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As the old saying goes, “In real estate, location is everything.”
You may not know much about REITs, but you might want to consider one of them as a career. They’re great for people who like real estate, enjoy making money, and need consistent work hours.
Real estate investment trusts (REITs) are companies that were formed to make it easier for individuals to invest in real estate.
Want to know what the top paying jobs in Real Estate Investment Trusts are in 2022?
Well, take a look at this list of 25 best paying jobs for real estate investment trusts and see if you can find one that sounds perfect for you. In addition, each job features information about how much each job pays, what you can expect on the job, any job training needed, and other fun facts!
If you are looking for your next career, this article will give you plenty to think about as well as potential opportunities that may be available to you.
What are real estate investment trusts?
Real estate investment trusts, or REITs, have become an increasingly popular way for investors to get involved in the real estate market. REITs allow people to invest in large-scale real estate projects without having to purchase and manage the properties themselves.
In addition, REITs offer shareholders a wide range of benefits, making them a great choice for those looking to invest in this growing market.
How do real estate investment trusts work?
A REIT is a type of company that owns and operates various types of real estate, and because they are exempt from corporation tax on profits generated through rental income and the sale of rental properties; They are a very attractive option for high-earners.
They pile investors’ money together and invest in various commercial real estate, which increases returns over time. In addition, REITs are generally owned by the general public, and they invest in real estate assets.
Lastly, they make a profit through investments or leasing; a return on investment is typically received as a dividend. Real estate investment trusts are similar to mutual funds in that they hold investments, distribute dividends, and pay taxes.
Is a real estate investment career good?
Real estate investment companies are a great place to start a career in real estate.
Real estate investment trusts (REITs) are one of the most productive industries today. They provide steady and consistent growth, as well as good job opportunities with high salaries. Careers in real estate that can lead to better-paying jobs include appraisers and investment bankers.
Best paying jobs in real estate investment trusts
The market for REITs has grown rapidly in recent years, with the total value of REITs reaching almost $3.5 trillion by the end of 2021 (source).
There are many different jobs in the real estate investment trust industry that come with a variety of salaries. The best paying jobs are reserved for the C-level executives:
Chief Executive Officer: The CEO is the highest-ranking executive officer in a company and is responsible for making major decisions that affect the business. CEOs in the REIT industry earn an average salary of $468,000 per year.
Chief Financial Officer: The CFO is responsible for financial planning and reporting, as well as managing relationships with banks and other lenders. CFOs in the REIT industry earn an average salary of $341,000 per year.
Chief Operating Officer: The COO is responsible for overseeing all day-to-day operations of a company. COOs in the REIT industry earn an average salary of $325,000 per year.
Followed by the attorney, which is one of the highest-paying professionals in real estate investment trusts.
Now, we are going to list the most lucrative jobs in REITs. Then, you can decide… is real estate investment trusts a good career path for me.
The higher paid jobs will come with more education needed and years of experience.
1. Real Estate Attorney Jobs
Real estate attorneys are in high demand for their knowledge of transactional law and contractual issues. They work on a variety of deals involving the purchase, sale, or leasing of real estate. As such, they provide critical legal support to the real estate investment trust (REIT) industry.
Real estate attorneys license in their state to practice law. They can prepare contracts, advise clients on purchases and investments, review documents, represent mortgage lenders at closing, or simply provide legal counsel without the requirement of an attorney’s license.
Consequently, real estate attorney jobs are an excellent opportunity for those looking to work in the REIT industry.
Real Estate Attorney: well over 6 figures (average)
2. Real Estate Developer
Real estate developers are typically involved in the design, construction, and marketing of properties. They are also involved in land assembly and subdivision, zoning regulation, and the establishment of building codes.
Builders are involved in all aspects of the development process, from acquiring land to constructing buildings. Promoters are responsible for finding investors and marketing completed projects. In both cases, real estate developers may work either on their own or with a team of partners.
A developer obtains land and constructs assets for sale, while also selling them off when they become old enough to be sold again.
Real Estate Developer Salary: over 6 figures (average)
3. Director of Real Estate and Facilities
The Director of Real Estate and Facilities is responsible for a variety of tasks within the department. These tasks include, but are not limited to, the following:
Acquiring new properties
Negotiating leases
Overseeing property management
Maintaining the company’s physical infrastructure
Developing and implementing strategic plans
A director of real estate and facilities is a key role in any company that deals with real estate investment trusts (REITs). Therefore, this position often leads to advancement opportunities, making it an excellent career choice for those interested in this growing field.
Director of Real Estate and Facilities Salary: $130,000 a year (average)
4. Director of Acquisition
Directors of acquisitions in real estate investment trusts are responsible for finding new properties to invest in for the company.
Typically, they work with their analysts to conduct due diligence on potential investments and analyze the risks and rewards involved in order to provide a recommendation to their superiors.
The acquisition team is responsible for finding investment opportunities for the company, which can be traditional real estate assets or creative ideas that can become a business. They are constantly on the lookout for new and innovative opportunities that can help bolster the company’s growth.
Director of Acquisition Salary: $125,000 a year (average)
5. Real Estate Agent
As a licensed real estate agent, you would help clients buy, sell, and rent properties. In order to become a real estate agent, you must pass an exam that covers topics such as contracts, ethics, and state laws. You would be responsible for understanding the real estate market and helping your clients make informed decisions about their property transactions.
In the case of REITs, you must be a commercial real estate agent who are in charge of dealing with important financial data. They need to know about the internal rates of return, gross rent multipliers, and capitalization rates in order to do their job effectively. In order to become a commercial real estate agent, you will need some background in business and finance. This knowledge will help you understand your client’s needs and better serve them.
Unlike most professions, the more business deals you close as a real estate agent, the better your pay is. Furthermore, many agents work on commission-based pay, so it’s important to be knowledgeable about the market and have a strong sales skill set.
Agents who are successful can make much more than this amount; however, those who are just starting out may make less until they gain experience and build a client base.
