HousingWire Daily

In today’s Daily Download episode, HousingWire covers a report from CoreLogic that claims U.S. homeowners gained over $620 billion in home equity during the second quarter of 2020.For some background on the story, here’s a summary of the article:U.S. homeowners with mortgages witnessed a 6.6% year-over-year increase in their equity in the second quarter of 2020 – representing a cumulative gain of $620 billion for the nation and an average $9,800 hike in equity per homeowner, according to a new report by CoreLogic. Record-low mortgage rates and constricted sale inventory cast the perfect storm for home prices which rose 4.3% annually through June ultimately bolstering the increase in home equity, CoreLogic said in its home equity report. “Homeowners’ balance sheets continue to be bolstered by home price appreciation, which in turn mitigated foreclosure pressures,” said Frank Martell, president and CEO of CoreLogic.Despite recent gains, the data service provider predicts upward advancements may be mitigated by consistent unemployment and home prices will dip in concurrence with a possible jump in delinquencies.Following the main story, HousingWire discusses a proposal from the Federal Reserve to revamp the anti-redlining rules known as the Community Reinvestment Act, or CRA, and an announcement from The Office of the Comptroller of the Currency that is has settled with three former Wells Fargo executives for their roles in the bank’s fake account scandal.The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode: Homeowners gain over $620 billion in equity in second quarter Fed releases proposal to reform CRA OCC settles with three former Wells Fargo executives  

In today’s Daily Download episode, HousingWire covers a report from the Mortgage Bankers Association’s Research Institute for Housing America that indicates in the second quarter of 2020, close to 11 million households fell behind on their rent or mortgages. Additionally, the report found that the COVID-19 pandemic may have negative impacts on Millennial homeownership. For some background on the story, here’s a summary of the article:In the second quarter of 2020 nearly 11 million households fell behind on their rent or mortgages – however nearly triple that number, approximately 30 million individuals, missed at least one student loan payment, according to a recent report from the Mortgage Bankers Association’s Research Institute for Housing America.The data compiled from the Understanding America Study was the result of a panel survey tailored to study the impact of the pandemic specifically on mortgagors, renters and student loan borrowers.According to the survey, evidence suggests that student debt is affecting housing-market behavior, in particular, how rising student debt burdens may have crowded out first-time-home purchases among Millennials.Every additional $1,000 of student debt lowers the homeownership rate by approximately 2% – a sizeable effect, according to the report. This bolsters the findings of other studies, including a 2017 study by the National Association of Realtors where more than 75% of respondents with student loans said their educational debt impacted their decision to purchase a home.Following the main story, HousingWire also discusses the nation’s number one loan originator Shant Banosian becoming Guaranteed Rates’s first loan officer to fund $1 billion in loan volume in one year and Keller Williams’ recent vote to add a Diversity, Equity and Inclusion Committee to its’ leadership council. The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.HousingWire articles covered in this episode: MBA: 11 million households fell behind on rent or mortgages in second quarter Shant Banosian becomes Guaranteed Rate's first LO to originate $1 billion Keller Williams adds Diversity, Equity and Inclusion Committee to leadership council

In today’s Daily Download episode, HousingWire covers a report that states loanDepot is poised to go public later this year.For some background on the story, here’s a summary of the article:The California-based mortgage lender headed by Anthony Hsieh could be worth between $12 billion and $15 billion in an IPO, according to Bloomberg‘s sources.The company has held discussions with potential underwriters for an IPO that could happen as soon as the fourth quarter of this year.The news comes on the heels of Rocket Mortgage’s successful IPO in August. Since it debuted at $18 a share, Rocket’s stock has surged over 25%, and the nation’s largest mortgage lender now sports a market cap of about $47 billion.“We are the Lyft to their Uber,” Hsieh told Bloomberg. “The momentum for non-bank lending is here to stay. We’re here to fuel the American dream.”LoanDepot, backed by Parthenon Capital Partners, announced plans to go public in September 2015, but canceled the IPO hours before pricing due to what the company called adverse “market conditions.” At the time, loanDepot had sought a market value of $2.4 billion to $2.6 billion. In March 2017, the company revived plans for an IPO.Following the main story, HousingWire discusses a report from Freddie Mac that indicates the average mortgage rates for a 30-year fixed mortgage increased slightly to 2.87%, which is still the second-lowest on record. The team also shares a release from the NAHB that indicates the Housing Market Index rose five points this month, the highest score the series has seen since its inception.The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.HousingWire articles covered in this episode:

