As regulators repeatedly warn banks and fintechs that their artificial intelligence models have to be transparent, explainable, fair and free of bias, especially when making loan decisions, banks and fintechs are taking extra steps to prove that their algorithms meet all of those requirements.
A case in point is Upgrade, a San Francisco-based challenger bank that provides mobile banking, personal loans, a hybrid debit and credit card, a credit builder card, auto loans and home improvement loans to five million consumers. Upgrade is partnering with an “embedded fairness” provider called FairPlay to backtest and monitor its models in real time to make sure the decisions supported by the models are free of bias. FairPlay already works with 25 banks and fintechs, including Varo Bank, Figure and Octane Lending.
“What [the partnership with FairPlay] is accomplishing for us is making sure we are fair and compliant and making appropriate credit decisions that don’t have a disparate impact on any protected category,” said Renaud Laplanche, founder and CEO of Upgrade, in an interview. Over time, Upgrade plans to apply FairPlay to all its credit products.
Banks, fintechs and the banking-as-a-service ecosystem have been under a lot of regulatory scrutiny lately. High on the list of supervisory and enforcement issues has been fair lending because regulators are concerned that banks and fintechs are using alternative credit data and advanced AI models in ways that can be hard to understand and explain, and where bias can creep in. In some recent consent orders, regulators have demanded that banks monitor their lending models for fairness.
These concerns are not new. Financial firms have been using AI in their lending models for years, and regulators have made clear from the start that they have to comply with all applicable laws, including the Equal Credit Opportunity Act and the Fair Housing Act, which prohibit discrimination based on characteristics such as race.
But proving that AI-based lending models are not discriminatory is a newer frontier.
“There’s an emerging consensus that if you want to use AI and big data, that you have to take the biases that are inherent in these systems really seriously,” said Kareem Saleh, founder and CEO of FairPlay, in an interview. “You have to inquire into those biases rigorously, and you’ve got to commit yourself with seriousness and purpose to fixing issues if you find them.”
Upgrade is showing a lot of leadership, both for itself and the industry, Saleh said, in stepping up its compliance technology in this area.
Upgrade makes loan decisions using a machine learning technique called gradient boosting. (Behind the scenes, the company’s personal loans and auto refinance loans are made by partners Cross River Bank and Blue Ridge Bank. Home improvement loans and personal credit lines also are made by Cross River Bank, which issues the Upgrade Card.) About 250 banks buy Upgrade’s loans.
Banks that buy loans from Upgrade and other fintechs look for evidence of compliance with the Equal Credit Opportunity Act and other laws that regulate lending. On top of that, Upgrade has its own compliance requirements, as do its bank partners and the banks that buy its loans. FairPlay’s APIs will keep an eye on all of these. They will backtest and monitor its models for signs of anything that could impact any group adversely.
One aspect of the software that Laplanche was drawn to was its ability to monitor in real time.
“That’s where it gets more effective and simpler to use, as opposed to doing a periodic audit and shipping data to third parties and then getting the results back a few weeks or months later,” Laplanche said. “Here you have this continuous service that’s always running, that can pick up signals very quickly, that can help us make adjustments very quickly. We like the fact that it’s embedded and it’s not a batch process.”
FairPlay’s software is most commonly used to backtest lending models. It will run a model against loan applications from two years ago and see how that model would’ve performed if it had been in production back then.
“Then it’s possible to make some reasonable estimates about what the outcomes of that model would be on different groups,” Saleh said.
If the backtesting turns up a problem, like disproportionate lending to white men over women and minorities, then the software can be used to determine which variables are driving disparate outcomes for the different groups.
Once those are identified, the question is, “Do I need to rely on those variables as much as I do?” Saleh said. “Are there some other variables that might be similarly predictive but have less of a disparity driving effect? All of those questions can only be asked if you take that first step of testing the model and saying, what are the outcomes for all of these groups?”
Women who left the workforce for several years to raise children, for instance, have inconsistent income, which looks like a big red flag to a loan underwriting model. But information about the credit performance of women can be used to adjust the weights on the variables in ways that make the model more sensitive to women as a class, Saleh said.
A Black person who grew up in a community where there were no bank branches, and therefore mostly used check cashers, is unlikely to have a high FICO score and may not have a bank account. In a case like this, Saleh said, a model might be adjusted to reduce the influence of credit score and tune up the influence of consistent employment.
Such adjustments can “allow the model to capture these populations that it was previously insensitive to because of over-reliance on certain pieces of information,” Saleh said.
FairPlay’s backtesting can be done on underwriting models of all kinds, from linear and logistic regression to advanced machine learning models, Saleh said.
“The AI models are where all of the action is these days,” Saleh said. “More advanced AI models are harder to explain. So it’s harder to understand what variables drove their decisions and they can consume a lot more information that’s messy, missing or wrong. That makes the fairness analysis much more subtle than a world where you’re dealing with a relatively explainable model and data that’s largely present and correct.”
As it monitors the outcomes of models, FairPlay can be used to detect unfair behavior and suggest changes or corrections.
“If the fairness starts to degrade, we try to understand why,” Saleh said. “How do we make sure that the underwriting stays fair, in a dynamically changing economic environment? Those are questions that have never really been asked or grappled with before.”
FairPlay began offering real-time monitoring relatively recently. Because technology and economic conditions have been changing quickly, “episodic testing is no longer sufficient,” Saleh said.
Technology like FairPlay’s is important, Patrick Hall, a professor at George Washington University who has been involved in the NIST AI risk management framework, said. He considers FairPlay’s software a credible tool.
“People are certainly going to need good tools,” Hall said. But they have to go along with processes and culture to really have any effect.”
Good modeling culture and processes include making sure the programmer teams have some diversity.
“More diverse teams have fewer blind spots,” Hall said. This doesn’t just mean demographic diversity, but having people with a wide array of skills — including economists, statisticians and psychometricians.
Good processes include transparency, accountability and documentation.
“It’s just old fashioned governance,” Hall said. “If you train this model, you have to write a document on it. You have to sign that document, and you may actually experience consequences if the system doesn’t work as intended.”
If you are new to trading stocks, the sheer volume of stock market terms can be off-putting. But learning some basic stock trading terminology is a great place to begin before investing any money. For any new investor just getting into trading, getting a grasp on some basic stock market terms can be extremely helpful.
The Significance of Knowing Stock Market Terminology
It’s important to have at least a grasp of some basic stock market terms if you plan on trading or investing. If you don’t do a bit of homework beforehand, you may find yourself feeling in over your head, and grasping for help from family members, friends, or a financial professional.
While there are a multitude of different stock market terms out there, it isn’t terribly difficult to develop an understanding of the basics. Yes, it’ll take some time and practice, but like learning anything else, once you get the hang of it, it should become easier as you move along in your investment journey. 💡 Quick Tip: Investment fees are assessed in different ways, including trading costs, account management fees, and possibly broker commissions. When you set up an investment account, be sure to get the exact breakdown of your “all-in costs” so you know what you’re paying.
Fundamental Terms
To get a fundamental understanding of the stock market, it can be helpful to start with some relatively basic terms, including the following.
Asset Allocation
Asset allocation involves investing across asset classes in a portfolio in order to balance the different potential risks and returns, and there are three main asset classes, which are typically stocks, bonds, and cash. Asset allocation is closely tied with portfolio diversification.
Asset Classes
There are several asset classes, or types of assets, that investors can invest in. This can include, but is not limited to, stocks, bonds, money market accounts, cash, real estate, commodities, and more. You can also think of certain assets as equities, debt securities, and more.
Bid
Bid, in the context of bid-ask spread, refers to the “bid price” that an investor is willing to pay for a security or investment.
Ask
Ask, in the context of bid-ask spread, is the opposite of bid, and is the lowest price that investors are willing to sell a security for.
Bid-Ask Spread
The bid-ask spread is the difference between the bid and ask price, and can be a measure of liquidity. When the bid and ask prices match, a sale takes place, on a first-come basis if there is more than one buyer. The bid-ask spread is the difference between the highest price a buyer is willing to bid, and the lowest price a seller is willing to ask.
Market Phrases
There are a number of market phrases, or types of jargon that may be used in and around the stock market, too. Here are some examples.
Bull Market
A bull market describes market conditions when a market index rises by at least 20% over two months or more, and is often used to describe high levels of confidence and optimism among investors.
Bear Market
A bear market describes a 20% fall in a market index, and is the opposite of a bull market. It can signal overall pessimism among investors.
Market Volatility
Market volatility refers to how much a market index’s value increases or decreases within a specific period of time. Volatility can occur for a number of reasons.
Investment Vehicles
There are many specific investment vehicles that investors should know about, too, including different types of stocks, bonds, and more.
Bonds
Bonds are a type of debt security, which effectively means that investors are loaning money to the issuer. There are many types of bonds, and they’re often considered to be a less-risky investment alternative to, say, stocks.
Common Stock
Common stock, also known as shares or equity, is like owning a piece of a company. You purchase stock in a company, and receive a proportional part of that corporation’s assets and earnings. The price of stock is different for each company and fluctuates over time.
Preferred Stock
Preferred stock is similar to common stock, but usually grants shareholders some sort of preferential treatment, such as advanced dividend payments, and more.
ETFs
ETFs, or “exchange-traded funds,” are types of funds that trade on exchanges like stocks. Investors can purchase shares of ETFs, which incorporate numerous different types of securities (like a “basket” of different investments), and may offer built-in diversification as an advantage for investors.
Mutual Funds
Mutual funds are companies or entities that pool money from numerous different investors and then invest it on their behalf. A manager oversees a mutual fund, and actively manages it. Investors can purchase shares of mutual funds, which are similar to ETFs in many ways.
Stock Analysis Terms
Analyzing the stock market incorporates its own set of terminology, and it can be helpful for investors to know a bit of the vernacular.
Earnings Per Share (EPS)
Earnings per share, often shortened as “EPS,” is a ratio that helps determine a company’s ability to drive profits for shareholders. It’s a common and oft-cited business metric for investors.
