earnings

Apache is functioning normally

Opendoor continued to feel the market’s headwinds in the second quarter of 2023, which led to fewer homes sold and lower revenues in the period. But the iBuyer greatly reduced its operating costs, delivered a profit, and increased its home purchases in the quarter. 

The iBuyer recorded a net income of $23 million from April to June, compared to a net loss of $101 million in the previous quarter and a net loss of $54 million in the same quarter last year, per Securities and Exchange Commission (SEC) filings. 

The firm’s revenues came in at $2 billion in the second quarter of 2023, down 37% compared to the previous quarter and 53% related to 2Q 2022. Total operating expenses declined to $217 million, compared to $294 million in Q1 2023 and $454 million in Q2 2022.  

Carrie Wheeler, CEO of Opendoor, said the company exceeded the high end of its guidance for adjusted Ebitda and revenues in the second quarter as it continues to “focus on what we can control and operate with discipline in this environment.” 

In April, the iBuyer announced that it had made the “very difficult decision” to lay off roughly 22% of its workforce, or 560 positions. More layoffs followed in November 2022, when Opendoor cut 550 jobs, or approximately 18% of its workforce at the time.

“Our results reflect the progress we’ve made in strengthening our offering, driving cost efficiencies and managing risk. We expect the third quarter to mark our return to positive contribution margin levels,” Wheeler said in a statement. 

Opendoor has committed to deliver at least 100 basis points of contribution margin improvement by 2024, increasing the annual target range to 5% to 7%, with a goal of eventually returning to positive adjusted net income.  The contribution margin was negative 4.6% in Q2 2023.

“We expect to perform within our 5% to 7% contribution margin target beginning Q4 2023,” Opendoor’s interim CFO Christy Schwartz told analysts Thursday. “We are managing our business to return to positive adjusted net income, which is our best proxy for operating cash flow. And we believe we have the cost structure and balance sheet in place to do so.” 

Schwartz said the company expects to reach breakeven at steady annual revenues of $10 billion, or approximately 2,200 home acquisitions and resales per month at its target contribution margin range of 5% to 7%.  

But what about selling and buying homes? 

In the second quarter of 2023, Opendoor sold 5,383 homes, a decline of 35% compared to 1Q 2023 and 49% compared to 2Q 2022.  

“As of quarter end, 99% of the homes we made offers on between March and June of last year were sold or under resale contract and our new book of inventory is generating positive unit economics in what continues to be an uncertain time in the U.S. housing market,” Wheeler said. 

Meanwhile, Opendoor’s inventory balance reached $1.1 billion in the quarter, representing 3,558 homes. The total is down 46% from the previous quarter and 83% from the same period last year. 

The company purchased 2,680 homes from April to June, up 53% from Q1 2023 and down 81% from Q2 2022. The decline versus the prior year comes primarily from elevated spreads embedded in its offers since June last year, coupled with sellers remaining on the sidelines, Opendoor’s executives told analysts. 

Opendoor ended the quarter with 1,390 homes under contract for purchase, up 22% versus Q1 2023.

Looking forward, the company expects to deliver revenues between $950 million and $1 billion in Q3 2023 when adjusted Ebitda is expected to be between negative $60 million and $70 million. 

The firm is optimistic about the opportunities it has cultivated, including its partnership with Zillow and its Opendoor Exclusives platform.

Source: housingwire.com

Apache is functioning normally

eXp World Holdings faced headwinds in the second quarter, as persistently slow real estate sales drove the company’s revenue down 13% year-over-year to $1.2 billion, executives disclosed on Thursday.

Despite the decline in revenue, the holding company for eXp Realty maintained profitability with a net income of $9.4 million, up from $1.5 million in the first quarter of 2023 and $9.3 million in Q2 2022.

The company’s adjusted operating earnings before interest taxes depreciation and amortization (EBITDA) declined 15% year-over-year to $38.1 million in Q2 2023, according to the official statement. 

Amid a difficult housing market, transaction sides declined 9% to 137,199. Sales volume also declined 16% from the second quarter of 2022 to $48.6 billion.

However, eXp World Holdings Chief Executive Officer Glenn Sanford expressed his satisfaction in spite of the declines in revenue, sales and transactions. The company and its subsidiaries, which include eXp Realty, SUCCESS Enterprises, Virbela and other affiliated services, are in solid financial shape, declared its executives. 

“Our net income and adjusted EBITDA were both positive, we continue to have a solid financial profile, we have a strong cash flow generation and a significant cash balance as well as zero debt,” said Sanford during the company’s webcast. 

International Realty was the best performing segment in Q2

When broken down by segments, International Realty revenues increased 35% year-over-year to $11.99 million, reaching an all-time record. North American Realty revenues, on the other hand, fell by 13% year-over-year to $1.21 billion.

“North American Realty business continues to be strong and profitable with unit growth and agent growth outperforming the industry. It delivered $34 million of EBITDA in the quarter,” said Sanford. 

Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings, acknowledged that high mortgage rates were expected to persist in the short term. However, he stated that consumer price inflation started to cool down in the U.S, eXp’s core North American market.

He further noted that “forward interest rate curves suggest that rates may now be at or near peak levels.”

As such: “We are optimistic that lower mortgage rates will unleash significant pent-up demand as affordability improves and buyers can once again meet seller price objectives.” 

The company remains bullish on iterating its agent value proposition

During the webcast Thursday, Sanford touted eXp Realty’s growing value proposition among agents, pointing to a 7% increase in agent count to 88,248 as of June 30, 2023. Just yesterday, Daryl Owen, the founder of top California independent brokerage Nationwide Real Estate Executives, joined eXp Realty, taking 200 agents along with him.

Sanford highlighted the launch of several initiatives in Q2 that prioritize agent support. The brokerage revamped its eXpert Care Desk, which provides live support to agents 24/7. And in May, they launched Luna, the GPT-4 powered generative AI support agent.