Real Estate Agent Yearly Commission: $100,000 a year (average)
6. Investor Relations Manager
An Investor Relations Manager is responsible for managing the relationship between a company and its investors. They must be able to quickly understand complex financial information and communicate it in a clear and concise way. Additionally, they are responsible for communicating the company’s financial performance and strategy to investors.
They are also responsible for updating quarterly reports on the investor’s online dashboard. This can be a high-stress job because you must keep your investors happy especially during a market downtrend.
Investor Relations Manager Salary: $100,000 a year (average)
7. Project Manager
Project managers are responsible for ensuring that a project is completed on time and within budget.
They work in teams to make sure that all aspects of the project are completed. Thus, they must have strong organizational skills. They also typically have experience in leading and coordinating teams.
This is a highly lucrative job for those building new assets for a REIT. The highest-paid 10 percent earned more than $187,000, while the lowest-paid 10 percent earned less than $59,000.
Project Manager Salary: $90,000 a year (average)
8. Accounting Manager
They do this by preparing financial statements, maintaining accounting records, and overseeing the work of accountants and bookkeepers. In order to qualify for this position, you will need at least a bachelor’s degree in accounting or a related field, as well as several years of experience in accounting or bookkeeping.
However, with experience and expertise in the field, it is possible to earn much more than that. Those who work for real estate investment trusts (REITs) can expect to make even more money.
Accounting Manager Salary: $90,000 a year (average)
9. Asset Managers
Asset Management is a process that oversees the operational and financial work of a portfolio of assets. This includes tasks such as budgeting, forecasting, reporting, and analyzing data to make sure the asset is performing well.
As they are responsible for managing the portfolio assets in the real estate investment trust (REIT), they must expect a higher stress job. In addition, their job entails working with other departments in the company, such as accounting, acquisitions, development, and finance.
Asset Managers Salary: $89,000 a year (average)
10. Construction Supervisor
A construction supervisor oversees all aspects of a construction project, ensuring that it is completed on time, within budget, and to the required standard. This position requires a great deal of experience and knowledge in the field, as well as strong leadership skills.
They make sure that everything runs smoothly! Speficially, all the necessary equipment, materials, and supplies are ordered and on-site when they are needed. They also check the quality of the work as it is being done; making sure projects are constructed in accordance with contract documents, standards, codes, and policy.
In order to become a construction supervisor, you need only a high school diploma or GED. However, five years of experience in yard operations or equivalent education and experience is preferred.
Construction Supervisor Salary: $89,000 a year (average)
11. Investment Due Diligence Analyst
An investment due diligence analyst is responsible for conducting an extensive analysis of potential investments for a real estate investment trust. They work with the team to identify opportunities, underwrite deals, and make recommendations. The role is essential in helping the team make sound investment decisions that will benefit the company in the long run.
This job is a key player in the real estate investment trust (REIT) industry.
To be successful in this role, you’ll need experience with REITs or a national brokerage, as well as excellent quantitative skills including the ability to build real estate valuation models and distribution waterfalls.
Investment Due Diligence Analyst Salary: $80,000 a year (average)
12. Financial Analyst
The most common role of a financial analyst is assessing a company’s current and future financial health, which may include issuing stock recommendations, forecasting earnings, and providing risk analysis. Financial analysts may also work with investment bankers to identify new investment opportunities.
However, salaries can vary significantly depending on the size of the company, the city in which you work, and your level of experience.
Financial Analyst Salary: $80,000 a year (average)
13. Business Acquisition Analyst
An acquisitions analyst is responsible for reviewing potential investments and determining the risks and rewards associated with commercial property.
The analysis will include both macro-level information, such as the political and economic environment, as well as more fine-tuned data that is specific to the investment itself.
Many in this role have found a business degree to be well worth the cost.
Director of Acquisition Salary: $78,000 a year (average)
14. Commercial Property Manager
Property management is a growing field, as the demand for individuals who can manage both residential and commercial properties increases. The goal of property managers is to ensure assets are kept in good condition and are appealing to owners and tenants alike.
Real estate investment managers have a very important job, as they are responsible for meeting the needs of property owners, tenants, and investors.
Primarily, they oversee maintenance and repairs, collect rent, screen tenants and enforce lease agreements. They also may negotiate leases, recommend improvements to the property, and coordinate with contractors.
Commercial Property Manager Salary: $75,000 a year (average)
15. Real Estate Photography
Real Estate photography is a specialized field within the photography industry. As such, many photographers start their own businesses in this area.
In order to be successful, it’s important to have strong marketing and business skills. Your portfolio should showcase your best work and be tailored to the types of properties you will be photographing. Additionally, you may choose to offer additional services such as virtual tours or video production.
A real estate photographer would work closely with the marketing team.
Real Estate Photographer: $70,000 a year (average)
16. Marketing Coordinator
Marketing coordinators are responsible for developing and executing marketing campaigns.
They work with the advertising department to come up with ideas. Then, working with the rest of the company to make sure that those campaigns are executed properly. They create all marketing materials, track campaign results, liaise with outside vendors, and organize events.
Given the regulations around REITs, it is highly important that the marketing communications follow the investment directives from the SEC.
Marketing Coordinator Salary: $67,000 a year (average)
17. Maintenance Supervisor
A maintenance Supervisor is a position that requires managing and overseeing the work of others. Thus, ensuring work is completed in a timely, efficient and safe manner.
They are responsible for making sure all company policies and procedures are followed, as well as any legal requirements or safety regulations. Additionally, they manage budgets and expenses, as well as staff.
The ideal candidate will have experience in the property management or construction industries, as well as supervisory experience. A degree in engineering, architecture, or a related field may be beneficial.
Maintenance Supervisor Salary: $65,000 a year (average)
18. Property Appraiser
Appraisers are typically called in when there is a need to settle a dispute about the value of a piece of property, or when someone is buying or selling a home and needs to know how much it is worth.
