AgentCoach.AI, an AI-powered real estate coaching company, is launching a new training platform for real estate agents. The Austin-based tech company will use advanced training bots on the platform, according to a recent announcement.The new platform will leverage specialized training bots to help agents prepare for business. Users can access AI bots designed to assist agents with general real estate knowledge, sales, marketing, negotiation and motivation. Productivity tools are also available to keep agents on track.Housing affordability is a leading priority for the new platform. The company cites high home prices as a key barrier blocking agents from closing deals more effectively.“Imagine being in a tough negotiation, struggling to keep a deal together. Calling a coach is unlikely unless you’re paying hundreds monthly. But with AgentCoach.AI, agents can paste their negotiation details into the platform and receive the perfect response — whether it’s a script, email, or letter,” AgentCoach.AI said in a statement. Each training bot is designed to tackle one of five challenges that real estate agents may face. The virtual real estate specialist bot assists with property insights, buyer engagement and client management for agents working with first-time buyers or sellers. Sales and marketing bots tackle conversion challenges and closing techniques, along with email campaigns, social media and other marketing tools.The negotiation training bot helps clients control deals with better communication. Agents can enter scenarios and language that prompts the AI to respond with scripts, emails responses, or letters tailored for a specific client and deal. Following that, the motivation bot keeps agents motivated with goal-setting software, motivational messages and mind-calming exercises. To get started, agents can keep their wallets tucked away. The company offers a free option with general tips, as well as three other options for individuals, teams and organizations. Before committing to a plan, consumers can test the platform with a seven-day free trial. AgentCoach.AI’s new platform comes at a time when coaching becoming more important in light of significant industry changes. Several real estate coaching platforms, including The Helm, have hit the market with solutions designed to give agents an edge. As AI continues to overtake traditional real estate business models, AgentCoach.AI plans to offer more computer-powered tools, including a property pitch tool for better property descriptions and a graphic generator that creates images for social media use. 

New York-based asset manager Rithm Capital, the owner of multichannel lender Newrez, reported a 58% increase in refinances to $3 billion in the third quarter of 2024 after mortgage rates dropped due to the Federal Reserve’s 50 basis-point rate cut. But executives expect things to calm down moving forward. “I think we’re going to get ourselves more to what I’ll say is the market on a normalized basis,” Newrez President Baron Silverstein told analysts in an earnings call on Tuesday. “That said, we see our direct lending channels, as we continue to basically get momentum through our recapture investments, to continue to improve and increase.”Rithm reported $97 million in GAAP net income from July to September, compared to $213 million in the prior quarter. Executives said that servicing has been the bright spot in Rithm’s performance, providing opportunities for originating refinances. In the third quarter, its servicing book generated total pretax income of $223 million, compared to $221 million in the previous quarter. This resulted from a portfolio of $878 billion in unpaid principal balance (UPB), including $755 billion in mortgage servicing rights (MSRs) owned by the company. “Year to date, we have recapture rates of 55% when including second liens as a retention tool, and 38% is just our overall aggregate refinance recapture rate through the third quarter,” Silverstein told analysts. On the origination side, Rithm notched pretax income of $81 million in the third quarter, compared to $52 million in the second quarter. The lender originated $15.9 billion in mortgages in Q3 2024, higher than the figures of $14.6 billion in Q2 2024 and $10.9 billion in Q3 2023. The company’s origination volume in the correspondent space reached $11.8 billion in the third quarter. This total dwarfed its volumes in the wholesale ($2 billion) and consumer direct ($2.1 billion) channel, per filings with the Securities and Exchange Commission (SEC). Gain-on-sale margins improved to 1.23% in the third quarter, up from 1.05% in the previous quarter. The company’s mortgage business corporate expenses were $58 million in the third quarter, compared to $45 million in the second quarter. Rithm chairman, CEO and president Michael Nierenberg said that turning Newrez into a public company will be “a 2025 event.” The company’s estimated book value is $2.9 billion. “Candidly, we have to figure out a way to get our equity price to trade where it should,” Nierenberg told analysts. “So, my guess is it will be a ‘25 event if and when we take this company public, and we’ll evaluate that.” In September, the company raised $300 million in equity. Nierenberg said Rithm has funded its growth through its “operating businesses, balance sheet and a little bit of high-yield debt.” He mentioned that since 2021, the company has deployed $5.8 billion without raising any equity. “As we think about risk, there are multiple wars going on. We’re in the middle of what could be a highly contested election,” Nierenberg said. “And as many of you know, we’re always engaged in activity to grow our platform through M&A, so I would say all of these factors are good reasons why we want to have more capital.”Regarding customers’ financial health, Nierenberg said borrowers who took out a mortgage in 2020 and 2021 are “in very good shape.” He added that, “You might see a tad higher in delinquencies, but overall, it still seems to us that the consumer is in reasonable shape.”Rithm had $2 billion of total cash and liquidity at the end of September.

You don’t often hear about someone with an affinity for nuclear physics finding their way into the reverse mortgage field, but that’s exactly the journey we’re charting in this edition of “Origins” from HousingWire’s Reverse Mortgage Daily (RMD).Rick Schluter, a New Jersey-based reverse mortgage specialist with Mutual of Omaha Mortgage, became engrossed in physics and math from a young age. That led him into a career with the U.S. Navy as an officer aboard a nuclear submarine during the Cold War. Going from there into reverse mortgages is not an especially common career path, but it was the direction he went.Affinity for nuclear physicsIn an interview with RMD, Schluter explained that he gravitated toward physics and math as a child, then focused his undergraduate studies on both fields. As he was finishing his bachelor’s degree, he became engrossed in nuclear physics, but he didn’t have the resources to pursue a career in that field since it often requires a Ph.D.But a military track toward working in the field was more realistic, he said.“I found out that the Navy had a good nuclear training program for those accepted as nuclear submarine officers,” he said. “I got in, passed and became the reactor controls officer on a ballistic missile submarine in the early ’80s, during the Cold War. After that, I taught at nuclear power school, where I was promoted to director of the physics division, and I found I really liked teaching.”After his service in the Navy ended, he became a lead instructor for commercial nuclear power plant reactor engineers and operators. But the money that certain Westinghouse salespeople were bringing in by selling the seats to the classes he was teaching enticed him into a sales career.“I figured, ‘If you can’t beat them, join them,’ and I went into sales in the nuclear power industry for about 12 years, then switched to selling enterprise software for eight years,” he said. “I made more money than ever but was miserable.”That’s when reverse mortgages started to enter the fold.‘Room to grow’ in reverseIn the early 2000s, Schluter came across an article in The New York Times that described the reverse mortgage product, and a particular statistic caught his eye.“[That article] said that only about 2.5% of eligible seniors had them,” he explained. “I thought, with the baby boomer generation coming up, this could be interesting. The article mentioned Financial Freedom as the biggest reverse mortgage lender. I called the regional VP on Long Island and she invited me to an interview.”During that session, her first question was unexpected and has stuck with Schluter ever since.Reverse mortgage originator Rick Schluter meeting longtime industry spokesman Tom Selleck." data-image-caption="Reverse mortgage originator Rick Schluter meeting longtime industry spokesman Tom Selleck." data-medium-file="https://img.chime.me/image/fs/chimeblog/20241031/16/original_66abad7d-ce8f-4581-bc9c-4a905ecd41d8.jpg?w=259" data-large-file="https://img.chime.me/image/fs/chimeblog/20241031/16/original_66abad7d-ce8f-4581-bc9c-4a905ecd41d8.jpg?w=884" tabindex="0" role="button" src="https://img.chime.me/image/fs/chimeblog/20241031/16/original_66abad7d-ce8f-4581-bc9c-4a905ecd41d8.jpg?w=884" alt="Reverse mortgage originator Rick Schluter meeting longtime industry spokesman Tom Selleck." class="wp-image-489844" style="width:200px" srcset="https://img.chime.me/image/fs/chimeblog/20241031/16/original_66abad7d-ce8f-4581-bc9c-4a905ecd41d8.jpg 1000w, https://img.chime.me/image/fs/chimeblog/20241031/16/original_66abad7d-ce8f-4581-bc9c-4a905ecd41d8.jpg?resize=129,150 129w, https://img.chime.me/image/fs/chimeblog/20241031/16/original_66abad7d-ce8f-4581-bc9c-4a905ecd41d8.jpg?resize=259,300 259w, https://img.chime.me/image/fs/chimeblog/20241031/16/original_66abad7d-ce8f-4581-bc9c-4a905ecd41d8.jpg?resize=768,890 768w, https://img.chime.me/image/fs/chimeblog/20241031/16/original_66abad7d-ce8f-4581-bc9c-4a905ecd41d8.jpg?resize=884,1024 884w" sizes="(max-width: 1000px) 100vw, 1000px" />Reverse mortgage originator Rick Schluter with longtime industry spokesman Tom Selleck.“’Rick, who do you call on when you sell software?’ I answered, ‘Vice presidents of IT or chief information officers,’” he remembered. “Then she asked, ‘When was the last time one of them gave you a hug or baked you cookies to bring home to your kids?’ I thought she was joking, but she told me this job would be the most satisfying thing I’d ever done — and she was right.”To be clear, helping seniors was not the only reason Schluter entered the space, he explained. He saw a potentially large financial opportunity, but he didn’t expect to fall in love with the demographic as much as he did.“After just a few months, I came to love working with seniors — their stories, their humility,” he explained. “I remember sitting with a couple in their 80s at their kitchen table, and 10 minutes into our conversation, the wife asked her husband, ‘Harry, show him the picture.’ Harry pulled out a black-and-white photo of a Little League team, pointed himself out, then asked if I recognized the man standing behind him.”He did. It was baseball icon Babe Ruth at his Little League game, and Schluter fondly recalls that moment as a highlight. “That kind of experience really makes me love what I do,” he said.An active participantSchluter estimates that he has overseen the creation of about 500 reverse mortgages. But part of that is also about being honest in assessing whether it’s the right fit for a particular client.“I’ve […] advised dozens of seniors against it when it wasn’t the right fit for them. When I get referrals from elder law attorneys or financial advisers, if I don’t think it’s a good fit, I let them know, which surprises people — they expect a hard sell,” he explained. “If anything, that honesty has earned me more referrals because they know I won’t push it if it’s not right for someone. I just really love what I do.”When asked if his background in science, math and teaching has been beneficial to his approach with seniors, Schluter said that it unmistakably has proven to be.“I think approaching it from more of an educational perspective has helped me, and even now, I keep my hand in teaching,” he said. “I’m a guest lecturer in physics and astronomy at the local grammar and high school, so I think coming across as an educator has really helped me in this regard.”

