partner

Apache is functioning normally

Apache is functioning normally

For example, bank regulators in July released a plan to increase capital requirements for residential mortgages, the Basel III Endgame rules. Redwood executives are positioning the company to acquire mortgage loans in the market, mainly jumbos, with the expectation that banks will have a reduced appetite. 

Abate doesn’t think “banks are going to necessarily exit the mortgage market,” but they will “be heavily disincentivized from growing mortgage portfolios.” Ultimately, “the real shift is going to be all those jumbos that were going to banks will come back out, hopefully to non-banks like us.”

Another opportunity is in the home equity space. Redwood launched in September its in-house home equity investment (HEI) origination platform called Aspire. Through Aspire, Redwood plans to directly originate HEIs by leveraging the company’s nationwide correspondent network of loan officers and establishing direct-to-consumer origination channels, the company said. 

“The interesting thing about HEIs is instead of a homeowner taking out equity in the form of cash and paying a mortgage on it, there is no monthly payment within HEI,” Abate said. “The way the investor gets paid is that you share in the upside of the home.” 

Abate explained the impacts of the Basel III Endgame rules on the market, the rationale behind the home equity investment product, and more about Redwood strategies in an interview with HousingWire from a company’s office in New York last week. 

This interview has been condensed and edited for clarity.

Flávia Nunes: How has Redwood strategically positioned itself in the residential mortgage space amid all of these potential regulatory changes?

Christopher Abate: Redwood is almost a 30-year-old company. The company was originally built to serve banks and others with the thought that there was no private sector [to invest in mortgage assets], only Fannie Mae and Freddie Mac. We would partner with banks to buy their loans and securitize them so the banks could recycle their capital. We don’t originate residential mortgages. We don’t service them. We’re very similar to the GSEs. We modeled the business to serve that role in the private sector. The mortgage market has changed over the decades. We’ve seen a few cycles. We’ve got the Great Financial Crisis, the Covid-19 pandemic, and now we’ve had a lot of interest rate volatility. Along the way, there have been many regulatory changes that have impacted the market; the CFPB has been created, and there’s the Dodd-Frank Act. Then there are the Basel rules, the regulatory capital rules for banks. And that’s what’s really in play today. 

We’ve positioned the company, from a strategic perspective, with the thought that banks will be heavily disincentivized from growing mortgage portfolios as an earning asset class. The banks are not going to necessarily exit the mortgage market because the mortgage asset is the biggest that a client takes out, and you want to be there for all the cross-selling in all the other consumer products. Banks will always serve their best clients. But viewing the mortgage portfolio as an investment class, that’s where the posture will shift because the capital required to hold against it [residential mortgages] is going to go up. And just based on the rapidly rising rate of deposits, just given where interest rates are at, the net interest income that they earn is getting squeezed. Banks move slowly. This will be an evolutionary shift, not an overnight shift. 

Nunes: As you noted, bank regulators released a plan to increase capital requirements for mortgages through the Basel III Endgame rules. Can we expect changes to what was proposed?

Abate: Yes, it will change. In particular, some of the sliding scale capital charges are based on things like LTV [loan-to-value]; there’s a fair likelihood that that changes because of the way it disproportionately impacts first-time homebuyers and underserved communities. But the rule is not going away. Bank regulators are paid to keep things safe. And the idea that regulators are going to allow banks to continue to do what a First Republic or Silicon Valley Bank did, I don’t see that in the cards. 

We saw significant changes after the Great Financial Crisis, which was more of a credit crisis. We saw banks getting out of risky credit mortgages like option ARMs and some subprime lending happening back then. There will be changes. Banks will not wait for the rule to be finalized to start implementing it. There will be some evolution to the rule itself. But the thrust of the rule is that it’s going to be more expensive for banks to hold mortgages.

Nunes: If banks won’t wait for the Basel III Endgame to be finalized, how are they anticipating the rules?

Abate: A year ago, banks were very happy to hold mortgages, deposit rates were sticky, and the cost of deposits was still very low. Now, all of them are looking for a capital partner, at least an option to have liquidity. The tone has changed dramatically amongst bank executives. Some banks move more slowly than others.

I like to remind people that independent mortgage banks live and die by liquidity. They care about the basis point. Banks don’t operate that close to the ground. Things take longer to develop, but the relationships are also typically stickier. Once you forge a strong partnership with a bank partner, the likelihood of them shopping for that liquidity is much less than an independent mortgage bank that is trying to optimize every dollar.

Nunes: In your recent 2Q 2023 earnings report, you mentioned acquiring three bulk pools of loans from depositories, primarily with seasoned underlying loans at attractive discounts. How is the secondary market now for these trades in terms of volumes and prices?

Abate: I certainly expect RMBS volumes to go up significantly over time. It’s not something that happens overnight. We’ve been active. We just completed a deal in August. I would expect us to continue using securitization. 

Right now, we’re in this hybrid phase where loans that are getting securitized are partially seasoned loans, and some of the loans have gone down in value–the lower coupon mortgages. The banks have been slowly selling some of those, and Wall Street dealers have quite a bit in inventory. We’re still seeing a lot of that aged collateral coming out through securitization. Issuers like Redwood have been combining current coupon mortgages. We saw this last year in the private sector securitization market, where we had all of this aged inventory. It was hard to get investors to focus on the collateral because there was so much sitting in inventory that they could price it wherever they wanted to. The pricing now is probably the best it’s been in a year, maybe two years. So, the market is finally starting to cross back into more current coupon on-the-run production, which is what we’re focused on.

We’ve completed well over 100 residential securitizations, close to 140 If we factor CoreVest. There’s been years we’ve done 12-15 securitizations. There’s been years where we’ve done none or one. So, we very much want to get volume going again to the extent we could be in the market with certainly a deal a quarter, but if not two or three, that would feel the base to me.

Nunes: In terms of products, what the current landscape brings in terms of opportunities? 

Abate: Right now, the biggest opportunity, ironically, is in the regular prime jumbo market because that was the product banks were most focused on. And they weren’t wrong to focus on it from a credit standpoint because when the banks got through the Great Financial Crisis, all the big regulatory shifts were to get them out of taking risky mortgages on the balance sheet. Then, they started taking less risky mortgages, which are jumbos. The real shift is going to be all those jumbos that were going to banks will come back out, hopefully to non-banks like us. 

Nunes: Redwood also launched a home equity platform. What is the strategy here? 

Abate: When you look at prime rates in the high single digits and add a credit spread to that, even for the most well-qualified borrowers, you are looking at a 10% to 12% interest rate on a second mortgage. For a well-qualified borrower, 750 FICO or above, and a low-LTV first mortgage, you might be comfortable paying 10% to 12%. But that’s the best-case scenario. For everybody else, unlocking that equity is even more expensive. We’re seeing that for the traditional second mortgage products, there’s way more investor demand than consumer demand.

We’ve rolled out the traditional products and a newer product called home equity investment [HEI] options. The interesting thing about HEIs is instead of a homeowner taking out equity in the form of cash and paying a mortgage on it, there is no monthly payment within HEI. The way the investor gets paid is that you share in the upside of the home, so the home price appreciation. There are a lot of use cases for HEI over traditional products. If you think about somebody with a lot of student debt or lower FICO, they’re going to qualify for a very expensive second mortgage. So, this is a good option. It doesn’t add to their monthly payment obligation. You can do what you want with the cash, just like with a home equity line of credit, but not having the payment. It’s a bridge until the second mortgage is cheaper.

