, but I don’t necessarily know if they will call off the dogs either,” Cain said.Steve Murray, the co-founder of RealTrends Consulting, has a different take.“Might the election head off the DOJ and their ’huff and puff and I’ll blow your house down if you don’t do what we tell you to do’ attitude? Yes, but the industry leadership needs to be stockpiling some cash right now so that when the DOJ comes back, which they will, they will be prepared to have a fight,” Murray said.Some believe the second Trump administration will be more pro-business and lighter on enforcement. But Jeff Erlich, the former deputy enforcement director for the Consumer Financial Protection Bureau (CFPB), noted earlier this week that “in 2020, the last full year of the previous Trump Administration, the Bureau brought 48 enforcement actions; so far this year, it has brought only 21.”“If history is any guide, a second Trump Administration might not be as friendly to the industry as many expect,” Ehrlich wrote in an email to HousingWire.So, while NAR’s settlement may get the go-ahead from Bough, that doesn’t mean the real estate industry’s war with the DOJ has ended.

Jim Cory, managing director of reverse mortgages at Guild Mortgage, has been in the industry for the better part of three decades. He is a longtime member of the National Reverse Mortgage Lenders Association (NRMLA), and he was recently elected as its co-chair alongside Mike Kent of PHH Mortgage Corp.Cory first joined the association in 1998 and previously served the board as vice chair. He holds the association’s Certified Reverse Mortgage Professional (CRMP) designation, and he has worked in leadership positions in several reverse mortgage companies during his career.HousingWire’s Reverse Mortgage Daily (RMD) sat down with Cory to get a better idea of his outlook for the new position and the industry as a whole heading into 2025.Chris Clow/RMD: You’ve been involved with the association for a long time, and now you are in this key leadership position as an industry representative. Was this a no-brainer for you? It’s a volunteer job, of course, but there are a lot of responsibilities that go into it.Jim Cory, reverse mortgage managing director at Guild Mortgage." data-image-caption="Jim Cory" data-medium-file="https://img.chime.me/image/fs/chimeblog/20241107/16/original_17d41f24-75ae-41d3-aab8-d1bc93733d3e.png?w=300" data-large-file="https://img.chime.me/image/fs/chimeblog/20241107/16/original_17d41f24-75ae-41d3-aab8-d1bc93733d3e.png?w=300" tabindex="0" role="button" src="https://img.chime.me/image/fs/chimeblog/20241107/16/original_17d41f24-75ae-41d3-aab8-d1bc93733d3e.png?w=300" alt="Jim Cory, reverse mortgage managing director at Guild Mortgage." class="wp-image-480410" style="width:200px" srcset="https://img.chime.me/image/fs/chimeblog/20241107/16/original_17d41f24-75ae-41d3-aab8-d1bc93733d3e.png 300w, https://img.chime.me/image/fs/chimeblog/20241107/16/original_17d41f24-75ae-41d3-aab8-d1bc93733d3e.png?resize=150,150 150w" sizes="(max-width: 300px) 100vw, 300px" />Jim CoryJim Cory: Taking on a role like this is not a no-brainer, and I don’t want it to be. It is a volunteer organization, and taking on a co-chair position means an awful lot more responsibility and more time that I’m going to have to put into the association. So, it’s not something I could do without talking to key people at my company and back at home. There are much greater responsibilities.And it’s made much easier, I have to say, serving as co-chair with Mike Kent. That makes it much easier. He’s a great guy. I consider him a friend and somebody I can really learn from. He’s fantastic.Clow: What does it mean for you, as a longtime industry and association member, to reach this position?Cory: First of all, it’s a huge honor. I’ve been in the reverse mortgage industry for 27 years. I’ve been a board member since 2010 and I’ve been vice chair for the last several years. There have been times that NRMLA has elevated vice chairs into the co-chair role, and times that we haven’t. I think we’re doing a better job of now grooming the folks that are vice chairs to be the next chairs. I think I was kind of the first one in a while that we did that on.Clow: What’s the division of labor like between you and Kent? He’s been co-chair now for the past several years, and he previously worked with Scott Norman in that role. When it comes to comparing notes to determine what to do, how does that look?Cory: We’re still finding that out, first of all, but my mission is this outreach program. A lot of my energies are going to be spent toward that. Because Scott stepped down a few months ago out of sequence with the NRMLA board and NRMLA officers, Mike has been the sole chair for the last several months, and he’s done a fantastic job.I’m going to spend most of my energies on this new mission of inter-industry outreach with the forward side, while Mike is doing a great job of tending to all of the other work streams that NRMLA has got right now. That’s not to say I won’t be involved. But I think if you were going to look at what sections people are going to lead, that would be it.Clow: You have clearly already started that outreach work, but is some of it kind of preliminary? Do you feel like you’re going to hit the ground running at the beginning of next year, or do you think you’re already “off to the races?”Cory: Yes (laughs). I look at things as a long-term effort, so we’re off to the races. Are you going to see anything immediately, like, within the next two months? I don’t know. We’ll definitely be doing things, but we will, for sure, on our side, be aiming to move the needle of the industry as we reach out to more folks.So, we are off to the races and are actually actively building a team. We can’t do these things alone, so I’m building a team right now to work on it, and we’ve got a lot of excitement and a lot of great ideas.