Dividends
A dividend is a payment made from a company to its shareholders, often drawn from earnings. Usually, these are made in cash, but sometimes they are paid out as additional stock shares. They are typically paid on an annual or quarterly basis, and typically only come from more established companies, not startups.
Dividend Yield
Dividend yield refers to how much a company pays out to shareholders on an annual basis relative to its share price. It’s a ratio that’s calculated by dividing the company’s dividend by its share price.
The Price-to-earnings (P/E) Ratio
The price-to-earnings ratio (often written as the P/E ratio, PER, or P/E) is a ratio of a company’s current share price relative to the company’s earnings per share. It can be used to compare performances of different companies. 💡 Quick Tip: When you’re actively investing in stocks, it’s important to ask what types of fees you might have to pay. For example, brokers may charge a flat fee for trading stocks, or require some commission for every trade. Taking the time to manage investment costs can be beneficial over the long term.
Price Movements and Pattern Terms
There are also a number of movement and pattern terms that investors may want to familiarize themselves with.
Trading Volume
Trading volume refers to how much trading is happening on an exchange. For a stock trading on a stock exchange, the stock volume is typically reported as the number of shares that changed hands during any given day. It’s important to note that even with an increasing price, if it’s paired with a decreasing volume, that can mean a lack of interest in a stock. A price increase or drop on a larger volume day (i.e., a bigger trading day) is a potential signal that the stock has changed dramatically.
Volume-weighted Average Price (VWAP)
Volume-weighted average price, or VWAP, is a short-term price trend indicator used when analyzing intraday, or same-day, stock charts. It’s a type of technical analysis indicator.
Trading Order Types and Execution
Investors need to know the types of orders that they’re likely to use throughout their investing journey. Those include market orders, limit orders, and stop-loss orders.
Market Order
A market order is the most common type of order, and it means that an investor wants to buy or sell a security as soon as possible at the current market price.
Limit Order
Limit orders are another common type of order, and involve an investor placing an order to buy or sell a security at a specific price or within a specific time frame. There are two types: Buy limit orders, and sell limit orders.
Stop-loss Orders
Stop-loss orders, or sometimes called stop orders, are orders that specify a security to be sold at a certain price.
Day Trading Terms
For the prospective day-trader, there are a slate of terms to know as well.
Day Trading
Day trading involves an investor making short-term trades on a daily or weekly basis in an effort to generate returns off of price fluctuations in the market. There are numerous day trading strategies that investors can utilize.
Pattern Day Trader
A pattern day trader is a designation created by FINRA, and refers to traders who trade securities four or more times within five days. There are rules and stipulations that pattern day traders, and their chosen trading platforms, must follow.
Trading Halt
A trading halt can refer to a specific stock or the entire market, and involves a halt to all trading activity for an indefinite period of time.
Long-term Investment Terms
The opposite of day trading, long-term investing also ropes in its own jargon.
Averaging Down
Averaging down involves a scenario in which an investor already owns some stock but then purchases additional stock after the price has dropped. It results in a decrease in the overall average price for which you purchased the company stock. Investors can profit if the company’s price subsequently recovers.
Diversification
Diversification refers to investing in a wide range of assets and asset classes, as opposed to concentrating investments in a specific area or class.
Dollar-cost Averaging
Dollar-cost averaging is a strategy to manage volatility in a portfolio, and involves regularly investing in the same security at different times, but with the identical amount. Effectively, the cost of those investments will average out over time.
Derivatives and Market Predictors
Getting into the weeds now — derivatives and market predictors are more high-level market elements, but it can be helpful to know some of the terminology.
Futures
Futures, or futures contracts, are a form of derivatives that are a contract between two traders, agreeing to buy or sell an asset at a specific price at a future date.
Options Trading
Options trading involves buying and selling options contracts, of which there are many types.
Arbitrage
Arbitrage refers to price differences in the same asset on different markets. Traders may be able to take advantage of those differences to generate returns.
Financial Health Indicators
We’re not done yet — these terms involve financial health indicators.
Debt-to-equity (D/E)
Debt-to-equity is a financial metric that helps investors determine risks with a specific stock, and is calculated by dividing a company’s equity by its debts.
Liquidity
Market liquidity is essentially how easily shares of stock can be converted to cash. The market for a stock is “liquid” if its shares can be sold quickly, and the act of selling only minimally impacts the stock price.
Profit Margin
Profit margin refers to how much profit is generated from a trade when expenses are considered. Lowering related expenses can increase profit margin, all else being equal.
Economic Terms
Knowing some key economic terms can be helpful when trying to size up larger economic and market trends.
Volatility
Volatility refers to the range of a stock price’s change over time. If the price stays stable, then the stock has low volatility. If the price jumps from high to low and then back to high often, it would be considered more of a high-volatility stock.
Economic Bubbles
Economic bubbles or market bubbles are often created by widespread speculative trading, and involve a runup or buildup of prices for a given asset, which can be detached from its actual value. Eventually, the bubble tends to burst and investors may incur a loss.
Recession
A recession is a period of economic contraction, and is usually accompanied by higher unemployment rates, business failures, and lower gross domestic product figures. Recessions are officially declared by the Business Cycle Dating Committee at the National Bureau of Economic Research.
Adaptation and Risk Management
For particularly savvy investors, knowing some terms relating to adaptation and risk management can also be helpful when navigating the markets.
Sector Rotation
Sector rotation involves investing in different sectors of the economy at different times, and rotating holdings between those sectors in an effort to generate the biggest returns.
Hedging
Hedging is an investment strategy that involves limiting risk exposure within different parts of a portfolio, and there are many methods or strategies for doing so.
The Takeaway
Learning some basic stock market terms can go a long way toward helping an investor navigate the markets, and there are a lot of terms and jargon to get familiar with. But doing a bit of homework early on can be enormously helpful so that you’re not trying to figure things out on the fly as an investor.
While you’re not going to learn everything right off the bat, if you start to spend a lot of time investing and trading, you’re likely to quickly catch on to certain terms, while others will come with time. As always, if you have questions, you can reach out to a financial professional for help — or do a bit more research on your own.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.
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Smartfi Home Loans, a reverse mortgage wholesale lender, is now using the LoanPASS product and pricing engine.
With over 110 years of collective reverse mortgage experience, Smartfi Home Loans boasts a seasoned team deeply rooted in the industry. Smartfi operates as a wholesale lender in more than 40 states and continues to expand its commitment to providing secure access to home equity for seniors.
“Smartfi is uniquely positioned in the industry with a team that shares a common vision for how to grow the market and expand home equity use in retirement,” says Gregg Smith, CEO of Smartfi Home Loans, in a release. “Partnering with LoanPASS to implement their Product and Pricing Engine was an easy decision as it seamlessly aligned with our vision. Their innovative solution supports our commitment to streamlining the lending process for our partners.”
“We are thrilled to welcome Smartfi Home Loans as another new customer and valued partner,” says Bill Mitchell, CRO of LoanPASS. “In addition to our shared commitment to drive technology and business process transformation for all our clients, the LoanPASS rules engine was designed to give Smartfi Home Loans complete control over products and pricing.”
“Whether it’s a forward or reverse loan, LoanPASS was designed and architected to break industry convention and disrupt the market for decisioning engine technologies,” Mitchell adds. “LoanPASS is quickly becoming recognized as the leader in advanced pricing engine technology solutions for lending institutions throughout the U.S.”
A sprawling 26.72-acre property nestled along the serene banks of the Wicomico River in Eden, Maryland has recently landed on the market — with a bang.
Listed at $2,690,000, it’s currently the priciest home listed for sale in the entire Wicomico County, surpassed only by a Delmar, MD empty lot (spanning over 40 acres) that’s looking to fetch $3.9 million.
Whitney Elliott with the Salisbury office of Coldwell Banker Realty in the Mid-Atlantic holds the listing.
The expansive Eden, MD property is anchored by an 8,252-square-foot estate that blends traditional charm with modern luxury and offers a rare opportunity to own a piece of riverside paradise — complete with a two-story observatory.
Photo credit: Svetlana Leahy / Coldwell Banker
Built in 1988, this 4-bedroom, 4-bathroom home sits on a sprawling 26.72-acre plot, boasting 700 feet of waterfront complete with a private dock and two lifts, including one with deep water access.
Photo credit: Svetlana Leahy / Coldwell Banker
The estate’s exterior is matched by its equally impressive interior, starting with a grand foyer and an elegant winding staircase that invites you into a world where modern conveniences meet classic design.
The heart of the home is its gourmet kitchen, a caterer’s dream equipped with top-tier appliances from GE Professional, Viking, and ILVE, and a sizable butcher block countertop.
The first-level primary suite offers waterfront views and luxurious comfort, while the house’s elevator provides convenient access to the upper levels.
Entertainment is a key feature of this property.
A bar and game room set the stage for social gatherings, and a 3,000-bottle wine cellar ensures a well-stocked selection for any occasion. For movie enthusiasts, the in-home theater, complete with a 10-foot screen and custom acoustics, provides an immersive cinematic experience.
Perhaps the most striking feature of this Eden property is its custom two-story observatory.
With a climate-controlled interior, this observatory houses a high-end telescope, leveraging advanced technology for an unparalleled stargazing experience.
Photo credit: Svetlana Leahy / Coldwell Banker
Speaking of technology, the Eden, Maryland house has plenty of smart home features throughout — including a whole-home audio and lighting system, extensive ethernet connections, and a comprehensive home security system, ensuring both comfort and safety for its residents and guests.
The property doesn’t just impress with its luxury finishes; it also incorporates efficient living solutions. Various heating sources, including geothermal and liquid propane, are used throughout the estate.
The two wood-burning fireplaces add a cozy touch to the modern amenities.
When it comes to its outdoor appeal, the sky’s the limit. With well over 26 acres of land in an idyllic location, there’s plenty to do on the property, and future owners will enjoy a private dock with two lifts, including one with deep water access.