Nunes: To invest in this product, investors must believe home prices will keep rising, right?

Abate: There are a couple of things investors care about. You have to believe in a HPA [home price appreciation] story. But one way we mitigate that is we strike the price of the home at a discount to its current appraised value. So that, even if the home is sold next week, the investor will make money. If you believe that interest rates are nearing the top, as far as the Fed’s rate hike cycle, HPA should start to realign. If rates are going down, HPAs are going up. Investors are starting to get comfortable with this huge move in rates, hopefully, this fall is gonna pause. 

Then, ultimately, the investors want to understand if we give you $100,000 with this HEI, when do they get their money back? Because it’s a 30-year product. And that’s where we’ve designed the product, which is unique to Redwood, that creates strong incentives for the homeowner to refi.

Nunes: How did you get the property at a discount? 

Abate: The product is for people in their homes that are not moving out. There isn’t an actual transaction on the property. It’s somebody that wants to stay in their home. And if it’s a $1 million home, and we offer you $150,000 HEI, we might strike that HEI at $900,000. Let’s say it’s a $1 million home, and for purposes of coming up with the investor return, we’re going to call it a home at $850,000. Even if they sold the home at a $50,000 loss, the investor would still generate a return, and that’s what gets investor capital into the asset class. But what the homeowner gets is all of the proceeds, the cash and no monthly payments

The investors are institutional investors, well-known institutions, firms, pension funds, and life companies; they’re all just to varying degrees focused on HEI now. And the big reason is that nobody’s been able to tap this massive home equity opportunity. We are going to give it a try. 

Nunes: Residential mortgages are just one facet of the business. What are your plans for commercial real estate, which has had a challenging year?

Abate: What we do here in New York is our business-purpose lending platform. We realized a number of years ago that investors are becoming a much bigger participant in the real estate markets. Serving them and providing bridge loans to investors who want to flip homes or provide turned-out financing for investors who want to rent homes, that’s an entire other residential business that we run under the flag of CoreVest. In residential, we’ve more or less stuck to our knitting of non-agency. We’ve had opportunities to enter the agency space in the past and participated in certain instances, but mostly, what we do is non-agency. 

Nunes: You mentioned banks, but what are the business opportunities with IMBs?

Abate: We’ve had a great long-term relationship with the IMBs. The IMBs have a big opportunity to pick up some [market] share. Since the Great Financial Crisis, most of our business has been with the IMBs. We have a network of between 150 to 200 [partners], predominantly non-banks that we will buy mortgages from. We expect that to rebalance in the next few years. But the IMBs are also a big opportunity to take clients from the banks.

Nunes: And what are the plans for servicing mortgage rights? 

Abate: Servicing will continue to move out of the banks. That’s another big opportunity that we’ll focus on. We don’t plan to operate as a servicer, but we might own servicing rights. What we’ve done typically is when we own servicing rights, we will subservice. We want to hire somebody with a call center. And we’ll pay them a monthly fee. But when you balance out the revenue potential with the servicing asset, with the cost of service, there are still good opportunities. There’s a lot of competition for servicing. For some mortgage REITs, that’s their primary asset class, just not for us.

Nunes: Can you shed some light on your partnership with Oaktree and Riverbend?

Abate: Both of those are related to the business-purpose lender space. Oaktree is a great example of us expanding our capital partnerships into the private credit sector. Redwood is a publicly traded company, and historically, when we needed to raise money, we would do a common stock offering or a public market deal. When rates started going up, things got pretty ugly for the mortgage REIT space and the public markets. We and all other mortgage REITs started trading at discounts. Raising money in that environment hasn’t been overly attractive. So, building partnerships with private credit firms like Oaktree to focus on specific asset classes is a big part of what we want to do. One aspect that’s attractive to us is we can earn asset management fees.

The Oaktree model is something that we want to replicate on the residential side as the jumbo opportunity picks up. We’ve been in discussions with other private credit investors and institutional investors who see the same opportunity as in jumbo and non-QM.  

Nunes: With a reported cash and cash equivalents of $357 million as of June 2023, can we anticipate any M&A activities, especially considering the challenges faced by many lenders in the industry?

Abate: M&A activity has picked up in the space and based on our track record, we are a logical call. Part of our strategy is: to be active in M&A, you have to be active. It’s not efficient to call on at eight, seven different firms. You start with the ones that have shown interest in actually transacting. We have seen some opportunities, and nothing I can share in this interview, but it’s safe to say we’ve been active in M&As and we’ll continue to focus on that as part of our growth strategy.

We haven’t been open to it [acquiring a lender]. For many years, we’ve wanted to keep the business sort of regulator-light. The best way to do that is not to directly face consumers with products. We’re comfortable originating to investors, that’s what CoreWest does. But investors are sophisticated business-run ventures and not homeowners who may or may not be sophisticated in the financial markets. We have tended to not originate, but I think where we’re at as a company is from a strategic standpoint, we’d be much more open to it through M&A.

Nunes: What do you expect for the macro landscape in the coming year?

Abate: There’s such a vast shortage of supply of homes in many parts of the country, which is supporting home prices. The Fed consciously inflated home prices, particularly during the COVID years. These high asset values prevented normal credit losses you might see through a cycle. The combination of QE-fueled asset prices with an economy that hasn’t dropped off too much has created a strong housing market. 

But credit in residential housing should perform immensely better than many facets of the commercial real estate market. There’s so much vacancy in these central business districts. These buildings are valued based on cash flows– not like a residential home, which is an appraisal. If it’s 50% full, it’s worth half as much. From a credit standpoint, certain facets of the commercial real estate sector will have a rough road ahead.

I’m probably supposed to say this, but I feel better about my sector. The technical supporting housing will continue to be strong. The big challenge with residential today is just transaction activity. If you own a home with a 3% mortgage, you don’t want to sell it. If your home suits your needs, the prospect of doubling your monthly payment to move is very unappealing. The real challenge in residential has been a lot of capacity to make loans, but there’s not much demand. If rates do stabilize, that will change quickly. When the market thought in January that rates were stabilizing, we saw a pickup in loan activity, and then they started going up again; we’ll see what happens this fall. 

 Nunes: Do you see a crisis on the commercial side of the market? If so, how could it impact the residential side?

Abate: It’s hard to say. The only real obvious driver for a crisis is what could be a permanent impairment of occupancy in these commercial office buildings. The way that can affect our markets is there’s a trickle-down effect. If the buildings aren’t full, the restaurants aren’t full, the delis aren’t full, the subways are not full, and the hotels aren’t full because people aren’t traveling to see people in the office. That could have an effect on the economy in general, which would impact housing indirectly. As far as the economy goes, the airports seem more full than ever, and hotels seem to be doing fine. Overall, [the problem] is probably mostly office. But if it keeps getting worse, it certainly could have downstream effects.

