decades

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Whether you’re already a resident of Pensacola, FL, or considering it as your new home, a plethora of attractions await you. From seeking the perfect rental apartment to finding your dream home to buy in Pensacola, you have many diverse options. With many engaging activities and dining establishments, newcomers might find the choices overwhelming. To simplify your transition, Redfin has curated a list of must-try experiences, exceptional dining venues, and unique activities recommended by locals. Get started on your Pensacola bucket list today. 

1. Visit the Pensacola Beach Boardwalk 

Experience the lively charm of Pensacola Beach Boardwalk, where stunning views, delightful shops, and delectable dining converge. Stroll along the inviting promenade, bask in the sun-soaked ambiance, and indulge in an array of coastal treasures.

“One of the areas in Pensacola Beach that I love is near the Pensacola Beach Boardwalk,” shares travel blogger Wayne Kask of Always On The Shore. “You can park at Quietwater Beach, which is just a tiny stretch of beach on the Sound Side. From here, walk on over to the boardwalk which is filled with restaurants, shops, bars, and entertainment. Grab a seat on the deck at Flounder’s Chowder House and try their Free Range Gulf Fish, while you enjoy the views and listen to live music.” 

If you are planning to spend a day at the beach, Tricia Vines photography provides a great way to capture your memories with a beautiful photoshoot on Penscola’s sandy white beaches. 

2. Discover the Rich History of Fort Pickens

Step into a bygone era at Fort Pickens in Pensacola, FL. Uncover the layers of history within its weathered walls as you explore the well-preserved grounds of this coastal fortress. From intriguing architecture to tales of military significance, Fort Pickens offers a fascinating journey through time. 

“Going to visit Fort Pickens is an absolute must,” says owner of Riptide Media Jimmy Warr. “Seeing a historic, Civil War era fort still standing is something to behold. As the nation’s oldest city, Pensacola has so many things to offer the avid history buff.”

3. Enjoy Brunch at The Fish House 

“Enjoy a leisurely Sunday brunch with friends at The Fish House, where fresh fish and sushi are highlights of the menu, and the Smoked Salmon Avocado Toast is a favorite,” states travel writer Gemma Arnold of TopFlight-Travel.com. “Be sure to arrive just before 11am to snag a table, as reservations aren’t accepted. The deck is perfect for relaxing with drinks into the afternoon.”  

4. Discover the Gulf Coast’s Hidden Depths

“Exploring the depths of Pensacola’s underwater wonders is an adventure like no other,” says Taylor Kulik of H2O Below Dive Charters. “ As a seasoned multi-passenger Dive Charter boat in the region, we’ve been navigating these waters for nearly two decades. From novices to seasoned divers, our excursions cater to all levels, inviting you to discover the Gulf Coast’s finest diving spots.”

5. Craft sand castles by the shore

Participate in the joy of sculpting sand castles at the beach. Let your imagination run wild as you shape turrets, moats, and more. Whether young or young at heart, this timeless activity promises smiles and cherished memories along the shore.  “This unique activity showcases our beautiful Gulf Coast while guiding you through the process of making bigger and better sand sculptures,” shares Janel Hawkines, owner of SandCastle University.

6. Stroll down the tree-lined Historic Palafox Street

Visit Palafox Street in Pensacola and learn why this street is known to locals as the gateway to their city with its interesting architecture, unique shopping, and delightful dining opportunities,” states Emerald Coast Connected staff writer June Scroggin. “Part of the charm is the prevalence of art here. A must-do is visiting Blue Morning Gallery, a local art co-operative, the gallery features original works of art in all types of media.”

7. Attend the Pensacola Seafood Festival 

“Our #1 Must-Do in Pensacola is the Pensacola Seafood Festival,” says Executive Director Bridget Middleton. “In its 46th year, this three-day festival boasts hundreds of vendors serving delicious seafood, artists and craftspeople from around the US; a children’s area, local restaurants serving their best dishes at ‘Gulf to Table’ and cooking demonstrations from some of the area’s greatest chefs. To top it off, there is live music on the Main Stage all weekend and entry to the festival is free.” 

8. Dine at George Bistro 

Indulge in this restaurant’s amazing flavors in the heart of Pensacola. Experience an unforgettable evening of exceptional dining. “My absolute favorite restaurant in Pensacola is Geroge Bistro,” shares local blogger Sarah Ritchie of Genuine Sunshine Blog. “Everything I’ve tried on their menu is incredible. Make a reservation in advance because it does book up. My favorites are the Alfredo Pappardelle and the Short Ribs + Mushroom Ravioli, but their Filet Mignon is also delicious. They also do an amazing brunch—you really can’t go wrong with anything on the menu. Also great service and delightful cocktails and coffees.”

Pensacola bucket list: the bottom line 

Discover essential Pensacola experiences for your bucket list. From the vibrancy of Pensacola Beach to the serenity of historic forts, and the dynamic allure of downtown exploration, each adventure contributes to Pensacola’s distinct charm. Whether you’re a resident or visitor, these cherished memories will stay with you for a lifetime.

Source: redfin.com

Apache is functioning normally

A bank capital proposal issued by the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency has many in the housing policy community concerned that revised risk weights for bank-held mortgages could further erode banks’ market share in residential mortgages.

