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Apache is functioning normally

Apache is functioning normally

Wells Fargo sent out an e-mail to its retail sales force today, notifying them that its Equity Direct guidelines will be experiencing a series of changes amid the ongoing mortgage crisis.

Effective end of business Friday, the maximum debt-to-income ratio for home equity lines of credit and home equity loans will be cut by five percent to 50 percent, an underwriting guideline change that actually matters because most of these loans are now full doc.

In addition, as of July 19, an 185 basis point economic adjuster will be required to qualify a borrower for these types of loans, instead of a typical qualification method based on the fully indexed mortgage rate.

So if a borrower is eligible for a loan at say five percent, an additional 185 basis points will be added on top to serve as the qualification rate, bumping the rate up to 6.85 percent fully amortized in that example.

Effective July 12, loans-to-value ratios (LTV) on these second mortgages will be reduced by five percent across the board, with new limits ranging between just 70-85 percent.

In “severely distressed” markets such as Orange and Los Angeles County, the max LTV for a home equity line or loan will be a mere 70 percent.

Wells Fargo Equity Direct is also eliminating bridge loan products.

Despite managing to avoid much of the mortgage mess thanks to their conservative lending philosophy, Wells was warned of rising delinquencies within their hefty home equity loan portfolio.

(photo: soylentgreen)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

By Holden Lewis | NerdWallet

October mortgage rates forecast

Die-hard homebuyers, driven by life circumstances, will press forward in October. Everyone else will be inclined to wait for mortgage rates to fall, making homes more affordable. They’ll have to bide their time for months, not for weeks. In September, mortgage rates reached their highest levels since 2000, and they could inch upward in October.

Intrepid home shoppers might discover that more sellers are reducing their asking prices, but most would-be buyers will struggle to find suitable places to make offers on.

Rates rose after the Fed meeting

The Federal Reserve’s monetary policy committee met Sept. 19 and 20. Its updated summary of economic projections included Fed members’ forecasts about the direction of short-term interest rates for the next three-plus years. Mortgage rates didn’t move much in the three weeks before the Fed meeting as the market waited for the summary of economic projections to drop.

The projections surprised the mortgage market. The Fed members signaled that they expect to keep short-term interest rates higher for longer than the mortgage market had expected. Mortgage rates played catch-up after the Fed meeting, with the 30-year fixed-rate home loan rising past 7.25% for the first time since late 2000.

Home affordability fades

Rising mortgage rates chip away at home affordability, which has been declining since early 2021. The Federal Reserve Bank of Atlanta has a home affordability index with data going back to the beginning of 2006, and July’s affordability (the most recent available) was the lowest in the index’s 17-year-plus history. And mortgage rates have gone up since July, making a home even harder to afford.

Mortgage rates have gone up five months in a row, making mortgage payments higher for a given loan amount. The impact on affordability has motivated almost 40% of home sellers to reduce their initial asking prices, according to Mike Simonsen, president of real estate analytics firm Altos Research, in a weekly commentary posted to YouTube. In spring, when mortgage rates were lower, about 30% of the homes on the market had taken a price cut.

Homebuyers might rejoice at the news that more sellers are reducing their asking prices. But the lack of properties to choose from remains a drag. According to the National Association of Realtors, 1.1 million homes were for sale at the end of August, the latest available data. In August 2019, a closer-to-normal, pre-pandemic market, 1.83 million homes were for sale.

What other forecasters predict

Fannie Mae and the Mortgage Bankers Association disagree in their mortgage rate forecasts for the last three months of the year. Fannie Mae predicts a slight increase at year end, while the MBA expects a sharp decline foreshadowing a recession in the first half of 2024. Both organizations published their forecasts before the Sept. 19-20 Fed meeting that hinted at a sustained level of higher interest rates.

What happened to mortgage rates in September

At the end of August, I predicted that mortgage rates might rise in September because of uncertainty about what the Federal Reserve will do.

Indeed, mortgage rates rose after the Sept. 20 Fed announcement. Freddie Mac reported that the average rate on a 30-year mortgage climbed to 7.31% in the week of Sept. 28, the highest since the week of Dec. 15, 2000.

More From NerdWallet

Holden Lewis writes for NerdWallet. Email: [email protected]. Twitter: @HoldenL.

Source: syracuse.com

Apache is functioning normally

Apache is functioning normally

Effective immediately, Indymac has halted all retail and wholesale forward loan production, according to a letter sent to shareholders on behalf of CEO Mike Perry, posted on the company’s blog.