Throughout the second quarter, eXp also made a series of notable announcements, including the launch of its Boost Program to financially incentivize independent teams and brokerages to join eXp Realty and its commitment to reduce its revenue share criteria.

Source: housingwire.com

Apache is functioning normally

Amid the fallout of the Silicon Valley Bank and Signature Bank collapses in March, depositors looked for safer places for their savings, and big banks benefited from some customer flows during the flight to safety. Earnings for JP Morgan Chase and Wells Fargo also beat expectations, easing concerns about the health of the country’s banking system.

Deposits at Bank of America were above $1 trillion for the seventh straight quarter, posting $1.91 trillion in the first quarter of 2023, down 1% from $1.93 trillion during the same quarter in 2022. 

Consumer banking division posted a net income of $3.1 billion, a 13.1% decline from the previous quarter’s $3.58 billion, but still up 4.4% from the previous year’s $3 billion, according to its filing with the Securities and Exchange Commission (SEC).

“We had a great quarter for our micro products (…) We have positive returns there. So mortgages, credit, munis, financing, futures, FX, all of them had a pretty good quarter,” Alastair Borthwick, Bank of America’s chief financial officer, told analysts.

Mortgage, home equity business 

Its mortgage business, however, reported disappointing numbers, an issue led by elevated 30-year fixed mortgage rates.

Mortgage originations totaled $3.9 billion during the first quarter, a 25% drop from $5.2 billion posted in the second quarter, and 76.2% below the $16.4 billion in the first quarter of 2022. 

BofA’s production decline follows the track of JPMorgan Chase and Wells Fargo, which also posted double-digit mortgage loan production decreases during the first quarter.

The bank’s home equity originations remained flat in the first quarter, posting $2.6 billion from the previous quarter. That’s up from the first quarter of 2022, when BofA originated $2.0 billion in home equity loans.

Bank of America had $229.3 billion in outstanding residential mortgages on its books through March 31, down from $229.4 billion from Q4 2022 and $224 billion in the first quarter of 2022.

The home equity portfolio was $26.5 billion at the end of the first quarter, down from $27 billion from the previous quarter — and a decline from $$27.8 billion a year prior.

Bank of America’s total mortgage-backed securities reached a $32.1 billion fair value as of March 31, compared to $32.5 billion as of December 31, 2022.  

Looking forward, Borthwick expected the Federal Reserve to raise interest rates one more time, followed by a couple of cuts this year. 

“That obviously assumes our current client positioning and the forward rate expectations. We continue to expect modest loan growth (…) driven by credit card, and to a lesser degree, commercial,” Borthwick said.

The bank expects further Fed balance sheet reductions to continue to reduce deposits for the industry, leading to lower deposits and rotational shifts.

Source: housingwire.com

Apache is functioning normally

Redfin was in the red yet again in the second quarter, but its losses are narrowing and it’s tweaking its unique brokerage model to court more experienced agents in pricey coastal areas.

Redfin’s financials

Revenues at Redfin fell 21% year-over-year to $275.6 million, down from $606.9 million a year earlier. The brokerage and portal’s real estate services division, its principle source of revenue, dropped to $180.6 million, a 28% decline. In all, Redfin registered a $27 million net loss for the quarter, a 64.9% year-over-year decline from the $78.1 million loss in the second quarter of 2022.

Redfin’s mortgage revenue was $38.4 million, down 28% year-over-year. Its attach rate was 19%, down from the 20% last quarter.

In an earnings call with analysts on Thursday, Redfin founder and CEO Glenn Kelman said high mortgage rates and a frozen existing-home sales market resulted in a slowdown for Redfin’s salaried agents and it will likely continue for a few more quarters.

“Sales volume is near rock bottom,” he said.

The company expects to break-even on an adjusted-EBITDA basis over the next 12 months, rather than reach that goal by the end of 2023, which Kelman described as “a setback.” He did note that company expects to improve its adjusted EBITDA this year by more than $140 million.

Redfin’s market share in the second quarter of 2023 declined nearly 10% on an annualized basis to 0.75%. Revenue per transaction dropped 2.88% year over year to $10,224, the company said.

Kelman told analysts that agent layoffs forced the company to reassign about a third of its active customers, and the closure of ibuying arm RedfinNow eliminated 12% of its listing demand.

On a positive note, Kelman said the portal’s visitor gains increased 9% annually in the second quarter of 2023. Without naming the rivals, he said Zillow and Realtor.com declined in visitors. He also spoke of an improving the user experience with artificial intelligence and the promise of its burgeoning rental platform.

A more ‘traditional’ approach to brokerage

Perhaps the most interesting talking point on the call was Redfin’s embrace of what could only be described as a more traditional real estate brokerage model.

Redfin is eschewing junior agents and its high-fixed cost, salaried approach in targeted coastal markets. Instead, it’s looking to hire more experienced agents in high-priced areas, and Kelman said the brokerage is targeting the San Francisco and Los Angeles markets for a pilot program.

“In the San Francisco Bay Area, our share is below 2%, but the share of people who bought a home and who had earlier contacted our agents for service is nearly 30%. It’s even higher for purchases above $1 million,” Kelman said, adding that “anyone launching a brokerage today with that much demand would have a massive advantage in recruiting and retaining the best agents.”

Starting in 2024, Redfin plans to give agents in the L.A. and San Francisco “the lion’s share of the commission” on self-sourced sales “while keeping for ourselves the high margins on Redfin-sourced sales,” Kelman said.

Redfin’s goal, he said, is “to hire and keep agents who can deliver better service and higher close rates for Redfin-sourced customers buying homes above $1 million and incremental profits from their own sales, too.”

If the pilot is a success, it will be rolled out to additional coastal markets.

“This is just a more traditional salesperson who wants to augment his or her income with Redfin-sourced sales and we’re switching our existing agents in those pilot markets to this pay plan,” he said.