Bloomberg News

Many components of the capital rules that federal regulators proposed last month last month have elicited questions and concerns from in and around the banking sector, but none more than the treatment of single-family mortgages.

Trade groups representing banks and various parts of the mortgage industry have come out against the rules, as have housing affordability advocates. These groups say the impact of the proposed rule changes would be felt by the housing sector more so than the banks themselves.

“In the housing sector, which has just been in a sort of boxing ring getting punched, one after another, and getting exhausted from all that’s coming at them, this one is pretty incredible,” said David Stevens, a long-time mortgage executive who now heads Mountain Lake Consulting in Virginia. “We thought the current Basel rule made sense, but this one’s going to have downstream effects that are going to be very broad in the housing system.”

The change is expected to have at least a moderate impact on banks’ willingness to originate. While banks have been steadily ceding market share to independent mortgage banks and other nonbank lenders since the subprime mortgage crisis, they still play a key role in the so-called jumbo mortgage market, which consists of loans too large to be securitized and sold to the government sponsored enterprises Fannie Mae and Freddie Mac.

“The big, traditional mortgage lending banks have largely exited the field and that’s been going on for some time. This is the next nail in the coffin,” said Edward Pinto, director of the AEI Housing Center at the American Enterprise Institute. “This nail will make it harder for banks to compete with Fannie and Freddie, generally, and then take the one market they’ve had left to themselves, the jumbo market, and make it harder to originate because of the capital requirements.”

Some policy experts say the bigger impacts could come from the second-order effects of the regulation. In particular, they point to the treatment of mortgage servicing assets — the salable right to collect fees for providing day-to-day services to mortgages — as a change that could crimp the flow of credit throughout the housing finance sector and lead to higher costs being passed along to individual households.

“With potential borrowers already facing record high interest rates, steep home prices, and supply-chain issues, increased fees and scarcity of bank lenders could be another brick in the wall stopping Americans from obtaining meaningful homeownership and wealth creation,” said Andy Duane, a lawyer with mortgage-focused law firm Polunsky Beitel Green.

The proposal, put forth by the Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller on the Currency, notes that the rule change could result in second-order effects on other banks, but it largely focuses on benefits that large banks could enjoy relative to smaller banks as a result of the new rules. It notes that such risks are offset by a requirement that banks adhere to both the new framework and the existing one, to ensure they do not see their regulatory capital levels dip below that of the standardized approach. 

Still, the regulators are aware that the change could have unintended consequences on the mortgage industry and housing attainability. Because of this, their proposal includes several questions about the subject. 

“We want to ensure that the proposal does not unduly affect mortgage lending, including mortgages to underserved borrowers,” Fed Vice Chair for Supervision Michael Barr said while introducing the proposal in an open meeting last month. He added that housing affordability was one of “several areas that I will pay close attention to and encourage thoughtful comments.”

However, the proposal dismissed the idea that the new risk weights on residential mortgages would have a material impact on bank lending in that space. Citing various policy papers, academic studies and regulatory reports, the agencies assert that the risk-weight changes would lead banks adjusting their portfolios “only by a few percentage points.”

Stevens — who served as an assistant secretary in the Department of Housing and Urban Development in the Obama administration, a commissioner for the Federal Housing Administration and president of the Mortgage Bankers Association — said he is not convinced regulators have done sufficient analysis to rule out the type of sweeping, negative implications that he and others fear. He noted that the 1,087-page proposal includes fewer than 20 pages of economic analysis.

“I just don’t think they’ve thought through the downstream effects and the lack of analysis, in terms of actual financial estimates of the implications, is really concerning,” He said. “This will be a really big change, and that’s why you see everybody up in arms and the trade groups aligned against this proposal.”

Like other components of the bank regulators’ Basel III endgame proposal, the components related to mortgages would create standardized capital rules for large banks and do away with the ability for large institutions to use internal models. It also extends these requirements to all banks with more than $100 billion of assets, rather than only the largest, global systemically important banks.

The key provision in the package of proposed rules is the use of loan-to-value, or LTV, ratios to determine risk-weights for residential mortgage exposure. 

The change could allow banks to hold less capital against lower LTV mortgages, though there is some skepticism about much of a reduction in capital that change will ultimately entail, especially for GSIBs that previously relied on internal models, said Pete Mills, senior vice president of residential policy for the Mortgage Bankers Association. 

“Those risk weights aren’t published, so we don’t know what they are, but they are probably lower than 50% for low-LTV products,” Mills said. 

The Basel Committee’s latest regulatory accord, which was finalized in December 2017, envisions LTV ratios as a means of assigning risk weights. But Mills said many in the mortgage banking space were caught off guard by how much further U.S. regulators went beyond their global counterparts. The joint proposal from the Fed, FDIC and OCC calls for a 20 percentage point increase across all LTV bands, meaning while mortgages with LTVs below 50% are assigned a 20% risk-weight under the Basel rule, the U.S. proposal calls for a 40% risk-weight. Similarly, where the Basel framework maxes out at a 70% risk-weight for mortgages with LTVs of 100% or more, the U.S. version has a top weight of 90%.