Most states require that you be licensed in order to practice as an appraiser. The job outlook for appraisers is good; the Bureau of Labor Statistics predicts that employment will grow by 4% from 2020-2030 (source).
Property Appraiser Salary: $60,000 a year (average)
19. Leasing Consultants
Leasing consultants are responsible for meeting and greeting clients, touring potential tenants through a property, and helping them decide whether or not to lease it. They must be knowledgeable about the property they are showing, as well as about the local rental market.
Consequential, this is a good job for someone who is able to close deals, so being persuasive is important.
They should also be outgoing and comfortable working with people from all walks of life. A high level of professionalism is essential, as is attention to detail. Leasing consultants typically earn commissions based on the number of leases they sign, making this a commission-based job.
Leasing Consultant Salary: $50,000 a year (average)
20. Commerical Real Estate Intern
Commercial real estate internships are a great way to get started in the commercial real estate industry. Many internships will give you the opportunity to work with the CEO/COO and learn about all aspects of the business.
In most internships, you will gain vast knowledge while working with every department within the company.
Consequently, interns often have the chance to work with different teams and learn about all aspects of commercial real estate. This is a great way to gain experience in the field. Plus you will get a well-rounded working experience and the opportunity to build your network.
You must be a college student who is detail-oriented, self-starter, creative and strategic thinker in order to be considered for any real estate internship.
Commercial Real Estate Intern Salary: unpaid to $20 an hour
(Source for All Salary Information: Glassdoor.com)
Bonus = Real Estate Investors
Real estate investors use a variety of strategies to make money in the real estate market. Some invest a minimal amount of money, while others take on high-risk ventures.
In order to be successful, investors must be well-versed in real estate investment strategy and have extensive knowledge of the market.
This is why REITs are so popular with most investors. It allows a hands-off approach to real estate investing. Yet, still profit in the real estate appreciation and rental income.
Real Estate Investors Salary: varies on the amount of money invested but most want at least a 6-10% return
What real estate investment jobs are entry level?
Real estate investment is one of the best paying jobs in the world. The job offers a lot of opportunities for growth and allows you to work with different types of people.
It also has a relatively low barrier to entry, making it a great option for those who are starting their careers.
Most people in real estate started at the bottom and worked their way up the corporate ladder with hard work and persistence.
What are the minimum requirements for entry level real estate jobs?
The industry is growing rapidly and there are many different opportunities for those looking to enter the field. However, it’s important to note that entry-level jobs in this field come with specific skill sets and education requirements.
Most require at least a college degree if not at least 5 years of hands-on experience. One of the best places to start without any qualifications and education is as a leasing consultant
If you want to progress quickly in your career in real estate, consider taking a chance on one of the best paying jobs in REITs listed here. In fact, there are many jobs available in real estate investment trusts.
REITs – Which real estate investing job looks appealing to you?
The REIT industry is constantly growing, and with that comes new opportunities for a lucrative career path.
Many of the roles in a REIT are highly challenging, pay well, and are respected by investors. Many people work together as a team to build new projects, manage existing projects as well as work to finance them.
There are plenty of benefits of spending time researching this industry and finding the job for you.
In fact, it is an exciting and rewarding career!
Know someone else that needs this, too? Then, please share!!
When you set out to get a mortgage, you’ll find many options, from well-known banks to online lenders. Here are Bankrate’s picks for the best mortgage lenders, including borrower requirements — so you know which you might qualify for — and loan terms, so you can figure where you might get the best deal.
Best mortgage lenders
PNC Bank
PNC Bank mortgage review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA, USDA
Credit requirements
620 for conventional, jumbo and FHA loans; 640 for USDA loans
Down payment minimum
3% for conventional loans; 3.5% for FHA loans
Where to find
Branch locations and online
Cardinal Financial
Cardinal Financial mortgage review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA, USDA
Credit requirements
580 for conventional and USDA loans; 550 for FHA and VA loans
Down payment minimum
3% for conventional loans; 10% for jumbo loans; 3.5% for FHA loans; none for VA and USDA loans
Where to find
Branch locations and online
NBKC Bank
NBKC Bank mortgage review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA
Credit requirements
620 for conventional, FHA and VA loans; 680 for jumbo loans
Down payment minimum
3% for conventional loans
Where to find
Branch locations (limited) and online
U.S. Bank
U.S. Bank mortgage review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA, USDA
Credit requirements
620 for conventional loans; 740 for jumbo loans
Down payment minimum
3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans
Where to find
Branch locations and online
Valley Bank
Valley Bank mortgage review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA, USDA
Credit requirements
Undisclosed
Down payment minimum
3%-5% for conventional loans
Where to find
Branch locations (limited) and online
Veterans United Home Loans
Veterans United Home Loans review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA, USDA
Credit requirements
620 for conventional and VA loans
Down payment minimum
3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans
Where to find
Branch locations and online
Summary: Best mortgage lenders of May 2023
Lender
Credit requirements
Down payment minimum
Bankrate review
PNC Bank
620 for conventional, jumbo and FHA loans; 640 for USDA loans
3% for conventional loans; 3.5% for FHA loans
PNC Bank mortgage review
Cardinal Financial
580 for conventional and USDA loans; 550 for FHA and VA loans
3% for conventional loans; 10% for jumbo loans; 3.5% for FHA loans; none for VA and USDA loans
Cardinal Financial mortgage review
NBKC Bank
620 for conventional, FHA and VA loans; 680 for jumbo loans
3% for conventional loans
NBKC Bank mortgage review
U.S. Bank
620 for conventional loans; 740 for jumbo loans
3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans
U.S. Bank mortgage review
Valley Bank
Undisclosed
3%-5% for conventional loans
Valley Bank mortgage review
Veterans United Home Loans
620 for conventional and VA loans
3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans
Veterans United Home Loans review
How to compare mortgage lenders
Your first step to finding the best mortgage lender is to comparison shop. Borrowers who do more upfront research tend to save more money than those who go with the first lender they find. It’s best to get quotes from three lenders, at minimum. Because rates fluctuate frequently, it’s best to get these quotes on the same day so you have an accurate basis of comparison.