“So, usually, the trade-off at Redfin when we approach agents is you’ll get more Redfin customers, but at a lower split. So, you have to close more sales to make the same amount of income or more income. Now, we’re trying to offer agents the best of both worlds where we allow agents to close sales from their personal network at a split with Redfin.

“That’s similar to what they would get at a traditional broker while retaining the high margins on Redfin-sourced sales. So, let’s say an agent has closed 10, 15 sales in California above $1 million, they could come over to Redfin and earn about the same income, but we could help them meet customers to close another 10 or 15 sales. And that would be incremental, and that would be at the Redfin margin. This is what our competitors fear we would do.”

Source: housingwire.com

Apache is functioning normally

Rule #1 by Phil Town is not a general personal finance book, and it’s not a book for beginning investors — it turns a lot of conventional investment wisdom on its ear. The book explores a philosophy ascribed to Columbia University’s Benjamin Graham (author of The Intelligent Investor), and popularized by Graham’s student, Warren Buffet (perhaps the most successful investor of all time).

What is The Rule? “There are only two rules of investing: Rule #1: Don’t lose money […] and Rule #2: Don’t forget Rule #1.” Town writes: “Most Americans are trapped in mutual funds that, at best, ride the waves of the market.” He believes that his method can help investors break free from these cycles.

At its heart, Town’s philosophy is simply “buy low, sell high”. He’s not pushing a get-rich-quick scheme (though at times, especially early in the book, that’s exactly how it comes across). But he’s certainly encouraging his readers to abandon traditional “get rich slowly (and surely)” techniques.

Town argues that there are three myths of investing:

  1. You have to be an expert to manage money.
  2. You can’t beat the market.
  3. The best way to minimize risk is to diversify and hold for the long term.

Dollar-cost averaging will not protect you, he says. These statements may make some nervous about Town’s philosophy. In the recent Wall Street Journal article about personal finance books, one expert cautioned:

“Any book that suggests it has a new way to riches should probably be a little suspect,” says Prof. Kenneth Froewiss, a finance professor at New York University Stern School of Business. A good book about personal finance, he says, always elaborates on three simple themes: Save early, know your risk tolerance, and diversify.

Town says that “knowing you will make money comes from buying a wonderful business at an attractive price”. If you can find a wonderful business, know what it’s worth as a business, and then buy it at a discount, you will become rich. If you repeat these steps, you will become very rich. “The price of a thing is not always equal to its value,” he says, arguing against Efficient Market Theory. He points to the recent Tech Bubble as an example. (As you might expect, Town doesn’t care for A Random Walk Down Wall Street.)

Rule #1 describes how to evaluate the investment potential of a business. You want:

  • A company that means something to you (you know its inner workings because you’re passionate about it).
  • A company that has a wide moat, or protective buffer (whether this is a competitive advantage, a huge cash reserve, or an exclusive license).
  • A company with excellent management.
  • A company with a margin of safety (that is, a company priced so low that even if you miscalculate its target price, you’re not going to lose money).

Using Town’s method, an investor creates a watch list of companies that meet each of these four criteria. Each company’s financials are checked against five measures of fiscal health (return on investment, revenue growth rate, earnings-per-share growth rate, equity growth rate, and free-cash-flow growth rate) over periods of one, five, and ten years. If a company’s numbers look good, the investor develops a target price for it.

And then the waiting begins.

When the market price reaches 50% below what the calculations show it ought to be, the investor fully commits himself. Sort of. Ideally, says Town, you would hold a company’s stock forever. In reality, he argues that there are a couple of times to sell:

  • When a company has ceased to be wonderful.
  • When the market price is above the sticker price.

It is here that the Rule #1 system begins to resemble day trading. When you’ve found your ideal business, and when it passes the Rule #1 criteria and is selling at half-off the sticker price, you begin buying and selling the stock based on market conditions. You use a set of tools to make your decisions, constantly moving in and out of the stock. You’re committed to the stock for the long haul, it’s true, but you’re attempting to use market timing to maximize your returns. (Town stresses that these tools should not be used to find and value stocks, but only to time the re-purchase (or sale) of a stock to which you’re already committed.)

The book jacket incorrectly touts this as a “fifteen-minute-a-week” system (which makes it sound even more like a get-rich-quick scheme). The author, though, is clear that more time is needed to make this work. He admits that constructing a watch list takes several hours per company. It’s only after the watch list is created that the time investment declines.

I can’t recommend this book, but that’s because it’s beyond my ken. I don’t hate it. In fact, I find the ideas fascinating, even plausible, but I lack both the experience and the expertise to evaluate Town’s system. It seems to be made of equal parts sound advice and gimmicks. I’d love to read a review from somebody more firmly rooted in investment theory.

One saving grace — and it’s a big one — is that the system includes a built-in escape hatch. By using the “margin of safety”, you are buying heavily discounted stocks of good companies. It’s unlikely that they could fall further. (But not impossible.)

For more information on Rule #1, check the following web sites:

  • Rule One Investor is the book’s official site. It includes additional information, including handy calculators. (Which is good, because much of this system requires number-crunching.) Free registration required.
  • The Rule #1 Blog is author Phil Town’s personal site where he answers questions and provides additional insight. I like the fact that Town makes himself publically available. This, too, makes me less inclined to classify this as a “get rich quick” scheme.
  • A review of the book at Fat Pitch Financials also seems ambivalent about the system. The author writes “I really wish Phil would have shared more information about his past performance using his investment techniques.” I agree.

Source: getrichslowly.org

Apache is functioning normally

San Diego giant Guild Mortgage bounced back to profitability in the second quarter, thanks in part to a successful integration of numerous companies the lender acquired in the first quarter. The mortgage shop is laser focused on growing its market share, with company executives noting they are on the lookout for additional companies to buy in the near future.

Guild’s net income was $36.9 million, up from a net loss of $37.2 million in the previous quarter. The lender’s net revenue more than doubled, increasing to $236.8 million from the $103.9 million the lender reported in the first quarter of 2023.