There is likely to be a “modest” amount of excess home supply driven by demographic changes as older homeowners move out of their homes or die. But the aging U.S. population is not expected to be an outright source of change to home-price projections over the next 10 years, according to a newly updated report on homes owned by baby boomers.“First, based purely on changing demographics, over the next decade there was projected to be a modest amount of excess supply of homes for sale as older homeowners age and die — around a quarter million units annually,” according to the report published by the Mortgage Bankers Association (MBA). “Second, housing supply and demand shifts from changing demographics are slow moving and highly predictable, which suggests that there would not be measurable effects on house price growth from population aging and mortality.”The report projects that over the next decade, there will be a “negative excess supply of homes for sale,” which will fuel a demographic mismatch between supply and demand during that time. Much of this is driven by the fact that baby boomers, as previously documented, are not selling their homes at the same levels as previous generations.“Since 2015, there has been a sizable increase in the homeownership rate among those 70 and older,” the report said. “This, combined with a larger base of older Americans from the aging of the baby boomers, has led to a greater number of existing homes held onto longer. “In contrast, pre-2015 homeownership patterns would have predicted that these homes would have been sold. So, older Americans are holding onto their homes longer, and there are more of them.”This could serve to raise existing home supply in future years, but demand will continue to outpace supply in the here and now.“The findings highlight the varying patterns for older Americans as shifting demographics, the pandemic, and overall buyer attitudes have impacted buying and selling decisions,” said Edward Seiler, executive director for the Research Institute for Housing America and associate vice president of housing economics for the MBA.“It is evident that older households are aging in place, leading to updated predictions that show that there will be no excess supply of homes to the markets from older Americans moving or dying over the next decade.”The report also projects that there will be “over 8 million homes supplied by older Americans as they age and die,” which will rise to roughly 9 million over the next decade. Of that total, “approximately 1 million will be due to the death of older Americans.”

Mortgage professionals can expect a transformed regulatory environment for the financial sector as Donald Trump returns to the White House in January. This includes an increased likelihood of Fannie Mae and Freddie Mac being released from conservatorship along with immediate shifts in agency leadership, analysts said. “Trump win is a regulatory game changer that likely includes more free markets, less harsh oversight (aid capital, costs, fees) and reduces regulatory risks,” a team of Wells Fargo analysts covering large banks wrote in a report on Wednesday morning. Under President Joe Biden, the Federal Reserve attempted to implement the Basel III Endgame rules, which were set to increase capital requirements for large banks, including a boost to their residential mortgage portfolios compared to international standards. The rule is under revision after a strong market reaction.“A new era after 15 years of harsher regulation should aid capital (likely no increase with Basel III), bureaucracy, costs, and fees,” Wells Fargo analysts wrote. They added that regulatory risk is likely to decline under Trump amid more predictable approaches, costs and benefits analyses, and a pro-business attitude. Trump’s return is also expected to usher in a leadership overhaul across regulatory agencies, including those directly affecting the mortgage space, such as the Federal Housing Finance Agency (FHFA) and the Consumer Financial Protection Bureau (CFPB). “Election could have a significant impact on the regulation of the financial sector, with a Trump administration likely to yield a deregulatory boost,” wrote analysts at Keefe, Bruyette & Woods (KBW) in a report on Wednesday morning. “A Trump administration could yield significant regulatory leadership change, with as many as eight regulatory agencies experiencing day-1 leadership changes.”At the CFPB, the KBW analysts see a possibility of Rohit Chopra being replaced by an acting director soon after Trump’s inauguration. In the long term, potential replacements could be former CFPB deputy director Brian Johnson or Todd Zywicki, the former chair of the CFPB Task Force on Federal Consumer Financial Law. The timing for this change is in question since the Senate will focus initially on key cabinet members.During Chopra’s term, the CFPB had a challenge to its funding mechanism rejected by the U.S. Supreme Court, which gave him more confidence in pursuing the bureau’s crusade against junk fees, appraisal bias and fair lending violations — all controversial topics in the industry. “In governing, policy is personnel and who is appointed will largely determine what gets done in the housing space,” wrote David M. Dworkin, president and CEO of the National Housing Conference.Under the Biden administration, Dworkin said that the National Economic Council, the U.S. Department of Housing and Urban Development and the FHFA have had “impactful and effective housing leaders.” But “regulatory policy has too often been more problematic.”