As you compare loan estimates, look at the APR (annual percentage rate) and interest rate quoted by each lender. Consider what’s important to you as far as experience, too. For some, how fast a lender can turn around a preapproval letter or close a loan is critical. If you have specific needs or financing preferences — for example, you want an FHA loan — you might also want focus on the top mortgage lenders who specialize in those products.
Once you determine what your needs and preferences are, get started by comparing mortgage rates and finding a lender in your area through Bankrate.
Current mortgage rates
Bankrate regularly publishes mortgage rates for purchases and refinances, based on its latest lender surveys. They include:
FAQ about mortgages
There are five main types of mortgage loans: conventional loans; jumbo loans; government-insured loans (FHA, VA and USDA loans); and fixed- and adjustable-rate mortgages. Conventional loans, offered by private financial institutions, are ideal for borrowers with strong credit scores. Jumbo loans are for higher-priced homes that exceed Federal Housing Finance Agency borrowing limits. FHA, VA and USDA loans are backed by the government and designed for borrowers with lower credit scores and low or no down payment, or military members (VA loans) or those buying in a rural area (USDA loans). Fixed-rate mortgages have the same interest rate for the life of the loan, while the rate on an adjustable-rate mortgage (ARM) can fluctuate.
Before applying for a mortgage, it’s important to bolster your credit score and savings and have a clear understanding of how much you can afford and what type of loan would best fit your needs. In addition, gather documentation about your finances so you’re prepared to complete a mortgage application when the time comes. Once you’ve taken these initial steps, begin comparing mortgage lenders based on factors such as annual percentage rate (APR), fees and your overall experience. It’s best to get rate quotes from at least three different lenders. When you know which lender you want to work with, get preapproved so you can start house-hunting with financing in hand.
The minimum down payment requirement varies based on loan type. If you qualify, you can obtain a 3 percent-down conventional loan, a 3.5 percent-down FHA loan or a no-down payment VA or USDA loan. If you want to avoid paying mortgage insurance, however, you’ll need to make a down payment of 20 percent.
Methodology
To determine the best mortgage lenders, Bankrate evaluates more than 85 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Based on this methodology, the best mortgage lenders generally have a Bankrate Score of 4.9 stars or higher. Note: The Bankrate Score considers a mortgage lender’s products and services only; it is not a reflection of a lender’s internal operations or practices.
More staggering figures from the Federal Housing Finance Agency, which oversees government mortgage financiers Fannie Mae and Freddie Mac.
The pair, which went into conservatorship back in September 2008, could cost American taxpayers up to $363 billion. Yes, billion.
Less severe scenarios put the numbers somewhere between $221 billion and $238 billion, but if dividend payments on Treasury preferred stock were excluded, the cost would fall to between $142 billion and $259 billion, at worst.
“These projections are intended to give policymakers and the public useful snapshots of potential outcomes for the taxpayer support of Fannie Mae and Freddie Mac,” said FHFA Acting Director Edward J. DeMarco, in a statement.
“These are not predictions; the results reflect the potential effects of a limited set of hypothetical changes in house prices, a key variable driving credit losses for the Enterprises.”
To date, the pair have drawn $148 billion from the U.S. Treasury – these new figures are the projected cumulative Treasury draw through December 31, 2013.
Back when Fannie and Freddie were public companies, they were slammed for taking on unnecessary risk to stay competitive, a strategy that eventually led to their demise.
They dealt in stated income loans, no-doc loans, and other Alt-A loan programs that led to billions in losses.
And Countrywide was reportedly Fannie’s biggest customer, with the mortgage lender accounting for nearly 20 percent of all loans purchased by the mortgage financier in 2008.
Both companies were delisted from the NYSE back in July and began trading on the OTC bulletin board.
Shares of Fannie Mae were up 2.36% to 39 cents, while Freddie Mac was up 1.78% to 40 cents in afternoon trading on Wall Street.
The pair purchase mortgages from banks and lenders on the secondary market, and hold some in their own portfolios while securitizing others.
Many people hit a period of financial hardship at some point in their lives. Maybe there’s a medical emergency and big bills, a job layoff, or a family member in serious need: These and other scenarios can put your money management in a precarious position.
Approximately 70% of Americans report feeling stressed about money, according to a CNBC/Momentive survey. This can be centered on anything from living paycheck to paycheck to worrying about saving for one’s (and one’s family’s) future.
Here, you’ll learn more about what happens when financial hardship hits and how to take steps to improve the situation, from applying for assistance to negotiating with lenders to discovering new sources of income.
What is Financial Hardship?
Everyone probably has their own definition of “economic hardship” that’s based on their own needs and wants. And the federal government has its own criteria for what counts as a “hardship” when it comes to taking an IRA distribution, looking for tax relief, or requesting a student loan deferment.
But generally, a financial hardship is when an individual or family finds they can no longer keep up with their bills or pay for the basic things they need to get by, such as food, shelter, clothing and medical care.
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Warning Signs
Sometimes financial difficulties can sneak up on a person, and catch them completely off guard. And sometimes, the warning signs have been there for a while, but were missed or ignored.
Identifying the root cause of financial distress can help give you a head start on working through your money issues. Here are some red flags that might signal a person is headed for financial distress:
Having Credit Card Balances At or Above the Credit Limit
While using credit cards may seem like a good way to get around a short-term lack of funds, the practice could lead to extra fees and a lower credit score. The percentage of available credit someone is using — known as a credit utilization ratio — can indicate to lenders how heavily they’re depending on credit cards to get by. And because it’s one of the major factors in determining a person’s overall FICO score (a credit score lenders use to determine whether to extend credit to a borrower), financial advisors typically recommend keeping card balances at or below 30% of the limit.