Photo credit: Svetlana Leahy / Coldwell Banker
With so many intricate details, this Eden estate on the Wicomico River is more than just a house; it’s a lifestyle offering. From its sprawling river views to the unique observatory, it represents a blend of luxury, technology, and natural beauty rarely found in the real estate market.
This property promises a living experience that is as grand as it is intimate, a perfect sanctuary for those who appreciate the finer things in life, with the universe just a gaze away.
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Hedging, Servicing, Fulfillment, Non-QM Products; Senators, The CFPB, and Navy Federal
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Hedging, Servicing, Fulfillment, Non-QM Products; Senators, The CFPB, and Navy Federal
By: Rob Chrisman
Wed, Jan 17 2024, 11:20 AM
Today I am in San Diego for the SD CAMP event. At the same latitude, a poll was taken by Texas Governor Greg Abbott’s office which asked whether people who live in Texas think illegal immigration is a serious problem. 29 percent of respondents answered: “Yes, it is a serious problem.” 71 percent of respondents answered: “No es una problema seriosa.” (Did you know that Texas even has its own pledge of allegiance?) Politics aside, Texas is home to many lenders. And many hotels. Marriott certainly has the business travel market dialed in, but just six companies in the United States control 80 percent of branded hotels, and two companies (Choice Hotels and Wyndham) may merge giving us five. Choice owns Radisson, Quality Inn and Econolodge brands; Wyndham owns Ramada, La Quinta, Days Inn, Super 8, and Howard Johnson. If a takeover/merger occurs, 16,500 hotels and 46 brands will be run by a single entity. Yikes! Today’s podcast can be found here, and this week’s is brought to you by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products (nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics) unite the people, systems, and stages of the mortgage process. Today’s features an interview with nCino’s Pam Faulkner on a topic that every mortgage lender has to contend with: change management.
Lender and Broker Services and Software
Short-term rental analysis product announcement! Opteon AMC, a top nationwide appraisal management company (AMC), announced its pioneering Short-Term Rental Analysis (STRA) product last week. The first of its kind on the market, Opteon collaborated with AirDNA, a leading short-term rental (STR) data and analytics provider, on this innovative tool set to revolutionize how non-QM lenders assess properties for STR investment. It will equip lenders with accurate rental potential, occupancy rate predictions, market trends with comparables, and an expert appraiser analysis. This appraiser-approved Short-Term Rental Analysis replaces the existing 1007 form which, while widely used, falls short in addressing the unique dynamics of STR investments. Opteon and AirDNA partnered together to create a simple, comprehensive solution that promises to reshape the appraisal process for STRs. This product is exclusively available to Opteon customers as of January 8, 2023. To learn more, visit: www.opteonusa.com or contact [email protected].
“FundingShield, the market leader in wire & title fraud prevention, released its Q4-2023 report showing an all-time high 51.8 percent of transactions had deficiencies. During Q4-2023, 49.23 percent of transactions had CPL issues, 7.6 percent had CPL Validation issues and 8.45 percent had increased Wire risks. This increase highlights ongoing cybersecurity challenges such as Business Email Compromise (BEC) events and phishing attacks. “Cyber-Breach Events at First American and Fidelity National Financial are driving additional demand for funding controls, cyber-security defenses and closing-agent vetting as auditors, regulators or investors ask for evidence of controls. Our tech-driven solutions to manage payment risk, vendor selection, live monitoring of service providers and more are addressing these needs with customized solutions. These sophisticated, intentional acts of cybercrime create financial losses within impacted firms and threaten enterprise valuations of listed public firms. This creates additional motivation for short players who are looking to express their negative view in free markets,” shared Ike Suri, CEO. Contact us for demos and free trials.”
“Increase your company’s pipeline and margins with Non-QM loans through Verus Mortgage Capital. The Mortgage Bankers Association (MBA) forecasts mortgage originations to increase to $2 trillion. With mortgage rates expected to stabilize through the end of the year and the possibility of a Fed interest rate cut soon, the stage is set for growth. Give your production pipeline an extra boost by adding Non-QM loans. Now’s the perfect time to partner with Verus, the nation’s largest issuer of securitizations backed by non-qualified mortgage (Non-QM) loans. We offer flexible non-agency loans for property investors, foreign nationals, and many others. Navigate the evolving landscape with confidence, backed by our Non-QM expertise. We’re not just a solution, we are your key to unlocking new opportunities. To learn more, contact Jeff Schaefer, EVP – National Sales or 202-534-1821.”
“Wholesale lending is more competitive than ever. These lenders are competing to win a shrinking volume of loans, fighting for attention among a sea of loan originators. Giant lenders are brandishing technology tools that only the giants can afford and using them to shoulder out smaller competitors. But as the market thaws and lenders find firmer footing, there’s an opportunity to fight back. Join our webinar, ‘Mastering the Art of Mortgage Broker Engagement’ on January 24th at 10 am PST to learn best practices and strategies that wholesale lenders are using to thrive in the TPO market. This webinar will show you proven tactics and technology tools that are helping wholesale lenders create efficient sales processes that are both scalable and effective. Click here to register for the webinar and gain insight on an origination channel that needs more attention.”
Save over 20 percent on costs and gain valuable flexibility with outsourced loan fulfillment. Maxwell’s on-demand underwriting provides the agility lenders need to scale their fulfillment expenses in proportion to loan volume. With direct integration to your LOS, Maxwell’s experienced onshore team of underwriters provides a seamless, fast, and cost-effective experience. Plus, you’ll be able to maintain your operations even during gaps in in-house coverage, ensuring an uninterrupted workflow no matter the market conditions. To learn more about Maxwell’s on-demand underwriting and other fulfillment services, click here or schedule a call today.
Servicing Assistance and Software
“LoanCare®, a top U.S. mortgage subservicer, has re-imagined the homeowner digital experienced with our newly re-engineered and re-designed homeowner website: myloancare.com. Powered by LoanCare’s own proprietary software, our consumer digital experience is a fully white label capable platform designed to help you maximize your brand, recapture customers, and build lasting relationships. Frictionless functionality coupled with advanced security features, intuitive design, and comprehensive line of sight into the homeowner experience mean our clients are in the driver’s seat managing their portfolio from every angle. And did we mention? The site is available in both English and Spanish! Contact us to learn more today.”
“Delivering the Best Homeowner Experience! Cenlar is more than just a mortgage subservicer. We strive to be our clients’ trusted partner each and every day. And a big part of that is how we care for our clients’ homeowners. A home is most likely someone’s largest asset. That’s why we continue to deliver industry-leading subservicing solutions that offer the very best experience for our clients and their homeowners. Whether that’s the regular cycle of onboarding, escrow, monthly payments and year-end or challenges facing homeowners like natural disasters, we are responsive, anticipatory and always caring. Let’s discuss how Cenlar can meet the mortgage servicing needs of your organization. Call 1-888-SUBSERV (782-7378) or visit here. We want to be your trusted partner, each and every day.”
Monitoring the State of the Markets
To me, and many that I speak with, the lending biz has continued to be quiet after the flurry of activity in November. But that is just a feeling that I have. There are groups that actually provide a quantitative analysis of what is going on. Glancing around the biz…
A group of U.S. senators are calling on the Department of Housing and Urban Development (HUD) and the Consumer Financial Protection Bureau (CFPB) to review the gap in mortgage approval rates between white applicants and Black and Hispanic applicants at Navy Federal Credit Union.
Optimal Blue announced the release of its Originations Market Monitor report, looking at mortgage origination data through December month-end. Leveraging daily rate lock data from the Optimal Blue PPE, the industry’s most widely used product, pricing, and eligibility engine, the Originations Market Monitor provides a comprehensive and timely view into origination activity.
The latest ICE Home Price Index data for November 2023 showed continued home price growth resiliency, rising demand, and falling 30-year rates provided some affordability relief. ICE Vice President of Enterprise Research Andy Walden explained, “In simple dollars and cents, it requires $279 less per month to purchase the median priced home when compared to late October. Given that improvement, it’s no surprise mortgage applications have risen in recent weeks, hitting their highest adjusted levels since early September.” Annual home price growth rose to +5.1 percent in November, up from a revised +4.5 percent in October, as momentum from early year increases. On a non-adjusted basis, home prices fell by -0.46 percent in the month, but when adjusted for seasonality prices were up +0.14 percent, slightly above October’s +0.09 percent. While home affordability remains a significant challenge, falling rates in recent weeks. Due to the holidays ICE Mortgage Monitor will not publish a report in January. Reports for previous months are available online at https://www.blackknightinc.com/data-reports/. The next ICE Mortgage Monitor will be published February 5, 2024.
Capital Markets
“As a secondary marketing professional, your top priorities are managing interest rate risk and maximizing loan sale execution. But when’s the last time you stopped to consider whether your hedging software helps you achieve those goals? Optimal Blue offers the most comprehensive hedging solution in the industry, complete with exclusive API connections to the Optimal Blue PPE and aggregator bulk-bidding via the CompassPoint buy-side bid tool. This powerful combination provides you with the most accurate price discovery to drive your front-end pricing, mark to market, and best execution. Plus, optimization tools and bulk bid/AOT functionality help you squeeze every basis point out of your loan sales. Optimal Blue sets itself apart when it comes to managing risk through precise valuation and fallout modeling, use of spec pay-ups and spec durations, real-time MSR values, and much more. Contact our team to learn what this can mean for your business.”
As investors returned from a three-day weekend, corporate earnings were in focus to open the trading week. There was some optimism amongst market participants about the economy as Goldman Sachs and Morgan Stanley reported better than expected results for Q4. However, a strong economy means that the Fed is less likely to cut rates as soon as investors are predicting. Market expectations are still for up to six cuts in 2024. Fed Governor Waller yesterday urged caution for central bankers when the time comes to lower rates. He said that the U.S. central bank should take a cautious and systematic approach when it begins cutting interest rates, a process that can start in 2024 absent a rebound in inflation.