Indymac will continue to process and ultimately fund locked loan applications, but will no longer accept rate locks or new loan submissions in forward mortgage lending channels, aside from its servicing retention channel.

As a result, Indymac plans to cut 3,800 jobs over the next couple months, with most sticking around in the company’s servicing department or reverse mortgage unit Freedom Financial.

Employees who have been with the company for five or more years will receive a minimum $20,000 severance pay package, which seems generous given the severity of the ongoing mortgage crisis.

However, most employees will receive just 30-days severance, as the company was forced to eliminate a program that provided one month of pay and one month of paid insurance coverage for each year of service with the company.

Perry explained that the struggling mortgage lender had been in need of some serious capital, but wasn’t able to raise it through traditional means, and chose not to pursue a firesale of assets, which could have depleted capital further.

Additionally, he noted that federal bank regulators have informed Indymac that it is no longer “well capitalized,” and as a result, is no longer permitted to accept new brokered deposits or renew existing ones unless it receives a waiver from the FDIC, which is currently pending.

That left the Pasadena, CA-based mortgage lender with little choice but to halt nearly all lending activity, which was a drain on the company’s balance sheet.

Going forward, the company will focus on reverse mortgage lending and loan servicing/retention efforts, which could generate roughly $5 billion to $10 billion of new GSE/FHA loans per year.

Perry expects Indymac to report a larger second quarter loss than the $184.2 million loss experienced in the first quarter of 2008, though he couldn’t provide an estimate given the number of uncertainties surrounding the company at the moment.

He has also made a request to Indymac’s Board of Directors that his base salary be reduced by 50 percent as a result of today’s news.

Shares of Indymac slid 21 cents, or 29.58%, to 50 cents in after hours trading.

(photo: shalloworks)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

When you are an experienced real estate agent looking for a new brokerage, you are thorough about interviewing companies that will be the right fit. You analyze change not only in terms of commission splits, culture, marketing, and support, but also in terms of what feels good for your business. You look for companies that fit your goals and will be good for growth. You have learned to interview brokers and not the other way around. You know the ins-and-outs of the business and feel confident that you will bring value to a company but the value needs to be reciprocal. Going through the trouble of changing companies without benefit for you and your business, would make absolutely no sense.

Oh the headache!! New business cards, property signs, branding! Going through all platforms changing brokerage names. Making announcements and making sure business is uninterrupted! Change and adjustment must come with a nice price tag and added value.

The easy way is not always the best way

No wonder so many agents remain in their good ‘ol boring companies for years. If it ain’t broke, don’t fix it! How lame is that!! And how can you really scale your business with your current status quo. Well…maybe you are happy with status quo, and that’s really ok – but what if a broker knocked on your door and promised you more money? (I’m not mentioning any names or the known company offering nice bonuses!!) <<pure sweetness, may as well take a nice vacay and continue your good ol’ business once you return.

But I’m not talking about magic pills here. I’m talking about not scaling your business because of lack of motivation, fear of technology, fear of hiring help, or worse: fear of change. So if a broker can guarantee efficiency so you have time to focus on real estate, would that catch your attention?

I know what you are thinking … you are an independent contractor. Shouldn’t you be responsible for improving your own business? That is NOT your broker’s responsibility. << sorry to say but although much of that is true, it’s also a good way for you to BS yourself. A good broker will go out of their way to continuously improve their tech and systems to make you productive and efficient. A great broker will do that and also make sure your needs are taken care of instead of forgetting you in the background and focusing on their new hires.

Is the value promised real?

The truth is that brokerages need money to make money – so if they claim they will provide value, they better give proof, not just tease you with the latest shiny object.

Let’s break down what’s important to you as an agent:

  • marketing (campaigns, quality print, custom design, brand awareness, drip campaigns, a creative marketing team)
  • tools (in one place, not having to jump around all over the web, and having the latest tech)
  • name recognition (is this really about the broker or your own brand and value?)
  • efficiency (cut down hours doing useless things that don’t make you money)
  • support (cut down hours doing useless things that don’t make you money)
  • leads (do you want a broker that gives you hand-me-downs or one that will provide A.I. and predictive analytics?)

Your current broker could be holding you back

The point of this article is to make you think of the unthinkable, change. Mediocrity is not an option, and although change is sometimes the answer for making great things happen, your decision should ultimately be about aligning yourself with powerful and smart people that will not just compliment your business but help it soar to new levels.