Its gain on sale margin on originations in the second quarter of 2023 was 310 basis points. Guild’s total in-house originations amounted to $4.5 billion, up from $2.7 billion in the first quarter.

Terry Schmidt, Guild Mortgage’s new CEO, said the second quarter results are a reflection of the company’s push to “further scale [its] platform.” 

“We are achieving this to the successful execution of our organic and external growth strategy,” she said during the company’s earnings call. “Broader industry challenges persist due to higher interest rates, and limited home inventory, which is putting pressure on production volume and industry margin, however, the Guild brand within the mortgage industry is stronger than it’s ever been.”

Additionally, the lender’s portfolio unpaid principal balance grew to $82 billion as of June 30, up 3% compared to $79.9 billion in the first quarter and an 8% increase from $75.9 billion last year.

“We retain mortgage servicing rights for 84% of the total loan sold in the second quarter of 2023. This provides both reliable fee income as well as continued interaction with our customers supporting our strong recapture rate,” Shmidt said.

The company’s CEO added that Guild’s “strong balance sheet and liquidity position supports ongoing pursuits of additional growth opportunities.”

“Guild has engaged in several opportunistic acquisitions in the recent years, which has grown our reputation as a valued business partner, and we believe the continued needed origination environment will create additional opportunities for us to add smaller businesses to Guild’s platform,” she said.

In recent months the lender has been on a buying spree, acquiring reverse mortgage lender Cherry Creek Mortgage, Legacy Mortgage and Inlanta Mortgage. It also brought on eight branches from Fairway Independent Mortgage in March, adding to its ballooning headcount of over 4,000 employees.

Regarding Cherry Creek, Scmidt noted that within 45 days of acquiring the company it became fully operational and the 500 employees onboarded are “almost going full speed,” Schmidt said. 

“We’ve gotten better at integrating [new companies that we bring in], we’re comfortable continuing to work towards adding more of these types of acquisitions.”

Despite solid financial results for the second quarter, year-to-date the company reported a net loss of $0.3 million compared to a net income of $266.3 million in 2021. And to no one’s surprise total in-house originations of $7.2 billion year-to-date were also significantly lower compared to the $11.8 billion reported in 2021.

Guild’s second quarter results beat the expectations of some analysts. A report from Wedbush noted that Guild’s “gain on sale and servicing revenues were higher than expected, driven by higher than expected volumes.”

“The company sees additional opportunities to add smaller businesses to the Guild platform, giving muted origination activity, which should help to generate market share gains over time,” the report added.

Source: nationalmortgagenews.com

Apache is functioning normally

TPO Programs, Broker Locking, New Media Company, CRM Products; Investor News; Capital Markets

<meta name="smartbanner:author" content="We now have a native iPhone
and Android app.
Download the NEW APP”>


This website requires Javascrip to run properly.

TPO Programs, Broker Locking, New Media Company, CRM Products; Investor News; Capital Markets

By:
Rob Chrisman

13 Min, 13 Secs ago

Planet Home’s Michael B. reminds me, “I miss every shot I don’t take.” The topics here in Orlando at the FAMP convention include not only prospecting, prospecting, and… prospecting, but also not missing a shot by offering clients more than a couple products. Freddie, Fannie, FHA, and VA are fine, but every client and referral source is precious, and what happens if someone walks through the door and needs a loan for a renovation (remodel), or a condotel, or a non-warrantable condo, or qualifies for a bond program, or… the list goes on. In the category of leads, have you looked into any local real estate investment clubs as a source of business? What about going after leads from divorce attorneys or local hard money lenders? Persistence! Another big topic at the FAMP conference is saving money, and STRATMOR’s current blog is titled, “Improving Revenue Might Be Right Under Your Nose.” (Today’s podcast can be found here and is sponsored by Candor. Candor’s patented automated underwriting decision engine, CogniTech, is a state-of-the-art, 100 percent machine platform that can handle infinite loan scenarios. Listen to an interview with Ally Home’s Glenn Brunker on the homebuyer affordability issue and potential ways to alleviate it.)

Lender and Broker Software, Products, and Services

School is back in session for the majority of America’s youth. But just because you are an adult doesn’t mean you should pass up on opportunities to polish your professional skillset. Surefire℠, Black Knight’s CRM and Mortgage Marketing Engine, has created Mortgage Marketing University (MMU) with free 101, 201 and 301-level courses designed to help brokers, LOs, LOAs and your marketing team get up to speed on best mortgage marketing practices and stay on top of their game. The MMU companion eBook is an ideal resource for your team to keep at its fingertips. Download the MMU eBook today.

Debuting Rebel Chics Media! “We understand the needs of the real estate industry and are here to help you engage, “edutain” and inspire homebuyers with branded social content. Our agency-quality subscription content, along with writing prompts, allows you to address the questions and concerns of potential homeowners. This content is ideal for LOs, banks, credit unions, and Realtors looking to build a strong social brand. Benefit from 50+ years of combined industry experience of our founders, Jillian Sorensen & Dana Trajcevski. Move beyond generic posts like Spring Cleaning tips and Pumpkin Pie recipes, and instead, unlock the power of storytelling. Now is the perfect time to build your brand, and Rebel Chics Media is here to support you. We understand that you’re busy and don’t have the time, energy, or tools to create content yourself. Leave that to us and focus on growing your brand and connecting with your audience.”

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 ReadyPrice out today.

TPO Programs for Brokers and Correspondents

Profitable mortgage companies are focused on the long-term value of the customer relationship. Essex Mortgage’s partners enjoy greater customer retention, GNMA pass-thru pricing, no overlays, no LLPAs, NO EPOs, and NO EPDs. They also receive Tax Deferred asset growth and a long-term cash flow stream without having to be a GNMA issuer themselves. Please contact us to discuss how the Essex GNMA Excess MSR program can help retain and enhance your customer relationship, broaden guidelines, and expand into new markets. Please contact Kimberly Schenck.