The U.S. economy continues to be resilient, with robust consumer spending. While 2024 started with expectations that inflationary pressures around the world were abating, higher military spending due to various global conflicts as well as rising healthcare costs may lead inflation to be stickier and rates to be higher than markets expect. An escalation in geopolitical tensions in the Middle East, more from incidents in the Red Sea than the war in Gaza, has introduced added costs of recalibrating shipping routes and upward pressure on energy prices. That, along with an economy fueled by large amounts of government deficit spending and past stimulus makes for a thorn in the side of central banks around the globe trying to bring inflation down.
Today’s busy economic calendar began with mortgage applications increasing 10.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending January 12, 2024. Last week’s results included an adjustment to account for the New Year’s holiday. Another increase was expected after the year-end slowing, while the 10-year yield fell 9 basis points during the reporting period with 30-year mortgage rates following suit.
Markets have also received retail sales for December (+.6 percent, also +.6 percent ex auto and gas) and import prices (flat). Later today brings Redbook same store sales, industrial production and capacity utilization for December, November business inventories, the NAHB Housing Market Index for January, a $13 billion Treasury auction of reopened 20-year bonds, and the latest Beige Book from the Fed. Three Fed speakers are scheduled: Vice Chair for Supervision Barr, Governor Bowman, and New York President Williams. We begin the day with Agency MBS prices worse .125-.250 from Tuesday and the 10-year yielding 4.11 after closing yesterday at 4.07 percent after the strong retail sales figures.
Employment
A trillion dollars in credit card debt. That’s A LOT and it’s what Americans currently owe.* The good news? There’s something you can do about it. With access to a wide variety of loan products, you can help your borrowers and boost business while you’re at it. The ability to shop hundreds of loan options with dozens of lenders means you can: * help your clients consolidate debt* and *get creative with home financing so they can reach their homeownership goals.* So, how do you get all this access? By joining your local Motto Mortgage office. Motto Mortgage brokerages are hiring talented loan originators in: AK, AZ, CA, CO, CT, FL, GA, ID, IL, IN, KS, KY, MA, MI, MN, MO, MS, NC, NJ, NM, NV, OH, OK, OR, PA, SC, TN, TX, UT, VA, WA, WI. More of a “make it happen” kind of LO? Schedule a chat to learn about joining Motto HERE.
The Association of Independent Mortgage Experts (AIME) and its advocacy group and political action committee, Broker Action Coalition (BAC) and BACPAC announced they are acting independently (AIME focuses on member services and BAC on advocacy initiatives) and AIME’s CEO Katie Sweeney will be stepping down at the end of March from her current role to lead BAC full time. “AIME has been the backbone of the independent mortgage broker community since 2018, and that’s not going to change,” stated Marc Summers, President of AIME. Along with Sweeney, BAC’s leadership will include former AIME President of Advocacy Brendan McKay who will focus on growing the advocacy network’s members, donors, and programs as the co-founder and Chief Advocacy Officer. Congratulations!
Ranieri Solutions, which has been developing a platform to address the antiquated state of mortgage servicing technology, today announced the appointment of Rob Lux as its Chief Executive Officer to spearhead the company’s go-to-market efforts for its cloud-native servicing platform. The addition of a new CEO is coupled with the recent announcement of a partnership with SAP Fioneer. (The Ranieri platform’s standout feature is its elegant, uniform core and modern user interface which we believe will lower the risk of misconfiguration and incompatibilities. Servicers need the agility to quickly respond to industry changes and seize market opportunities. This modern cloud-based platform was built from the ground-up with servicers in mind.)
The Mortgage Firm announce the promotion of Sheri Nedley to the position of Chief Operating Officer. With a remarkable journey spanning 25 years at the company, Nedley’s promotion is a testament to her exceptional leadership and dedication with time spent as Closing Manager, SVP of Operations, and Head of Capital Markets. As COO, Sheri will oversee the company’s day-to-day operational strategies, aiming to enhance customer experience and drive sustainable growth. Her focus will be on leveraging technology, optimizing operational processes, and nurturing a culture of excellence within the organization.
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As global central banks raised interest rates to tame inflation,
home prices have cooled relative to the start of the hiking cycle. However, despite the
sensitivity of the residential market to higher policy rates, prices are
still above historical averages. Home prices in advanced economies,
including most European Union countries, as well as Africa and the Middle
East are 10 percent to 25 percent higher than pre-pandemic levels.
Rising interest rates have passed swiftly to residential mortgage markets,
impeding affordability for current and prospective home buyers.
Additionally, scarce home supply is limiting purchases in some regions. In
all, housing affordability is more stretched amid still-elevated home
prices and higher interest rates.
In the first half of 2023, mortgage rates in advanced economies climbed by
more than 2 percentage points compared to the previous year. During this
period, countries like Australia, Canada and New Zealand witnessed
substantial declines in real house prices, likely due to a high share of
adjustable-rate mortgages and home prices that have been stretched since
before the pandemic. Comparatively, home prices have fallen more than 15
percent in some advanced economies while the drop in emerging economies was
less significant. But, on net, real house prices will need to keep cooling
from the 2021 and 2022 highs to reach pre-pandemic levels.
Higher borrowing costs are likely to see the largest impact on household
debt service ratios—a measure of borrowers’ loan repayment ability—in
countries where housing markets remain overvalued and average lifespans for
mortgage loans are shorter, according to our latest
Global Financial Stability Report.
Approvals and repayment
For instance, for some advanced economies such as Norway, Sweden, Denmark,
and the Netherlands with pre-existing double-digit households’
debt service ratios, borrowers’ debt servicing costs could increase by up to 1.8 percentage
points given the surge in interest rates. That would have consequences for
loan approvals and borrower repayment capabilities. But borrowers are also
less indebted, and underwriting standards have been strengthened since the
global financial crisis, tempering the risk of a surge in loan defaults.
This may have also limited instances of forced selling or foreclosures of
homes, helping to support home prices.
In the United States, the Federal Reserve’s interest rate hikes brought big
changes to the mortgage loan market, with the average rate on a 30-year
fixed mortgage recently reaching a two-decade high of 7.8 percent. For
prospective buyers, entry costs are putting homeownership further out of
reach as the required down payments have also become a prohibitive factor
because savings have shrunk since the pandemic.
Existing homeowners, deterred from purchasing new properties due to larger
monthly mortgage payments, stay put causing a reduction in supply of
existing homes. This phenomenon, known as “lock-in” effect, is particularly
evident in the United States, where long-tenured fixed-rate mortgages are
most popular. With average 30-year mortgage rates currently at 6.6 percent,
around 3 percentage points above pandemic lows, mortgage originations
remain 18 percent below last year’s levels while refinancing applications
increased 8.5 percent over the year as mortgage rates continued to ease.
Rates and refinancing
The 30-year fixed-rate mortgages accounted for 90 percent of new US home
loans at the end of last year, according to ICE Mortgage Technology. Almost
two-fifths of all US mortgages were originated in 2020 or 2021, ICE data show,
as the low interest rates during the pandemic allowed many Americans to
refinance their home loans.
Higher interest rates also raise rental costs. Many people prefer to rent
instead of buying given median house prices have been slow to adjust. In
this context, the combination of higher rates and still-scarce housing
supply creates a vicious circle that complicates central banks’ fight
against inflation. US monthly home prices continued to rise in October
compared with a year ago, with shelter contributing to one-third of the
change of consumer prices in November.
mortgage rates will continue to adjust, and pent-up housing demand could be
unleashed. A sudden increase, as the result of rapid rate cuts, could
offset any improvements in housing supply, causing prices to rebound.
A college degree can be a major rite of passage and career stepping stone for millions of Americans. Putting one’s education to work can unlock professional rewards and a solid financial future.
However, there’s no denying that the cost of tuition can be daunting. The student loan debt balance has surged 66% over the past decade and, according to the Federal Reserve, currently totals more than $1.77 trillion (that’s trillion, not billion).
Having those payments unfurling before you can be stressful and frustrating, and the effects of student loan debt can be far-reaching. It can seem as if some of your personal, professional, and financial goals will have to wait until you can pay off what you owe. But there are ways to manage those loans and navigate this situation. After all, student debt is what you are going through, not who you are.
Here, you’ll learn more about student loan debt, how it can impact borrowers’ life decisions, and ways to minimize those effects and manage debt more effectively.
Student Loan Debt Statistics
To understand how impactful student loan debt can be, here’s some perspective. Consumer debt in the United States is measured by the Federal Reserve in five distinct categories — home, auto, credit card, student, and other debt.
Using the Federal Reserve Bank of New York data from 2023, here’s how household debt stacks up in the U.S.:
• Mortgage debt (excluding HELOCs, or home equity lines of credit): $12.14 trillion
• Student loan debt: $1.599 trillion
• Auto loan debt: $1.595 trillion
• Credit card debt: $1.079 trillion
Here’s how educational debt stacks up more specifically: In 2023, the average student loan borrower carried $37,338 in federal debt and $54,921 in private debt. 💡 Quick Tip: Enjoy no hidden fees and special member benefits when you refinance student loans with SoFi.
Impact of Student Loan Debt on Life Plans
Given the cost of student loan debt, some borrowers may delay big life decisions, such as buying a home or starting a family until they are further along in their loan repayment or have their debt totally paid off. Here are some specifics about the potential negative effects of student loan debt. Then, more happily, you’ll find tips on managing what you owe.
Homebuying
One landmark study in the Journal of Labor Economics found that a $1,000 increase in student loan debt lowered the rate of homeownership by approximately 1.8% for people in their mid-twenties who went to a public college for four years. This is equivalent to a delay of about four months in achieving homeownership per $1,000 in debt.
Indeed, as student debt has increased, homeownership among younger Americans has decreased. Experts, however, caution that this is a complex situation and not a matter of student debt meaning you can’t buy a house.
It’s true that student loans can raise a person’s debt-to-income ratio (DTI), a critical measure of creditworthiness. And it can slow an individual’s ability to save for a down payment.