The National Association of Realtors (NAR) came to a decision at a meeting last week on what to do about its Clear Cooperation Policy (CCP). That decision is to not make a decision — at least for now.The anti-climactic non-ruling was reached on Friday after the trade group’s MLS technology and emerging issues advisory board debated on the industry tug-of-war over the policy. Real Estate News was first to report the story.CCP has generated fierce debate from supporters and detractors alike. The policy, which requires Realtors to list properties on NAR-affiliated MLSs within one day of signing a listing agreement, is designed to prevent so-called pocket listings, or properties that are listed off-market and not advertised to the general public.Denee Evans, CEO of the Council of Multiple Listing Services (CMLS), emailed its members and NAR last week to issue strong support for CCP. She said that concerns about the policy are “inherently invalid,” adding that none of them “merit the removal or significant weakening of a policy so critical to the integrity of our housing market.”Given that exclusive listings are the lifeblood of an MLS, it’s not surprising that CMLS would support Clear Cooperation. Conversely, it’s not surprising that brokerages that want to maintain their own exclusive listings would oppose it.A spokesperson for NAR told HousingWire in an email that the advisory board in question met Oct. 24, its second meeting in seven weeks, which is “an accelerated pace reflecting the importance of the CCP issue.” Although members did not make a recommendation or take formal action, they did share the feedback received with NAR leadership, the spokesperson said.“As a national organization that represents members across the country, NAR continues to receive a range of passionate opinions about CCP,“ the spokesperson wrote. “We believe any changes to policies and practices as important as CCP has to carefully weigh feedback from a wide range of members, stakeholders, and industry experts. “With respect to CCP specifically, the organization must also consider ongoing litigation and DOJ investigations. As such, NAR will work carefully and diligently to ensure that we continue to review CCP to ensure a decision is made in such a way that is in the best interest of members and consumers.”Among the brokerages that oppose the policy are The Agency and Compass. The CEOs of both companies have been vocal in their opposition, stating that it inhibits seller choice and is thus anti-competitive in nature.Looming over the policy is the ongoing presence of the Department of Justice (DOJ) in the real estate industry. The DOJ has had a particular interest in rules related to NAR and MLSs.While the DOJ and NAR reached a settlement over the issues in 2020, an appeals court allowed the DOJ to withdraw from the settlement. That came shortly after NAR reached a settlement with home sellers over requirements make blanket offers of compensation to buyer agents on the MLS.In response to the appeals court’s decision, NAR has appealed the ruling to the Supreme Court. But a more immediate path for NAR could come after the presidential election. While the Biden administration has made antitrust cases a priority for the DOJ, it’s somewhere between possible and probable that these concerns would not be pursued by the DOJ under a second Donald Trump administration.Editor’s note: This story was updated with a statement from NAR.

A California regulator has revoked the residential mortgage lending license of LoanSnap, the latest in a series of difficulties for the fintech lender.According to a filing from the California Department of Financial Protection and Innovation dated Oct. 18, LoanSnap had its license revoked after it failed to renew its surety bond. That policy, which is designed to protect consumers from lender fraud and financial risk, expired in early August. The department said it issued documents to LoanSnap within two weeks of that date, stating that the license would be revoked, and the company has yet to respond to request a hearing.LoanSnap did not immediately respond to HousingWire‘s request for comment.The company — which is headquartered in Costa Mesa, California — also lost its mortgage lender license in Connecticut earlier this month. The fintech was first licensed to do mortgage business in Connecticut in January 2021 and applied for a renewal in December 2023. The request was pending, but the license was suspended in July.A consent order signed by a Connecticut banking commissioner said that LoanSnap failed to notify the Nationwide Multistate Licensing System (NMLS) that its main address had changed. The company was evicted in May from its office in Southern California, with the landlord seeking unpaid rent of more than $530,000.The Connecticut consent order also noted that the firm didn’t provide a surety bond and falsely reported that it did not have any unsatisfied judgments or liens against it. But LoanSnap has been the target of several lawsuits in the past year.These actions include a Wells Fargo suit filed in Minnesota, where the bank sought more than $430,000 over an alleged breach of contract. LoanSnap also faced civil actions from Mortgage Capital Trading, South Street Securities, Anderson Tax and Optimal Blue, with the total judgment in these cases topping $1.1 million. HousingWire also reported in January that LoanSnap was hit with a cease-and-desist order in Connecticut due to allegations of unlicensed origination activity that took place during a period of several months in 2022. The state’s banking commission also charged the firm with violations of the Truth in Lending Act and the Fair Credit Reporting Act.Founded by Karl Jacob and Allan Carroll in 2017, LoanSnap raised $100 million in seed funding from investors such as Richard Branson’s Virgin Group; former NFL star Joe Montana’s Liquid 2 Ventures; and LinkedIn co-founder Reid Hoffman. The firm offers “smart loans” using artificial intelligence and developed a cloud-based portal, LoanFlow, that aims to give mortgage brokers and loan officers the ability to originate loans anytime, anywhere.