Source: housingwire.com

Apache is functioning normally

Apache is functioning normally

You’ve planned your dream vacation and invested thousands of dollars in prepaid reservations. Then, a family member becomes seriously ill or the cruise line that you’ve booked with declares bankruptcy. If you need to cancel a trip for an unexpected reason, you might lose a lot of money.

However, if you used your eligible Capital One card — such as the Capital One Venture X Rewards Credit Card — to book your ticket, you can use the card’s trip cancellation insurance to request reimbursement for some of your prepaid expenses.

Before you book your trip, here’s what you need to know about Capital One trip cancellation insurance, including what the policy covers and how to file a claim.

When does Capital One trip cancellation insurance provide coverage?

Capital One trip cancellation insurance covers trips booked with an eligible Capital One card that are canceled for a covered reason. The list of covered reasons includes:

  • Death, accidental injury or illness of you or someone in your immediate family.

  • Financial insolvency of your airline, cruise ship, bus line or other common carrier.

Capital One will require you to have a physician verify any death, bodily injury or illness that is preventing you from completing your trip. Certain types of injuries, such as those caused by participating in sports or while under the influence of drugs or alcohol, are excluded.

To be eligible for trip cancellation insurance, you must book the entire cost of your trip with your Capital One credit card. You can also use Capital One Miles or coupons, as long as the cash component of your trip is booked using your card.

Who does Capital One trip cancellation insurance cover?

When you book a trip with your eligible Capital One card, coverage applies only to you, your spouse or domestic partner and any dependent children under 19 years old who live with you. Children under 25 are also covered if they’re considered full-time students.

If you’re an authorized user on someone else’s Capital One account, you and your family members will be covered as long as you use your card to pay for the trip.

What does Capital One trip cancellation insurance cover?

Capital One trip cancellation insurance covers up to $2,000 per person toward non-refundable common carrier tickets. Common carrier tickets include tickets from airlines, ferry lines, bus lines and other forms of scheduled transportation.

Note that Capital One’s benefit covers a much smaller set of prepaid expenses than trip cancellation policies provided by other cards.

The Capital One trip cancellation insurance covers none of these types of prepaid expenses.

How do I file a claim?

If you need to file a claim with Capital One’s insurance, you’ll initiate it by calling the card benefit administrator at 1-800-825-4062. They’ll ask for preliminary details of your claim over the phone and then send you a series of forms to complete.

🤓Nerdy Tip

Be sure to initiate your claim as soon as possible. Capital One recommends that you submit your claim within 20 days of when your trip is canceled.

Once you’ve received your claims forms, you’ll need to provide all requested information, including proof of loss, and return it to the benefits administrator at:

cbsi Card Benefit Services

550 Mamaroneck Avenue, Suite 309

Harrison, NY 10528

Alternatively, you can initiate your claim by sending a written description of your loss to the benefit administrator or submitting your claim online at Eclaimsline.com.

What if the benefits are insufficient?

Capital One’s trip cancellation benefit only covers the cost of your non-refundable common carrier tickets under a limited set of circumstances. For more comprehensive trip cancellation insurance, you might want to consider a standalone travel insurance policy.

A travel insurance policy usually offers an expanded list of covered reasons that may cause you to cancel a trip and reimburses other prepaid expenses like hotels, rental cars, booked tours and other travel arrangements.

You can use an insurance comparison site like SquareMonth to find a travel policy that best fits your needs.

Capital One trip cancellation insurance recapped

Capital One’s trip cancellation insurance is nice to have, but many will want more than just an airfare reimbursement if they need to cancel their trip — not to mention that the covered reasons for cancellation are quite limited.

If you want more coverage, consider using a credit card that offers more robust travel insurance benefits or buy an additional travel insurance policy.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:

Source: nerdwallet.com

Apache is functioning normally

Apache is functioning normally

HELOC, Manufactured, Technology, Marketing, and Digital Tools; Central Banks and Inflation

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HELOC, Manufactured, Technology, Marketing, and Digital Tools; Central Banks and Inflation

By:
Rob Chrisman

7 Hours, 56 Min ago

If you want something sobering, almost mesmerizing, here’s a short drone video of the flood damage in Libya (at the 15 second mark you can see how it tore through the city). Fortunately not so sobering are some stats out of the United States. The U.S. homeownership rate in 2022 was even higher than before the COVID-19 pandemic at 65.8 percent compared to 64.6 percent in 2019. That rebound was driven largely by those aged 44 and younger. And who says Millennials aren’t buying homes? Homeownership continued to climb from the foreclosure crisis (2004) and Great Recession (2008), when rates dipped as low as 63.4 percent in 2016. Homeownership rates recovered approximately half of the 5.6 percent decrease from 2004 to 2016. In Hawai’i the homeownership rate is 59 percent, I bring up the Aloha State because American Savings Bank, First Hawaiian Bank, and Central Pacific Bank joined Hawaiʻi Community Lending, a Hawaiʻi-based nonprofit community development financial institution, in pledging to provide mortgage forbearances to Maui families impacted by the recent wildfires. (Today’s podcast can be found here and this week’s is sponsored by the Trade-In Mortgage powered by Calque. Homeowners can buy before they sell, make non-contingent offers, and tap their home equity to fund the down payment on their next home. Lenders can help their clients negotiate a lower purchase price, reduce their interest payments, and eliminate PMI. Today’s podcast features Greg Korn and Ben Petit in an interview from the New England Mortgage Bankers Conference.)

Lender and Broker Software, Products, and Services

In an era defined by technological advancements, Dark Matter Technologies LLC emerges as a transformative force in the mortgage origination landscape, marking its evolution from Black Knight Origination Technologies. Under the Perseus Operating Group of Constellation Software Inc., Dark Matter Technologies remains steadfast in its commitment to pioneering innovation. CEO Rich Gagliano aptly sums up the company’s vision: “Dark Matter Technologies is on a mission to revolutionize the mortgage origination business by supporting, growing, and aggressively innovating new and existing products.” With over 1,300 dedicated mortgage technology experts and a portfolio that includes Empower, AIVA, Exchange, and more, Dark Matter Technologies is poised to lead the industry into a new era of unparalleled transformation. Learn more about Dark Matter Technologies and their mission, here.

There is approximately $9T in agency or government MSR outstanding. Billions of dollars are being transacted daily and this volume requires disciplined loan accounting processes to record loans accurately, produce investor reporting, and power business decisions. SBO from SitusAMC is a comprehensive loan accounting and master servicing platform that reconciles daily and monthly servicer cash collections down to the penny, aiding in the discovery of potentially misplaced funds and enhancing the financial integrity of the entire process. Servicers using SBO produce accurate and timely details providing confidence that their investor reporting obligations are being met. Schedule a demo of SBO with SitusAMC’s client-focused experts.

“Did you hear Capacity’s big announcement at TMC Fall? We’ve acquired Denim Social! Together, we’re building a support automation platform that helps you automate support, connect more authentically with your borrowers, and close more loans, faster. Read the press release to learn more! We also gave away a personalized AI Assessment worth $10,000 to help mortgage lenders identify opportunities for improving their business with AI. Plus, our new GSE Search feature pulls accurate, up to date GSE regulations within seconds using generative AI. Want to join the AI in mortgage revolution? Meet the Capacity team today.”