In today’s Daily Download episode, HousingWire covers a plea from the nation’s lawmakers to Federal Housing Finance Agency Director Mark Calabria to rethink the adverse-market fee.For some background on the story, here’s a summary of the article: Federal Housing Finance Agency Director Mark Calabria took fire during Congressional testimony on Wednesday about the implementation of an adverse-market fee that’s expected to add about $1,400 to the cost of refinanced mortgages delivered to Fannie Mae or Freddie Mac after Dec. 1.The need for the fee is based on recapitalizing the two mortgage financiers so they can be released from government conservatorship, Rep. Brad Sherman (D-CA) said during his questioning of Calabria. That’s a scenario that is unlikely to happen if former Vice President Joe Biden usurps President Donald Trump in the Nov. 3 election, as numerous national polls show him poised to do.“Don’t institute the fee – wait until next year when a new Congress can look anew at whether we are going to recreate these agencies in a form that didn’t work last time, and if not, we don’t need the fees,” Sherman said, expressing a view echoed by several lawmakers during the session. Following the main story, HousingWire covers an announcement from the Federal Reserve that it anticipates mortgage rates will remain low through 2023, and an analysis from Pew Research Center that suggests more young adults are now living at home than during the Great Depression.The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode: Lawmakers ask Calabria to rethink adverse-market fee Fed says expect low rates through 2023 More young adults live at home now than during the Great Depression

Today’s Daily Download episode features an interview with HousingWire Lead Analyst, Logan Mohtashami. In this episode, Mohtashami discusses his recent article as well as his thoughts on the Mortgage Banker’s Associations’ recent report and how mortgage credit plays into the larger story on COVID-19’s impact on the housing market.Mohtashami’s article is part of our HW+ premium membership community. When you go to sign up, use the code “hwpluspodcast100” to get $100 off your annual membership.For some background on the story, here’s a summary of the article: It is true that the COVID-19 crisis did temporarily wreak havoc on the mortgage market. Case in point — the week of March 9 and the mortgage market meltdown. You may recall the precipitous drop in rates which resulted in a flood of refinance requests which amplified early pay off risk, mortgage margin calls, and the rapid rebounding of rates.Needless to say, all that drama from COVID-19 created significant stress in the mortgage market. As a result, many non-QM lenders left the market and FHA homebuyers with low FICO scores saw credit get tighter. The U.S. jumbo market loans saw some difficulty as well. Some lenders even stopped offering home equity lines.While that all sounds pretty drastic and scary, at the end of the day this prevented only about 4.5%-6.2% of all purchase loans from closing of those that would have closed prior to the meltdown. This means that approximately over 93% of the purchase loans that could have closed during the period of the record-breaking expansion still closed during the early part of the COVID crisis. This is because after 2010, the loan profiles of mortgage seekers before and during the COVID crisis have been, in a word, excellent– the best loan profiles that I have ever seen in my 24 years of lending experience.The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.HousingWire articles covered in this episode: Is mortgage credit really too tight since COVID-19? It hasn't been this hard to get a mortgage in six years