Under the current rules, most mortgages in the U.S. are assigned a 50% risk weight, so loans with LTVs between 61% and 80% would see their capital treatment stay the same, and any mortgages with LTVs of 60% or lower would see a lower capital requirement. Loans with an LTV of 80% or higher, meanwhile, would likely see a higher capital requirement.

“For GSIBs, that’s probably an increase in capital throughout the LTV rank,” Mills said. “For the rest, it’s a higher risk weight for higher-LTV mortgages and maybe slightly lower in other bands, but, in aggregate, that’s not good for the mortgage market. It’s a higher risk weighting for most mortgages.”

Approximately 25% of first-lien mortgages held by large banks began with an LTV of 80% or higher, according to data compiled by the Federal Reserve Bank of Philadelphia. Roughly 10% have an LTV of 90% or higher, while half were 70% or lower. 

Mark Calabria, former head of the Federal Housing Finance Agency, said he is not surprised by the proposed treatment of mortgages, calling it a “natural evolution” of where regulators have been moving. He added that some elements of the proposal resemble changes he oversaw at Fannie Mae and Freddie Mac in 2020. 

Calabria said mortgage risk is an issue in the financial system in need of regulatory reform, but he questions the methods being considered by bank regulators.

“I worry that they’re making the problem in the system worse by driving this risk off the balance sheets of depositories, which is probably actually where it should be in the first place,” he said. “I’m not opposed to them tinkering in this space they just need to be more holistic about it.”

The proposal also notes that the new treatment of residential mortgages is aimed at preventing large banks from having an unfair advantage over smaller competitors.

“Without the adjustment relative to Basel III risk weights in this proposal, marginal funding costs on residential real estate and retail credit exposures for many large banking organizations could have been substantially lower than for smaller organizations not subject to the proposal,” the document notes. “Though the larger organizations would have still been subject to higher overall capital requirements, the lower marginal funding costs could have created a competitive disadvantage for smaller firms.”

Yet, while regulators say the proposed rules promote a level playing field, some see it giving an unfair advantage to government-backed lenders. 

Pinto sees the proposal as a continuation of a decades-long trend of federal regulators putting private lenders at a disadvantage to the governmental and quasi-governmental entities. He noted that if securities from Fannie and Freddie and loans backed by the FHA and Department of Veterans Affairs, which tend to have very high LTVs, are not given the same capital treatment as private-label mortgages, the net result will be the government playing an even larger role in the mortgage market that it already plays.

Pinto said despite these government programs targeting improved affordability, their provision of easy credit only drives up the cost of housing even further. He added that he hopes regulators reverse course on their treatment of mortgages in their final rule. 

“They should just back off on this entirely. It’s inappropriate,” Pinto said. “They need to look at the overall impact they’re having on the mortgage market, and the housing and the finance market, and the role of the federal government, and the fact that the federal government is getting larger and larger in its role, which is inappropriate.”

The other concern is a lower cap on mortgage servicing assets that can be reflected in a bank’s regulatory capital. The proposal would see the cap changed from 25% of Common Equity Tier 1 capital to 10%. 

Mills said the capital charge for mortgage servicing rights is already “punitive” at a risk weight of 250%. By lowering the cap, he said, banks will be forced to hold an additional dollar of capital for every dollar of exposure beyond that cap. He noted that regulators had raised the cap to 25% five years ago for banks with between $100 billion and $250 billion of assets to provide some relief to large regional banks interested in that market. 

If the cap is lowered, Mills said banks will be inclined to shed assets and shy away from mortgage servicing assets. Such moves would force pricing on servicing rights broadly, a trend that would ultimately lead to higher costs for borrowers.

“MSRs are going to be sold into a less liquid, less deep market, and there are consumer impacts here because MSR premiums are embedded in every mortgage note interest rate,” Mills said. “If MSR values are impacted by this significantly, that rolls downhill through the system. An opportunistic buyer might be able to buy rights at a depressed value, but that depressed value flows through to the consumer in the form of a higher interest rate.”

The proposal will be open to public comment through the end of November, after which regulators will review the input and incorporate elements of it into a final rule. Between the questions raised in the proposal, the acknowledgement by Fed and FDIC officials that the changes could hurt housing affordability, and the strong negative response to the proposal, there is optimism that the ultimate treatment of residential mortgages will be less impactful.

“Nobody seems to be pushing for this, and nobody other than the Fed seems to like it,” Calabria said. “If I was a betting man, it’s hard for me to believe that this is finalized the way it is now in terms of mortgages.”

Source: nationalmortgagenews.com

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Ask Brian is a weekly column by Real Estate Expert Brian Kline. If you have questions on real estate investing, DIY, home buying/selling, or other housing inquiries please email your questions to [email protected].

Q1. Sara and Greg from St. Cloud MN: Hello Brian, Our question might need the help of a marriage counselor but it’s real estate related so we thought we would ask for the pros and cons first. We’re in our late 20s and have been saving to buy a home since before we got married 2 years ago. We talked a lot about starting a family and having a yard for children but didn’t talk much about the specific house we wanted until just a recently. Turns out we couldn’t be further apart on what we want in a home. I want a charming older home, maybe from the 1920s and Greg wants a new home with all of the modern amenities and new technology. What are the pros and cons of each?