Juggling Which Bills Get Paid Each Month
It may be tempting to skip a payment from time to time, hoping to catch up eventually — but there can be short- and long-term consequences for juggling bills. Insurance coverage may be lost. There may be a late fee, or a bill could be turned over to a collection agency.
Utilities can also be shut off, and a deposit might be required to restart the account. Making late payments on a credit card could lead to a higher interest rate on the account. And late payments and defaults can hurt credit scores.
Only Making Minimum Payments on Their Credit Cards
It may be necessary to make minimum payments if times are especially tight, and there likely won’t be any short-term harm. But even if the cardholder stops making purchases, just the interest charged will keep the account balance growing, possibly extending the amount of time it takes to pay down that debt by months or years.
Often Paying Late Fees or Overdraft Fees
A one-time mistake may serve as an annoying reminder to be more cautious with money management, but if late fees, overdraft and non-sufficient funds fees, and overdraft protection transfers become a regular thing, they can add another layer of worry to a person’s financial burden. (Using alerts, automatic payments, and apps from your financial institution may offer a more effective method to track bills as well as deposits and withdrawals.)
Having a High Debt-to-Income Ratio
Lenders often use a person’s debt-to-income ratio — a personal finance measure that compares the amount of debt you have to your income—to determine if a borrower might have trouble making payments. If a person’s debt-to-income ratio is high, it could make it more difficult to borrow money, or to get a good interest rate on a loan.
Tapping Retirement Savings to Pay Monthly Bills
In certain cases, the IRS will allow an account holder to withdraw funds from a 401(k) or IRA to cover an immediate and heavy financial need (such as medical expenses, payment to avoid eviction or repair home damage) without paying the 10% early withdrawal penalty. But taxes will still have to be paid on those distributions. And taking that money now, instead of letting it grow through the power of compound interest, could have serious repercussions for the future.
Dealing with Financial Hardship
For those who’ve been struggling for a while, or who’ve had a sudden but substantial financial loss, it might feel as though they’ll never recover. But there are several options those who are experiencing financial trouble might consider taking to get back on track. Some they can do for themselves, while others might require getting financial hardship help from others. And while some might be temporary, others take a longer view. Here are a few:
Reducing Monthly Spending
Creating a monthly budget can help individuals and families prioritize and guide their spending decisions. This may involve prioritizing your monthly expenses, starting with the essentials and going down to the “nice to haves.” Once you’ve established which expenses are the most important, you may then be able to look for places to cut back or cut out of your budget altogether. Cutkacks may not feel fun, but they can help jump-start your recovery.
For example, could you cut costs if you cooked meals yourself more often? Are you trying too hard to keep up with what friends and family are spending on clothes, vacations, and cars? Are there monthly bills that could be reduced (could you save money on streaming services, internet, and phone services; manicures and other beauty treatments; or even rent, insurance, or car payments)? It may help to start by tracking expenses for a month or so to get an idea of where money is going, and then sit down and map out a more realistic path for the future.
Creating a Debt Reduction Plan
Along with a budget, it also may be useful to come up with a plan for paying down credit card balances, student loans and other long-term debt. It’s important to always make the minimum payment on all these bills, if possible, but a personal debt reduction plan could help with prioritizing which bill any leftover money might go toward after all the household expenses are paid each month — or the money might come from a tax refund, bonus check from work, or a gift. Knocking down debts that include high amounts of interest can eventually free up more cash to put toward short- or long-term savings goals.
Looking for Ways to Earn Extra Income
Is there a way to turn a hobby, skill, or interest into some extra funds? Maybe a favorite local business could use some part-time help. Or, if a second job is out of the question, perhaps a side hustle with flexible hours is a possibility. Writers, artists, and designers, for example, may be able to turn their talents into a side business. Babysitting the neighbor’s kids or running errands for an older person are also options. And, of course, on-demand services like Uber and DoorDash are employing drivers, delivery persons, and other workers.
Considering a Loan to Consolidate Bills
Getting a personal loan for debt consolidation won’t make money problems go away completely—but it might make managing payments a little simpler. With just one monthly payment (instead of separate bills for every credit card or loan) it can be easier to keep tabs on how much is owed and when it’s due.
Because interest rates for personal loans are typically lower than the interest rates credit card companies offer (especially if a rate went up because of late payments), the payoff process for that debt could go faster and end up costing less. (Generally, lenders offer a lower interest rate to those who have a higher credit score, borrowers who are already behind on their bills may pay a higher interest rate or have more trouble getting a loan.)
Student loan borrowers also may want to look into consolidating and refinancing with a private lender to get one manageable payment and, possibly, save money on interest with a shorter term or a lower interest rate.
Refinancing may be a solution for working graduates who have high-interest, unsubsidized Direct Loans, Graduate PLUS loans, and/or private loans.
Federal loans carry some special benefits that private loans don’t offer, including public service forgiveness and economic hardship programs, so it’s important for borrowers to be clear on what they’re getting and what they might lose if they refinance.
Notifying and Negotiating
Ignoring credit card payments and other debts won’t make them disappear. Borrowers who can clearly see they’re headed for financial trouble may wish to notify their credit card company or lender and try to work out a more manageable payment arrangement. (There are debt settlement companies that will do the negotiating, but they charge a fee for their services.)
A credit card issuer may agree to a reduced, lump-sum payment or a repayment plan based on the borrower’s current income, or it may offer a hardship program with a lower interest rate, lower minimum payments, and/or reduced penalties and fees. The options available could depend on why a customer fell behind, or if they’ve had problems before.
Financial hardship assistance is sometimes offered by mortgage lenders. Because these lenders generally don’t want their borrowers to foreclose on their homes, it’s in their best interest to work with borrowers when they get in trouble. The lender may be willing to help the borrower get caught up by forgiving late payments, or they may change the interest rate of the loan or lower the payment.