Push strongly through the summer buying season with Luxury Mortgage Corp. (“LMC”). LMC is offering a 100-bps price special for newly locked Full and Alt Doc (Bank Statement, 1099 Only, Asset Qualifier) purchase loans until August 31st. LMC’s elite team isn’t stopping there; they are also offering a 50-bps pricing improvement on DSCR purchase loans! Click here for full details of the specials. Are you, not an approved broker? It’s time to align with true partners who will be here for you and execute at the highest levels. Take your business to sustainable new heights with the elite team. Click here to become an approved wholesale broker.

Investor and Agency News

Ginnie Mae launched a New Environmental, Social, and Governance (ESG) Composite and Webpage, view the Press Release.

USDA Rural Development issued Updated HB-1-3555, Chapter 3, Lender Approval bulletin on 07/24/2023.

On 7/26/2023, with Amendment No. 6 to DR-4720, FEMA declared federal disaster aid with individual assistance made available to Vermont’s Orleans County affected by severe storms, flooding, landslides, & mudslides from 7/7/2023 and continuing. See AmeriHome Mortgage Disaster Announcement 20230706-CL for inspection requirements.

AmeriHome Correspondent 20230702-CL Disaster Announcement. On 7/14/2023, with DR-4720, FEMA declared federal disaster aid with individual assistance has been made available to 6 Vermont Counties; Chittenden, Lamoille, Rutland, Washington, Windham and Windsor affected by severe flooding from 7/7/2023, and continuing. See the attached announcement for inspection requirements.

PHH Mortgage had a Disaster Alert for Vermont and California. “The following disaster declaration is being issued or modified today pertaining to: Vermont DR-4720: New Disaster declared 07/14/23, and California DR-4699: Update to End Date of Occurrence.

Citi Correspondent Lending Bulletin 2023-06 includes credit policy updates on mortgage assumptions, public assistance & Section 8 income, and unplanned buydowns. Mandated screening – submitting non-obligated party detail notification, and clarifications on restricted stock & non-vested stock, and Chinese assets.

Collectively, average older homeowners sit on over $9 trillion in equity and have an average retirement savings is less than $60,000. But through a reverse mortgage, senior homeowners can maximize their financial stability by unlocking the accumulated equity without selling their property, allowing them to access the increased value of their homes and provide a financial cushion in a rising housing market. The time is now to build your reverse mortgage business with Plaza Home Mortgage®. We have the programs, including FHA HECM. Plus, we offer training and dedicated reverse mortgage staff to get you rolling into this right. Email [email protected] to get in touch or submit your details for a full reverse pre-qual.

In Pennymac announcement-23-49, the go-live date of Extended Lock Commitments was revised to “TBD,” and the updated schedule will be communicated through a future announcement.

American Heritage Lending Wholesale offers DSCR No Doc Loans including Non-Warrantable Condos.

On June 27, 2023, FHA published ML-2023-13 announcing that it is adopting the Fannie Mae/Freddie Mac Form 1103, Supplemental Consumer Information Form (SCIF) for mortgage applications dated on or after August 28, 2023. See AmeriHome Mortgage Product Announcement 20230705-CL.

Fairway Wholesale Lending Client Announcement 2022-07-27 issued a reminder about its new Admin Fee schedule that went into effect for all applications dated on or after 7/26. They will work through a transition period with the Admin Fee as this change becomes effective with applications taken & loans disclosed on & after Wednesday, 7/26. Fairway will begin using the new fee schedule for all loans we issue initial disclosures effective Wednesday, 7/26.

Capital Markets

Call it whatever you want, or believe whatever you want, in the rating agency Fitch’s downgrade of U.S. Treasury debt, one of things highlighted was the Jan. 6 insurrection. Once again, a reminder that politics, interest rates, and mortgage banking are intertwined. But overall, despite the increased hikes by the Federal Reserve, for the most part the U.S. economy continues to chug along.

Today we saw the “first Friday of the month” jobs situation figures. But it seems that the unemployment rate is not a leading economic indicator. Looking back at changes in U.S. unemployment rate data since 1953, a period including 10 recessions, on average the unemployment rate has not noticeably changed during the 12 months leading up to a recession. Dr. Elliot Eisenberg, Ph.D. points out that, “But once the recession begins, the unemployment rate slowly rises and peaks 12 months later at a level three percentage points higher than when the recession began.”

Yesterday began with the Bank of England raising UK rates to a 15-year high, though investors domestically continued to react to the U.S. credit downgrade by Fitch Ratings, which led to another “bear steepener” in the bond markets. “Risk-off” themes were present, and Wednesday’s route in U.S. Treasuries spilled over into yesterday’s session. The 10-year yield rose to a 9-month high as market participants took a closer look at rising debt-service levels.

The downgrade of U.S. government debt to AA+ from AAA by Fitch on Tuesday won’t affect the U.S. economy much and puts the Fitch rating at the same level as S&P, which made the downgrade in 2011. A couple other reasons not to worry include debt ratings mattering much more for emerging economies, most bond traders will keep buying U.S. debt at the same level, and the Fed can essentially set the interest rates on U.S. debt, anyway.

On the data front, weekly jobless claims increased by 6k to 227k while the ISM Non-Manufacturing Index and the Manufacturing PMI report showed a deceleration in growth consistent with reports from other major economies. Services sector activity continued to expand in July, but at a slower pace than the prior month. Even so, the report said that the majority of respondents remain cautiously optimistic about business conditions and the economy. Finally, productivity increased 3.7 percent in the second quarter, well above 1.7 percent expectations, with output up 2.4 percent and hours worked down 1.3 percent. Unit labor costs, meanwhile, were up 1.6 percent, lower than expected and which reflected a 5.5 percent increase in hourly compensation and a 3.7 percent increase in productivity. The pickup in productivity and the deceleration in unit labor costs is a good combination for the soft-landing view. After one of the better-than-expected releases this week was the ADP report which reported 324k in private jobs creation versus 189k expected, risks for an upside surprise in nonfarm payrolls were raised.