Despite rampant political polarization, a majority of people affiliated with the Democratic and Republican parties agree that the state of retirement in the U.S. is concerning. This is according to a recent survey conducted by the National Institute on Retirement Security (NIRS).An overwhelming majority of Republicans (81%), Independents (79%) and Democrats (78%) agree that the nation faces a retirement crisis. An additional question about the concern level for reaching financial security in retirement was agreed on by more than half of respondents under each party affiliation.Debt levels are also seen as a universal impediment to retirement security across each political affiliation.“A large share of Democrats (74%), Republicans (68%), and Independents (68%) believe that their level of debt is problematic,” the survey explained. “About three-fourths of Democrats, Republicans, and Independents who have debt say it is preventing them from saving for retirement.”The most uniformity in agreement across political lines might relate to the Social Security program.“Americans overwhelmingly agree across party lines that Social Security must remain a priority, with 90% of  Democrats in agreement, followed by Independents (88%), then Republicans (86%),” the survey said. “Similarly, Americans of all parties want lawmakers to act now to shore up Social Security funding and expect the next administration and Congress to solve the Social Security financial shortfall.”Both Kamala Harris and Donald Trump have vowed to protect the Social Security program for older Americans. And while congressional candidates also vow to support it, their record of action on addressing the impending 2033 shortfall in benefits has been severely lacking over the years. Pensions are also viewed favorably across party lines, with a majority of respondents saying that the government should make it easier for employers to provide pension plans.But long-term care also remains a source for concern, as costs tend to pile up for older Americans living on a fixed income.“The vast majority of Americans across political views say they are worried about the cost of long-term nursing care, with Independents at 83%, Democrats at 81%, and Republicans at 80%,” according to NIRS. “When it comes to views about government doing more to help Americans get access to quality long-term, the overwhelming majority across the political spectrum agree that government should take action.”

When asked whether loan buybacks were a more significant issue last year than now, Freddie Mac executive Sonu Mittal says emphatically, “It depends on who you ask.”Freddie Mac has seen a nearly 55% reduction in repurchase requests from its peak in the first quarter of 2023 and a decline of 20% in actual buybacks of performing loans quarter over quarter in Q3 2024. But public filings analyzed by Inside Mortgage Finance, which considers repurchase requests and actual repurchases of performing and non-performing loans, revealed an increase to $430 million in Q2 2024 — up 29% from the previous quarter. This context frames the recent announcement from the Federal Housing Finance Agency (FHFA), the enterprise’s regulator, that all approved lenders will be able to access a fee-based alternative for repurchasing Freddie Mac performing loans with defects. This expands upon a pilot program launched earlier this year.In an exclusive interview with HousingWire, Mittal — the head of single-family acquisitions at Freddie Mac — said that the fee-based alternative will remain relevant in any mortgage rate environment as the enterprise “wants to incent lenders to improve their manufacturing quality.” The new model also provides economic benefits to lenders, according to Mittal.“If you are not a depository or a bank, you typically don’t have a balance sheet, so you have to sell that loan in the scratch-and-dent market, which was costing last year 15 to 20 points — and even now it’s still costing anywhere between 5 to 8.5 points,” Mittal said. “In a $200,000 house, it could mean up to $17,000. That’s very relevant.” Mittal spoke to HousingWire this week during the Mortgage Bankers Association (MBA)’s Annual Conference and Expo in Denver. According to the program rules, instead of repurchasing defective — but performing — loans within the first 36 months after origination, lenders pay a fee based on the defect rate of their performing loan deliveries to Freddie Mac on that quarter’s aggregate loan balance.Mittal explained that lenders can opt into the program for 2025. In this case, the fee is applied to their overall quarterly unpaid principal balance (UPB) production delivered to Freddie, varying according to their non-acceptable quality (NAQ) rate.“If you deliver $2 billion in a quarter, we look at your non-acceptable quality rate, and wherever your NAQ rate is, we determine the tier on how much of a fee you will need to pay. This will all be disclosed to lenders,” Mittal said. ”If the NAQ is less than 2%, there’s no fee.” If lenders opt out, a new fee-only option will be applied on the loan level, but in a way that benefits lenders in comparison to repurchasing the loan and selling it on the scratch-and-dent market with a large discount, according to Mittal. “Our goal is, how do we allow the lenders to focus on the borrower or serving the needs of the borrowers or homeowners, while also having them not deal with the dynamics of the scratch-and-dent market, in which the cost could be much higher for the lenders?” he said. Other initiativesRegarding another initiative announced Monday — the extension of appraisal waiver methods for higher loan-to-value (LTV) purchase loans — Mittal clarified that Freddie Mac is not “taking undue risk” but is maintaining the system’s “safety and soundness” and “leveraging data responsibly.” In a social media post, former FHFA Director Mark Calabria called the decision “truly dumb & irresponsible.” The changes raise the maximum LTV ratio from 80% to 90% for appraisal waivers, and from 80% to 97% for inspection-based appraisal waivers on purchase loans, consistent with refinance guidelines. When asked about differing risk levels between purchase and refinance transactions, Mittal said that “it all depends on the overall characteristics of the loan,” meaning “collateral or appraisal value is only one variable within the whole equation.” “Another thing to keep in mind is that we’ve been doing appraisal waivers for years across Fannie and Freddie; we have a lot of data that shows us how the performance is for loans with appraisal waivers versus those which don’t have appraisal waivers. So, we went through a massive amount of diligence before we decided to expand it.” According to Mittal, the changes will go into effect by the end of the first-quarter 2025.  Freddie Mac estimates that its automated collateral evaluation (ACE) program has saved borrowers $1.63 billion in appraisal fees to date.Feedback for LOsFreddie Mac is also enhancing its Loan Product Advisor (LPA) automated underwriting system with LPA Choice. Through the new tool, loan officers have access to tailored information about purchase requirements, which is expected to reduce the number of resubmissions, save time and improve the acceptance rate of qualified borrowers. “What this enhancement does is specific to three areas: debt-to-income ratio, reserves and loan amount. Those are the three areas that we are giving a more prescriptive message to the loan officers,” Mittal said. “This is what could potentially help you get this borrower from caution to accept or qualify. We are not expanding our credit box; it’s just allowing you to have more insight on how to help borrowers or homeowners.” Previously, Freddie Mac had included on-time rent payments, cash-flow information and trended credit data as part of the risk assessment process. Mittal said the idea is to allow “credit-invisible borrowers” to have access to mortgages. According to Mittal, the solution helps because “there are a lot of funds that go unused.” He added that “there are loans that we are willing to buy, but that are not structured in a way that we can.”

Vice President Kamala Harris is the favored presidential candidate when it comes to addressing the lack of affordability in U.S. housing, while former President Donald Trump is seen as more favorable for stock market and cryptocurrency investors. This is according to the results of a recent survey conducted by Bloomberg.Less than a week from Election Day, the presidential race remains too close to call. But if the economy continues to be the “north star” for voters, drilling down into economic sentiments shows some nuance in their perspectives.“The stock market, up about 22% so far in 2024, is more likely to pick up steam under Trump than Harris,” Bloomberg said. “Some 38% of 350 Bloomberg Markets Live Pulse survey respondents see gains accelerating a year from now under the Republican candidate, versus 13% under the Democrat.”There’s a caveat. Should Harris be victorious, nearly half of the respondents expect the market to maintain its positive momentum into her term. But nearly 60% of respondents think a Trump victory will also continue that pace.But the market for potential homebuyers would be more beneficial under a Harris presidency, according to respondents.“The median estimate for [a 30-year, fixed loan] rate at the end of a Harris term would be 5.5%, according to survey participants, and 5.9% under Trump,” the story explained.According to data at HousingWire’s Mortgage Rates Center on Wednesday, the 30-year conforming rate stands at 6.75%, entering its highest territory since August.“Many potential buyers have been stranded on the sidelines in recent years waiting for borrowing costs to come down,” Bloomberg said in its survey results. “Sellers with mortgages at 3% or below, meanwhile, have been reluctant to move and take on more expensive debt,” describing the mortgage rate lock-in effect.Harris and Trump are making their closing statements in the final days of the election cycle. The past few days have been marred by controversies, with the Trump campaign uncharacteristically backtracking on comments about Puerto Rico made at a recent New York City rally, while Harris has distanced herself from comments made by President Joe Biden about Trump supporters.