A1. Hi Sara and Greg. First off, I’m not a marriage counselor (twice divorced) so I’m only answering from a real estate perspective. Buying a home is such a personal choice that you’ll need to find another way to work that out.

The pros and cons really depend on your prospective and preferences. Older homes tend to cost less to purchase but can be much more expensive to maintain and costly to remodel if they haven’t had a major face-lift in a few decades. Still there are advantages such as older homes often have much larger lots and even acreage. Older homes will have mature landscaping (that may need serious pruning), while new homes may not have any landscaping, particularly nothing in the backyard.

If you’re buying brand new, you’ll have several floor plans to choose from, be able to pick the colors, and have some say in the modern appliances that come with it. While a DIY repainting project for an old house is relatively inexpensive, upgrading to modern appliances can easily cost $30k to $40k. Keep in mind that most young couples are a bit cash strapped for a year of two after buying their first home. You may need to live with the old appliances for a while. Even before you get to the appliances, make sure you know what is going on with the utility systems. Houses from the 1920s had dangerous electrical systems but most were upgraded decades ago. You’ll also want to know the age and condition of HVAC, plumbing, roof, foundation, possibly water well and septic, etc. If these have been upgraded and maintained over the years, you probably won’t have problems. Still, you’re going to want a good Home Warranty plan. Brand new homes shouldn’t have problems with these systems and should come with a warranty from the builder.

Modern amenities are usually a big deal with older homes. Don’t expect a TV cable outlet in every room and you’ll probably find fewer electrical outlets than you’re used to. You can mostly forget internet, surround sound, and security system cables being buried in the walls (think about going wireless when remodeling). Still, if you’re planning a major upgrade, you can have these done to your own preferences and still have the elegance of a sturdy old home.

There are other things you want to consider. Older homes sometimes have lower property taxes because of a lower value and maybe because of the neighborhood. The neighborhood is almost certainly fully developed which means it isn’t likely to experience growth and changes that can come with new developments.

It’s all about trade-offs. Older homes that have stood the test of time come with a quality and timeless beauty that you don’t find in new construction. On the other hand, newer homes are built to more exacting standards such as fire safety and energy efficiency. However, newer homes tend to have veneer finishes rather than old-growth solid wood. Many new homes have had that veneer pulled back over the years to reveal substandard building materials or shoddy workmanship.

Sara and Greg, I hope this helps you better understand the major differences between purchasing a new –v- old home. Ultimately it’s a big decision that you’ll live with for many years.

Readers are encouraged to comment with their thoughts and experiences about what should be consider when comparing old and new homes. Our weekly Ask Brian column welcomes questions from readers of all experience levels with residential real estate. Please email your questions or inquiries to [email protected].

Author bio: Brian Kline has been investing in real estate for more than 35 years and writing about real estate investing for 12 years. He also draws upon 30 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest. With the Pacific Ocean a couple of miles in the opposite direction.

Brian Kline has been investing in real estate for more than 30 years and writing about real estate investing for seven years with articles listed on Yahoo Finance, Benzinga, and uRBN. Brian is a regular contributor at Realty Biz News

Latest posts by Brian Kline (see all)

Source: realtybiznews.com

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Secondary Marketing, Broker Delivery, Outsourcing Products; Conv. Conforming News; Rates, Inflation, and the Fed

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Secondary Marketing, Broker Delivery, Outsourcing Products; Conv. Conforming News; Rates, Inflation, and the Fed

By:
Rob Chrisman

5 Hours, 35 Min ago

For anyone attending the California MBA’s Western Secondary starting this weekend, here’s a challenge too good for any tennis players to pass up. Augie Del Rio, CEO of Gallus Insights, and I will play doubles against anyone Sunday afternoon from 2-4PM across the street from the Waldorf. The loser of 2 out of 3 sets pays $500, the winner gets to decide the charity. First two to email Augie snags the opportunity. (I don’t know Augie’s skill level, but I am old… it’ll be like shooting fish in a barrel.) Speaking of the Western Secondary Market Conference, the California MBA uses the financial resources derived from this to support advocacy efforts in Sacramento. No “lobby rats!” If you’re going, sign up. Support the organization! (Today’s podcast can be found here and this week’s is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology and other services to the mortgage industry for almost four decades. Hear a short chat between Robbie and me on the Western Secondary Conference and its impact over the years on the industry.

Lender and Broker Software, Products, and Services

Even if you haven’t entered the world of online dating, no doubt you’ve heard the phrase “swipe right.” Online dating profiles provide a person’s quick summary and those viewing can swipe right in hopes of a match and the chance to learn more. Similarly, Mobility Market Intelligence (MMI) has released its new LO Quick Profiles tool, providing a summary of an LO’s production and top referral partners, allowing lenders to evaluate LOs based on real-time, accurate transaction history. With the click of a button, you can view production volume metrics including loan production volume, transaction types, loan types, top buy-side & list-side agent partners and top regions based on performance. MMI’s LO Quick Profiles also arm recruiters with the concrete performance data they need to decide whether or not to “swipe right” on potential candidates. Learn more about your potential matches with MMI’s LO Quick Profiles today.