As for that BLS report, nonfarm payrolls increased 187k versus 200k expectations and back months were revised down 49k jobs. The unemployment rate dropped to 3.5 percent, and average earnings are still solid versus 0.3 percent month-over-month and 4.2 percent year-over-year expectations. After any knee jerk reaction, the Treasury market will begin setting up for next week’s $103 billion Quarterly Refunding beginning Tuesday with $42 billion 3-year notes followed on Wednesday and Thursday by $38 billion 10-year notes and $23 billion 30-year bonds. Both 3-years and 30-years were increased by $2 billion and 10-years by $3 billion versus the prior Quarterly Refunding. We begin the day with Agency MBS prices unchanged from Thursday, the 10-year yielding 4.19 after closing yesterday at 4.19 percent, and the 2-year up to 4.89.

Jobs and Transitions

William “Bill” Sohan, an industry veteran and former Senior Vice President with Academy Mortgage, has joined employee-owned USA Mortgage as a regional Vice President. Sohan will oversee USA’s Maryland operations and work to expand its national footprint. “I found USA’s loan-officer-first mentality, freedom for their regional leaders, and transparent work environment very attractive,” he said. “I am in business for myself, but not by myself. It’s a huge advantage that USA is run by former high-producing loan officers who understand the needs of their salespeople. I’m excited to give my sales team access to some great new resources, while still maintaining their access to Fannie and Freddie direct and dozens of loan programs.” Founded in St. Louis in 2001, USA has offices in 34 states and is licensed in 49 states plus the District of Columbia. For a confidential conversation about joining USA, contact Brooke Anderson at 609-500-1520.

Presidential Bank Mortgage is expanding into the Southeast! John Pruitt, former Director of Fidelity Bank Mortgage in Atlanta, has joined the senior management team of the Bethesda, Maryland-based Community Bank as SVP of Production and Strategic Initiatives. “I’m so excited to join Presidential at this opportune time in the industry to help grow a best-in-class mortgage lending platform,” Pruitt said. “The combination of a solid Community Bank and entrepreneurial mortgage lending model is truly unique in our industry.” Expansion plans are underway to open full-service lending markets in Georgia and the Carolinas. Leadership, Sales, and Operations positions are available throughout the region. Please send your confidential inquiry to John Pruitt.

Academy Mortgage is proud to be among the small number of lenders who have been selected to offer the Freddie Mac BorrowSmart Access℠ program. This equitable housing program allows qualified first-time homebuyers looking to purchase a home within one of 10 eligible metropolitan markets to obtain a credit for their down payment and/or closing costs through combined contributions from Freddie Mac and Academy Mortgage. Through this assistance, borrowers can fund 100 percent of the cash required to close; prepare for long-term sustainability through homeownership; and receive pre-purchase homebuyer counseling through the Freddie Mac BorrowSmart Access program. Academy is proud to support this initiative to bring equitable housing opportunities to traditionally underserved communities. Academy is committed to fulfilling its Vision to Inspire Hope, Deliver Dreams, and Build Prosperity in all communities by helping its clients build generational prosperity through homeownership. Join a team with the loan products and the Vision to advance housing for underserved communities: contact Scott Starr to explore the possibilities that await at Academy.

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Dallas, Texas-based Mr. Cooper Group on Tuesday announced it has completed the acquisitions of Home Point Capital and Roosevelt Management Company. With the deals, Mr. Cooper has moved closer to its $1 trillion mortgage servicing rights (MSR) portfolio target. 

Mr. Cooper concluded on Monday a tender offer for Home Point’s outstanding shares after extending the deadline twice. According to Equiniti Trust Company, the depository and paying agent for the tender offer, 136,532,192 shares of Home Point were tendered and not validly withdrawn (98.5% of the total). Mr. Cooper paid $2.333 per share. 

“This acquisition adds scale to our platform, bringing us closer to our $1 trillion strategic target while enhancing returns due to attractive yields and positive operating leverage,” Jay Bray, Mr. Cooper’s chairman and CEO, said in a statement.

The deal – which will result in Homepoint becoming a wholly subsidiary of Mr. Cooper – was first announced in May and was expected to close in the third quarter of 2023. Mr. Cooper is paying $324 million in cash and assuming $500 million in outstanding Home Point 5% senior notes due in February 2026. 

“The transaction includes the assumption of $500 million in bonds with an attractive rate, and as a result, we do not expect the acquisition to have a material impact on the company’s liquidity, which remains at robust and near-record levels,” Chris Marshall, Mr. Cooper’s vice chairman and president, said in a statement. 

Also on Tuesday Mr. Cooper announced it completed the acquisition of Roosevelt and its affiliated subsidiaries, which include a registered investment advisor and licensed mortgage servicing rights (MSR) owner. The expectation was that the deal would close in the second half of 2023. The deal was announced in February.

The private New York-based company, founded in 2008, manages third-party capital on behalf of insurance companies, pension funds, hedge funds and other investors. 

“We continue to see significant volumes of MSRs trading in the marketplace with attractive yields. Our asset management strategy is designed to make these yields available to institutional investors while continuing to grow our customer base and operational scale,” Marshall said. 

Mr. Cooper ended June with $882 billion in unpaid principal balance (UPB), compared to $853 billion at the end of March, according to its second-quarter 2023 earnings released last week. 

The servicing portfolio grew because of Rushmore’s special servicing platform acquisition. But other deals may bring the servicing portfolio to $957 billion, including $83 billion from the acquisition of Home Point Capital and $25 billion in pending bulk acquisitions. 

Source: housingwire.com

Apache is functioning normally

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.

Are you struggling with debt and feeling overwhelmed? You might also be tired of hearing the same old tips that don’t help at all, like “Don’t buy coffee out” or “Just stop spending money.” Don’t worry — you’re not alone.