A new era in loan origination has arrived. Mortgage Machine Services, an industry leader in digital origination technology to residential mortgage lenders, announced the launch of its namesake platform Mortgage Machine™, an out-of-the-box, all-in-one LOS designed to accelerate lenders’ operational velocity and support an end-to-end digital origination process. Developed by digital mortgage pioneer and industry veteran Jeff Bode, Mortgage Machine utilizes intelligent automation, configurable business workflows and a cloud-based infrastructure to optimize the entire loan lifecycle and create a seamless lending experience. Key platform features include AI-powered task automation, a scalable cloud-based infrastructure, flexible APIs, pre-configured workflows for retail and TPO channels, integrated document management and POS functionality. Mortgage Machine also offers all-in-one eClosing capabilities, including an eClose room, eNotes, eVault and RON, and utilizes MISMO SMART Doc® data and security standards. Visit here to get started on your digital transformation journey.

Blend Labs continues to be the mortgage industry’s leading technology platform. Core to the platform is Blend’s unique integration with Desktop Underwriter® (DU®) and LPA. These integrations help streamline your approval process for borrowers, with all the conditions lined up for your fulfillment team. Add in intelligent and automated follow-ups and you’ll get to the closing table faster and more efficiently. Putting this information at the loan officer’s fingertips creates a streamlined process and eliminates manual work which equals lower costs, higher pull-through, and increased revenue. See more ways that Blend is committing to innovation and continues to lead the way.

Looking for timely advice on how to capture more loan volume and improve your bottom line in a down market? Now is the time to explore ways to tap into new markets. Expanding your mortgage footprint through new products and channels or by reaching new geographies insulates your business against economic and interest rate volatility by diversifying your sources of volume and revenue. By setting the groundwork to connect with new borrower markets now, you’ll open new revenue possibilities for when the market inevitably recovers, positioning your business to hit the ground running and beat out the competition. Download this informative eBook from mortgage solutions provider Maxwell for actionable advice, including how to create your expansion plan and choose the offerings best suited to the markets you want to pursue. Click here to download Growing Your Mortgage Footprint: How to Launch New Loan Products, Channels & Geographic Expansions.

Broker and Correspondent Products

Build your book with AFR Wholesale® (AFR)! Now, get the chance to listen from and ask questions directly to AFR and Freddie Mac to turn those prospects to active pipeline at the next Why Wait webinar series covering Manufactured Home Financing on Wednesday, September 20th at 1 PM EST. Register here today! Have you and your borrowers looked into Manufactured Housing as an option? With unbeatable affordability, customization options that are very tailored, quick installation and trusted quality, manufactured homes are worth exploring. Especially with a top lending partner in AFR who has been an industry leader for over 25 years. This is a live webinar, and a recording will not be provided so make sure to join and get great insight and have the opportunity to ask questions and listen to scenarios! Visit AFR Wholesale, email [email protected], or dial 1-800-375-6071. AFR Wholesale® – Don’t wait. Register today!

“With Cash-Outs on the decline during this high interest rate environment, it is important to present your borrowers with different cash-out options. That is why Vista Point is announcing a brand new HELOC product coming soon, in addition to our existing Closed-End Second. Our HELOC product is being designed as a complement to our Closed-End Second to provide a full suite of Equity Solutions. Our HELOC will provide a specific solution for borrowers that want the optionality of an interest-only payment, or the ability to draw up and buy down their line during the 5-year draw period with no Appraisals up to $250k. Just like on our Closed-End Second offering, with HELOC loan amounts up to $550K and combined lien amounts up to $2.5M, your borrowers can get the cash they need without sacrificing their advantageous 1st mortgage rate. HELOC will be available for full doc and bank statements on OO and 2nd homes. For more information, reach out to us, or meet us at the Philly MBA to discuss.”

Capital Markets

We learned last week that prices in August rose by the largest monthly percentage in 15 months. However, that month-over-month inflation was widely expected due to a surge in gasoline prices. Underlying oil prices are also pointing towards further increases in September. Meanwhile, core prices were up 0.3 percent and core goods prices declined by 0.1 percent. Over the last three months core prices have increased at an annualized pace of 2.4 percent, the lowest three-month pace since March 2021. Retail sales rose faster than analysts’ expectations in August, also due to higher gas prices. Many analysts expect consumer spending to slow as excess savings built up over the pandemic have materially declined and credit is increasingly costly and difficult to obtain. Additionally, the resumption of student loan payments is expected to cut into discretionary spending. It will take more than expectations of slower spending before the Federal Reserve feels inflation is firmly under control.

What could move mortgage rates this week? The U.S. Federal Reserve, Bank of England, Bank of Japan, and the central banks of Norway, Sweden, and Switzerland are all announcing rate decisions after a spate of recent inflation data shows that price increases are alive and well. The Fed’s Federal Open Market Committee (FOMC), the action arm of “the Fed,” is not expected to raise rates. It’s unlikely that the commentary around the commitment to keep fighting inflation and higher rates for longer will change either, but it could tilt a little more to the hawkish side after a stronger-than-anticipated inflation report for August.

The week could also see some extra drama on the political front as the countdown continues toward a potential government shutdown on October 1 in addition to the battle between the United Auto Workers (UAW) union and Detroit automakers. The auto worker strike could complicate Fed Chair Powell’s bid for a soft landing. Union leaders are asking for a 36 percent wage increase over four years, to match the similar recent pay increase for top executives. The union also wants pay to rise automatically with inflation in the future, as it did before the financial crisis.

This week brings the aforementioned FOMC meeting that begins tomorrow and concludes on Wednesday with the Statement, updated SEP (where fed funds projections will be closely scrutinized), and Chair Powell’s press conference. The treasury will also be in the headlines with more coupon auctions scheduled: $13 billion reopened 20-year bonds tomorrow and $15 billion reopened 10-year TIPS on Thursday. The only scheduled, probably non-market moving, news out today is the NAHB Housing Market Index for September. We begin the week with Agency MBS prices roughly unchanged from Friday, the 10-year yielding 4.34 after closing last week at 4.33 percent, and the 2-year is at 5.00 percent.

Employment

Are you more energized, more encouraged, and more motivated to succeed today than yesterday? Zig Ziglar famously stated, “People often say that motivation doesn’t last. Well, neither does bathing; that’s why we recommend it daily.” “As an industry leader, Thrive knows that motivation, discipline, and belief in your ability to succeed is critical,” stated Randell Gillespie, National Sales Leader for Thrive Mortgage. “There is no better time than now to find ways to continually motivate your team, which is why we put so much focus on daily opportunities like these at Thrive. Through our weekly High-Performance Coaching Calls, our very own nationally-recognized Marketing Master, James Duncan, leads these motivating and educational experiences for results. The biggest names in the mortgage industry and thought-leadership have been part of our Thrive Nation broadcasts. We want everyone to be better today than yesterday. Start a conversation with us and find out how.

“The fall season is here, and now more than ever is the time to build rapport with your referral partners and clients to maintain a steady stream of business. At Guaranteed Rate Affinity, not only do we have the greatest number of products, but we have the tech platform for our loan officers to do business from anywhere. With PowerVP, you can do anything from creating loan applications to sending pre-approval letters all from your mobile phone. Anything you could do from your desk, you can now do on the go with PowerVP. Gone are the days of being chained to your desk and missing out on important moments. Primarily, it gives you a work-life balance you never thought possible. Luckily, we’re hiring the best of the best loan officers to leverage our tech platform to grow their business. Ready to learn more? Contact Tim McGraw to get started.”