Lower mortgage rates in September had a measurable impact on home sales.According to data released Wednesday by the National Association of Realtors (NAR), pending home sales in September jumped 7.4% compared to August and 2.6% year over year. NAR’s index reading of 75.8 is the highest number since March. An index reading of 100 equates to sales activity in 2001.“A slight improvement in pending-sales activity reflects August’s sharp decline in mortgage rates, which helped boost housing demand and provide some much-needed consumer optimism, particularly for the purchase of big items,” CoreLogic chief economist Selma Hepp said in a statement. “However, with rates pushing back to 7%, the rebound in pending activity is likely short lived and is unlikely to be enough to help 2024 home sales exceed 2023 levels.”The jump in pending sales occurred in all four regions of the county, with the West leading the way with a 9.8% monthly gain, followed by the Midwest (+7.1%), the South (+6.7%) and the Northeast (+6.5%). The South’s index reading of 89 is by far the highest of the four regions, with the Midwest next at 75, followed by the Northeast (65.6) and the West (64).NAR’s data release also includes a forecast. Chief economist Lawrence Yun said that over the next two years, he expects home-price growth to slow, which will also boost sales.Pending home sales data is the latest sign that falling mortgage rates in August and September boosted home sales. In the U.S. Census Bureau’s new-home sales report for September, sales jumped 4.1% compared to August and 6.3% year over year.But NAR’s existing-home sales report for September showed sales falling 2.5% from August and 3.5% year over year. The S&P CoreLogic Case-Shiller home-price index for August showed a slowing appreciation rate as a result of mortgage rates dropping during the month. 

In the latest episode of the RealTrending podcast, Amy Stockberger — broker-owner of Amy Stockberger Real Estate — joins Tracey Velt for a tantalizing conversation that covers her teamerage’s unique “Lifetime Home Support” model and other ways that agents can provide value to home buyers and sellers. This interview has been lightly edited for length and clarity. The conversation kicks off with a window into Stockberger’s past and her early involvement with real estate. Amy Stockberger:  I was a buyer’s agent, then I decided that wasn’t for me. I had my sister come join me almost immediately, started a team with her and a part-time assistant, and then we started growing. Since then, we’ve been the highest-producing team in our state, and we’ve been lucky enough to keep on growing and serving in the Sioux Falls, South Dakota, area. Tracey Velt: Tell me a little bit about your “Lifetime Home Support” model and how it transformed your approach to real estate. Stockberger: In 2014, I noticed a major hole in our business. For the amount of clients we were serving, we weren’t getting that repeat and referral business. We created a serve-serve-serve-sell system for every step of the home buying and selling process.Velt: What are some of the key tenets of this model? Stockberger: First, we added a moving truck. The second thing we did was our party and tool shed. I was providing service to them, outside of just that real estate need, to stay top of mind and make sure that I was helping them in everything they needed. Velt: How do you encourage your current or past buyers and sellers to actually use the services that you’re offering?Stockberger: It’s very omnipresent. It’s one of the first things we’re going over. On top of that, has anybody shown you how the buying process works, or what’s new in the industry? We go through that too. We have a system and strategy for every step of the process before, during and forever. We just walk them through the unique value propositions that match their human experience. Velt: Looking for multiple revenue streams is really important for real estate leaders to do. What are some other ways that you are generating revenue through some nontraditional means?Stockberger: We borrow from the Amazon model and seek sponsors for our client events. Those are profit centers for us as well. And it provides an opportunity for our vendors to come in and be in front of our market and their target market, which is our audience. Velt: What do you think is shaping the future of real estate right now?Stockberger: One of the reasons we’re in the situation our industry is in is that there was just that perceived lack of value. I think that what agents truly should be doing is really tripling down on their service model. What are they doing for their clients outside of the transaction? What are the levels of care for clients for their whole human journey? Shifting from being transactional to transformational is going to allow certain agents to excel at a high level in our industry going forward. 

Former House Speaker John Boehner, pictured on the big screen, shares his perspectives on the 2024 election during the MBA Annual event in Denver on Tuesday. (Photo by Chris Clow)If the U.S. presidential election were held today — one week prior to Election Day — then Donald Trump would retake the White House and Republicans would gain control of the Senate, while the picture in the House of Representatives is harder to predict.These were some of the perspectives shared by John Boehner, the former Ohio congressman and Speaker of the House, who left office at the end of 2015 less than a year before Trump won the 2016 election.Current political climateBoehner was speaking on stage Tuesday at the Mortgage Bankers Association (MBA)’s Annual Convention and Expo in Denver. He was joined by MBA president and CEO Bob Broeksmit to talk about his decades of experience in Washington, D.C., and the dynamics in play ahead of the election.Boehner was critical of the tenor of modern national politics, particularly in his old stomping grounds on the House floor. Having worked in his family’s tavern at a young age, he said that a skill he learned was to “disagree without being disagreeable.” That trait, he said, is not as commonly seen today.When asked by Broeksmit about the dynamics in play on the Republican side, Boehner said he is “having a hard time recognizing” the Republican Party he served. He criticized Trump for “hijacking” the party, but he also attributed the deep divisions in the political system to one of its key attributes — representation.“We shouldn’t be surprised that Congress is as divided as it is because their constituents are that divided,” he said. “They reflect their views, and they’re holding their members of Congress hostage to their right-wing or left-wing politics. It’s disgusting — I’ll just say it the way it is.”Makeup of CongressWhen Broeksmit asked Boehner to offer his election predictions, Boehner was quick in his appraisal of the Senate.“Let’s do the easy one first. Republicans are going to win the Senate,” he said. “Now, the question is, do they have 51 votes or 52? If they really have a good night, they’ll get 53 votes. But if you don’t have 60 votes in the Senate, you have nothing other than the budget and a process called reconciliation, which only requires 50 votes on each side.”But any proposals beyond revenue and spending will be harder to get passed with such a narrow majority, he said.While not weighing in on a clear winner either way in the House, Boehner does foresee a similarly slim majority to the one in play today regardless of who actually takes control. This will keep the odds of consensus on many issues low.The presidential raceAs he transitioned to the presidential race, Boehner took a moment to take some swipes at both Trump and Vice President Kamala Harris.“We have 330 million Americans and we’re down to these two,” he said. “Really?”He recalled feeling similarly in both 2016 and 2020, but at the end of the day, he felt like the tailwinds are working in Trump’s favor. He attributed some of his thinking to polls that underestimated Trump’s ultimate electoral tallies in both of his prior races. At this point in 2020, Joe Biden had more of an advantage in the polls than Harris has now, and that race largely resulted in a “dead heat,” Boehner said.“Unless the pollsters have figured this out, which I don’t think they have, Donald Trump has a bigger lead than what would appear today,” he said. He also cited “nervousness” from his Democratic friends, and what he viewed as Harris’ own issues with answering questions in interviews.But he also qualified by saying that it was still possible for Trump to lose, since the decisive factor is often about motivating voters to get to the polls. Harris needs younger people and women to turn out , which is a harder hill to climb since older Americans in general are more likely to vote.Broeksmit added that at a recent function with the founder of a political news and polling aggregator, it was posited that the key issue of the day has carried each presidential election since World War II — and that issue is usually the economy. Boehner concurred.“It’s always about your pocketbook and the economy,” he said. “People vote in their own self-interest.”