Many hardworking individuals like you face similar challenges. The good news is that there are effective strategies for paying off debt faster, even on a tight budget.

This guide will walk you through 10 practical and actionable steps that can significantly impact your journey to financial autonomy. Are you ready to better control your finances? Here is how to pay off debt fast with low income.

In This Piece:

  1. Take Inventory of Your Debts
  2. Create a Realistic Budget
  3. Avoid Any New Debts
  4. Try the Debt Avalanche Method
  5. Consider the Debt Snowball Method
  6. Increase Your Income
  7. Negotiate a Better Rate
  8. Increase Your Credit Score
  9. Consider Debt Relief or Consolidation
  10. Stay Consistent

Step 1: Take Inventory of Your Debts

Before tackling your debts, taking inventory of them is a crucial first step to clearly understanding what you owe, allowing you to understand the full extent of your financial obligations, and developing a comprehensive and more effective action plan.

Start by gathering all your financial statements and creating a comprehensive list of your debts. This includes credit card balances, student loans, medical bills, and other outstanding obligations.

You gain a complete picture of your economic landscape by documenting each debt, including the creditor, outstanding balance, interest rate, and minimum monthly payment. This knowledge empowers you to make informed decisions and prioritize debt repayment strategies.

Step 2: Create a Realistic Budget

A budget can help track your income and expenses, clearly showing where your money goes, but if you want a successful budget, it needs to be realistic.

Creating a realistic budget is essential to pay off debt fast with a low income. You can start by identifying areas to cut back on unnecessary expenses, like reducing discretionary spending, such as eating out. Look for creative ways to save money, such as using coupons, shopping sales, or negotiating lower bills. Though this is good advice, it might not be enough or as simple as it sounds.

Here are more steps and tips to help you create a budget that could work for you:

  1. Track income and expenses: Start by calculating your total monthly income, including your salary, freelance earnings, or any other sources of income. Next, track your expenses for a month to understand where your money is going. Categorize your expenses into fixed costs (rent, utilities, etc.) and variable costs (groceries, entertainment, etc.). 
  2. Set attainable goals: Determine how much you can allocate toward monthly debt payments while covering your essential expenses. It’s crucial to set realistic goals that consider your income. Remember, even small monthly contributions can make a significant difference over time.
  3. Prioritize debt repayment: Allocate a specific portion of your budget to debt repayment. Consider prioritizing your debts using the debt avalanche or snowball methods mentioned earlier. By focusing on one debt at a time while making minimum payments on the others, you can make steady progress and gain a sense of accomplishment.
  4. Monitor and adjust: Regularly review your budget and track your progress. Adjust as needed to stay on track and meet your financial goals. Be flexible and willing to adapt your budget as your circumstances change.

Creating a realistic budget requires discipline and commitment, and it’s crucial to paying off debt. By understanding your income, tracking your expenses, and making intentional choices, you can take control of your financial situation.

Step 3: Avoid Any New Debts

It might sound obvious but avoiding new debts can help greatly. Avoid the temptation to rely on credit cards or take out additional loans. Instead, focus on living within your means and prioritizing your financial goals. Of course, implementing this step is easier said than done.

Here are some recommendations to help you avoid accumulating additional debt:

  • Change your mindset: Understand that taking on new debts will only prolong your journey to becoming debt-free. Embrace living within your means and making conscious choices to avoid unnecessary borrowing will help you pay off your debt faster.
  • Cultivate healthy financial habits: Practice mindful spending, distinguishing between needs and wants, and make conscious choices aligned with your financial goals.
  • Building an emergency fund: This is a crucial step to prevent relying on credit or loans during unexpected expenses or financial setbacks. Start by setting aside a small amount from your monthly income until you have a comfortable cushion to cover unforeseen emergencies.
  • Practice delayed gratification: Avoid impulsive purchases and practice delayed gratification. Before making a nonessential purchase, give yourself a 24-48 hour cooling-off period. This allows you to assess whether the item is a genuine necessity or a momentary desire.
  • Seek alternative solutions: When faced with financial needs, explore alternatives before committing to new debts, like borrowing from friends or family, negotiating payment plans with service providers, or seeking assistance from local community resources or nonprofit organizations that offer financial aid or low-interest loans.

Remember, avoiding new debts requires discipline and commitment. By adopting a proactive approach to managing your finances and being mindful of your spending, you can stay on track toward paying off your existing debts and achieving financial freedom. Stay focused, make intentional choices, and celebrate your progress.

Step 4: Try the Debt Avalanche Method

The debt avalanche method is a powerful strategy for paying off debt efficiently. With this approach, you prioritize the debts based on interest rates. Additionally, this method provides a clear road map for debt repayment, allowing you to stay focused and motivated as you see progress with each debt you eliminate.

Start by arranging your debts in descending order based on their interest rates, with the highest interest debt at the top of the list. This order will determine the repayment priority. Doing this minimizes the interest that accrues over time, saving you money in the long run. Once you pay off the highest interest, move on to the next one and continue the process.

Remember to continue making at least the minimum payments on all your debts to maintain a good credit standing and avoid penalties. By staying committed to this method and directing your extra funds strategically, you’ll make significant strides toward paying off your debts.

Step 5: Consider the Debt Snowball Method

Another effective debt repayment strategy is the Debt Snowball method. It involves listing your debts from smallest to largest balance and focusing on paying off the smallest debt first while making minimum payments on the others. Once you pay off the smallest debt, you apply the money you were putting toward it to the next smallest debt.

Begin by creating a comprehensive list of all your debts, including credit cards, personal loans, student loans, and other outstanding balances. Arrange your debts in ascending order based on their balances, with the debt carrying the lowest balance at the top of the list. This order will determine the repayment priority.

Continue focusing on one debt at a time until you can pay off all your debts. The debt snowball method is advantageous because it focuses on building momentum and providing a sense of accomplishment by creating small wins, motivating you to continue your debt payment journey.