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Both 15-year fixed and 30-year fixed refinances saw their mean rates sink this week. The average rate on 10-year fixed refinance also went down.

At the start of the pandemic, refinance rates hit a historic low. But in early 2022, the Federal Reserve began hiking interest rates in an effort to curb high inflation. While the Fed doesn’t directly set mortgage rates, its series of rate hikes has led to an increased cost of borrowing among most consumer loan products, including mortgages and refinances.

After hitting pause on its rate hiking campaign in June, the Fed voted once again to bump up its benchmark short-term interest rate, the federal funds rate, by 25 basis points (or 0.25%) at its July 26 Federal Open Market Committee meeting.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple refinance rates.

A higher federal funds rate could result in a slight increase in mortgage rates, according to Krieg Tidemann, assistant professor of economics at Niagara University.

But if inflation continues to decline and the Fed is able to hold rates steady — and eventually cut them in 2024 — mortgage rates should see some relief. But, a return of rates in the 2% to 3% range is unlikely. Unless you purchased a house within the past year, it’s unlikely you can save money by refinancing to a mortgage with a lower rate.

Regardless of where rates are headed, homeowners shouldn’t focus on timing the market, and should instead decide if refinancing makes sense for their financial situation. As long as you can get a lower interest rate than your current one, refinancing will likely save you money. Do the math to see if it makes sense for your current finances and goals. If you decide to refinance, make sure you compare rates, fees and the annual percentage rate — which shows the total cost of borrowing — from different lenders to find the best deal.

30-year fixed-rate refinance

The average 30-year fixed refinance rate right now is 7.69%, a decrease of 7 basis points over this time last week. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance. If you’re having difficulties making your monthly payments currently, a 30-year refinance could be a good option for you. However, interest rates for a 30-year refinance will typically be higher than rates for a 10- or 15-year refinance. It’ll also take you longer to pay off your loan.

15-year fixed-rate refinance

For 15-year fixed refinances, the average rate is currently at 6.86%, a decrease of 3 basis point over last week. Refinancing to a 15-year fixed loan from a 30-year fixed loan will likely raise your monthly payment. On the other hand, you’ll save money on interest, since you’ll pay off the loan sooner. You’ll also typically get lower interest rates compared to a 30-year loan. This can help you save even more in the long run.

10-year fixed-rate refinance

For 10-year fixed refinances, the average rate is currently at 6.85%, a decrease of 3 basis points from what we saw the previous week. Compared to a 15- or 30-year refinance, a 10-year refinance will usually have a lower interest rate but higher monthly payment. A 10-year refinance can help you pay off your house much faster and save on interest in the long run. Just be sure to carefully consider your budget and current financial situation to make sure that you can afford a higher monthly payment.

Where rates are headed

Mortgage rates hit a 20-year high in late 2022, but now the macroeconomic environment is changing again. Rates dropped significantly in January before climbing back up in February. Since the start of the summer, mortgage rates have been fluctuating between 6.5% and 7%.

Mortgage rates move up and down on a daily basis in response to a variety of economic factors, including inflation, employment and the outlook for the economy more broadly.

The most recent Consumer Price Index shows annual inflation was at 3.0% for the 12-month period ended in June, down sharply from May’s 4.0% figure.

“Barring some radical change in the trajectory of inflation or a recession, it seems unlikely that the Fed will further increase interest rates after July. This means that mortgage rates are likely at or near their peak,” Tidemann said.

Mortgage rates are unlikely to decrease dramatically any time soon, but positive signaling from the Fed and cooling inflation may ease some of the upward pressure on them.

We track refinance rate trends using information collected by Bankrate. Here’s a table with the average refinance rates provided by lenders across the country:

Average refinance interest rates

Product Rate A week ago Change
30-year fixed refi 7.69% 7.76% -0.07
15-year fixed refi 6.86% 6.89% -0.03
10-year fixed refi 6.85% 6.88% -0.03

Rates as of Sept. 15, 2023.

How to find the best refinance rate

It’s important to understand that the rates advertised online often require specific conditions for eligibility. Your interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application.

Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates. You can get a good feel for average interest rates online, but make sure to speak with a mortgage professional in order to see the specific rates you qualify for. To get the best refinance rates, you’ll first want to make your application as strong as possible. The best way to improve your credit ratings is to get your finances in order, use credit responsibly and monitor your credit regularly. Don’t forget to speak with multiple lenders and shop around.

Refinancing can be a great move if you get a good rate or can pay off your loan sooner — but consider carefully whether it’s the right choice for you at the moment.

When should I refinance?

Most people refinance because the market interest rates are lower than their current rates or because they want to change their loan term. When deciding whether to refinance, be sure to take into account other factors besides market interest rates, including how long you plan to stay in your current home, the length of your loan term and the amount of your monthly payment. And don’t forget about fees and closing costs, which can add up.

As interest rates increased throughout 2022, the pool of refinancing applicants contracted. If you bought your house when interest rates were lower than they are today, there may not be a financial benefit in refinancing your mortgage.

Source: cnet.com

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Through legitimate or illegitimate means, the main character doesn’t always end the film as a good person. Whether through deception or a mistake, it does not change the result. Several of the most thrilling and astonishing events reveal that the protagonist is mistaken or definitely a villain. Here are some of the best films that demonstrate that.

1. Falling Down (1993)

Photo Credit: Warner Bros. Entertainment.

Numerous cinema enthusiasts cite “Falling Down” as a prime example of an individual thinking they’re virtuous, only to realize that they are not. In the lead role, Michael Douglas portrays William, a man who experiences a sudden and intense breakdown, leading him to embark on a violent rampage. While his job loss and marital separation fuel his growing bitterness and resentment, both he and the audience come to the realization that he is far from the virtuous person he perceives himself to be.

2. Shutter Island (2010)

Photo Credit: Paramount Pictures.

Shutter Island ends with a wild twist by the end. U.S. Marshal Teddy, portrayed by Leonardo DiCaprio, and his recently teamed partner, Chuck, played by Mark Ruffalo, disembark from a ferry at a mental institution. Their objective is to locate a fugitive murderer who has managed to escape. As reality blurs and Teddy’s psyche unravels, the end reveals how far Teddy’s delusion stretched rather than face the truth of his past.

3. Primal Fear (1996)

Photo Credit: Paramount Pictures.

Several people included this 90s flick on their lists. Primal Fear’s plot revolves around Martin (Richard Gere), a defense lawyer who represents Aaron (Edward Norton), an altar boy accused of killing his archbishop. Through windy twists, Martin believes he’s the story’s hero but soon learns he’s otherwise. This was shocking the first time I saw it.

4. Fight Club (1999)

Photo Credit: Twentieth Century Fox.

Even if you’ve never seen this movie, you know the phrase “first rule of fight club.” While the first film had a young Edward Norton, Fight Club stars adult Norton narrating a story about him and his off-kilter friend Tyler Durden (Brad Pitt). After forming an underground fight club, more people join their ranks, and chaos ensues as their club becomes much more. If you haven’t seen the film, check it out for the surprise twist.