If you have federal student loans and are experiencing financial hardship, you might qualify for a special repayment plan, such as pay-as-you-earn, or an income-based repayment plan.
It can also be helpful to reach out to service providers (such as water, electricity, internet) and let them know you are experiencing financial difficulties. Providers may be willing to work with you and you may be able to come to an agreement well before any shut-off actions go into effect. This can also save you from late fees, or going into collections.
Getting Financial Help
There are also a number of government programs designed specifically to help people overcome sudden financial hardships. Those who’ve lost a job may be entitled to unemployment benefits. If that job provided health insurance, you may want to look into COBRA to see if you can maintain affordable health insurance. Those who were injured at work may be entitled to workers’ compensation.
Also, some people facing financial hardship may qualify for state or federal benefits like Medicaid or Social Security Disability.
Though not free, a financial professional who specializes in planning, saving, and investing may be a worthwhile investment. He or she may be able to offer a fresh perspective and help create a path to financial freedom. There may also be free or low-cost debt counselors available via non-profit organizations.
Preparing for Current and Future Challenges
Once you’ve developed your personal plan for overcoming financial hardship, you can begin working on your goals of becoming more financially independent. If the cause of your hardship is temporary (you were out of work but quickly found a new job, for example), it may take just a few months to get back on your feet. If the problems are more difficult to overcome (you’ve lost income through a divorce, or you or a loved one has an ongoing medical condition that requires expensive treatment), the timeline could be much longer. Once you’ve put your plan in place, you may want to review it on a regular basis, and perhaps do some fine-tuning.
The Takeaway
Many people go through periods of financial hardship, and often for reasons that are beyond their control. But that doesn’t mean they are out of options. There are many simple and effective steps people can take. Cutting monthly expenses, consolidating debt, and getting outside assistance are moves that can help them get back on the right financial track.
Ready to get your finances organized? You also may find it easier to track expenses and stay on budget by separating your money into virtual buckets or “vaults.” SoFi Checking and Savings is an online account that features Vaults to allow members to set aside money for different financial goals, track their progress, as well as set up recurring monthly deposits. What’s more, a SoFi Checking and Savings account offers a competitive annual percentage yield (APY) and charges no account fees, plus you can spend and save in one convenient place.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. 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. External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website . 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. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. SOBK0523024U
Higher mortgage rates may discourage some existing homeowners from selling and giving up record-low interest rates they got over the previous couple of years.
New listings during the four weeks that ended April 23 fell 22.4% nationwide from a year earlier, according to Redfin research. The lack of new homes for sale nationally may have had a positive effect on Dallas-based rental giant Invitation Homes, chief executive officer Dallas Tanner said Tuesday in a first-quarter earnings call.
Rental giant’s new South Texas factory to produce prebuilt homes for D-FW
Tanner said that “lock-in effect” limits supply, supporting home prices and rent growth and keeping renters in their homes. The company, which owned 83,000 rental homes nationwide as of March 31, faces the competitive market itself when selling its own properties.
D-FW Real Estate News
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“We’re seeing evidence of this supply-and-demand imbalance when we list our homes for sale and receive multiple competing offers at great prices,” Tanner said.
In addition to the lack of inventory of homes for sale, Tanner said rising costs of homeownership are further driving the demand for single-family home leasing.
Nationally, the average monthly cost of owning an entry-level home in the U.S. was $3,428, while the average monthly payment to rent a similar home was $2,130, according to John Burns Research & Consulting.
In the Dallas-Plano-Irving metro division, the average cost of owning a single-family home was $3,389, over $1,000 more than the average cost to rent a similar home at $2,346, according to John Burns data. In the Fort Worth area, homes cost $2,900 to buy versus $2,023 to rent, a difference of $877.
Renting is still far less expensive in Dallas-Fort Worth than in other metros
Tanner said during a recession, more people may stay in rentals and the company could see more opportunities to grow.
“Since our inception, we’ve matured and performed through a variety of operating and macroeconomic environments, including a global pandemic and record-high inflation,” Tanner said. “Throughout this time, we’ve witnessed the resilience and the relative strength of our business.”
The lack of new inventory may also give Invitation an edge over smaller single-family rental companies struggling to grow their portfolios, Tanner said. Invitation, meanwhile, struck a deal with PulteGroup in 2021 to help bring thousands more rental homes to the market.
Nation’s biggest homebuilders could boost D-FW footprint during lending crunch
“As we see some of these smaller operators who are having trouble getting scale or sizing up, there could be potential [mergers and acquisitions] over the next couple of years,” Tanner said.
Investors purchased about 30% of all single-family homes in the Dallas-Fort Worth area last year, according to John Burns data. Companies like Invitation that own more than 1,000 homes represent only a sliver of the local housing market, far surpassed by small investors.
As of March, Invitation Homes owned 2,847 homes in D-FW with an average monthly rental rate of $2,128.
Demographic trends are favoring the company with more millennials reaching its average resident age of 39 and individuals and families wanting the convenience of leasing but the features of traditional single-family homes such as more space, garages and yards for their kids and pets, Tanner said.
“Today’s residents are requesting flexibility and choice, along with the appeal of a down-payment-light lifestyle.”
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Denver, Colorado-based Incenter Mortgage Advisors (IMA) on Thursday announced the launch of a new digital mortgage servicing rights exchange. The marketplace, known as eMSR Exchange, connects buyers and sellers of co-issue flow offerings online and provides pricing 24/7.
Co-issue loan sales, also known as flow-based mortgage servicing rights sales, are three-way transactions involving the sale of loans to one of the agencies, with a simultaneous sale of the MSRs to a separate third party. These transactions gain momentum when markets are difficult – with lower volume and tighter margins – and cash flow management becomes essential to originators.
However, trading MSRs in the co-issue market can take up to 90 days from the first communication between the parties around pricing to the moment the loan is committed, according to Tom Piercy, managing director at IMA. The fact that it takes so long can be challenging for originators seeking liquidity, mainly small and mid-size companies.