I challenge you to look back at your business and analyze how it has improved (or not) in the last year. Can you hear “change” calling your name? shhhhh…..if you listen, it will be clear as day.

[Originally posted on Linkedin]

Source: geekestateblog.com

Apache is functioning normally

Apache is functioning normally

As home affordability decreased, sellers reduced asking prices more frequently this September, with the pace coming in above typical seasonal patterns.

Approximately 6.5% of homes on the market saw asking prices reduced during the four-week period ending Sept. 27, according to new research from Redfin. The rate corresponds to approximately one in 15 properties on the market and represents an increase from 5.8% a month earlier. That is a sharp rise from what has been reported in past years over the same time frame, the real estate brokerage said.

The uptick in price cuts comes as low inventory and rising interest rates take a bite out of affordability, according to several recent reports. Conditions contributing to the current state of the market appear set to continue leaving their mark on affordability over the next several months, leading analysts said at this week’s Digital Mortgage conference in Las Vegas. 

Redfin found the median sales price rose 3.1% year-over-year, coming in at $372,500, even with “relatively low” demand. A recent rise in the volume of new listings, also atypical for the time of year, is giving home shoppers more leverage. 

“Buyers are using things like inspection negotiations and high insurance premiums to back out of deals,” said Heather Kruayai, a Redfin agent in Jacksonville, Florida, in a press release. “They’re holding a lot of the cards; today’s sellers need to concede on some details to close the deal.”

The latest affordability data from the Mortgage Bankers Association offers few signs of improvement for aspiring homeowners. In its monthly purchase-applications payment index released this week, the trade group reported the average monthly amount applied for by new home buyers increasing by a fraction to $2,170 in August, from $2,162 in both June and July. The current figure is higher by 18% compared to the mean level of a year ago — $1,839.  

“Prospective homebuyers’ budgets continue to be impacted by the combination of high home prices and mortgage rates that remain higher than 7%,” said Edward Seiler, MBA’s associate vice president, housing economics, and executive director, Research Institute for Housing America.

The latest PAPI report does not factor in September’s surge in mortgage rates, with the 30-year conforming average landing at 7.41% at the end of last week among MBA members — the highest point since late 2000. Similarly, Freddie Mac reported a consistent rise in the 30-year rate throughout September after a pullback in August.

Within individual segments, borrowers of Federal Housing Administration-backed mortgages saw their average payment hit a record of $1,901, jumping 2.5% from $1,854 in July and 29.4% from $1,469 in August 2022.

But even with the overall PAPI increase, conventional-loan borrowers saw a fall in the mean to $2,187 from $2,197 between July and August. But the number was still well above $1,901 a year ago.

The MBA’s national payments index for new purchase applications inched up 0.4% to a reading of 175.4 in August compared to 174.7 a month earlier. An increase in the number reflects declining affordability. Strong income earnings of over 4% over the past 12 months helped offset the steep climb upward in payment amounts. 

The states showing the smallest degree of affordability were concentrated in the Western U.S., according to the MBA. Idaho led the country with a PAPI score of 269.6, followed by Nevada and Arizona at 265.7 and 238.6. 

Source: nationalmortgagenews.com

Apache is functioning normally

Apache is functioning normally

Just days after Bank of America completed it purchase of mega mortgage lender Countrywide Financial, the drama continues.

According to an article in the New York Post, Countrywide employees are highly concerned that they could lose their severance if they fail to accept their new positions at the combined company.

The Post noted that a number of “senior-level” Countrywide employees are worried that Bank of America will offer them less desirable positions with lower pay, forcing most to quit and forego their severance as a result.

The “Countrywide Change of Control Severance Plan,” which is displayed on the company’s internal website, says that Bank of America “would consider” severance payouts to those facing relocation or a 20 percent pay cut.

And for those lower-level employees, a 10 percent cut in salary would be grounds for severance pay consideration.

Of course, Bank of America is probably spinning the availability of new positions as a positive for at-risk employees, despite the fact that the job description may change or come with an inferior compensation package.

But hey, Countrywide employees shouldn’t be so upset, considering the fact that their former boss, Angelo Mozilo, was so kind to pass on his $37.5 million severance package.

Instead, he just withdrew millions in company stock when its share price was flying high, right before all began to unravel.

Last week, Bank of America said it expects to cut about 7,500 jobs over the next two years as part of the consolidation with Countrywide.

This is actually a pretty common scenario.  A company shuts down/gets taken over and many employees expecting to get laid off instead get stuck in a dead-end position they truly aren’t interested in, eventually leading to their resignation with compensation.