There’s less than a month until the final approval hearing for the commission lawsuit settlement agreements reached by the National Association of Realtors, HomeServices of America, and other brokerages and non-Realtor-affiliated MLSs that opted in to NAR’s settlement. Ahead of that date, the objections have started to roll in.In addition to the objection filed by law professor Tanya Monestier on Monday, objections were recently filed by attorneys at Knie & Shealy, who represent the Burton suit plaintiffs; Hao Zhe Wang, who has filed his own commission lawsuit; Robert Friedman, who filed and later dismissed a commission suit against the Real Estate Board of New York (REBNY); Monty March, who also has a suit pending in New York; and James Mullis, a plaintiff in the Batton homebuyer commission lawsuits.Burton plaintiffsAttorneys for the Burton plaintiffs filed two objections on Monday, one against the NAR settlement and a second against HomeServices’ settlement.Burton plaintiffs, who represent a proposed class of “individuals who sold homes on an MLS Listing Service servicing the District of South Carolina,” claim that NAR’s settlement “endeavors to insulate comprehensively the entire real estate industry from the punishment due it for its long, storied history of commission fixing.”“It further fails to address the ultimate issue, price fixing within the real estate business and adequate compensation for the millions of harmed home owners,” the objection states. According to the filing, only one brokerage in South Carolina was not automatically grandfathered into the NAR settlement.“In other states, it is certain that there were no such brokerages,” the objection states. “This settlement leaves those States with wrongdoers who will not be punished, despite having made substantial profits at the expense of residents of those States, all because Co-Lead Counsel are personally uninterested in pursuing suit against them, deeming them too small.”The Burton plaintiffs also claim that the brokerages and MLSs that opted in to NAR’s settlement failed to do so by the opt-in deadline. They noted that many parties opted in but did not execute their supplemental settlement agreements until well after the deadline. Additionally, they feel the selection of the $2 billion-per-year transaction volume threshold — and 2022 as the year to base the settlement amounts on — was arbitrary.In their objection against HomeServices, the Burton plaintiffs claim that the traditional reasons for class action do not support the certification of a national class for this settlement.“While there may be some common questions of law, the questions of fact vary widely by state. Further, the claims at issue would generally be economical for plaintiffs to pursue, at least on a state class basis. Each claim is worth at least several thousand dollars,” the objection states.Additionally, the Burton plaintiffs take issues with the fact that HomeServices’ settlement releases the firm’s franchisees, despite not requiring them to pay anything.“It is uncontroverted that the franchisees of the Defendant in this case will pay no money toward the total monetary settlement,” the filing states. “This settlement agreement does not bind the franchisees at all because there is no exchange between the parties, despite the fact that the complaint is replete with examples of franchisees taking active part in the price fixing activities complained of and the formulation of the rules by which much of price fixing was accomplished.”Wang weighs inPlaintiff Hao Zhe Wang filed his commission lawsuit in New York in March. He is not seeking class-action status, and he is representing himself pro se. In his objection to NAR’s settlement, Wang notes that he has bought and sold real estate in recent years. He claims his experience working with “hundreds, if not thousands” of brokers contradicts “key factual elements in the home-seller plaintiffs’ complaint in this case, including their central allegation that NAR self-servingly and collusively chose not to contest: that home sellers, not homebuyers, paid for buyer brokers’ commission and offered them to homebuyers as a ‘seller concession.’”Wang claims that he has paid hundreds of thousands of dollars to buyer brokers and listing brokers in the past few years. According to Wang, sellers who have also been buyers in recent years — barring them from filing claims against the settling parties as buyers if they are part of the settlement class — would be better off if they could bring claims under state consumer protection statutes or false advertising statutes.“In our adversary legal system, my potential claims must not be precluded when direct purchaser homebuyers have facts that were never alleged, investigated, or litigated in this case,” Wang wrote.Wang also claims that the settlement is racially discriminatory, which he attributes to racial minorities being less likely to inherit homes and having to pay more in buyer broker fees than in listing broker fees. Additionally, he feels that the business practice changes outlined in NAR’s settlement codify “NAR’s most abusive, oppressive, and anticompetitive conduct against homebuyers.”“Over the summer I have experienced first-hand the result of the ‘practice changes’ that home-seller plaintiffs have negotiated with some of NAR’s co-defendants that required the same type of ‘practice changes’ and won final approval from this Court,” Wang wrote. “These changes merely lend moral legitimacy and legal mandate to unlawful monopolistic practices that the brokers continue to inflict upon homebuyers. The NAR settlement is facially unreasonable for incorporating the same harmful ‘practice changes.’”Two more objections in New YorkMonty March and Robert Friedman each filed copycat commission lawsuits against REBNY and New York-based brokerage firms after the Sitzer/Burnett verdict in October 2023. Friedman voluntarily dismissed his suit in January.In their filings, March and Friedman object to the nationwide applicability of the NAR settlement. They say this prevents home sellers in New York City from filing their own suits as REBNY is not a NAR-affiliated MLS.“The alleged REBNY and NAR agreements to fix, raise, maintain, or stabilize residential real estate commissions are distinct and factually unrelated. REBNY separated from NAR in 1994. NAR’s Mandatory Offer of Compensation Rule was adopted in 1996. REBNY RLS rules, including its broker commission sharing rule were instituted in 2004,” March’s objection states. “REBNY – an entirely distinct and separate real estate association – could not have played a part in NAR’s creation and implementation of the Mandatory Offer of Compensation Rule in 1996 because REBNY left NAR two years earlier.“Similarly to the Burton plaintiffs, Friedman takes issue with allowing firms that have not contributed anything to the NAR settlement being covered by it. His attorneys claim that by allowing brokerages that operate solely in New York City under REBNY to be covered by the settlement, these firms “escape liability with zero consideration paid in exchange for their release.”Building off the claim that allegations against REBNY and NAR are completely separate, Friedman claims that “nothing in the record of proceedings of any action involving the NAR conspiracy supports the release of claims involving REBNY and the RLS.”Batton plaintiffs are backYet another objection was filed by James Mullis, a named plaintiff in the Batton homebuyer commission lawsuits. Mullis is no stranger to objecting to commission lawsuit settlements. Earlier this year, he and the other Batton plaintiffs unsuccessfully attempted to block the final approval of the RE/MAX, Anywhere and Keller Williams settlements.Mullis’ latest objection pertains to settlement class members who also bought homes listed on an MLS in which the seller paid the buyer broker’s commission. He claims that the settlement as it currently stands allows room for the settling defendants to claim that the agreement also covers the homebuyer plaintiffs, such as those in the Batton suit.“The buyer and seller cases have been litigated as separate suits on behalf of separate classes of victims in separate courts asserting separate sets of claims,” the filing states. “Sellers never sought to consolidate, coordinate, or intervene in the buyer cases and never engaged buyer plaintiffs in the discussions that resulted in the current settlements.”Due to what Mullis believes is a vagueness in the settlement, he is asking the court to clarify the language to ensure that the settlements cannot be purported to also release the Batton and Lutz homebuyer claims.“If the settling parties oppose such clarification, then the settlements should be rejected because: (1) they are not equitable to class members who both bought and sold a home (especially those who purchased multiple homes or a more expensive home than they sold); and (2) sellers and buyers here have divergent interests that create inherent conflicts the settlements fail to address,” Mullis’ objection states.

Editor’s note: This is the third in a series of articles that will explore the effects of the landmark Sitzer/Burnett case, which was decided on Oct. 31, 2023, and has since reshaped the business practices for real estate brokerages and agents across the country.It is no secret that many first-time homebuyers are struggling. Stubbornly high interest rates, low levels of inventory and elevated home prices are putting a strain on the often-limited budgets of first-time buyers.So, when many in the real estate industry correctly anticipated changes to the agent commission structure — which were solidified by the National Association of Realtors’ (NAR) settlement following the jury verdict in the Sitzer/Burnett lawsuit nearly a year ago — there was quite a bit of fear about how first-time buyers would be impacted.Despite the initial concerns, many industry professionals say first-time buyers are currently faring no worse than other buyers — for now, at least.Competitive dynamics“Nothing has changed a whole lot at this point,” said James Dwiggins, the CEO of NextHome. “The market is not great, so we aren’t often dealing with multiple-offer situations. And it is a little bit early, but some of the preliminary data I have looked at show that sellers are continuing to pay buyer agent compensation.”Due to these conditions, Dwiggins and other industry professionals believe there won’t be much of an impact on first-time buyers until the housing market strengthens, leading some sellers to potentially stop offers of buyer broker compensation.“If the market shifts and it is a lot more competitive for buyers, buyers may see more sellers who aren’t willing to help with their agent’s fees,” said Aja Adair, an agent at Berkshire Hathaway HomeServices Drysdale Properties. “I think ultimately, though, sellers should be looking at their net (profit). A seller is probably more willing to look at an offer that nets them the most, even if it does include a buyer’s agent commission as part of the terms.”Bryan VantHof, a member of the RE/MAX Advantage Plus-brokered The Minnesota Real Estate Team, also believes the amount the seller nets is central to getting a deal closed. But he also said that in a bidding war situation, first-time buyers may not have to offer way over asking price to emerge victorious.“I’m not seeing that the first-time homebuyers are going to have a real competitive disadvantage for the types of houses they are going to be buying,” VantHof said. “So, on a starter home, where you might get multiple offers, the first-time buyers who are competing are all going to probably have similar buyer profiles and will probably all be asking for help with buyer broker compensation. So, just asking for it in the offer probably won’t disadvantage them.”On the hookBut even before first-timers get to the offer stage in their homebuying journey, some agents say they are seeing them run into issues with the new requirements mandated by NAR’s settlement agreement.Since the new terms went into effect nationwide on Aug. 17, agents have had to obtain a signed buyer representation agreement before showing a home. Per the settlement, the agreement must outline how much the buyer broker will be compensated — pending the successful closing of a transaction. And the buyer must acknowledge that if the seller is unwilling to pay this amount, they will be on the hook for potentially tens of thousands of dollars.According to Mandy Nichols, a Dallas-based Brixstone Real Estate agent, this requirement is causing some first-time buyers to forego representation if it is not property explained.“Many first-time homebuyers don’t have enough to pay the agent and all the closing costs,“ Nichols said. “The main issue I see is agents not really explaining the buyer’s representation agreement correctly or explaining to the buyer how they can help them. “Because of this, they may go out and deal directly with the listing agent that is representing the seller and does not have their best interest at heart.”When faced with the possibility of having to pay an agent out of pocket — and possibly compounded by working with an agent who has poorly explained the buyer representation agreement — Nichols said some first-time buyers feel they are better off going unrepresented. This is concerning, she added, given the complicated nature of the real estate transaction.These same issues are why Joanne Mendoza makes sure she is prepared for buyer presentations, especially when working with first-time buyers.“There is always change in our industry and this was a change we had to make, so I fully embraced it,” said Mendoza, a California-based agent for Berkshire Hathaway. “The way you approach a change is really about your mindset. And with this change, if you are going to be fearful of it, that is going to convey to your clients and you are not going to be able to articulate it well to them, because you’ve already prepared yourself and them to be fearful of it.” As the housing market continues to shift and agents become more comfortable and confident with buyer representation agreements, it remains to be seen what the ultimate impact of the NAR settlement on first-time buyers will be.