5. Memento (2000)

Photo Credit: Newmarket Capital Group.

Memento is a film where people debate whether the lead is good or bad. It all depends on how you cla-ify good. If it’s by a person’s actions, even if accidental, can they be called “good?” Also, because of the order, the end is the beginning, as Leonard (Guy Pearce) has short-term memory loss. His goal is to discover who killed his wife; however, he forgets info which lays the groundwork for monumental mistakes.

6. The Others (2001)

Photo Credit: Cruise/Wagner Productions.

It’s no surprise The Others is on most folks’ lists. The twist was so shocking that I was angry because I did not expect that ending. Grace has it rough living in shadows in her dark home because her two children have severe skin reactions to sunlight. Soon she suspects ghosts haunt her home and fights to protect her children while not unraveling herself. This film reminds me of how upset I felt playing Silent Hill 2.

7. Pumpkinhead (1988)

Photo Credit: Twentieth Century Fox.

Justice for a loss is understandable. But there is a fine line between justice and vengeance which Pumpkinhead crosses. Following the tragic loss of his young son in a motorcycle crash, Ed (Lance Henriksen) searches for an eerie elderly woman to invoke Pumpkinhead. Naturally, fewer individuals would pursue revenge if they were required to endure the same terror and agony that their victims went through. The final twist is the icing on the cake.

8. Identity (2003)

Photo Credit: Columbia Pictures.

Identity delivers a lot of surprises, but it’s only near the very end that you realize what’s happening. Ian (John Cusack) and nine other strangers wind up stranded at a motel during a storm when people die one by one. A poem’s opening, “as I was going up the stair, I met a man who wasn’t there,” never sounded more chilling.

9. Us (2019)

Photo Credit: Universal Pictures.

Jordan Peele’s Us is another one where the “good person” turns out to be anything but. When Adelaide (Lupita Nyong’o) returns to the home she grew up in as a child with her husband and two kids, masked strangers arrive who resemble them. Whether you agree with the twist, “good” does not factor in. You can understand, but that’s it.

10. Frailty (2001)

Photo Credit: David Kirschner Productions.

Frailty, which a few people name, is about people thinking they’re good when they’re not. An unknown man (Matthew McConaughey) visits an FBI agent, Wesley (Powers Boothe), and recounts his childhood when his father believed he got a vision from God to kill people who were demons. This is still one of my favorite films because of the reveal at the end. I won’t spoil it here, but give this a view!

Source: Reddit.

25 Extraordinary Sequels and Remakes That Outshine the Originals

Image Credit: Rosebud Releasing Corporation

Every once in a while, a movie sequel or remake surpa-es the original film. After polling the internet, “Name a single movie where the sequel or remake was better than the original?” Here are the top-voted responses.

25 Extraordinary Sequels and Remakes That Outshine the Originals

10 Crazy Good Movies Where Women Are the Bad Guys

Image Credit: Lionsgate

Are you looking for a movie night with a twist? Look no further than these Reddit-voted top ten films where women take on the destructive bad guy role.

10 Crazy Good Movies Where Women Are the Bad Guys

Photo Credit: Shutterstock

Have you ever known someone and thought you liked them—until you learned about their hobbies? Then you get to know them and then you’re like, “Wow, red flag.” Well, you’re not alone.

These 10 Activities Are an Immediate Red Flag

15 Cover Songs that are Better than the Original

Photo Credit: Shutterstock.

Sometimes, a cover of a song ends up doing far better than the original. Some covers are so good that we didn’t even realize the cover version wasn’t actually the original.

15 Cover Songs that are Better than the Original

These 7 Celebrities are Genuinely Good People

Photo Credit: Shutterstock.

We’ve all heard the famous adage that “no publicity is bad publicity,” and while it tends to be accurate, there are certainly exceptions. But what about those few stars who stay out of the limelight and get along without a hint of trouble? 

These 7 Celebrities are Genuinely Good People



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Source: financequickfix.com

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Hedging, PPE, Fee Collection, QC Products; Gov’t and Conforming News; Producer Inflation Alive and Well

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Hedging, PPE, Fee Collection, QC Products; Gov’t and Conforming News; Producer Inflation Alive and Well

By:
Rob Chrisman

Thu, Sep 14 2023, 11:15 AM

This morning I head from Chicago to Orlando along with 74 million others (yearly). More fun with numbers: Although the MBA thinks we’ll fund about $1.7 trillion in 2023, weekly applications continue to reflect a declining market so let’s use $1.5 trillion to make the numbers easier. That averages out to $6 billion per business day of production. The Fed is looking to offload $13 billion in MBS from bank seizures. To keep things in perspective, that is only two days’ worth of production, certainly not enough to “swamp the boat.” Perspective is good, and here’s another example. Higher and volatile interest rates, uncertainty about property values, and stresses in some property markets have increased pressure on some loans and properties. Accordingly, MBA reported that commercial and multifamily mortgage delinquencies increased in the second quarter of 2023. Even with the uptick in delinquency rates, they remain at the lower end of historical ranges. Loans backed by properties (and property types) with stable cash flows, are faring better than those that may have seen declines in incomes. (Today’s podcast can be found here and this week’s is sponsored by SimpleNexus, an nCino Company, and award-winning developer of mortgage technology for modern lenders. Hear an interview with C2 Financial and Revest Homes’ Jim Black on how originators can win business in a tough rate environment.)

Lender and Broker Software, Products, and Services

Amidst changing QC requirements and increasing repurchase risk, lenders must invest in automation to drive efficiency and protect profits. The industry needs to shift its focus from crisis management to prevention with proactive QC. Not only does this approach set lenders up for success regardless of the origination environment, but it’s also a regulatory imperative now that Fannie Mae requires lenders to conduct pre-funding QC on a minimum of 10% of their production. ACES Quality Management empowers mortgage lenders and servicers to take control of their operations and embrace proactive QC. ACES seamlessly combines cutting-edge technology with comprehensive data analysis, giving mortgage professionals the tools they need to identify, anticipate and rectify potential issues in near real time. Learn why financial institutions and third-party providers rely on ACES.

“Looking for a full-service depository bank that will help you achieve your long-term growth plans? NexBank has been a dependable lender to our clients through all business cycles. We’ve been in the wholesale, correspondent, and warehouse lending business since 2008 and don’t compete with our clients for retail originations or refinancing business. Our long-tenured account executives, with an average of 24 years of industry experience, know our business well and are dedicated to helping you grow yours. This month, we celebrate the 15th anniversary of three professionals who have contributed to the success of our clients and NexBank. Lance Hackney with $4 billion closed volume; Brandi Horton with $4.5 billion closed volume; and Steve Smith with $5 billion closed volume. We support all channels: Wholesale, Non-Delegated & Delegated Correspondent with Portfolio, Conventional, FHA, and VA products, and offer Delegated & Emerging Banker Warehouse Lending and Escrow Deposit Management. Email Jon Hodge to reach an AE. Member FDIC. Equal Housing Lender. NMLS 672886.”