“We need regulators who are guard dogs, not lap dogs or attack dogs,” Dworkin wrote. “Overzealous regulation, like a recent decision by the Department of Justice and the CFPB to sue Rocket Mortgage in an appraisal bias case involving a single loan, despite the fact that mortgage lenders are not allowed to question an appraisal report when underwriting a mortgage, is only the most recent example.”The agencies, including the CFPB, expect more scrutiny in 2025 and beyond. In June, the Supreme Court overturned the 1984 Chevron precedent, meaning that courts can rely on their interpretation of ambiguous laws while reducing the power of federal agencies to interpret the laws they administer. At the FHFA, analysts at KBW expect Sandra Thompson to also be replaced on day one of the Trump administration. Jonathan McKernan, a board member of the Federal Deposit Insurance Corp. (FDIC), is cited as a potential long-term replacement. The new FHFA commissioner, however, would likely be confirmed in the second half of 2025. “McKernan leadership would probably work on ending GSE’s conservatorship,” the KBW analysts wrote, adding they expect a positive impact from reduced regulation and a shorter application process for mergers and acquisitions.The increasing likelihood that the government-sponsored enterprises (GSEs) will be released from conservatorship under the Trump administration made their stocks jump on Wednesday. Fannie Mae was trading at $1.92, up 38%, while Freddie Mac was up 38% to $1.66.The GSEs delivered $7 billion of combined net income in the third quarter of 2024. Fannie’s total net worth reached $90 billion and Freddie’s reached $56 billion. “In a Trump victory, we still see better near-term upside for the preferred stock, which have collectively built $25 billion of capital from retained earnings over the last year,” BTIG analysts Eric Hagen and Jake Katsikas wrote in a report. According to them, credit risk transfer may proliferate in a Trump administration, given the “potential read-thru it creates for accelerating a release from conservatorship, although it could depend on the leadership development at the Treasury and the FHFA.” Pilot programs, mainly regarding a title insurance alternative and closed-end second loans, are also at risk under the Trump administration. Former FHFA Director Mark Calabria recently criticized an extension of appraisal waiver methods for higher loan-to-value (LTV) purchase loans, calling the decision “truly dumb & irresponsible ” in a social media post.Looking to the Federal Reserve, KBW analysts forecast possible replacements for Jerome Powell and Vice Chair Michael Barr when their terms end in 2026. Potential successors are Christopher Waller, a member of the Fed Board of Governors; Kevin Warsh, a former member; and David Malpass, a former president of the World Bank Group. “The new leadership would likely continue Powell’s policies but may be under pressure from Trump to lower interest rates,” the KBW analysts said. “Financials likely to gradually benefit starting in 2026, in areas such as Basel III being watered down and potentially less restrictive monetary policy.” 

Fathom Holdings, the parent company to Fathom Realty, announced a new promotion in its executive leadership team. On Wednesday, the firm hired former senior vice president of finance Joanne Zach as chief financial officer.After starting with Fathom in 2021, the new CFO worked directly alongside CEO Marco Fregenal for three years, collaborating on strategic planning and key financial decisions. According to firm, Zach gained valuable insight from Fregenal on Fathom’s finance strategy while forming key relationships across the company. Fregenal spoke highly of Zach, praising her efficiency and strong drive for growth. “Over the past three years, Joanne has consistently demonstrated the strategic acumen and commitment that Fathom’s growth demands,” Fregenal said in a statement. “Her ability to drive financial efficiency and continuous improvement is a testament to her leadership. As Fathom advances in an evolving market, I am confident that Joanne will continue to strengthen our financial framework for long-term success.”Joanne Zach“I am honored and dedicated to take on this new role at Fathom,” Zach said. “Working with Marco and the talented Fathom team, I look forward to building on the strong foundation we’ve created together. I am excited to further enhance our financial strategies and leverage our technology to drive Fathom’s growth, innovation, and value creation for our clients, agents, partners, employees, and shareholders.”Zach joins Fathom’s corporate governance team with more than 25 years of finance experience in the public and private sectors — ranging from life sciences to manufacturing. She started her career as an auditor at Arthur Andersen, followed by several finance leadership roles, including the CFO position at financial advisory firm Rankin McKenzie, according to her LinkedIn profile.Fathom has made several moves to expand its footprint and performance heading into 2025. On Monday, it acquired Scottsdale, Arizona-based My Home Group, adding 2,200-plus agents to its ranks. Fathom said it will discuss the details of the acquisition in an earnings call on Thursday. The move could be a reaction to the increased activity in Arizona’s real estate market due to a growing presence from California migrants looking to save on housing costs.In August, Fathom introduced two new commission payment plans, Fathom Max and Fathom Share, to complement the company’s existing Fathom One plan. A month later, the firm settled antitrust claims related to the Sitzer/Burnett suit for $2.95 million.According to data from Real Trends Verified, North Carolina-based Fathom Realty is closing in on 11,800 total agents, with 145 sales offices and roughly $1.12 million in average yearly sales volume per agent.