For independent mortgage banks coping with shrinking production volumes and rising costs per loan, outsourcing accounting is an elegant solution to what’s become a very common challenge. Whether you have no accounting expertise in-house or you have a new team with no mortgage experience, you can tap the Richey May Client Accounting and Advisory Services (CAAS) team for the support you need. This team is stacked with mortgage industry experts who can tailor your solution to meet your most pressing needs in a volatile time, with no training needed. Need help transitioning to loan level accounting? Need a fully outsourced function? You got it! Need industry training for your controller? We can do that. In this article, Richey May’s expert Kim Dittmer answers all your most frequently asked questions around outsourced accounting as a mortgage bank.

“Brokers can now shop, lock, and deliver on one platform that seamlessly connects brokers, lenders, and originators. In this market, hustle is everything. You can’t afford to waste a single deal… Or a single minute. That’s why ReadyPrice has launched its innovative new Shop, Lock & Deliver loan exchange platform, designed to help independent mortgage brokers like you save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders, and all on a single platform, at no cost to brokers. It’s the industry’s most powerful universal delivery portal, and it’s already helping thousands of brokers around the country thrive and compete in even the toughest market environments. Multiple lenders. One platform. Zero b.s. Come check us out today.”

Capital Markets and Secondary Marketing Products

“The author Charles R. Swindoll wrote: ‘The difference between something good and something great is attention to detail.’ At Optimal Blue, we echo that spirit in our CompassEdge pipeline hedging and loan trading platform, which has the most granular and accurate real-time position and gain/loss reconciliation tools available. At a time when every basis point matters, you can’t afford a black box approach to these critical aspects of monitoring and improving your hedge performance. CompassEdge analytics provide the ability to drill down on the loan and trade level, with interactive tools that are also integrated with real-time pipeline and market data. Other systems just can’t match the analytics performance that is at the core of CompassEdge. You deserve detailed information and insights to improve financial performance. With margins razor thin, why settle for something less than great? Speak with one of our capital markets experts to learn more.”

“After little movement within the Secondary technology space, there have been a lot of new and exciting updates recently. Between new product and pricing engines, new API capabilities, transition to new hedge management firms, the sunset of GinnieNet, and massive shifts in servicing, the need for strong technology and data experience within the Secondary department has never been greater. Combine this with M&A, a flurry of branch movement, a loss of talent due to RIFs and Secondary Manager transitions, there is no rest for the weary. Junior staff is now suddenly senior. New technology partners and platforms are rolling out for the first time in 5-10+ years for many and pipelines are in transition from platform to platform. 2023 is the year of ‘do more with less’ for those in Secondary leaving technology as the platform to streamline processes, maximize revenue and minimize risk. Matchbox is the only consulting company that can translate Secondary requirements into new technology offerings and workflows to ease the transition for companies. From assisting in Ginnie Mae SFPDM programming and testing to protecting locked pricing and COCs to implementing new technology partners or even building a suite of automated workflows via APIs, matchbox has all aspects of Secondary Marketing/Capital Markets support covered. We’ll even find some margin crumbs along the way so contact Frank Fiore to discuss your Secondary needs today.”

Conventional Conforming Changes

The FHFA acts, and the Government Sponsored Enterprises follow. The GSEs act, and aggregators follow. The aggregators act, and lenders follow. News announcements have slowed somewhat, but let’s see who’s doing what.

FHFA released a report providing the results of the annual stress tests that Fannie Mae and Freddie Mac (the Enterprises) are required to conduct under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

Freddie Mac implemented changes to edits and feedback messages in Loan Closing Advisor® on August 8 to assist you as you prepare and test for the Uniform Closing Dataset (UCD) Phase 3B Critical Edits transition. Access release notes and updated resources to help guide your critical edits transition from the Loan Closing Advisor webpage and UCD webpage.

Freddie Mac launched CreditSmart® Essentials free financial education curriculum in Spanish. Expanded content, design, and platform to better meet the needs of Spanish-speaking consumers to help bolster educational efforts around the importance of building, maintaining, and using credit.

Pennymac is aligning with Freddie Mac’s Project Assessment Request (PAR) enhanced capability, announced in Bulletin 2023-15. Details are available in Pennymac Correspondent Announcement 23-52

Capital Markets

Yes, inflation is coming down somewhat. Yes, the FDIC driven sales of mortgage-backed securities prompted by the bank failures earlier this year are wrapping up. But mortgage rates haven’t done much on the downside. Let’s dive into why.

Last week’s economic data was focused on inflation, which remains well above the Fed’s preferred 2 percent target. Consumer prices rose during July at both the headline and core levels although the gains were widely forecasted. While core inflation was 4.7 percent over the prior twelve months, the last three months’ annualized gain slowed to 3.1 percent, an encouraging sign that the annual rate will continue to fall. It is encouraging to see inflation continue to ease without a significant contraction in the overall economy, increasing optimism that the Fed may achieve its desired soft landing. While costs for shelter and services continue to put upwards pressure on overall inflation, goods prices have been contracting. Core goods declined 0.3 percent in July, the largest monthly drop since March 2022. Costs for more expensive items, where consumers typically rely on financing, such as cars and household furniture, contributed to the decline in prices. Additionally, the percentage of small businesses reporting the need to increase prices fell to 25 percent in July, the lowest percentage since February 2021.