That said, there are ways to get a mortgage with a student loan. By managing debt responsibly and building your credit score, you can achieve this goal. It’s also wise to look into the various mortgages available with as little as 3% down or even 0% for qualifying candidates.
Pursuing Graduate School
If you have undergraduate student loan debt, you may decide to delay or forgo enrolling in a graduate or professional degree program. Graduate school can often mean even more debt. According to the Education Data Initiative, the average graduate student loan debt is $76,620 among federal borrowers, with only 14.3% of that coming from the borrower’s undergraduate studies.
That said, an advanced degree can mean increased job opportunities. For example, the starting salary for those who majored in computer and information sciences of a recent graduating class was $86,964 with a bachelor’s degree and $105,894 with a master’s degree. And if you want to go to medical school, law school, or business school (which can lead to fulfilling and lucrative careers), you will need significant additional training. So it’s important to determine if taking out the debt is worthwhile vs. your anticipated earning potential.
Employment and Career Choices
What you’ve just read indicates some of the ways that student loan debt can impact your career plans. There are a couple of other ways that your loan balance might impact your career:
• If you have significant debt and are faced with the choice between your dream job at a lower salary and a basic job at a higher pay grade, you might opt for the one that fattens your bank account even though it doesn’t thrill you.
• Also, some companies (particularly those in the financial industry) may check your credit score as part of your job application. Student loans could build your score if you pay on time, and they could broaden your credit mix. But loans also create the opportunity to make a late payment or miss one entirely. Those are aspects of your payment history, the single largest contributor to your score. If you don’t stick to your schedule and pay what you owe every month, you could wind up with a lower score.
Marriage and Divorce
Student loans can also impact one’s personal relationships. According to a 2023 Student Loan Planner® survey, one in four borrowers said they delayed their marriage plans due to student debt. In addition, more than half of respondents (57%) said their student loans were a source of considerable stress in their marriage or relationship.
Marriage can impact your student loan payments, depending on the types of loans you have and the repayment plan you are on. If you are on an income-based repayment plan, your monthly bill might change based on how much you and your spouse earn and how you file your taxes.
Marriages and money can create complex situations that are hard to fully decode. When looking at the impact of student loan debt on divorce, it can be tricky to unravel the interplay of factors. One survey conducted a few years ago found that 13% of respondents attribute student loan debt as a cause of their divorce. Yet some couples with student loan debt were more likely to delay divorce due to their student loans and how it might impact their ability to repay their debt. So in matters of the heart and the wallet, there isn’t a clear consensus.
Recommended: How Marriage Can Affect Your Student Loan Payments
Starting a Family
According to the USDA and other government statistics, it can cost more than $330,000 to raise a child to age 18. That’s no small amount, and it’s a daunting figure for many. Those carrying a hefty amount of student debt may delay parenthood as they pay off their loans.
One landmark New York Times survey in 2018 found that among people who didn’t plan to have children at all, 13% said it was as a result of student debt. In a more recent study of those with high student debt, 35% said they were waiting to have kids due to the impact of their loans on their finances. Still others may respond to this scenario by adopting strategies to pay off student loans faster.
Saving for Retirement
One of the negative effects of debt on young adults is that their retirement savings can be impacted. A recent study conducted by Fidelity found that 84% of borrowers felt that their loans impacted their ability to save for their retirement.
A study from a few years ago bore this out: Research by the Center for Retirement Research at Boston College found that Millennials who had never borrowed student loans saved twice as much for retirement by age 30 as college graduates who have student debt.
Here’s another bit of intel that supports the fact that student debt can make it harder to save for your future. Fidelity also found that the percentage of student loan borrowers who put at least 5% of their salary into their retirement plan rose from 63% to 72% during the Covid-19 loan payment pause.
Delaying retirement savings can mean playing catch up in your later years. Typically, the earlier you start saving for retirement, the more time your money will have to benefit from compound interest.
It can seem overwhelming to start saving for retirement while you’re still paying off student loan debt, but doing both at the same time can help you meet your financial goals in the future. 💡 Quick Tip: Refinancing could be a great choice for working graduates who have higher-interest graduate PLUS loans, Direct Unsubsidized Loans, and/or private loans.
How to Manage Your Student Loans
As you’ve just read, student loans can impact many areas of your life. But you are not alone in this situation, and your loans will not be with you forever. Focus on smart solutions to help you manage your debt repayment. Consider the following strategies.
Keep Paying
Even when money is tight, it’s wise to pay on time, as much as possible. Timely payments are the single biggest contributing factor to your credit score, an important financial metric. So do your best to keep current on those monthly installments.
Make a Budget
It’s hard to effectively manage your student debt and your finances in general if you don’t know how much money you have coming in and going out. If you don’t yet have a budget or yours isn’t working well for you, commit to reviewing different budgeting methods and finding one that works.
This process of tracking your money and possibly trimming your spending could reveal ways to free up more funds to pay off your debt.
Repayment Plans
There are federal student loan repayment plans that base your monthly payment on your income or ones that give you a fixed monthly payment. Those that are based on your income may help you lower your monthly payment.
It can be worthwhile to consider your options. For fixed payments, you may have a choice between standard, graduated, and extended plans. If you focus on income-driven repayment (IDR) plans, you will likely review the SAVE Plan (which replaces REPAYE), PAYE, IBR (income-based repayment), and ICR (income-contingent repayment) plans. With IDR plans, once you satisfy a certain number of months of qualifying payments, you can be eligible for forgiveness on the remaining balance of your loan(s).
Deferment and Forbearance
If you are finding it challenging to pay your federal student loans, you may be able to take advantage of deferment or forbearance, which are both ways of pausing or lowering your payments for a specific period of time. Perhaps you haven’t yet found a job after graduation or have another situation that is impacting your ability to pay; these programs can help qualifying borrowers out.
The main difference between is that during deferment, borrowers are not required to pay the interest that accrues if they have a qualifying loan. With forbearance, however, borrowers are always responsible for paying the interest that accrues, no matter what kind of federal loans they have.
Forgiveness
Here’s another path to lessening the impact of student loans on your life: forgiveness, which means you may not have to pay back some or all of your federal student loans. For these programs, there are a variety of qualifying factors, such as whether you’re a teacher, government employee, or worker at a nonprofit. Other factors could be that you have a disability, your school closed, or you declared bankruptcy, among others. It’s worthwhile to research your eligibility because the upside could be significant.
Recommended: A Look at the Public Service Loan Forgiveness Program
Refinancing
Another possible way to reduce the impact of student debt on your life is student loan refinancing.
When you refinance your loans you take out a new loan with a private lender. Depending on your credit history and financial profile, you can qualify for a lower interest rate, which could substantially lower the amount of money you pay in interest over the life of the loan (depending on the term you select, of course). Two important notes about this:
• When you refinance federal loans with a private loan, you forfeit federal protections and benefits (such as the forbearance and forgiveness options mentioned above).
• If you refinance for an extended term, even though your monthly payment may be lower, you may pay more in interest over the life of the loan.
To see how refinancing could help you manage your student loans, take a look at an online student loan refinance calculator.
The Takeaway
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
SoFi Student Loan Refinance If you are a federal student loan borrower, you should consider all of your repayment opportunities including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. Please note that once you refinance federal student loans you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans or extended repayment plans.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Want to learn how to make $200 fast? Having some extra income can be useful for unexpected needs or saving up money. Maybe you need money for rent, something broken on your car, or a medical bill. Maybe you have something that you’re saving for, and you just want to make some extra cash. If…
Want to learn how to make $200 fast?
Having some extra income can be useful for unexpected needs or saving up money. Maybe you need money for rent, something broken on your car, or a medical bill. Maybe you have something that you’re saving for, and you just want to make some extra cash.
If you want to make $200 fast, there are many ways to do it: You could sell things you don’t need, create and sell handmade items, use your car or home to make money, and more.
There are lots of ways to make $200 fast!
My top picks to make $200 fast
Selling items from around your home, such as clothing, an old cell phone, furniture, and more. You can learn how to flip your stuff in this free webinar.
Make $65+ per hour in a focus group sharing your opinions with User Interviews.
Rent out your RV with RVShare.
Freelance proofread and learn how to become a proofreader in this free webinar.
Start a blog (this is what I do!) and learn how in my free How To Start a Blog course.
Best Ways To Make $200 Fast
Below are the best ways to make $200 quickly.
Selling items from around your home
The quickest way to make $200 fast is to find stuff you already own and sell it.
When you’re in a pinch for cash, your home can be a treasure trove of items you can sell. Start by gathering gently used items or those you no longer need, such as electronics (phones, laptops), furniture (couches, coffee tables), clothing and accessories (especially branded ones), gift cards, and collectibles and antiques.
You can sell on Craigslist (ideal for bulkier items like furniture, tires, cars, etc., where local pickup is more practical), Facebook Marketplace (great for reaching a large local audience quickly), eBay (perfect for unique or more valuable items where shipping isn’t an issue), thrift stores (get cash on the spot at places like Plato’s Closet), having yard or garage sales (typically get less per item but can get rid of a lot of things at once), and more.
I have sold a ton of used items over the years such as clothing, jewelry, car tires, furniture, and more. It is easy and someone probably wants what you’re selling.
Recommended reading: 16 Best Selling Apps For Selling Stuff Online And Locally
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This free workshop will teach you how to get into the flipping business. It will teach you how to resell furniture, electronics, appliances, and anything else you can find.
Rent out your storage space
If you’ve got extra space in your home, be it an attic, basement, or spare room, renting it out for storage is an excellent way to earn extra cash.
A site to use to rent out your space is Neighbor. This website helps you earn money by renting out space you’re not using.
You can make up to $15,000 a year by renting out your garage, driveway, basement, or even a closet with Neighbor. You get to choose the prices and decide which reservations you want to say yes to and host.
Take paid online surveys
Earning $200 a day just by answering surveys isn’t normally possible (unless you are doing focus groups or paid research studies), but you can reach your goal by combining survey earnings with other ideas.