(photo: acomment)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Apache is functioning normally

Are you a property manager looking to attract future residents, or a private owner aiming to showcase your rental online? The secret to success is apartment staging. Transforming your space into a welcoming and visually appealing environment can make all the difference in capturing potential tenants’ attention. 

In this Redfin article, we’ll delve into expert apartment staging tips and rental staging techniques to help you shine in the competitive rental market, whether you’re in bustling cities like New York and Los Angeles or thriving rental markets such as Austin and Seattle. Let’s get started. 

1. Curb appeal matters

Curb appeal isn’t just for homeowners; it’s equally vital when staging a rental property. Before potential tenants even step inside your rental property, they’ll form their first impression based on its exterior. 

Whether it’s refreshing the paint on the front door, adding potted plants to the entryway, or ensuring the walkway is clean and well-lit, small enhancements to the property’s exterior can make a significant difference. Remember, the goal is to make prospective renters envision themselves coming home to that space every day.

2. Start with a clean slate

Before staging, ensure your rental is spotless. Clean every nook and cranny, including carpets, windows, and appliances. A clean space feels more inviting and allows potential tenants to envision themselves living there.

Expert tip: ”To successfully stage your rental home or apartment, the first step is organizing and decluttering your belongings,” shares professionals Cut the Clutter RVA. “It’s essential to edit your possessions. This means assessing what you actually use and removing items that no longer serve a purpose – a critical step, particularly in smaller spaces prone to clutter. A well-organized and clutter-free environment creates the illusion of more space and enhances the appeal of your rental property to potential tenants.”

3. Focus on your audience when staging

Whether it’s a home or a rental, your first step should always be to consider your potential tenant. It’s not just about making it look nice; it’s about ensuring it resonates with those who might call it home.

Expert tip: “When staging a property, whether it’s a home or rental, the first step is to consider your potential buyer,” recommends international media group Inspired Spaces. “Identify your audience – young families, singles, retirees, professionals – and adapt the style, room arrangements, and color palette accordingly. For instance, if your target is young professionals, a secondary bedroom could serve as an office. But for a young family, that same room is best as a child’s bedroom. Focus on neutral, yet inviting color palettes in each space. This appeals to a wider range of buyers, aiming for sophistication that remains relatable.”

4. Use a neutral color palette

Opt for a neutral color scheme when painting walls and selecting furnishings. Neutral tones create a blank canvas that appeals to a broader audience and allows renters to add their personal touches with ease.

Expert tip: Broker Corrie Hayes emphasizes the importance of cohesive decor in creating a balanced room. “Have you ever thought, ‘something is off?’ in a room, but you can’t put your finger on it? Your space can unintentionally feel like it’s having an identity crisis. Whether it’s shabby chic, industrial, rustic farmhouse, or modern sleek, creating harmony in your decor is key. Mixing contrasting styles can lead to visual confusion, but it can be resolved with purposeful choices like coordinating grey couches with beige or cream throws, wall art featuring a mix of complementary colors, and bedding that combines various neutral tones. The result is an inviting space that appeals to a broad range of individuals.”

5. Choose furniture that fits the space

When selecting furniture, consider the size of the space. Avoid overcrowding rooms; instead, opt for appropriately sized furniture that complements the room’s layout. Don’t forget comfortable seating in common areas to highlight a cozy atmosphere.

Expert tip: According to Southern Maryland interior designers at Chesapeake Staging & Interiors, LLC, there are key logistics to consider when staging a rental property or unit. “The first is whether or not the property or unit will be listed as furnished. If not, you’ll need to state that it is an unfurnished unit to avoid confusing potential renters. If it is furnished, you’ll need to stage it with quality furniture that can withstand a renter’s use.”

6. Focus on lighting 

Natural light is a key selling point. Open curtains or blinds to let in sunlight and add floor or table lamps where needed, to create a warm and well-lit environment. Adequate lighting enhances the overall ambiance.

Expert tip: According to Aspect Staging, “Lighting plays a vital role in enhancing your rental property’s appeal. To create a warm and inviting atmosphere, strategically illuminate key areas like the living room and bedroom. Use modern floor lamps to brighten dark corners, and consider matching bedside table lamps for a cozy ambiance. Opt for soft white light bulbs with a color temperature between 3000k and 3500k lumens to strike the perfect balance between warm and cool lighting, making your space feel spacious and inviting.”