Mortgage and Treasury rates, however, rose after the release of a hotter than expected Producer Price Index (PPI) report for July on Friday. The report showed headline and “core” (ex-food and energy) PPI (actual 0.3 percent, expected 0.2 percent) were a touch on the high side. Core PPI accelerated to 0.8 percent year-over-year from 0.2 percent in June, representing the first sequential increase in 13 months.

To sum things up, the much-anticipated consumer inflation report on Thursday showed that the headline and core consumer price index was unchanged from June, bolstering bets among market participants that the Federal Reserve would hold off on further rate hikes. But hotter-than-anticipated producer inflation data on Friday played spoilsport for risk-on appetite, with both the headline and core producer price index for July rising from the previous month. Still, the overall picture points to a slowdown in inflation, and has even led to hopes of disinflation. There is a rising consensus among traders that the Federal Reserve will be able to deliver a so-called “soft landing.”

This week? The U.S. Census Bureau will issue the July Retail Sales Report, which is forecast to show a slight acceleration from the pace seen in June. Traders will also be watching the release of Federal Open Market Committee Minutes from the Fed’s July meeting for more clues on the direction of interest rates after the July CPI print calmed some nerves. Throw in some regional Fed surveys, business inventories, housing market data, industrial production / capacity utilization, as well as leading indicators, and that’s the week. Scheduled Fedspeak is currently light, though the minutes from the July 25/26 meeting will be released on Wednesday. Pertinent to mortgages, MBS Class B and C 48-hours are on Tuesday and Thursday. The week gets off to a quiet start with no scheduled economic releases of note today, and we begin the week with Agency MBS prices roughly unchanged from Friday night and the 10-year yielding 4.15 after closing last week at 4.17 percent. (Back in October the 10-year hit 4.34.)

Employment

“Stronghill Capital, LLC, an Austin, TX-based Wholesale and Correspondent Lender is hiring! If you are an Account Executive with 3+ years of experience and an existing book of Correspondents and/or Brokers that you want to introduce to a dynamic company with a responsive management team that strives to provide world-class service levels, sharp price execution, and is committed to building the Non-QM ‘private money’ space, contact Matt Brammer. As we continue to expand, we are open to discussions throughout much of the United States.”

“Feel like you’re on an island? If you’re a business manager leading a hardworking staff and want more strategic guidance and additional resources to thrive, look no further. Nations Lending offers a full suite of tailored support for Producers. Our marketing services include social media management and personalized content creation, including video editing support, all at no cost to you. We also offer LO-friendly programs like Direct Submit, which allows loan files to be submitted directly to Underwriting, and ACE (Accelerated Competitive Edge) Approvals, our comprehensive preapproval program saving you time. If you’re interested in excelling with a company that is credited with multiple awards, including three-time Inc. 5000 winner, eight-time winner of Scotsman Guide’s Top Mortgage Lenders, and three-time winner of Top Workplaces for Millennials by Fortune Magazine, then join our family. Become part of our nation and mission to make ‘home loans made human™’ and visit Nations Lending to learn more.”

The Department of Housing and Urban Development (HUD), in Washington DC, has an executive level vacancy for a Director of Single-Family Housing Program Development. The person selected will direct and manage three divisions: Home Mortgage Insurance Division; Valuation Policy Division, and Program Support Division. The Divisions share responsibility for the development of policy related to origination of single-family FHA-insured mortgages and loans. All applications must be received via USAJOBS.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

This week and next week are two of the most affected by summertime trading conditions (lower volume, lighter liquidity, seemingly random directional motivations).  Rates are also starting out at the highest levels of the year despite a friendly CPI reading last week, so maybe it’s a good time to ask what rates even care about these days.  After all, it was supposed to be inflation, yet here we are.  

There are a few key themes in play right now that go beyond inflation.  Some of them circle back to inflation, however.  For instance, market chatter has quickly adopted the phrase “no landing” to replace the question of a “soft landing” for the post-covid economic growth. 

1. “No Landing”

The assumption had been that restrictive Fed policies would crimp economic output in such a way that would make it difficult for the Fed to engineer a soft landing that balanced the need to reduce inflation while attempting to avoid undue damage to the economy.  

Now, almost 2 years into the most aggressive rate hike cycle in decades, job growth numbers have only just fallen back to levels that would be considered “very strong” at any other point in the previous economic expansion.  Granted, not all the data is as upbeat, but historically low unemployment and historically strong job gains are important indications of economic resilience–at least for now.

If there’s “no landing,” that could imply less downward pressure on inflation.  While modest in the bigger picture, the recent uptick in fuel prices feeds that narrative.  Some analysts see the past 2 months of lower inflation readings as a temporary blip caused by a correction from an overdone spike in fuel prices.  They see the recent increases as more sustainable (especially in a “no landing” scenario) and sustainably higher energy prices would likely prevent annual inflation from making it back to 2%.

2. “Old fashioned supply/demand 101

This is actually all about supply.  The government is spending more than it did last year and taking in less revenue than it did last year.  It’s also paying historically high rates of interest to service its debt.  All of the above is a recipe for increased Treasury issuance which, of course, was seen with the recent refunding announcement.  Fitch’s downgrade wasn’t a huge complicating factor there, but perhaps a modest one.  