When I was repaying my student loans, I answered lots of surveys each week. I did this before work, during lunch, or after work. It was convenient because I could do it whenever I had free time.
Survey companies pay you for answering surveys, watching videos, and testing products. Sometimes, you might even receive free products to evaluate. The best part is that joining survey companies is free!
Some of the paid online survey companies I recommend are:
Here are 11 Paid Online Survey Sites if you want to learn more.
Answer questions in a focus group
A focus group is like a paid online survey, as I mentioned before, but you can make a lot more money from it.
I’ve done a focus group in the past that paid me around $400 for 75 minutes of my time. While that’s a bit more than usual, most focus groups pay anywhere from around $50 to over $100 per hour. Compensation differs significantly depending on the study’s length and topic, but higher-paying studies do exist.
Lots of consumer research companies pay people like us to share our opinions. The companies use our feedback to make their products and services better.
One focus group company that I recommend is User Interviews. User Interviews recruits participants to answer surveys and share their feedback.
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User Interviews pays very well for market research studies and these are some of the highest paying online surveys, with each paying $50 to $100 or more. The average pays over $60.
Play games on your phone
If you’re looking to make $200 quickly, your smartphone can be a surprisingly interesting way. By playing games on your phone, you can earn real money.
Game apps pay real money rewards because they make money from ads and in-app purchases. They share a part of their earnings with you to motivate you to keep playing their games.
The best game apps that pay real money include KashKick, Swagbucks, and InboxDollars.
When picking gaming apps to make money, check reviews and learn about how you get paid. Be careful with apps that ask you to pay to play or promise rewards that sound too good to be true. Also, keep track of the time you spend playing games to make sure it stays worth it.
Rent out your unused RV
If you have an RV that’s sitting idle, you may want to turn it into income by renting it out. Many people have RVs they don’t use very often. Instead of letting it just sit there, you might make extra money by renting it out. Yes, you could potentially make $200 a day by renting your RV to others.
Popular sites such as RVshare work similarly to Airbnb, connecting you with potential renters. They handle the bookings and insurance, making the process easier.
Another idea is to park your RV somewhere and list it on Airbnb. I’ve seen many RVs, campers, trailers, and more on Airbnb available for rent. Just make sure that you can rent it out in the location you want to leave it, as not all campgrounds or neighborhoods may allow it.
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RVshare is one of the best money-making sites because it helps travelers save money by cutting out the middleman and offering RV rentals directly from RV owners. If you have an RV that is sitting around, then you may be able to make $100 to $300+ a day.
Proofread
If you like finding mistakes in written content and want to know how to make $200 a day, proofreading could be a good fit for you. It can be a part-time job or a full-time work-from-home career too.
It’s a job where you can make $200 in a day, and many proofreaders earn around $40,000 a year or even more.
Proofreaders check for mistakes in articles, ads, books, student papers, emails, transcripts, and more.
To become a proofreader, all you need is a laptop or tablet, an internet connection, and the ability to spot mistakes and errors.
I recommend signing up for the free 76-minute workshop, where you can learn more about becoming a proofreader. You can sign up for the free How To Become a Proofreader workshop here.
Recommended reading: How To Become A Proofreader And Work From Anywhere
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
Virtual assist
A virtual assistant (VA) is someone who helps a person, company, or business owner with administrative and business tasks, making sure everything runs smoothly. They’re just like in-person assistants, but they work from home and online.
I used to work as a virtual assistant for small business owners. I didn’t have prior experience, but I learned the skills while on the job. It not only helped me earn a good income but also allowed me to work from home. I also have virtual assistants who work for me, so I know how helpful they are! This is a very in-demand job field to get into.
Virtual assistant tasks may include:
Managing a company’s Facebook account
Managing a calendar
Scheduling appointments and meetings
Creating slideshows and presentations
Managing an email inbox and handling customer support
And more.
Typically, when you begin working as a virtual assistant, you might earn around $15 to $20 per hour. However, in some cases, you could start with twice or even three times that amount. It depends on the type of work you do and the services you provide.
This can be a full-time job or a side hustle too!
You can learn more at How I Earn $10,000 Per Month From Home as a Virtual Assistant.
Selling handmade goods and crafts
If you want to earn an extra $200 fast, selling the things you make by hand, like crafts or handmade goods, is a great idea.
A popular place to sell handmade goods includes Etsy, which has a worldwide audience looking to purchase unique handcrafted items. You can also sell via social media or even rent a booth at a local craft fair.
You can sell all different kinds of handmade items such as jewelry, soap, furniture, art, photography, clothing, personalized gifts (such as engraved items), and more.
I have personally bought handmade goods all of these ways.
Freelance write
A person who freelance writes can make $200 in a single day.
Freelance writers work for clients, like websites, magazines, marketing teams, book publishers, and others. They write different things such as articles, blog posts for search engine optimization (SEO), marketing content, newsletters, press releases, and more.
You can find freelance writing jobs in many ways such as by searching on Fiverr or Upwork, looking to see if any of your favorite sites are hiring writers, networking with people in the industry you want to write in, and more.
I’ve been a freelance writer for a long time, and many of my friends also have this job. It’s a great way to make $200 a day or more all from home.
You can learn more about how to find freelance writing jobs below:
Transcribe
If you’re looking to make $200 quickly, transcription could be a great option. With a fast typing speed and strong language skills, you can convert audio files to text for pay.
Transcription is when you change spoken words from audio or video into a written document. Many businesses need transcriptionists because they need to convert audio and video into text.
New transcriptionists usually make about $15 per hour when they begin, and the good thing is, you don’t need any previous experience to get started.
Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
Blog
Starting a blog doesn’t instantly make you $200 on the first day because it takes time to set it up. However, with time and effort, bloggers can make $200 a day in the future.
A blog is a website with articles, like what you’re reading now. You can create a blog on topics such as personal finance, recipes, travel, pet care, family life, and more. There are many different types of blogs out there.
You can make money from a blog by partnering with companies for sponsorships, showing ads, doing affiliate marketing (for example, selling a product listed on Amazon), and selling products like ebooks, candles, T-shirts, and more directly on your blog.
This is what I do to make money, and I earn well over $200 a day online. It did take me around 6 months to make my first $100 with my blog, so it does take time to get started. It took me about a year to reach around $5,000 a month and around 2 years to get to $10,000 a month.
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
Another idea similar to this is to start a YouTube channel, TikTok, Instagram, and more!
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Want to see how I built a $5,000,000 blog?
In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
Dog walker
Becoming a dog walker is a fun way to make some quick cash if you love pets, especially dogs. You can easily get started by signing up with well-known dog walking apps dedicated to connecting dog walkers with pet owners.
Here are some steps to help you begin:
Register on Dog Walking Apps – Platforms like Rover are great for finding dog walking jobs. You could earn around $15 to $18 per hour depending on your experience and the local demand for dog walkers.
Create a Profile – Highlight your experience with dogs and any references you might have.
Set Your Availability – Decide on the days and hours you’re available to walk dogs and set your schedule.
My sister as well as my husband’s mother are both dog walkers on Rover, and they both enjoy this side hustle.
Sell printables on Etsy
Selling printables on Etsy can be a quick way to earn some extra cash.
Printables are digital files that customers can download and print themselves. These can include things like planners, art prints, stickers, learning tools, worksheets, invites, and organizational tools.
You most definitely have used printables in your life, and so have most people. I buy printables all the time because they make my life so much easier – and it’s so nice to just print things out and have them more easily accessible for when I need them.
One great thing about selling printables is that you don’t have to print and send anything yourself. The customer pays for the design, and they print it out on their own.
Here’s how you can get started:
Step 1: Find Your Niche
Determine what kind of printables you’re passionate about. Many people specialize in a certain type of printable, such as home, wedding, organizing, education, etc.
Research what’s popular and in demand. See what kind of printables people are actually buying right now.
Step 2: Create Your Printables
Use design tools like Canva or Adobe Illustrator.
Make sure your design is original and appealing.
Step 3: Set Up Your Etsy Shop
Create a memorable and easy shop name.
Set up shop policies and fill in all the details.
Step 4: List Your Products
Take attractive product photos or create digital mockups.
Write clear and compelling product descriptions so that potential customers can find your printables.
Price your printables competitively.
Step 5: Promote Your Shop
Utilize Etsy’s built-in SEO by using relevant keywords in your listings.
Share your printables on social media platforms.
Consider Etsy Ads for additional promotion.
You can learn more at How I Make Money Selling Printables On Etsy.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
Deliver groceries and food
Grocery delivery is a service that is becoming more and more popular. I’ve used it several times myself when I didn’t have time to shop or didn’t have a car available. This service is likely to keep growing.
If you’re looking to make quick cash, you can try delivering groceries and food. You have the flexibility to create your own schedule, and payment can be received pretty quickly – sometimes even within an hour.
Delivering groceries is a popular extra job, and all you need is a valid driver’s license and a car.
You get paid for each delivery and keep all your tips. Platforms like Instacart and Shipt can help you earn around $15 to $20 per hour.
Here are a couple of options for you to start earning with food delivery:
Instacart: As an Instacart shopper, you can choose to shop for groceries or both shop and deliver to customers. Being able to cash out your earnings instantly is a big plus.
Shipt: Enjoy shopping at stores like Target and CVS? With Shipt, you can earn by shopping for others. It’s a great way to combine earning with a task you already enjoy.
Sign up to become an Instacart shopper here.
Related to this: You can also deliver restaurant meals in your spare time through companies like DoorDash and Uber Eats.
Drive for Uber or Lyft
Earning $200 quickly may seem hard, but you may be able to reach this goal by driving for ride-sharing services like Uber or Lyft.
Here’s what you need to know:
Sign Up – Both Uber and Lyft require you to have a valid driver’s license, meet age requirements, pass a background check, and have an eligible car.
Flexibility – You have the freedom to choose your working hours. Whether it’s an hour, over the weekend, or throughout the week.
Earnings – Income can vary, but it’s possible to earn between $20 to $25 per hour on average. At this rate, driving for 10 hours can help you reach your $200 target.