“With the exchange, participants have a daily commitment of MSRs that will settle at the end of each month,” Piercy said. “We are now coming as close as we can to commoditizing the MSR asset.”
Other companies are also developing new platforms as the agencies, Fannie Mae and Freddie Mac, have been pushing for co-issue loan sales in recent years. In November, Mortgage Capital Trading, Inc. released a marketplace for co-issue loan sales dubbed BAMCO. At that time, MCT said that co-issue transactions represented 16% of all loan sale types by MCT’s lender client base in 2022.
Trading an MSR in the traditional co-issue market requires resources from the parties. Buyers face the process of communicating with the sellers, creating pricing strategies and going through diligence and agreements. Meanwhile, sellers have to find buyers but typically do not gain access to the entire market because they don’t have resources or don’t fit the buyers’ criteria, such as the volume level or the loan profile.
“It’s a very cumbersome process. It’s not very efficient. But it’s the manner in which this market has worked,” Piercy said.
Incenter’s exchange allows buyers to access the MSRs that match their characteristics with loan-level precision instead of bidding on the rights to more heterogeneous asset pools. Buyers provide their pricing and required standards to the exchange, which works as a ‘one-stop shopping.’
In turn, sellers can upload their MSRs and the platform will step in as an intermediary, acting as the one counterparty to the buyers on the back end.
Incenter’s eMSR Exchange provides the optimum allocation of MSRs among multiple buyers. Each loan is matched with buyers’ pricing grids and “directed” to the most desirable buyer in seconds based on the loan characteristics acquirers seek, according to IMA.
Piercy said buyers will offer price matrices and only pay that price, which is calculated off of their pricing grids. To sellers, there’s a fee per loan netted out of the funds reconciled at the end of each month. The exchange’s fee is comparable to the one paid in the traditional market, Piercy added.
Two buyers are already committed to Incenter’s platform, but it can handle an unlimited number, according to Piercy. The exchange can also take 50 sellers as it exists today because it has to go through compliance processes, such as diligence and counterparty analysis.
Incenter’s marketplace suits any buyers, including banks, non-banks, private equity and real estate investment trusts of any size. On the sell side, it’s appealing to small and mid-size originators, Piercy said.
Chicago-based technology company Gateless announced this week that Guaranteed Rate, a Chicago-based leading mortgage lender, has implemented its Smart Underwrite solution, a groundbreaking technology that aims to transform the borrower experience.
In a fast-paced real estate market, many potential homebuyers miss out on their dream homes due to the lengthy mortgage approval process. Smart Underwrite aims to significantly reduce the time and effort involved in the process, potentially leading to faster, if not instant, borrower approvals.
“Without a doubt, the capabilities provided by Gateless and Smart Underwrite are groundbreaking,” said Victor Ciardelli III, founder and CEO of Guaranteed Rate. “When Guaranteed Rate introduced the world’s first fully digital mortgage in 2015, it revolutionized the industry. Now, with Smart Underwrite, we can continue to expedite and streamline the process for both our customers and real estate agents. The real-time automation offered by Smart Underwrite is a driving force behind our recently unveiled Same Day Mortgage platform, which enables borrowers to receive same-day approvals.”
Smart Underwrite empowers lenders to digitally analyze and interpret all essential loan data and documentation the moment they are received. For instance, when a borrower submits W2s and paycheck stubs, Smart Underwrite identifies the documents, associates them with the appropriate borrower income source, extracts relevant information, calculates monthly income, and resolves any underwriting conditions.
Not only does it accomplish these tasks instantaneously without human intervention, but it also ensures compliance with guidelines set by Freddie Mac and Fannie Mae. Smart Underwrite utilizes intelligent automation to evaluate other critical credit, income, and asset documents, streamlining the assessment process for real-time loan approvals and eliminating delays.
“This truly represents a historic milestone in the future of mortgage lending,” Rick Lang, president of Gateless, said. “We now have AI completing a significant portion of the loan processing and underwriting work, while virtually eliminating the risk of human error. All of this occurs in real-time, offering the potential to transform the borrower experience in ways that were previously unimaginable.”
This type of automation offers considerable benefits to lenders, according to the companies, including substantial cost savings, improved loan quality, and reduced potential for expensive buybacks. Borrowers gain the reassurance of immediate loan approvals, along with more competitive pricing from lenders operating with a lower cost structure. Realtors also benefit from representing clients who possess full approval and can compete with cash buyers.
This content was generated using AI, and was edited and fact-checked by HousingWire’s editors.
After a stroke, it becomes more difficult to get life insurance. A stroke is a serious medical event and the chance for more issues afterward is so high, life insurance companies need to be careful. However, even though a stroke is quite serious, it is still possible for many applicants to still get life insurance. Improve your chances by putting together a strong application. Your policy will depend on the severity of your stroke plus your current health.
In this article, we will look at the underwriting rules for life insurance after a stroke so you can get prepared.
Life Insurance Underwriting After a Stroke
As an applicant who has had a stroke in the past, you’re going to have to answer some questions most applicants won’t:
What was the date of your stroke or strokes?
Was it a full stroke or a mini stroke (Transient Ischemic Attack)?
What tests or studies were done after the stroke (CT Scan, MRI Scan, Carotid Ultrasound, etc)
What were your symptoms at the time of the stroke?
Do you have any lasting neurological deficits or other residual effects from the stroke?
Do you have any other conditions that increase your chance of another stroke like hypertension, diabetes, coronary artery disease, or high cholesterol?
What medications are you taking due to your stroke?
Common medications for after a stroke include: Aspirin, Plavix, Anticoagulants, Statins, and High Blood Pressure Medication.
If your insurance agent gets the answers to these questions, they can present your application in the best light. If your application is missing information about your stroke, it raises a red flag for the insurance underwriter, and your chance of rejection or badly rated policy jump up.