3. Fed’s shift from “finding” to “holding” a ceiling rate

The Fed has arguably found the ceiling for this rate hike cycle although they could technically still hike if the data re-accelerates.  One would think that would be good for rates, but it’s really only been good for the yield curve.  Shorter term rates have benefited at the expense of longer term rates.  After all, short term rates don’t need to move any higher if the Fed isn’t seen needing to hike again.  So any adjustment in trading levels in response to the economy or the Fed’s outlook (which, again, is an outlook for the “length of time spent at a ceiling”) are more concentrated in the longer end of the yield curve.  This is that “bear steepening” that everyone’s been talking about.

What’s all this mean?

Short term rates have to fall before long term rates can fall.  Short term rates are highly dependent on the Fed’s outlook for the length of time spent at the ceiling.  If the economy contracts (or moves in that direction) and if inflation remains on track for 2.0% annually, it could only take a few months for the Fed to start talking about a future rate cut.  2s would respond and 10s would see that as permission to follow, albeit a few steps behind.

The fuel price/econ growth dynamic means that those things need to moderate before we’re going to see much relief in rates.  They’re also precursors for the Fed’s “ceiling time” thoughts.

The supply issue in Treasuries is a tough one.  Any discussion about trying to get the U.S. government to either stop spending so much money or start taking in more revenue seems like it would only exist in jest, regardless of political stripe.

Source: mortgagenewsdaily.com

Apache is functioning normally

If you grew up in the 90s as I did, you likely watched Father Of the Bride, erm, let’s say more than a handful of times.

I’m also willing to bet that, while you sat there admiring Annie’s eternally bouncy curls with utter certainty that stonewashed mom jeans and layered turtleneck sweaters would never go out of style, you also dreamt about growing up in a home as warm and welcoming, (not to mention downright huge) as the Banks’ house.

To be fair, Annie’s outfits have come full circle and are once again considered the height of cool-girl fashion. As for our love of that fairytale family home, you’re not the only one still pining to step inside over 30 years later.

Still from the 1991 movie Father of the Bride, starring Steve Martin and Kimberly Williams-Paisley. Credit: Touchstone Pictures

To this day it remains one of the most searched-for movie houses on the internet and after a quick re-watch (or three) since the film joined Disney+, I was instantly reminded why.

It also got its fair share of recognition in the 1991 movie that starred Steve Martin as George Banks, Diane Keaton as Nina Banks, Kimberly Williams-Paisley as Annie, Kieran Culkin as Matty, and Steve Martin’s Only Murders in the Building co-star Martin Short as the eccentric wedding planner extraordinaire Franck Eggelhoffer.

Steve Martin’s character, George, proudly boasted that “I love this house. I love that I taught my kids to ride their bikes in the driveway. I love that I slept with them in tents in the backyard. I love that we carved our initials in the tree out front. This house is warm in the winter, cool in the summer, and looks spectacular with Christmas lights. It’s a great house, and I never want to move.” Safe to say that if we lived at the Banks’ house, we’d stay put too!

So, is the Father of the Bride house real? Can we go visit it? And, most importantly, can we too carve our initials on the tree out front?

Probably a firm no on that last one but in answer to the rest, I’ve done some digging and finally know everything I’ve ever wondered about this heart-warmingly nostalgic home. And spoiler alert, it’s not in San Marino, where Steve Martin’s character, George Banks, said it was.

“We live in a small town in Southern California called San Marino. I love this town and not just because it’s the kind of place where people still smile at each other. But because it hasn’t changed much in the past 25 years.”

Is the ‘Father of the Bride’ house real?

Yes, the Father of The Bride House is absolutely real! However, as it turns out, they actually used two homes to bring the movie together. The first, built in 1913, was used to film interior scenes and features as the front of the home that George pulls up to at the beginning of the movie.

“This is our house, 24 Maple Drive”

It has an incredible total of 8 bedrooms and 5 bathrooms and remains as charming today as it was back in the early 90s. 

Though the true address isn’t quite as pretty sounding as 24 Maple Drive, it is, as George says, located in California. You’ll find the house looking just as dreamy as you’ve always remembered it at 843 El Molino Avenue in Pasadena, California.

It’s a private residence of course so any trips there should be respectful and discreet, making sure not to trespass on the property or disturb residents and neighbors. There’s been plenty of that in the past; according to betweennapsontheporch.com, the young couple who purchased the property shortly after the movie was made even had people ringing their doorbell and asking for a tour.

However, if you’re noticing that the first house doesn’t have those same iconic pink flower-lined white picket fences you remember from the movie, that’s because they were constructed especially (and temporarily) for the film.

The new owners had them taken out and replaced with new ones when they moved in.

The second house was used to shoot scenes for Annie and Bryan’s backyard wedding.

A Colonial home built in 1925, that property boasts 5 bedrooms, 4 bathrooms, and almost half an acre of land. There’s also a partly furnished basement, a working fireplace, and a parking spot outside to keep the family car in. No mention of a basketball hoop (or swans in the bathtub) of course but I like to think the owners have one!

House #2, the wedding house, it’s also in California and stands at 500 N Almansor St, Alhambra. 