Maximize Promotions – Keep an eye out for special promotions or peak time surge pricing (such as by driving during weekend nights or during a baseball game) as these can really boost your earnings.
Expenses like gas and vehicle maintenance will come out of your earnings, so it’s important to work efficiently and choose high-demand times and areas to increase your income.
Tutor
Tutors who know subjects well, like math, language, science, graphic design, and more, help students get better at those subjects.
Becoming an online tutor depends on the subject you want to teach. You need experience in that area, but there are options for beginners too. Tutors for advanced subjects, like calculus or college entrance exams, usually earn more than those teaching simpler topics.
Rates vary from $15 to over $100 per hour, depending on the subject and where you offer your tutoring services.
Read more at 11 Best Places To Find Online Tutoring Jobs (Make $100+ an hour).
Sign up for quick Craigslist jobs
You can make $200 quickly using your local Craigslist, which has short-term jobs and side hustles listed under “gigs.”
Some gigs I’ve seen include painting a room, running errands, passing out flyers, handyman work, loading a moving truck, shoveling snow, pet sitting, transporting a boat, and more.
You can also find quick gig side hustles through a company called Taskrabbit as well!
Note: When using Craigslist for odd jobs, be cautious of scams. If something appears too good to be true, it probably is. For instance, no one is likely to pay you $2,000 for a mystery shop or a 30-minute survey. It’s important to stay alert and choose opportunities that are realistic and trustworthy. Simply skip it if you have doubts!
Get a roommate
If you’re looking to make $200 quickly, getting a roommate can be one way to do so, and if you have an extra room at home, you can make extra money by renting it out on platforms like Airbnb or finding a long-term roommate.
Renting out a room long-term could earn you around $200 or much more, depending on the room and its location. It’s a good way to utilize your extra space for additional income.
I have personally had several roommates in the past, and it was a good source of income. Plus, we had the extra space anyway that was unused. We charged around $400 a month per room, but nowadays you can definitely get a lot more (especially depending on where you live).
Here’s a quick step-by-step guide to finding a roommate and getting paid:
Advertise Your Space – You will need to find ways to get the word out about the spare room you want to rent out. You can do this on Craigslist, your personal Facebook page, placing a post in a local Facebook group, and more.
Vet Potential Roommates – You don’t want just anyone living with you as they will be sharing your space! Here are some ways to vet potential roommates:
Interviews: Have a conversation to make sure everyone is compatible.
References: Ask for and check personal and rental references.
Discuss Financials – This is all about money, so money definitely needs to be talked about and agreed on. You’ll want to think about things like:
Rent: Determine the monthly charge for rent.
Utilities: Decide how you’ll split costs like electricity, internet, and water. Will the monthly rent include all of the bills or will you split the utilities?
Set House Rules – Rules like quiet hours, guest policies, and cleaning responsibilities help avoid conflicts.
Create a Formal Agreement – Writing an agreement will lay everything out so that there is no confusion later.
Lease Addendum: If you have a lease, add your roommate officially.
Roommate Agreement: Outline terms of rent, bills, and house rules.
To learn more about renting out your spare room, I recommend reading A Complete Guide To Renting A Room For Extra Money.
If you want to take it a step further, you could even get into real estate investing. You can learn more about this option at How This 34 Year Old Owns 7 Rental Homes.
Rent out baby items, such as a crib
If you’re looking to make $200 fast, you can rent out your gently used baby items to traveling families. By listing a crib, stroller, or car seat on rental platforms, you can help ease the travel burdens for parents while earning extra cash.
Here are some ideas of what you can rent out:
Cribs
Strollers
Car seats
High chairs
Toys
A website called BabyQuip lets you rent out baby equipment. On average, people using BabyQuip can make about $1,000 a month, and some earn over $10,000 monthly.
Redeem credit card rewards
If you have a credit card, then there’s a good chance that you are earning points by simply spending like you normally do.
Or, you could even sign up for a new card that has a good signup bonus to earn more points.
With rewards credit cards, you can turn your points into cash back. Here’s how it works: whenever you use your credit card to buy something, you earn points as a reward for spending money.
I have rewards credit cards and I earn points every single time I shop or pay a bill, and I don’t have to do anything special. Just pay my bills and expenses like I normally do! In fact, I just signed up for a new rewards credit card with a great signup bonus today with a signup bonus value of over $800.
Two credit cards that I personally like include:
Important note: Making the most of credit card rewards is smart only if you use your credit card responsibly. It’s not a good idea to accumulate debt just to get rewards because debt with interest is neither free nor beneficial. To really earn money from credit card rewards, you will want to make sure to pay your credit card balance in full every month.
Frequently Asked Questions
Below are answers to common questions about how to make $200 quick.
How can I make a quick $200?
If you want to learn how to make $200 fast in a day, then I highly recommend finding items from around your home to sell, like clothing, jewelry, and video games. This is the easiest way to get started as you probably already own things you can sell.
How can I make an extra $200 a week?
If you want to make an extra $200 a week, I recommend freelance work, which might include writing, graphic design, or proofreading. Also, renting out things you already have, like a spare room, can be a great way to make passive income.
What items can be sold to quickly earn $200?
Look around your home for electronics, clothing, or collectibles that are in good condition but you no longer need or want. You may be able to find lots of things to sell (and have a yard sale) and/or find one or two big things to sell.
How to make $200 fast online from home?
I’ve done a lot of things on the list above to make $200 fast online from home, such as freelance writing, blogging, selling items online, taking part in a focus group, and more.
How To Make $200 Fast – Summary
I hope you enjoyed this article on how to make $200 fast in a day.
As you learned above, you can earn $200 fast by doing a lot of different things, such as by freelancing, starting a business, renting out something you already own, playing games, and more.
The key is to choose what fits your life, how much time you have, and your money needs right now.
What do you think is the best way to make $200 fast?
The Wall Street Journal reported today that Bank of America is in advanced talks to acquire ailing mortgage lender Countrywide Financial.
According to the Journal, two people familiar with the matter said it may happen very soon, but noted that it’s also possible that any agreement could be delayed or fall apart altogether.
It is believed that an announcement regarding the matter will be made either late today or tomorrow morning.
In August, many believed Bank of America was gearing up to take over Countrywide after buying $2 billion in preferred shares convertible to about a 16% stake in the company.
But since then, Countrywide shares have fallen tremendously, briefly dipping to $4.43 Wednesday, an all-time low for the struggling Calabasas-based lender.
Shares of Countrywide rocketed shortly after the report was released, climbing $3.27, or 63.87%, to $8.39 in late afternoon trading on Wall Street, while Bank of America rose marginally.
Bank of America now holds 9.88% of the country’s deposits after its acquisition of LaSalle Bank in September, just below the federal limit which prohibits a bank from controlling more than 10% of U.S. deposits.
However, the law does not apply to federally chartered thrifts, one of which happens to be Countrywide Bank.
If successful, the deal would bring together the top U.S. mortgage lender with the second largest bank in the United States.
Nearly a year ago, the two financial giants met to discuss a possible alliance when Countrywide was trading around $42.
Bank of America declined to comment, as it doesn’t respond to rumors or speculation, while Countrywide representatives failed to respond to a request for a comment.
Shares of related companies surged as well, with IndyMac up over 16%, MGIC up 12%, Fannie up more than 6%, and Washington Mutual gaining more than 11%.
In similar news, Legg Mason revealed a 9.08 percent passive stake in Thornburg Mortgage, up from 4.35 percent, according to a previous SEC filing.
Updates: The New York Stock Exchange said it has contacted Countrywide, asking the company to make a statement regarding the unusual activity of its stock.
Analysts believe regulators would likely approve the takeover because a possible bankruptcy would further disrupt the market.
Countrywide CEO Angelo Mozilo could receive $36.4 million if the company were to be taken over, according to regulatory filings and compensation experts.
The deal looks like a go…and should be announced tomorrow. Sources say it’s an all-stock deal valued at just over $4 billion.
Rumors: There are some interesting rumors floating around regarding the takeover news.
Some say that the deal was facilitated by Washington, who couldn’t possibly let the top lender fail. Apparently the Countrywide bankruptcy rumors may have been true.
Others say there was another interested buyer, but Bank of America has the right of first refusal.
Regulatory, Compliance, RIA, Accounting, AI Products; CFPB Penalty News; Credit/FICO and Investor Updates
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Regulatory, Compliance, RIA, Accounting, AI Products; CFPB Penalty News; Credit/FICO and Investor Updates
By: Rob Chrisman
Wed, Jan 10 2024, 10:51 AM
I’m so tired of the mainstream press talking about the 2024 election, 10 months out. Given that the median age of U.S. citizens is about 38 years, one would think we could find someone under the age of 75 to be president, regardless of party affiliation. On the other end of the age spectrum, at age 34, Gabriel Attal became France’s youngest prime minister. France’s inflation rate is running at 3.7 percent, which I mention because inflation and the actions of central banks are linked, and the inflation rate and the CFPB are linked. (Whenever I mention the CFPB to my cat Myrtle she feigns indifference. Sometimes she even saunters away.) The CFPB announced the annual adjustments for inflation to the CFPB’s civil penalty amounts, as required by the Federal Civil Penalties Inflation Adjustment Act, as amended. This final rule is effective on January 15, 2024. Tomorrow we will have the Consumer Price Index, meant to broadly capture changes in the prices of goods and services; more tomorrow! (Today’s podcast can be found here, and this week’s is sponsored by Truework. By connecting every verification method into one platform, Truework helps lenders eliminate process disruptions, maintain a competitive borrower experience, and reduce the fiscal impact of verifying income.)
Lender and Broker Services and Software
Jonathan Spinetto COO & Co-founder at Nyfty Door, grew their business from 0 loan originations two years ago when he signed with TRUV, and is projected to hit 3,000 loans a month in 2024. NYFTY door sees conversion rates over 60 percent with Truv and is saving 60-80 percent over competitors! Contact TRUV today for your income, employment, insurance, and asset verifications.