If you’re using Encompass® by ICE Mortgage Technology™ and you’re not using Fee Chaser to collect your upfront fees you it’s time to get your act together. Fee Chaser enables your borrowers to pay their upfront fees right from a text message. No more missed appraisal fees, no more paper checks, no more credit card numbers floating around on printed forms. Check out Fee Chaser here and they’ll text a demo right to your phone.

“Optimal Blue’s market-leading product, pricing and eligibility (PPE) engine has been the industry’s preferred choice for years because of our ability to serve our clients’ needs. With Optimal Blue’s open-API platform, our clients can access and use all of the functionality that exists in the Optimal Blue PPE via APIs, including creating customized rate quoting tools, fully automating lock events, and ensuring LOs have on-demand access to product and pricing where and when they need it. Reach out to Optimal Blue today to learn more about our open-API platform and how you can use it to unlock hidden efficiencies and improve your business!”

Government and Other Conforming Program News

Plaza Home Mortgage® reminded brokers of the ins and outs of getting government deals done. Here are five really great reasons to look to Plaza first for your government loans:

Manual underwriting may be an option for loans that do not get an approval through AUS-Total Scorecard (manual underwriting requirements apply). FHA and VA FICOs down to 550. USDA FICOs down to 600. Cash-out allowed on FHA and VA. Experienced Underwriting team that is willing to go the extra mile for your borrower.

Effective August 25th, the Attorney Authorization Approval (AAA) Matrix is available within Property 360™ on both the Claims and Excess Fees landing pages. The matrix remains accessible on the Excess Attorney Fee – Cost Guidelines webpage in the Single-Family portal.

Federal Housing Agencies issued a reminder for mortgage assistance for those impacted by the Maui Wildfires. In a joint statement, the Federal Housing pledged their offices’ ongoing support for Hawaiian residents affected by the devastating wildfires on the Hawaiian island of Maui.

Hurricane season has begun, MBAF provided a reminder of MBA’s Disaster Recovery Resource Guide. This guide outlines what to do before and after a natural disaster, along with how to start, and then, work through the recovery process. Additionally, another resource available is Hurricane Help FAQs.

Fifth Third Correspondent Lending Communiqué 2023-6-9.1.23 has the following topics:

Final Document Reminder, as a reminder, Fifth Third expects Final Title Policies and Recorded Mortgages to be delivered within 90 days of the loan purchase date. Excessively aged documents will be assessed a fee per section 1.07 of the Correspondent Seller Guide.

Maximize Cash Out with Loan Stream Mortgage Non-QM Closed End Seconds. Program highlights include clients can Access Equity with our Non-QM CES Cash Out Refi: 90% CLTV Full Doc, 85% CLTV Bank Statements, 80% CLTV Investment Properties and 75% CLTV DSCR. Also available on Purchase, Rate/Term Refinance & Cash Out.

Chaos has a way of bringing on unexpected opportunities. Plaza Home Mortgage®. Co-President and COO, Michael Fontaine, shares with National Mortgage News how Plaza navigates in the evolving wholesale landscape. From diverse strategies to tapping into improved technology plus Plaza’s training offerings to help amplify broker clients’ strengths, take a look.

Plaza Home Mortgage® Jumbo opportunities keep getting better, now offering 2-1 and 1-0 Temporary Buydowns on its new Jumbo Elite loan program. Get in touch with your Account Executive for the qualifying details. Explore the complete range of Jumbo solutions Plaza offers for your borrowers.

Capital Markets

Why do those in the mortgage space watch the 10-year U.S. Treasury note? Historically, the 10-year U.S. Treasury yield has been considered a key benchmark for mortgage rates. Mortgage rates, however, are not actually based on the 10-year U.S. Treasury note (as is commonly believed). MCT released a blog, “How the 10-Year U.S. Treasury Note Impacts Mortgage Rates” that serves as an excellent primer for how mortgage interest rates respond to moves of the benchmark U.S. Treasury note. The piece discusses why mortgage rates and Treasury yields move together and how bonds are influenced by Treasury yields. With a trusted capital markets partner like MCT, you can rest assured that you will be notified of how economic trends could have the potential to impact your business. Sign up for MCT’s newsletter to receive educational articles like this one and learn more about variables that impact mortgage rates.

In rate news, even though inflation in August showed a larger than expected increase in core CPI (actual 0.3 percent when it was expected at 0.2 percent), it showed ongoing improvement on a year-over-year basis, enough to prevent any significant change in Fed rate hike expectations. The implied likelihood of a rate hike in December sits around 46 percent.

Digging into the numbers, gasoline prices contributed to nearly half of the increase to the headline number, rising nearly 11 percent over the month, and that inevitably had some trickle-through impact on the core reading, as transportation services were driven higher by energy prices. The 3.7 percent year-over-year rate of CPI is still well above the Fed’s 2 percent target, reflecting stickiness that, while probably not compelling enough to the Fed to raise rates further at this point as the trend in inflation has downshifted since the spring, will certainly keep the Fed in a “higher for longer” mindset. Looking forward to the FOMC meeting next week, another pause in rate hikes is already baked in, so the importance is actually much more about rate decisions in November, December, and January.

Today’s economic calendar is under way with several releases. Events kicked off with the ECB releasing its latest monetary policy decision (+.25 percent, as expected, in an effort to continue to tame inflation) followed by ECB head Lagarde’s press conference. The U.S. calendar is also under way with retail sales (+.6 percent for August, much higher than expected), the Producer Price Index (+.7 percent, much stronger than expected, core +.3 percent), and weekly jobless claims (220k, 1.688 continuing). Later today brings July business inventories, Treasury announcing the sizes for next week’s reopened 20-year bonds and 10-year TIPS auctions, and Freddie Mac’s latest Primary Mortgage Markets Survey. We begin Thursday with Agency MBS prices worse a few 32nds from Wednesday evening, the 10-year yielding 4.27 after closing yesterday at 4.25 percent, and the 2-year at 5.02 after this slew of economic news.

Employment

“Foundation Mortgage is rapidly expanding after several record months and is looking for top tier experienced Non-QM account executives to join our team. We have a vast array of non-QM products to choose from and common-sense underwriting. We make exceptions that other lenders won’t. If you are looking to join an experienced team that knows how to get loans done contact Dean Ayres.”

On the heels of the successful acquisition of Platinum Home Mortgage Corp, Planet continues its appetite for retail acquisition by looking to consolidate several independent bankers into its organization. If your firm is seeking better economies of scale or a strategic exit, let’s talk. With our strong multichannel support, speedy turnarounds, dedicated recruitment, and customer retention, Planet will give you a remarkable edge. Please contact Lee Gross to find out what Planet could do for you. All inquiries will be held in strict confidence. Confidentiality will also be honored for single MLOs or smaller sales teams who contact VP of Talent Peter Briggs or 435-709-6287.

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Source: mortgagenewsdaily.com

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Engel & Völkers today announced its entrance into Castle Pines, CO. Turner Associates, an esteemed local real estate brokerage, will now do business as Engel & Völkers Castle Pines, and continue under the leadership of Travis Turner as its majority license partner and managing broker. For more than a decade, Turner has built a successful real estate business serving the Front Range, offering a comprehensive range of real estate services and specializing in residential, commercial, and investment properties. Joining him in management will be his sister and minority owner Katie Turner, as well as several additional experienced managing brokers. Building upon Turner’s existing success and a reputation for client satisfaction, market knowledge, and professionalism, the new shop will serve as a trusted choice for buyers and sellers in Castle Rock, Castle Pines, and across Colorado’s Front Range. 