“I’ll be honest with you. When I bought this house 17 years ago it cost less than this blessed event in which Annie Banks Became Annie Banks McKenzie.”

A lot has changed since 1992 when Father of the Bride first hit theatres. Not least the cost of huge five-bedroom houses with white picket fences and beautifully landscaped backyards.

So, three decades on and, sadly, more in the know about the cost of real estate, I couldn’t help but wonder just how much the Father of the Bride house would set you back today. Zillow had the answer. Though it’s currently off the market, they estimate that the iconic 4,339 square-foot house is worth over 3.5 million dollars!

And, if you’re hoping the house used for the backyard wedding scenes might be more reasonable, you’re in luck… kind of. Also off the market, Zillow estimates this equally striking family home’s worth at around the 2.5 million dollar mark. It was last sold in 2016 for $1.998 million.

I’m suddenly considering giving up writing in pursuit of owning my own cook nook or perhaps an athletic shoe company!

Featured image: The real-life house featured on “Father of the Bride”, photo credit: Peter M. CC BY-SA 2.0 via Flickr

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Source: fancypantshomes.com

Apache is functioning normally

When we contemplate the potential of AI and Web3 technologies in real estate, it goes beyond simply revolutionizing how consumers search for homes and take ownership of assets. The true power lies in how these advancements can alleviate the intricate processes involved in assisting real estate agents and brokers in efficiently guiding consumers through successful transactions. Let’s face it, the ticket price of a house is often too steep for the majority of consumers to navigate on their own with the click of a button. The stakes in real estate are higher, and the cost of making a mistake is substantial. 

Over the past two decades, the real estate transaction process has become increasingly complex, placing even greater demands on real estate agents. While we’ve witnessed the launch of numerous innovative proptech companies, many of them address the top of the sales funnel, such as search, lead generation and financing. Technology applications within the residential real estate space are still burdened with unnecessary friction, preventing the average real estate agent from fully embracing these tools. The technologies that truly succeed are the ones that prioritize saving agents time and driving their business forward and so far there haven’t been many. 

Journey through web eras

Let’s take a retrospective journey through the different web eras and their impact on real estate. During the “Web1” era, platforms like realtor.com were game-changers, as they propelled the industry into the digital realm, providing both consumers and brokers with unparalleled access to property listings. This momentous shift dismantled the barriers that once confined inventory to cumbersome books where practitioners were no longer at the mercy of brokers who held real estate data hostage for their own advantage.

When I look back through my agent lens spanning the last two decades, the real watershed moment for me occurred in the Web2 era with the introduction of Docusign and electronic signatures. Why was it such a game changer? It was nothing short of a time-saving miracle. It significantly streamlined transactions, slashing hours of wasted drive time chauffeuring documents in between soccer games and dinners, creating competitive advantage by shortening contract periods and empowering agents to conduct business across borders in minutes versus days.

While Zillow and its “Zestimate” brought undeniable benefits to consumers, it also added a considerable workload to the already-demanding agent transaction and marketing cycles.

The era of AI

Now, enter the era of AI, which holds the promise of delivering the next breakthrough akin to the impact of Docusign. While I may not possess the ability to predict the exact form of this “killer app,” I am resolute in my belief that AI is the technology capable of delivering it. Based on my brief interactions, the potential applications of AI across the agent journey are astounding.

From prospecting and day-to-day communications to marketing projects, client management, handling diverse personalities, and even navigating the complexities of escrow–the possibilities seem limitless. AI possesses the transformative ability to automate and optimize these mundane tasks, truly liberating agents to concentrate on what genuinely matters: cultivating profound relationships and delivering unparalleled service. 

Contrary to popular belief, the evolution of technology within the residential real estate industry has not diminished the need for real estate agents; if anything, it has magnified it. While technology has undoubtedly reshaped certain aspects of the industry, it has also shed light on the irreplaceable value of skilled agents who possess the finesse to navigate the complexities and intricacies of real estate transactions. In a world where algorithms and digital tools can only take us so far, it is the human touch, experience, and nuanced understanding that agents bring to the table that are truly irreplaceable.

Tech will not render real estate agents obsolete

Let’s dismiss the misguided notion that technology will render agents obsolete. The numbers themselves bear witness to the growing demand for their services. According to a 2001 NAR survey, only 69% of buyers used the services of a real estate agent. Fast forward to 2021, and that figure has skyrocketed to nearly 90%. This data reinforces my earlier argument that the process of buying and selling a home has become increasingly complex, regardless of the technology deployed in a given market.

The statistics speak volumes, showcasing the enduring need for agents who possess the skills and expertise to navigate this ever-evolving real estate landscape. In an era marked by complexity and rapid technological advancements, it is clear that the guidance and experience of agents are more essential than ever before. 

While the precise manifestation of its transformative force remains uncertain, one thing is clear: AI will catalyze the next wave of innovation in our industry. Let’s dive into its vast potential, leveraging it to enhance our efficiency, productivity, and overall success. The future is within reach, and AI serves as the guiding light leading us toward a new era of real estate brilliance.

Christine Choi, also known as the ‘Real Estate Web3 Technologist,’ is a dynamic industry leader with over two decades of deep domain experience in the residential real estate industry.

Source: housingwire.com