Life Insurance Quotes After a Stroke
A major factor for your life insurance application is whether you had a full stroke or a mini-stroke, known as a Transient Ischemic Attack or TIA. A TIA has the same symptoms of a stroke, but doesn’t result in any permanent neurological damage. A full stroke causes brain damage. As a result, underwriting is easier if you’ve only had a TIA.
However, both conditions make it more likely for repeat stroke problems so they both create issues for life insurance. You generally need to wait at a year after your stroke before you can apply and the longer you go without a repeat incident, the better your rating. The rating you get on your policy depends on your answers to the previous questions as well as your life insurance company’s underwriting standards. While each policy has different standards, here are some general standards to give you an idea about your future insurability.
Preferred Plus: It is not possible to get a preferred plus rating after a stroke, even a mini-stroke. The health problems that caused the stroke, the residual effects, and the risk of future issues are too much for applicants to qualify for the best insurance rating.
Preferred: Likely impossible after a stroke. In very rare cases, someone with a TIA may qualify for a preferred rating if he is in perfect health otherwise and it is possible that his TIA was a misdiagnosis.
Standard: Best possible rating for applicants after a stroke. Must have been at least six years since the stroke without any other incidents plus have no other health problems.
Table Rating (substandard): Most applicants applying after one year of the stroke but within six years of the stroke. Rating will depend on the lasting damage of the stroke and on the applicant’s health. Applicants that had a TIA may be able to get a rated policy six months after the incident.
Declines: Automatic denial when applying within 6 months of a TIA or with 1 year of a full stroke. Other health problems, repeated strokes, or a family history of heart and stroke problems could also lead to a decline.
Stroke Insurance Case Studies
The way you handle your life insurance application makes a big difference. Here are some examples of clients we’ve worked with in the past.
Case Study: Male, 47 y/o, non-smoker, Single incident of TIA at age 41. Taking aspirin as a precaution. No lasting damage or other health issues. Possible misdiagnosis.
This client went to the hospital one night complaining of stroke-like symptoms like numbness, dizziness, and a speech impediment. The doctor treated him for a TIA but it wasn’t 100% clear if this was the case. Unfortunately, this treatment showed up on the client’s medical records, which insurance companies check. This applicant had received a Standard rating, but we thought he could better. We had him go to his doctor to have some tests done to check his neurological health. His exams showed he was in perfect health and he submitted this new information along with another application. This move helped him get a Preferred policy.
Case Study #2: Female, 55 y/o, had a full stroke at age 53, former smoker, recent lost weight and reduced blood pressure, taking high blood pressure medication.
She wasn’t focusing on a healthy lifestyle and it caught up to her as a full stroke at age 53. Since the stroke, she lost a good amount of weight and started taking medication for her blood pressure. This hard work paid off as she became much healthier. However, her past health problems were still giving her trouble so she was only qualifying for very expensive policies. We recommended she go see her doctor and have him write a letter talking about her improved health. By submitting this letter along with her application, she got a Table Level 1 Policy, the best rating before Standard.
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Getting an Affordable Life Insurance Plan
Your past stroke is only one factor of the whole application. There are plenty of other ways you can improve your rates. You already have a red flag on your application, you want to polish up the rest. This could mean getting in shape, quitting smoking, cutting out other bad habits, and much more.
Each company has various ways of looking at applicants with a stroke. Some are going to decline your application on the spot, while others will still give you a plan you can afford. Because there are 6,000 companies out there, you’ll have to find one with good underwriting from strokes.
The best way to compare these companies is to work with an experienced agent with the ability to give you plenty of quotes all at once.
The loss was the first of its kind ever recorded since the MBA began tracking loan production income in 2008.
The average $301 loss marked a major downturn compared to the previous leader, when mortgage lenders recorded an average profit of $2,339 per home during a record boom in US housing demand.
Mortgage lenders were impacted by a surge in loan rates that caused demand for purchase and refinance applications to plummet to their lowest level in decades, according to MBA vice president of industry analysis Marina Walsh.
“The stellar profits of the previous two years dissipated because of the confluence of declining volume, lower revenues, and higher costs per loan,” Walsh said in a statement.
Firms were unable to slash their expenses fast enough to offset the major drop in demand.
“Companies could not adjust their capacity fast enough,” Walsh added. “The number of production employees declined, but not at the same pace as origination volume. As a result, productivity in 2022 fell to a low of 1.5 closed loans a month per production employee.”
Mortgage demand hit a 25-year low last October as 30-year fixed loan rates topped 7%, pushing many prospective buyers and sellers to the sidelines.
Rates have since cooled slightly, though they are still running well above 6%.
Just 32% of firms active in the mortgage lending sector were profitable last year, according to MBA’s analysis.
That was down from 98% who turned a profit just two years earlier, during a pandemic-era housing boom.
The cost of mortgage lending ballooned to $10,624 per loan last year, outpacing gains in loan servicing.
The US housing market slowdown prompted waves of layoffs and reorganizations throughout the real estate sector.
In January, Wells Fargo, a bank that once had a dominant hold on the mortgage-lending sector, revealed that it would be paring back its mortgage business as conditions in the market deteriorate.
In another shakeup, Homepoint, one of the largest mortgage lenders in the US last year, revealed last week that it would be selling of its assets to The Loan Store.
“After careful consideration, and in light of current market conditions, we have decided to sell our wholesale originations business to The Loan Store,” said Willie Newman, president and CEO of Homepoint. “We believe this is the best decision for our company to continue to deliver value to Home Point shareholders.”
National lender honored for its excellence in helping low-income homebuyers
MERIDEN, Conn., May 17, 2023 /PRNewswire/ — Planet Home Lending has been named a 2023 winner of the Freddie Mac Home Possible RISE Award ®, which recognizes lenders that are making great strides in helping low-income homebuyers through the Home Possible® loan program.
The honor is especially meaningful as it recognizes Planet’s commitment to core values of supporting, strengthening and caring for people during the most important financial moments in life.