A lot has been said during this election cycle about housing affordability as a potential difference-maker, with both major party presidential candidates giving more attention to housing issues than in other recent campaigns. But now that the results have largely been tabulated, voters appeared to back more basic economic concerns rather than issues related to housing. Comparatively speaking, housing was a more prominent issue at the national level among Democratic candidates than it was among Republicans.With the return of Donald Trump to the White House in January, the former president and now president-elect appeared to effectively tap into general discontent among the broader electorate over two key issues: immigration and the economy.Recent Redfin survey data showed that 29% of self-identified Trump voters indicated that housing affordability influenced their pick on Tuesday. But based on exit polls conducted by NBC News and consortium of 10 news organizations across 10 key states, the condition of the economy was a clear motivator for those who identified as Trump voters.A combined 67% of poll respondents who were asked about the condition of the economy said it was either “not so good” or “poor,” with clear majorities coming down on Trump’s side. Nearly 70% of Republicans characterized the condition of the economy this way, and Trump has for years railed against high levels of inflation under the Biden administration as a key issue in connecting to voters.Forty-five percent of voters polled said that the financial condition of their family was worse today than it was at this point in 2020. Among this group, 80% identified themselves as Trump voters.Exit polls conducted by the The Washington Post also showed that Trump voters were clearly motivated by the state of the economy, with 79% of his supporters saying it was their top issue headed into the election. Among all voters, 31% said the economy was their primary issue, with only the “state of democracy” outpacing the economy as a key motivator at 35% of the total electorate.In what could be a telling sign of its overall lack of prominence as a subset of economic issues, housing was not broken out in the exit polls from these mainstream media outlets.But supply and affordability will need to be addressed by the Trump administration in the next four years, and some housing organizations — including the Community Home Lenders of America (CHLA) — have expressed readiness to work with elected officials to address these challenges.Over the next couple of months, Trump will need to make key decisions about the posture of housing policy in his White House. This will include selecting leaders for the U.S. Department of Housing and Urban Development (HUD), the Federal Housing Administration (FHA), the Federal Housing Finance Agency (FHFA), Ginnie Mae and the Consumer Financial Protection Bureau (CFPB).As noted in prior HousingWire reporting and a recent look at potential policy stances by Politico, Trump has spoken about easing regulations on homebuilders in an effort to boost supply. The 2024 Republican platform also mentioned the selling of federal lands to allow for more homes to be constructed. The Biden administration previously proposed a plan that included selling federal lands, but it remains unclear how states with large swaths of federal land — like Utah — could be impacted by such a move. The plan may also merit more or less consideration under the new White House.