7. Emphasize storage possibilities

Highlight the storage options in your rental property, as it’s a top priority for many renters. Keep closets and cabinets organized and clutter-free, allowing tenants to envision their belongings neatly stored. Well-arranged storage spaces make your property appear spacious and cater to practical needs, enhancing its appeal.

8. Use staging to define spaces within your rental 

If your rental space lacks distinct areas, create them with furniture placement and rugs. Clearly defined living, dining, and sleeping areas can help renters visualize the functionality of the space.

Expert tip: Birgit Anich, CEO and Creative Director at BA Staging & Interiors, emphasizes that staging a rental property parallels staging one for sale. “Given that rental apartments often have limited space, a clear definition of how each area is used is key. The level of sophistication in staging should align with the rental price. A deliberate design that incorporates the renter’s lifestyle and aspirations into the details can evoke emotions and foster a connection with the space, making it more enticing.”

9. Accessorize your rental thoughtfully

Incorporate tasteful accessories such as throw pillows, artwork, and decorative items. These personal touches add character to the space and help renters connect emotionally with the property.

Expert tip: Professional real estate photographer Cynthia James Photography advises that, “When selecting a rental property, it’s crucial to create a welcoming home-like ambiance. In urban areas, consider faux plants for a touch of nature. Enhance the kitchen’s charm with decorative canisters, a recipe book holder, draped kitchen towels, and fresh flowers. In the owner’s bedroom, a queen-size bed with neutral bedding, layered pillows, a quilt, and blankets add comfort. Transform the bathroom into a serene spa with a small rug, neatly arranged soaps, and folded white towels. At the entrance, a welcoming doormat and decorative items like a wreath or home sign can make your rental feel like a comfortable long-term home.”

10. Be creative while staging

In the world of rental property staging, creativity can be your secret weapon. When it comes to making your space more appealing to potential tenants, a dash of innovation can transform ordinary into extraordinary.

Expert tip: For renters looking to make their space more appealing, Florida interior designers TOSCANO INTERIORS recommend creative staging techniques. They suggest, “Converting underutilized spaces and incorporating local art and craftsmanship to add authenticity. The key is to strike a balance between uniqueness and broad appeal, ensuring that unique touches enhance the space. This helps renters create a compelling narrative in their home through furniture, decor, and color choices.”

11. Use fresh flowers and greenery throughout your space

Adding a touch of nature to your staging can work wonders. Fresh flowers and potted plants breathe life into your rental space, infusing it with vitality and freshness. Fresh flowers bring color and a welcoming fragrance, while greenery introduces a calming presence. They are versatile, complement various interior styles, and require minimal maintenance. These natural elements make your property feel like a vibrant and inviting home, leaving a lasting impression on potential tenants.

12. Make sure the rental is clean and smells nice

Before each showing or photoshoot, ensure the space is clean and well-maintained. A final walkthrough is crucial to catch any last-minute details that need attention.

Expert tip: “Don’t underestimate the impact of odors on potential buyers,” says CC Staging & Design. “Unpleasant smells, whether from pets, cooking, or other sources, can quickly deter them. Take proactive steps to ensure your home exudes a fresh and clean scent. Deep-clean carpets, introduce air purifiers for a crisp ambiance, and opt for subtle, pleasant scents rather than overpowering air fresheners. Elevate your home’s appeal with an inviting and refreshing fragrance.”

13. Hire a photographer

Invest in professional photography for your rental property. High-quality images make your online listing stand out and attract more potential tenants. Make sure the photographer captures the best angles and showcases the key selling points.

Expert tip: AV Home Staging brings attention to the advantages of staging in your rental property marketing strategy. Their tip, “Marketing increases more viewings and showings. With a vast number of renters starting their search online, professionally staged photos create a lasting impact, piquing interest and yielding a larger pool of potential applicants – a win-win for any rental property owner.”

14. Be ready to show your rental 

In the competitive rental market, readiness is essential. Whether it’s in-person tours or virtual viewings, your ability to promptly and flexibly present the property is crucial. Be flexible with showing schedules, maintain the property’s condition, have the necessary technology for virtual viewings, be well-informed, follow protocols, and prioritize prompt communication to make your rental more appealing to prospective tenants.

A final note on staging a rental

By following these expert apartment staging tips and rental staging techniques, you’ll increase your chances of attracting the right tenants and securing your rental property’s success. Remember, the goal is to create a space that feels like home from the moment potential tenants step inside or view it online. Happy staging!

Source: redfin.com