Employment data for October is set to be released Friday, and it will go a long way in determining the path for mortgage rates, which have surged upward in the past month.At HousingWire’s Mortgage Rates Center on Tuesday, the average rate for 30-year conforming loans was 6.72%. That’s up 10 basis points (bps) from one week ago and 41 bps higher than on Sept. 18, when the Federal Reserve lowered benchmark rates by half a percentage point. The average 15-year conforming rate has jumped 58 bps since Sept. 18 and now stands at 6.28%.The Fed is meeting again next week and will announce another interest rate decision on Nov. 7. Interest rate traders are placing near-unanimous odds on a cut of 25 bps, according to the CME Group’s FedWatch tool, which would bring the federal funds rate to a range of 4.5% to 4.75%.The forecast is more conservative for the Fed’s December meeting as roughly 75% of market experts anticipate another 25-bps cut and 25% call for no cut.  Next week’s decision from Fed policymakers hinges heavily on the October jobs report that will be released Friday. Last month’s report showed that employers beat market estimates by adding 254,000 jobs in September. Additionally, the job creation numbers for July and August were revised upward by 72,000, stoking fears of higher inflation that has recently come under control.“It’s going to be all about the jobs report,” Melissa Cohn, regional vice president at William Raveis Mortgage, said in recent commentary about the Fed’s next move. “There’s no point in speculating in anything until we see what the jobs report is. If the jobs report comes out and we see that all of a sudden, the number of new jobs created has dropped significantly, that will support at least a quarter-point rate cut.”Data released Tuesday by Redfin showed that affordability has declined for prospective homebuyers due to the recent increases in mortgage rates. Citing data from Mortgage News Daily, Redfin said today’s 7% average rate provides $33,000 less in purchasing power compared to the 6.11% average rate in mid-September.Put another way, a homebuyer with a $3,000 monthly housing budget can afford to buy a home for $442,500 at a rate of 7%, while they could’ve purchased a home for $475,750 at a rate of 6.11%. The monthly payment on the median-priced U.S. home of $428,000 is now $2,895, which is $200 higher than it was six weeks ago.“My advice for buyers is to focus on finding a house they love and try to negotiate on things they have some control over, like the sale price and home repairs,” Chen Zhao, Redfin’s economist research lead, said in the report. “Sellers should know Redfin agents are reporting that there are buyers out there, but they’re mostly looking for move-in ready homes in good condition.” New data from First American showed that housing affordability improved in September, immediately before and after the Fed’s rate cut. The analysis showed that nominal household incomes rose 3.1% and the 30-year fixed mortgage rate was down 1 percentage point year over year. This equated to homes being 9.2% more affordable than in September 2023, although First American reported that homes remained 36% less affordable than their pre-pandemic historic average.First American also noted the benefits tied to rising levels of home equity. Home prices have increased each year since 2012, so even for someone who purchased a home in 2006 and saw significant depreciation due to the housing crisis, their financial gains have outpaced those of the U.S. renter population.“While the owner gained nearly $170,000 in equity (since 2006) due to appreciation, a renter spent over $229,000 in rent over the same period,” the report explained.

Earlier this year, Lewisville, Texas-based property services company MCS announced that it acquired Five Brothers Asset Management Solutions, a deal that brought MCS into the reverse mortgage industry for the first time. Soon after, CEO Craig Torrance offered an early look at what he hoped to achieve with the move.Roughly six months later, Torrance and Chad Mosley, the company’s president of mortgage services, attended the National Reverse Mortgage Lenders Association (NRMLA) Annual Meeting and Expo in San Diego to get some face time with industry professionals.The company now has a clearer vision of the reverse mortgage space, and these leaders sat down with HousingWire’s Reverse Mortgage Daily (RMD) to explain some of what they’ve learned about where the industry is at while also gauging where it could go.Chris Clow/RMD: How have things been going in the reverse space since the acquisition of Five Brothers?Craig Torrance: We’re still learning the reverse mortgage space. I think one of the things that struck us when getting into Five Brothers is that there are certainly differences between forward and reverse, but from our perspective, there’s a lot of similarities from the actual service that we provide.Craig Torrance, CEO of property preservation company MCS." data-image-caption="Craig Torrance" data-medium-file="https://img.chime.me/image/fs/chimeblog/20241030/16/original_c6146526-8df6-4284-b820-a759026b8e1c.jpg?w=200" data-large-file="https://img.chime.me/image/fs/chimeblog/20241030/16/original_c6146526-8df6-4284-b820-a759026b8e1c.jpg?w=683" tabindex="0" role="button" src="https://img.chime.me/image/fs/chimeblog/20241030/16/original_c6146526-8df6-4284-b820-a759026b8e1c.jpg?w=683" alt="Craig Torrance, CEO of property preservation company MCS." class="wp-image-452585" style="width:200px" srcset="https://img.chime.me/image/fs/chimeblog/20241030/16/original_c6146526-8df6-4284-b820-a759026b8e1c.jpg 1920w, https://img.chime.me/image/fs/chimeblog/20241030/16/original_c6146526-8df6-4284-b820-a759026b8e1c.jpg?resize=100,150 100w, https://img.chime.me/image/fs/chimeblog/20241030/16/original_c6146526-8df6-4284-b820-a759026b8e1c.jpg?resize=200,300 200w, https://img.chime.me/image/fs/chimeblog/20241030/16/original_c6146526-8df6-4284-b820-a759026b8e1c.jpg?resize=768,1151 768w, https://img.chime.me/image/fs/chimeblog/20241030/16/original_c6146526-8df6-4284-b820-a759026b8e1c.jpg?resize=683,1024 683w, https://img.chime.me/image/fs/chimeblog/20241030/16/original_c6146526-8df6-4284-b820-a759026b8e1c.jpg?resize=1025,1536 1025w, https://img.chime.me/image/fs/chimeblog/20241030/16/original_c6146526-8df6-4284-b820-a759026b8e1c.jpg?resize=1366,2048 1366w" sizes="(max-width: 1920px) 100vw, 1920px" />Craig TorranceWhen you get down to the nuts and bolts of the kind of work that we do as a company, I think that we’ve been happy with it. We felt then that our services could translate well into the reverse space. Five Brothers did both forward and reverse, and we were certainly very interested in the reverse piece, because we have an established forward presence. But we also didn’t really know how different it would be until we got into it.We found that a lot of the services that we offer and the way that we offer them are the same. Now, I think that’s the service itself. But it’s also everything that’s wrapped around that in terms of the process, the customer interaction, the client processes. That’s where I think we see the differences from our group of forward customers.Clow: How does that look from your end, Chad?Chad Mosley: The thing I’ve been really impressed with, being new to the reverse industry, is being able to interact with several of the reverse servicers that we now work with and getting to see how they execute on a daily basis. Just based on the senior clientele, their processes, procedures or communication is very much geared toward that consumer base. And that’s been really interesting and refreshing to see their focus on their customers.How we can support that, to me, has been the big difference. All of the reverse servicers that we have the privilege of working with are very tight on that and really have some great strategies. That’s made for a great learning process and something we’re excited to continue to be a part of going forward.Clow: How have the differences between forward and reverse been most visible in terms of what your company does? Torrance: If I fundamentally take reverse versus forward, the reverse space generally appears to have a much higher level of interaction and communication with their customers. That may sound fairly obvious, but I think that the hook from the consumer perspective lies in the experience.When you go and get a forward mortgage, you get a mortgage, buy a home and live in the home. All you’re supposed to do is write a check every month, which the vast majority of us today do on a recurring payment. I never, ever talk to my servicer. I don’t think I’ve talked to my mortgage servicer in 10 years. But when you flip it to reverse, there is still a healthy hook and connection between the reverse customer and the reverse servicer.Clow: How do those experiences compare based on what you’ve observed?Torrance: What I see from the reverse servicers is that business is built around that level of interaction and communication. Their processes, team, training programs, software, everything seems to be structured around making that connection work. And it’s not that forward customers don’t care about customer service, but I do see a level of depth to the reverse connection versus the forward connection.Even from our perspective, we get high volumes of work coming into us, and it’s very mechanical and transactional. But on the reverse side, I think it’s more human, and the connection is just built differently.Clow: Do you see reverse business currently punching above its weight in terms of how it can contribute to overall company revenue and profitability? Or are you in this to get in on the ground floor, considering the trend of demographics?Mosley: I think how we see it is in terms of the future and growth. We’re bullish on the reverse industry, and being out at the NRMLA conference and having some conversations with a lot of different people — not just servicers but originators — there seems to be a lot of buzz and a lot of excitement about growth in the industry.Ultimately, more volume and a larger industry turns into revenue and profitability. But it seems like there’s interest from new originators to get into the space, and more people there that were first-timers interested in it, just by the nature of the demographic. We have a growing senior population and more folks aging in place that would have a need for the product. I think, just by the nature of the demographics and some of the macroeconomics, I think we see it as a growth engine.