While this method may not prioritize debts based on interest rates, it provides a structured and motivating approach that can be particularly beneficial for individuals seeking emotional and psychological encouragement along their debt repayment journey.

Step 6: Increase Your Income

How to get out of debt when you are broke? Finding ways to increase your income can significantly impact you but can also be challenging. Consider taking up a side hustle or part-time job to generate extra money.

There are numerous opportunities available, such as freelance work, online tutoring, or selling handmade crafts. Dedicating your additional income solely to debt repayment accelerates your progress. It helps you achieve financial goals sooner, and if everything goes well, you’ll only need to do this for a short time.

Here are a few ideas on how to make extra money to pay off debt fast:

  • Explore freelance opportunities in your field of expertise
  • Take on part-time jobs or gig work
  • Monetize your hobbies or skills
  • Consider renting out a spare room or property
  • Participate in online surveys or market research studies
  • See if you qualify for blood and plasma donations, some places pay for this help

Step 7: Negotiate a Better Rate

Lowering the interest rates on your debts can help you save money and pay them off faster. Reach out to your creditors and explore the possibility of negotiating a lower interest rate. Even a slight reduction in interest rates can make a significant difference.

Here’s a detailed explanation of how to negotiate a better rate and why it can be beneficial:

  1. Review your current rates: This includes credit cards, personal loans, and other forms of debt. Take note of the interest rates, promotional offers, and the terms and conditions associated with each debt.
  2. Research and compare: Understand market rates basics and terms for similar financial products. This will provide you with a baseline for negotiation and help you determine if your rates are higher than what is commonly available. Look for competing offers, promotions, or lower interest rates from other lenders or credit card companies.
  3. Prepare your case: Highlight your payment history, creditworthiness, and loyalty as a long-term customer. Compile improved financial stability or credit score evidence since you obtained the debt. The goal is to present a compelling case for why you deserve a better rate.

If negotiating directly with your creditors doesn’t yield the desired results, consider other options like balance transfers or refinancing.

Balance transfers involve moving high-interest debt to a credit card with a lower interest rate, often with an introductory 0% interest period. Refinancing involves replacing an existing loan with a new one with better terms and a lower interest rate. Both options can help reduce the overall interest you’ll pay and accelerate your debt payoff.

Step 8: Increase Your Credit Score

Improving your credit score can have a positive impact on your financial well-being. A higher credit score can lead to lower interest rates on future loans and credit cards, potentially saving you thousands of dollars in the long run. To boost your credit score, make timely payments, reduce your credit card balances, and keep your credit utilization ratio low. Regularly review your credit reports to identify and address any errors or discrepancies.

Step 9: Consider Debt Relief or Consolidation

If your debts feel overwhelming and unmanageable, exploring debt relief or consolidation options might be a viable solution. Debt relief programs, such as credit counseling or debt settlement, can help you negotiate with creditors to reduce the amount you owe or establish more manageable payment plans.

Debt consolidation allows you to combine multiple debts into a single loan with a lower interest rate. However, it’s essential to research and choose reputable organizations to ensure you make an informed decision that aligns with your financial goals.

Step 10: Stay Consistent

So, what is the best way to pay off debt fast? Consistency is always key. Make your debt repayment a priority and stick to your plan. Celebrate small victories along the way to stay motivated and maintain your momentum.

Remember, achieving financial freedom takes time and dedication. You can overcome your debts and build a brighter financial future with persistence.

Congratulations on taking the first step toward improving your financial well-being. Remember, Credit.com is here to support you on your journey.

Explore our ExtraCredit® program, which provides valuable resources to help you monitor and manage your credit for a small monthly price Or sign-up for our free service that provides an Experian Vantage 3.0 score along with a free credit report card.

Source: credit.com

Apache is functioning normally

[Editor’s note: This is an excerpt from the conclusions from the category product review series for the small landlord property management software sector. The full conclusions can be found here. Originally published in the Geek Estate Mastermind.]

the act of partnering to improve the landlord experience.

Succeeding in the property management software sector requires partnerships. It’s impossible to build and deliver every valuable service to landlords directly. If you’re to truly be a one-stop-shop for your customers, you must integrate offerings from across the landscape.

Below are a few of the potential add-on services defining the category:

AirDNA: Could be leveraged to help inform landlord’s what returns they can expect by switching from long- to short-term. Learn more.

Arrived: Helps renters build real estate wealth while renting, they are a potential collaborator should their model shift to partnering with landlords rather than owning 100% of their inventory. Learn more.

Digs: Helps tenants automatically save for buying a home and monitor their credit. Learn more.

Keepe: An end-to-end property maintenance solution on top of a vetted, on-demand contractor network for property managers. Learn more.

Knock: Allows renters to tour apartments by themselves, with no agents on-site and no scheduling. Learn more.

RentSpree: Facilitates online rental application and/or screening reports, with full API support ripe for working with other landlord tech providers. Learn more.

Rhove: Helps renters build savings to eventually buy, while helping landlords lessen costly tenant turnovers. Learn more.

Setter: A home manager that ensures a landlord’s asset is maintained and improved. Learn more.

ShowDigs: Outsources the showings to a third party, which uses a network of licensed agents. Learn more.

Stake.rent: Increases loyalty by matching 2% of a tenant’s monthly payment. Allows them to keep 80% of the earnings saved in their Stake account, and they’ll earn bonuses on future rent payments. Learn more.

Super: A subscription maintenance service that pays to repair or replace covered appliance and home system breakdowns, plus manages the logistics for home service needs. Learn more.

Steady: Helps landlords protect themselves from non-payment with Rent Guarantee insurance, in partnership with Nationwide. Existing partnership with Avail. Learn more.

TheGuarantors: Lowers the barriers to renting by helping reduce upfront costs for tenants with a Security Deposit Replacement. Learn more.

Till: Provides rental loans to pay rent on-time, providing tenants repayment flexibility while helping them avoid late fees and eviction. Learn more.

Source: geekestateblog.com