loanDepot achieved profitability in the third quarter of 2024, ending an 11-quarter streak of financial losses. Cost reductions and revenue growth drove this turnaround amid lower interest rates, which boosted refinancing activity.As a result, loanDepot is retiring its Vision 2025 strategic plan, which began in July 2022 to help the company reduce its non-volume expenses by more than $730 million.Vision 2025 will be replaced by a program called Project North Star that is focused on the homeownership journey. It has an emphasis on first-time homebuyers; purchase loans through an expanded geographic footprint and partnerships; servicing portfolio scale and retention; operating leverage quality to drive down turn times; and recruiting, developing and retaining the best talent available. “The launch of Project North Star builds on the strategic pillars of Vision 2025, including our focus on durable revenue growth, positive operating leverage, productivity, and investments in platforms and solutions that support our customer’s homeownership journey,” loanDepot president and CEO Frank Martell said in a statement. On Tuesday, California-based loanDepot reported a non-GAAP adjusted net income of $7 million for Q3 2024, compared to a $15.9 million loss in Q2 2024 and a $29.2 million loss in Q3 2023. By GAAP accounting standards, the net income in Q3 2024 was $2.6 million. Chief financial officer David Hayes said in a statement that in the third quarter, there was a “modest improvement in the mortgage market, coupled with the company’s positive operating leverage,” which fueled the return to profitability. “As we look toward 2025, we anticipate continued market challenges, but we believe that the implementation of Project North Star will allow us to capture the benefit of higher market volumes while we continue to capitalize on our ongoing investments in operational efficiency to achieve sustainable profitability in a wide variety of operating environments,” Hayes said.As an example of initiatives included in the new plan, the lender announced this week a joint venture agreement with Smith Douglas Homes, a top 50 homebuilder with a solid book of business in Southern states. During an earnings call, executives told analysts that loanDepot is seeking more JVs with builders, real estate brokerages and retail lenders across the country. According to filings with the Securities and Exchange Commission (SEC), loanDepot’s expenses in the third quarter were $311 million, down 9% quarter over quarter and up 1.9% year over year. The increase was primarily due to higher commissions, direct origination expenses, and marketing and overtime, reflecting the increase in volume. Costs may increase as the company continues to add loan officers and operations team members. The company expects vendor costs to rise in 2025, just as they did in 2023 and 2024.Meanwhile, the company’s total revenues reached $314.6 million in Q3 2024, an increase of more than 18% on both a quarterly and yearly basis. Operational bizloanDepot returned to profitability while increasing its mortgage production and volume. Origination volume was $6.7 billion from July to September, at the high end of investor guidance and up from $6 billion in the prior quarter. Its pull-through gain-on-sale margin was 3.29% in Q3 2024, compared to 3.22% in Q2 2024. In August, loanDepot added a first-lien home equity line of credit (HELOC) to its product suite, enabling homeowners without a mortgage to borrow from their home equity. In September, it hired military advocate Bryan Bergjans to boost its lending capacity in the U.S. Department of Veterans Affairs (VA) space.  Purchase loans comprised 66% of loanDepot’s total volume in Q3 2024, down from 71% in the same period in 2023. Meanwhile, the company’s organic refinance consumer-direct recapture rate was 71%, up from 69% a year ago.Regarding loanDepot’s servicing portfolio, the unpaid principal balance (UPB) increased to $114.9 billion on Sept. 30, compared to $114.3 billion on June 30. Servicing fee income decreased to $124 million in Q3 2024, compared to $125 million in the previous quarter.  Company executives project a fourth-quarter 2024 origination volume of $6 billion to $8 billion. The pull-through gain-on-sale margin is expected to be between 2.85% and 3.05%. loanDepot ended the quarter with $480 million in cash. Looking forward at the Mortgage Bankers Association’s expectation of $2.3 trillion in industrywide origination volume for 2025, Martell said, “We feel pretty good about our chances of making money,” adding that “it’s a fluid situation with rates.”After the earnings release, loanDepot stock was trading at $2.35, up 9.3% in after-market hours.

The role of the real estate agent has been under the microscope of late as a result of class-action litigation over agent commissions, but the feedback agents want most about their practices comes from two sources — home buyers and sellers.A new report from the National Association of Realtors (NAR) surveyed buyers and sellers on what they want from their real estate agents. And for all talk about getting a good deal on a purchase or sale, people still just want to find the right home and have a smooth process.This was unambiguous among homebuyers. When asked what they want their real estate agent to help with, the most common response was “finding the right home,” cited by 49% of buyers.This concern even outweighed factors related to money. It might be surprising to learn that only 11% said that help with price negotiations is the No. 1 need, while only 14% said they wanted help in negotiating the terms of the sale.Responses from home sellers suggest they’re more concerned about monetary issues than buyers, but they still have practical matters that take priority. Help with marketing their home was the top response from sellers at 22%, while pricing the home competitively was a close second at 20%. Help negotiating with buyers registered at just 13%. Logistics such as selling the home on the right timeline (18%) and preparing the house for sale (15%) also registered frequently among sellers.The survey also shed light on the different methods by which agents are marketing homes for sale. The hotly debated Clear Cooperation Policy (CCP) — a NAR rule that requires Realtors to post a home on a NAR-affiliated multiple listing service (MLS) within a day of signing a listing agreement — is likely playing a role in the responses.In response to a “select all that apply” question about marketing methods, 86% of sellers said their agent posted the listing on an MLS, by far the highest option. More antiquated methods like yard signs (61%), open houses (58%) and direct mail (8%) showed up in the survey as well.