“Colorado remains a foothold for our expansion in North America,” said Anthony Hitt, president and CEO of Engel & Völkers Americas. “Engel & Völkers’ continued growth in the region is a testament to the brand’s appeal and traction among both clientele and real estate professionals. With a shared commitment to delivering the highest standard of client service, Travis is the right partner to bring Castle Pines and its surrounding communities into the Engel & Völkers’ fold and continue to strengthen our presence in the Rocky Mountains and beyond.”

The real estate market for the Front Range of Colorado is a dynamic and competitive landscape, characterized by strong demand and limited inventory. Castle Pines and Castle Rock attract homebuyers and investors due to the stunning Rocky Mountain backdrop, thriving job opportunities, and outdoor recreational offerings. These markets are known for offering a range of upscale and luxurious properties. Castle Rock features spacious single-family homes, sprawling estates, and upscale townhomes, while Castle Pines is renowned for its exclusive gated communities and high-end custom homes, situated on large lots to offer privacy and a sense of luxury living within a serene and tranquil environment. Residents here enjoy a balance between an active outdoor lifestyle, with activities like hiking, skiing, and mountain biking, and access to world-class dining, shopping, and entertainment.

“As the market for luxury properties continues to evolve, Engel & Völkers’ proven track record and innovative marketing strategies position our team to capitalize on the growing demand for premium properties in Castle Pines and throughout the Front Range,” said Turner. “The Engel & Völkers brand delivers a strong global presence, unrivaled reputation, commitment to excellence, and network of experienced real estate advisors well-versed in the intricacies of luxury transactions. It is my hope that this partnership will energize the luxury real estate scene across the Front Range, foster innovation, elevate service quality, and reinforce our position as a premier destination for luxury living.”

To learn more visit castlepines.evrealestate.com.

About Engel & Völkers

Engel & Völkers is a global luxury real estate brand. Founded in Hamburg, Germany, in 1977, Engel & Völkers draws on its rich European history to deliver a fresh approach to luxury real estate in the Americas with a focus on creating a personalized client experience at every stage of the home buying or selling process for today’s savvy homeowner. Engel & Völkers currently operates approximately 300 shop locations with over 6,500 real estate advisors in the Americas, contributing to the brand’s global network of over 16,600 real estate professionals in more than 30 countries, offering both private and institutional clients a professionally tailored range of luxury services, including real estate and yachting. Committed to exceptional service, Engel & Völkers supports its advisors with an array of premium quality business services; marketing programs and platforms; as well as access to its global network of real estate professionals, property listings, and market data. Each brokerage is independently owned and operated. For more information, visit www.evrealestate.com.

Find topics in marketing, technology, and social media for realtors, and housing market resources for homeowners. Be sure to subscribe to Digital Age of Real Estate.

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Source: realtybiznews.com

Apache is functioning normally

Mortgage rates have soared to historic highs in America, but one company’s CEO told Newsweek what they’re doing about it.

The popular 30-year term is now over 7 percent, a more than 20-year high. New homebuyers are discouraged from entering the market.

Applications for new mortgages have plummeted to their lowest level since 1996, according to the Mortgage Bankers Association (MBA). Homeowners who may want to sell and buy new properties are hitting pause and in turn stifling the supply of houses for sale, scared away by high rates.

Prospective buyers have been crowded out of the market.

House with sold sign in yard. One startup company is working to lower interest rates for some homebuyers.
Harold M. Lambert/GETTY IMAGES

One startup is hoping to change that. Roam, a new real-estate platform that launched on Wednesday, says it can help potential home buyers find mortgages for as low as 2 percent. The company is focusing on what’s called an “assumable mortgage” business where a homebuyer essentially takes over an existing mortgage from a seller.

“Roam is trying to help buyers wind back the clock on rates and purchase a home with a low rate mortgage included,” Raunaq Singh, founder and CEO of Roam, told Newsweek.

Singh, who worked as a Loan Officer at real estate business Opendoor, came to the idea after he struggled to find an affordable mortgage himself.

“The rates just kept going higher and higher, and the monthly payments kept going higher and higher, which meant that the number of homes I could afford kept getting smaller, and smaller and smaller,” he said in an interview.

Singh stumbled on the idea of assumable mortgages and was shocked to discover that there existed government-backed loans where the buyer could take over an existing mortgage from a seller at much lower rates than currently available in the market.

From there the concept of Roam emerged.

Singh found that few people knew about these mortgages and how to access them. The other thing he discovered was the process to acquire the homes was antiquated with the process still being done on pen and paper in some cases.

Even when a potential buyer has managed to discover these mortgages, they still have to deal with the process of eventually securing the property, which can be cumbersome and complicated. They have to deal with the seller, the seller’s agent, lenders and other parties before the transaction can be concluded.

Roam decided to digitize the process so that buyers could quickly get updates about available homes and make the exercise more efficient.

“We realized, if we quarterback this transaction on behalf of the buyer, everybody else would become more amenable. And we would take the stress out of the transaction,” Singh said.

The company is targeting 4.4 million homes whose mortgages are government-backed, such as those guaranteed by the Federal Housing Administration and the Department of Veterans Affairs.

The attraction of the homes for prospective buyers is that they come with low interest rates. Singh told Newsweek that his company is focused on homes that, if the interest rate is less than or equal to 4 percent, they have to have a loan-to-value of the home ratio of greater than or equal to 50 percent. And if the interest rate on the home is between four and 5.5 percent, they have to have a loan-to-value ratio of 75 percent. The focus for Roam is to make sure that the monthly payment is low for buyers, ideally less than half of what current rates would offer.

Roam, which launched today with an initial seed funding of $1.25 million, is available in Georgia, Arizona, Colorado, Texas and Florida. It has 10 employees.

The funding was led by Founders Fund’s Keith Rabois. Eric Wu, founder of Opendoor, is also an investor. They will both become board members. Other investors include Ryan Johnson, Culdesac CEO, and #ANGELS Founding Partner Jana Messerschmidt. Tim Mayopoulos, former CEO of mortgage company Fannie Mae, is joining the company as a senior advisor. Earlier this year, The Federal Deposit Insurance Corporation appointed him to briefly helm Silicon Valley Bank after its collapse.

The company is registered as a real estate brokerage in the states where it operates and will charge a 1 percent fee on the purchase price of the homes it helps sell.

One challenge the company will face is what happens when buyers take over a mortgage that still has outstanding loans to pay off and may need to borrow at current, high, interest rates to cover the balance.

Singh told Newsweek that the company will assist the buyer in securing financing for that loan. He added that whatever blended arrangement they will recommend, the goal is to help their customers save money.

“We would never recommend that a customer takes on a second lien if the monthly payments will be higher,” he said.

Roam is available as an online platform with a team that’s also available offline, Singh said. The company doesn’t yet have a mobile app.

“It’s something that people have asked us for, it’s something that’s on our roadmap,” he said.

Source: newsweek.com