Is home-price growth finally cooling? That’s a question raised by the S&P CoreLogic Case-Shiller Index for August, which showed deceleration on a year-over-year basis and a slight dip relative to July.On a non-seasonally adjusted basis, the national home price index posted a 4.2% gain year over year, less than the 4.8% gain from July. The monthly index fell by 0.1%. Economists pointed to lower mortgage rates as the reason for slower growth.According to Bright MLS, it’s the slowest annual gain in 2024 thus far and the first monthly decline since December 2022.“This month’s release captures the time period during which rates dropped from roughly 7% to 6.35%,” Realtor.com analyst Hannah Jones said in a statement. “Though significant, this drop in rates has not yet resulted in a significant uptick in demand and home sales activity, which meant home price growth continued to mellow.”The 10-city and 20-city composite indices also showed a slight dip in prices month over month. The 10-city index dropped 0.4% relative to July and rose 6% year over year, which represents a deceleration from the 6.8% year-over-year gain in July.The 20-city composite posted similar numbers, with a 0.3% month-over-month decline and a 5.2% gain compared to August 2023. That’s down from 5.9% annualized growth in July.Among the 20 cities analyzed, New York posted the highest year-over-year home price growth at 8.1%, followed by Las Vegas (+7.3%), Chicago (+7.2%), Cleveland (+6.9%) and Detroit (+6%). New York and Las Vegas also had the highest monthly gains in July.Denver posted the slowest home-price growth compared to a year ago at 0.7%, followed by Portland, Oregon (+0.8%); Dallas (+1.6%); Minneapolis (+2%); and Phoenix (+2.1%).Despite the Federal Reserve’s half-point interest rate cut in September, rates for 30-year conforming loans have climbed back up to 6.7%, according to HousingWire’s Mortgage Rates Center. This is significantly higher than rates in August and likely foreshadows the Case-Shiller index accelerating again when results for the next few months arrive. “Monthly appreciation stabilized with the break in mortgage rates pulling in more buyer’s interest at a time of pinched affordability,” Zillow chief economist Skylar Olsen said in a statement. “That mortgage rate relief continued into September, but has since dissipated, and perhaps that renewed strength in monthly appreciation along with it,” she added. “As we near the slower fall months, buyers are likely to continue refusing steep pricing, but sellers should continue to expect record high home equity, especially in the northern and southwestern swaths of the U.S.”

If you didn’t know it before, you’re likely to be reminded every day between now and Nov. 5 that this is a close election for the balance of power in Washington, D.C.This theme persisted through the first full day at the Mortgage Bankers Association (MBA)’s Annual Convention and Expo in Denver this week. Programming material has been focused on the election and policy discussions were easy to find on the main stage, in the exhibit hall or among attendees throughout the Colorado Convention Center.There is a lot riding on the election’s outcome at the top of the ticket. In his opening remarks, MBA president and CEO Bob Broeksmit talked about the association’s readiness to work with whomever is ultimately elected, and that they’re ready to stop “bad ideas” regardless of which candidate they come from.Broeksmit also detailed that the trade group is preparing for a divided government scenario, where power in the executive and legislative branches are owned by different political parties.The congressional racesAt a stage event late in the day on Monday called “Election Jeopardy,” Bill Killmer, MBA’s senior vice president of legislative and political affairs, introduced two of the association’s legislative liaisons.George Rogers, who primarily works with Senate Republicans, pointed out that the Senate race in West Virginia — where longtime Sen. Joe Manchin is retiring — is being closely watched as a pickup opportunity by Republicans and could help swing the upper chamber into their control. On top of that, the Senate race in Montana is showing incumbent Jon Tester, a Democrat, trailing in the polls.Given the closeness of the majority, if the polls hold with these results, that’s enough to flip the Senate into Republican hands and give them key committee positions to pursue their legislative priorities, including those in housing.On the other hand, Madisyn Rhone — the MBA’s legislative liaison for House Democrats — expressed confidence in the potential for that chamber flipping to Democratic control. Republicans are facing their own slim-majority perils, and Rhone and Rogers agreed that Democrats will be likely to confirm a speaker as soon as the new Congress is sworn in this January, should they win the majority.The same can’t be said with the same level of confidence on the Republican side, where it was an unprecedented challenge to confirm Kevin McCarthy as speaker when the GOP took narrow control of the chamber in early 2023. And on top of that, the odyssey to replace McCarthy following his ouster as speaker roughly a year ago was notoriously arduous, placing more uncertainty over the chamber should Republicans hold onto control.Of particular interest to the housing industry will be an emerging tax debate, Killmer explained. In 2025, key provisions from one of Donald Trump’s signature legislative achievements, the Tax Cuts and Jobs Act, will expire. This will likely lead to what Killmer called a “tax Super Bowl” of a debate to emerge in Congress next year.The presidential raceThat’s before you get to the presidential contest. Trump and Vice President Kamala Harris are down to their final days of duking it out in a handful of swing states for even a slight advantage that would translate into more electoral votes. Housing has emerged as a major issue of the campaign, but far from a dominant one, particularly as Harris and Trump are making their closing arguments to voters.This all looks like a serious challenge for the nation, but at least on the housing front, there could be a hint of stability since housing itself is not often a very partisan political issue, according to Scott Olson, executive director of the Community Home Lenders of America (CHLA).“Having been doing this stuff for 30 years, I think there are a few things that are less partisan than housing,” Olson told HousingWire in an interview. “So, that’s good. And I think divided government does tend to lend itself more to people in Washington compromising. I think that’s maybe a good thing; people could disagree about that. But obviously the biggest thing will be whether or not Donald Trump is elected.”That’s because in a second Trump administration, there will likely be a host of agencies going in different leadership directions, many of which have extreme importance to the mortgage industry.“There would be new leaders at the CFPB, FHFA, those who run HUD and FHA — all of those things will change if he’s elected,” Olson said. “And so, policies will change, so I think that’s the one thing to really pay attention to, more so than Congress.”Control and continuityEven considering all the partisan rancor happening in the House and Senate, each chamber has its own level of controls, institutional or otherwise. If Republicans sweep both chambers, for instance, the likelihood of a more pronounced majority in the House is slim.This means the House will “have trouble doing big things or passing major changes,” Olson said.In the Senate, which is also likely to be narrowly divided even if power changes hands, the filibuster often serves as a control to indefinitely stall the passage of a bill by preventing debate on it from ending.“The major changes would come if there’s a change in administration [to Trump],” Olson said. “Now, if Vice President Harris gets elected, there might be some changes, but it’s going to be largely continuous [with the Biden administration].”Harris has not yet signaled any potential cabinet picks. After the resignation of Marcia Fudge as HUD secretary earlier this year, Adrianne Todman has been in the position on an acting basis. And Sam Valverde has served as acting president of Ginnie Mae since shortly after the resignation of Alanna McCargo in April.If elected, Harris could forward either Todman’s or Valverde’s name for full Senate confirmation, but it’s all conjecture until the results are tabulated and the next president fills out the incoming administration. And it’s difficult to envision today how that will go.“Now, you’re probably thinking, ‘OK, Bob, but cut to the chase. Who do you actually think will win?’” Broeksmit said during his remarks on Monday morning. “Well, if I knew that, I wouldn’t be in Denver. I’d be in Vegas.”