How will you reach your goals in 2024? To lower costs and improve your margins on every loan, outsource to Computershare Loan Services (CLS). With CLS, you get an extension of your team that can support every part of your business, from your originations’ operation to your MSR retain/release strategy. Leverage their 20 years of experience and expertise to reduce costs, improve efficiencies, and mitigate risk. In this industry, you deserve a partner that has it all. Contact CLS to find out how they can help you reach your goals… in any market.
Production Managers are you starting 2024 off with the question, “How can I get all my originators working more like my top producers?” Then, you’re looking for the holy grail: habit duplication. Usherpa has been researching habits of highly successful loan officers for nearly 30 years, helping literally thousands of LOs increase production using habit duplication… through every conceivable market condition! How? Using data analytics (and lengthy history in the industry), Usherpa identified the most powerful habits of successful producers. Leveraging those trends coupled with Usherpa’s technology and commitment to customized training, you can ensure your team is primed to operate like the big hitters. Make your life a little bit easier and give your LOs the tools to duplicate top producers’ habits, learn how here. While you’re at it download the Usherpa eGuide “3 Habits of Top Producing Loan Officers (You Can Duplicate).”
Valuation professionals are tasked with being independent, impartial, and objective. But completely removing human involvement in the home valuation process is nearly impossible. Thanks to the increased use of artificial intelligence (AI), however, today’s technology can help lenders and investors assess property values more accurately and prevent valuation bias. Sign up for a complimentary webinar hosted by ICE to hear about AI and the future of home valuations. A panel of industry experts will discuss the ways AI-powered tools eliminate valuation bias. They’ll also cover how AI accelerates the valuation process, and ways you can look out for fraud when using AI in home appraisals. The webinar, Artificial Intelligence and the Future of Home Valuations, will be held on Tuesday, Jan. 23 from 2 -3 p.m. Don’t miss out on key insights: register here.
Don’t just “stay alive until 25” with Loan Vision, a software built by the mortgage industry for the mortgage industry, you can “do more in 24!” Customers on Loan Vision see improvements of 30 percent+ decrease in days to close the books, 20 percent+ reduction in accounting headcount, complete LOS to G/L automation, and improved reporting and visibility. Interested in learning how Loan Vision can help you run a more efficient and profitable company? Contact Carl Wooloff to schedule a call today.
Halcyon has introduced a pioneering RIA Services integration with Encompass Partner Connect, aiming to diversify lender revenue amidst a challenging market. With the decline of refinancing opportunities and high interest rates, Halcyon’s initiative focuses on enhancing borrower-lender relationships through its new RIA Offering. This service enables loan officers to identify factors influencing home purchases during customer interactions, facilitating seamless referrals to RIAs for financial advice directly within Encompass. If a borrower signs up for services, a revenue share is provided back to the lender. Halcyon’s advanced technology ensures all tracking, compliance, and details are handled efficiently for the lender. As buying a home is often the largest investment in one’s life, early financial advice can be crucial for ensuring a stable financial future for new homeowners. You can read the full press release here. Want to learn more about the only Registered Investment Advisory solution on Encompass? Reach out today!
Compliance and Regulatory Tracking Products
Best Practices for Out-of-State Mortgage Lending from Ncontracts! As a mortgage lender, you’re already familiar with the Truth in Lending Act (TILA), the Home Mortgage Disclosure Act (HDMA), and the Equal Opportunity Credit Act (ECOA). However, mortgage lending is regulated by state laws as well, and that’s where things get complicated. In this latest article, experts from Ncontracts address the potential regulatory pitfalls mortgage lenders encounter when they grow their business in other states, plus ways to overcome them. Read the full article for more.
“Looking for an overview of all the significant legislation and regulations affecting lenders and servicers in 2023 and a preview of what’s to come in 2024? Download the annual regulatory and legislative update from Covius Compliance Solutions. Our latest report looks at what’s new in loss mitigation requirements, the CFPB’s crusade against junk fees, fair lending and servicing initiatives and growing scrutiny of AI and Chatbot usage. The report, titled “Navigating the Mortgage Industry Landscape: 2023 Review & 2024 Outlook,” also provides an analysis of major state lending and debt collection legislation and proposals. Get your copy today.
Credit and Investor News
In a combination of credit and lender news, CrossCountry Mortgage (CCM) has become an early adopter of FICO® Score 10 T, the most predictive score, to support origination and decision making for non-confirming loans. “Additionally, CCM is the first mortgage lender to commit to issuing mortgage-backed securities (MBS), exclusively based on FICO Score 10 T, enabling investors to update their guidelines to accept the most predictive score for MBS and allowing the $12 trillion MBS global market to have access to more powerful insights and information… This move will enable investors to update their guidelines to accept the most predictive score for MBS and allow the $12 trillion MBS global market to have access to more powerful insights and information. This commitment will be the first step for investors to familiarize themselves with the new score and realize the promised performance improvement. This first ever instance of FICO Score 10 T applied to an MBS pool will show investors, rating agencies, and other stakeholders a real-world example of the improved predictive performance offered by FICO Score 10 T.” “FICO is committed to assisting mortgage industry participants looking to transition to its most current model, FICO® Score 10 T. The FICO Score Migration Resource Center provides a detailed guide to support organizations through their score transition with key planning steps and activities, in addition to implementation best practices.”
Effective immediately, Pennymac is aligning with FHA ML 2023-17 supporting the use of rental income for single-family properties with an Accessory Dwelling Unit (ADU). For information, view PennyMac Announcement 23-88.
FHA and VA Increased Loan Limits for 2024 are addressed in PennyMac Announcement 23-87.
HighTechLending Wholesale introduced its new Jumbo Proprietary Reverse Product, the Platinum Reverse, available in three variations: Maximum LTV Fixed Rate, Adjustable Rate with a Line of Credit, and Reduced LTV with a lower Fixed Rate.
Plaza gives you the renovation programs your borrowers need to transform their current or future home to be “remote-ready” for work, school or anything life brings. Borrowers can combine the purchase or refinance of their home with the cost of its renovation, all in a single closing. Plaza offers the popular Fannie Mae® HomeStyle®, Freddie Mac CHOICERenovation® USDA Renovation and VA Renovation programs, as well as FHA 203(k) Standard and Limited.
The Federal Housing Administration announced that it will increase the maximum claim amount for their Reverse Mortgage Program (Home Equity Conversion Mortgage) in calendar year 2024 from $1,089,300 to $1,149,825 effective for case numbers assigned on or after January 1, 2024. Contact HighTech Lending to discuss HECM opportunities.
In November, VA published Transmittal of Change 38 to VA Pamphlet 26-7, Revised, VA Lender’s Handbook (07/27/2023) announcing revisions to VA Lenders Handbook Chapter 7 Topic 7, on Temporary Buydowns. For additional information, see AmeriHome Mortgage Product Announcement 20231208-CL.
Angel Oak’s DSCR Loan (Investor Cash Flow) program has been enhanced to accommodate an impressive 85 percent Loan-to-Value (LTV).
The Second+, Hometown Equity Mortgage’s standalone second boasts an impressive CLTV to 90 percent.
Capital Markets
Even with this week’s mini-Refunding, it’s been a bit of a snoozer in the capital markets. Typically, mortgage and Treasury security pricing is a direct result of supply and demand, although Treasuries and MBS saw some brief buying yesterday in reaction to the day’s strong $52 billion 3-year note auction and the market inched down in price ahead of the close. The November trade balance was better than expected, showing a deficit of $63.2 billion versus a downwardly revised $64.5 billion in October. Exports were $4.8 billion less than October exports while imports were $6.1 billion less than October imports. The drop in both exports and imports fits in with a weakening global economic environment. Separately, the NFIB Small Business Optimism Index rose to 91.9 in December from 90.6 in November.
Today’s economic calendar kicked off with mortgage applications increasing 9.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending January 5, 2024. The results include an adjustment to account for the New Year’s holiday. Later today brings Wholesale inventories and sales for November, more Treasury auctions that will be headlined by $37 billion of reopened 10-year notes, and remarks from New York Fed President Williams. We begin the day with Agency MBS prices roughly unchanged from Tuesday night, the 10-year yielding 4.00 after closing yesterday at 4.02 percent, and the 2-year at 4.34.
LO Jobs
“Embarking on a new professional journey shouldn’t mean pressing pause on your success. At Homestead Funding, we support seamless transitions for our newest team members while safeguarding your uninterrupted business growth. Our dedicated Onboarding Team provides you with program knowledge, marketing materials, and essential tools, paving the way for your accomplishments. As we approach our upcoming Sales Summit this Spring, our Loan Originators will have the chance to delve into the latest industry technology and strategies presented by leading mortgage experts. Discover how Homestead facilitated a smooth transition for Carrie Hamel and her team. Within just a year, Carrie achieved top-producer status, earning a coveted spot in our 2023 President’s Club. Ready to propel your business forward with us? Contact Michele Teague at (518)-368-1494 to explore how Homestead Funding can be your mechanism for success!”
“Okay, here’s what I came up with…New Year, New Career at PrimeLending. Now is the perfect time to take charge and position yourself to thrive in 2024 and beyond. Contact us today to set up a guided tour of our best-in-class tech stack that’s helping our LOs build their personal brand and close more loans. Schedule a time to meet with PrimeLending’s dynamic, engaged leaders, the driving force behind your future success. Get to know the camaraderie and passion that define our award-winning culture, one reason over 30 percent of our workforce has called PrimeLending home for more than a decade. Seize this moment and explore making the change that will propel your career to the next level. Your future awaits, and it all starts by connecting with Nic Hartke. The time is now!”
Fairway Independent Mortgage is hosting a Virtual Fairway Day on Thursday, January 18, at 2PM CT. “Want to know what makes Fairway the best mortgage company to work for? Now’s your chance! Join us and learn everything you need to know about Fairway’s products, platforms, training and coaching directly from Fairway CEO, Steve Jacobson, President of Retail Sales East, David Lazowski and other executives.”
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