Industry-leading reverse mortgage lender Finance of America (FOA) announced this week that nearly all of the holders of outstanding senior notes that were set to mature in 2025 will participate in a new bond exchange offer that was first announced in June and amended last month.Under the amended offer, the current unsecured notes, due in 2025 with an interest rate of 7.875%, could be swapped for one of two new bond options — those with the same interest rate due in 2026 (with a company option to extend into 2027) or new bonds with a 10% interest rate that would come due in 2029.Among the holders of notes due in 2025, nearly 98% had agreed to participate in the exchange when the offer initially expired Oct. 25. In response, the company amended the expiration date to Tuesday, Oct. 29, at 5 p.m. ET.“We are thrilled to have such a high participation rate in our company’s exchange offer,” FOA CEO Graham Fleming said in a statement. “This transaction positions the company to benefit from enhanced financial flexibility and an improved capital structure, while aligning our cash flows with our debt obligations. We sincerely appreciate the continued partnership with our noteholders.”The deal is applicable for “only eligible holders of 2025 unsecured notes,” who will then be provided with the memorandum detailing the exchange offer and its mechanisms, according to a prior announcement of the offer.By exchanging the current notes for new, secured debt that will come due beyond the original 2025 maturity date — and prioritizing it for noteholders — FOA can have more immediate financial breathing room. This is taking place as FOA prepares to release its third-quarter earnings results on Nov. 6.Since closing a deal to acquire American Advisors Group (AAG) in April 2023, FOA has made multiple moves to balance its size with its ambitions for reverse mortgages and other retirement solutions. The company reduced its headcount and faced threats of delisting from the New York Stock Exchange (NYSE) for being out of compliance with its continued listing standard.But it also successfully implemented a 10-to-1 reverse stock split in June, and it posted improved earnings in the second quarter. The earnings report showed reduced losses — although short of recovery into black ink — and enthusiasm from company leaders over expected business impacts related to the Home Equity Conversion Mortgage (HECM) program and internal marketing efforts.

While we can’t share their names, we can share their stories.  It’s the same one, over and over again. An individual, often for the first time, is engaging in one of the most important transactions of their lifetime: homeownership. Already intimidated by the multitude of financial requirements that come with securing a mortgage, the borrower becomes even more overwhelmed by the hundreds, sometimes thousands, of emails, calls and texts they receive from an unaffiliated third-party vendor after they pull their credit score. This invasive and often abusive marketing blitz, known as “trigger leads,” can open the door to identity theft, fraud and predatory lending—ultimately harming borrowers who are in pursuit of their dream of homeownership. A trigger lead is a marketing product created by the national credit bureaus (Experian, TransUnion, and Equifax) and utilized when a consumer applies for a mortgage—whether it be an outright purchase or a refinance. When a borrower’s credit is pulled by the lender, a trigger is sent to the credit reporting agency to signal that an individual is interested in applying for home financing. This trigger lead is then repackaged and sold down the vast chain of third-party brokers–completely unbeknownst to the borrower. The data sold to these third parties includes everything from a consumer’s date of birth to the last seven digits of their social security number. While, in theory, trigger leads should introduce a borrower to a better, more competitively priced product, perverse financial incentives have led to an explosion of bad-actor mortgage participants within the ecosystem. The reality is that many borrowers are hit with more than 50 ads a day via email, text and phone calls from unsolicited third parties who are looking to lure borrowers away from their current lender and make a buck on their naivety. The Community Home Lenders of America (CHLA) is appalled at the harm these practices have on prospective homebuyers and communities across our nation. Our IMB members have experienced the wrath, frustration, and fear from homebuyers. One home buyer was so distressed about the bombardment of solicitations and afraid of a privacy breach that they withdrew their loan application:   “I have decided to halt this process. Since I got approval, I have been bombarded and totally disrupted and my privacy was invaded by potential lenders. I squashed the weekend warriors, but Monday I received 47 phone calls & 10 text messages. Tuesday calmed a bit with only 15 calls, but all hell broke loose again today. I just won’t have it, and from someone that had an identity theft in 1996, when it was barely acknowledged, what I went through was horrid…Thank you for your time, but this transaction is finished.” The non-transparent and widespread way in which a borrower’s detailed personal information is disseminated puts homebuyers at heightened risk for identity theft and fraudulent charges. And while data breaches are not necessarily linked to trigger leads, it is a fact that this harmful practice increases the catastrophic impact a breach would have on a borrower’s life and financial security.This past September, the Homebuyers Privacy Protection Act (HR 7297)—which provides critical protections against these abusive trigger leads for veterans, active-duty service members, and their families–was included in this year’s National Defense Authorization Act (NDAA). For Veterans Affairs (VA) lenders across the country, 50% of borrowers are first-time homebuyers–many of whom are particularly susceptible to these harassing calls and text messages. Service members and their families are an increasingly prime target for scammers, and it is critical that we protect our military men and women with the same diligence they use to serve and protect our country. CHLA strongly supports the inclusion of HR 7297 in this year’s NDAA on behalf of the lenders, consumers and service members who are being financially and personally impacted by the deluge of trigger leads. We applaud the bipartisan leadership of Congressmen John Rose (R-TN) and Ritchie Torres (D-NY) on the introduction of language to remove this harmful activity, and we urge the House Financial Services and House Armed Services Committees to approve this. Scott Olson is the Executive Director of the Community Home Lenders of America (CHLA)Rob Zimmer is the Director External Affairs at the Community Home Lenders of America (CHLA) 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

Douglas Elliman continues to shake up its leadership team. In a document filed on Friday with the Securities and Exchange Commission (SEC), the firm announced the termination of Douglas Elliman Realty CEO Scott Durkin, as first reported by The New York Times.According to the filing, Durkin was “terminated, effectively immediately.”Durkin’s dismissal came just days after the firm announced the retirement of parent company CEO Howard Lorber. Michael Liebowitz, the firm’s board director, was named the new chairman and CEO.Durkin joined Douglas Elliman in 2015, becoming chief operating officer in 2016 and president in 2017. He was named CEO in 2021 after being selected by Lorber and Dottie Herman, Elliman’s previous CEO.The New York Times reported that Richard Ferrari, who previously managed Douglas Elliman’s brokerage sales and operations in New York and the Northeast, has been named CEO of Douglas Elliman Realty.The firm has taken heat in recent months from its investors, who felt that the company’s finances were being mismanaged due to its continued losses in quarterly earnings. Its value has dropped from roughly $900 million to $130 million since 2021, according to the Times. Additionally, Douglas Elliman and its leadership has come under scrutiny for its alleged mishandling of sexual assault complaints lodged against former Douglas Elliman agents Oren and Tal Alexander.The Alexanders’ firm, Official Partners, is now brokered with Side and is currently facing a lawsuit from Side that deals with an alleged breach of their contract.