In today’s Daily Download episode, Mortgage Marketing Radio’s Geoff Zimpfer and HousingWire columnist Logan Mohtashami discuss whether or not the housing market has already recovered from the Coronavirus’ impact on the industry.For some background on the interview, here’s a brief summary of Mohtashami’s latest article on the housing market’s V-shaped recovery:The two most important factors that drive housing, demographics and mortgage rates are both in sweet spots to support housing. If you consider Millennials as potential replacement buyers, then add in downsizing Baby Boomers and move-up home buyers, we should see a lot of activity in the housing market in the coming months and years. Plus, we still have 15%-20% of market sales purchasing homes with cash each year.We only need 4 million mortgage buyers a year to have a stable market and this is out of over 140 million people currently working – and the job market is still in recovery mode. It’s very rare to have any existing home sales print under 4 million in the 21st century. Typically this happens around events such as the last few months of the housing bubble crash, the aftermath of the pull forward demand from the homebuyer tax credit, and one month of COVID-19 induced sales. With mortgage rates safely under 4%, we have the cushion of low mortgage rates as well.When one puts all this into perspective, I think we can agree, the worst of times are largely behind us for the housing market. It’s time to start looking at our future with caution as long as this virus is still with us. We can’t forget the housing bubble boys are ready for the 2021 forbearance home-price crash trolling game plan. Trust me when I say this, I’ve got a few tricks up my sleeve for them.HousingWire articles covered in this episode: Housing’s V-shaped recovery is complete: What had to happen to get America back by Sept. 1 The V-shaped recovery continues for housing market Here’s evidence of V-shaped economic recovery

In today’s Daily Download episode, HousingWire covers a report from the Mortgage Bankers Association that indicates it hasn’t been this hard for homebuyers to get a mortgage in six years.For some background on the story, here’s a summary of the article:Mortgage credit in August was the tightest in more than six years as a weak economy prompted lenders to tighten standards, the Mortgage Bankers Association said in a report on Thursday.The group’s Mortgage Credit Availability Index fell 4.7% to 120.9 last month, the lowest since March 2014, indicating stricter requirements to get loans. The index plunged from record highs seen in late 2019 after the COVID-19 pandemic caused the worst economic contraction since the Great Depression.The drop in the availability of credit was “driven by a reduction in supply from both conventional and government segments of the market,” said Joel Kan, an MBA associate vice president.“Credit continues to tighten because of uncertainty still looming around the health of the job market,” Kan said. “A further reduction in loan programs with low credit scores, high LTVs, and reduced documentation requirements also continued to drive the overall decline in credit availability.”Following the main story, HousingWire covers a forecast from CoreLogic that claims the COVID-19 pandemic may lead to a foreclosure crisis and a report from Black Knight that suggests the refinancing boom is just getting started.The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode: It hasn’t been this hard to get a mortgage in six years Pandemic may lead to foreclosure crisis, CoreLogic says The refinancing boom is just getting started

Today’s Daily Download episode features an interview with Farrah Wilder, the newly appointed chief diversity, equity, and inclusion officer at the California Association of Realtors. In this episode, Wilder speaks with HousingWire about CAR's reasoning for creating the role and the importance of advocating for an inclusive housing industry. During the interview, Wilder, who also served the United States Department of Education as a civil rights attorney, explains why her background in law has made her perfectly suited for her new role at CAR.“It was there [USDE] that I really got a sense of the nuances of intersectionality,” Wilder said. “Their focus is gender discrimination, but as it intersects with race and class. So, there was a lot of discussion around what does it mean to be a woman of color in the workplace or a woman from a working-class background?”According to Wilder, this lesson helped her better understand the complexities of inequality within the housing industry, and what professionals will need to do to address housing discrimination. “I think one of the biggest things that we're going to need to do is build systems that allow us to have space to continuously focus on and learn about these issues,” Wilder said. “For example, the California Association of Realtors has committees, and members regularly meet to discuss policy and learn about persistent fair housing issues.”“I see it as a mission, but it's not something that we can't address, and I think we have to start from the top down, you know, from CEOs to people who own brokerages,” Wilder said. “I think the message needs to be that our industry is focused on housing discrimination. This is an important issue and we're working on it.”The Daily Download examines the most compelling articles reported by the HousingWire newsroom team. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham

In today’s Daily Download episode, Robert Dietz, chief economist and senior vice president of economics and housing policy at the National Association of Home Builders joins the Housing News Podcast to discuss low housing inventory and rising lumber prices.For some background on the interview, here’s a brief summary:In this episode, Dietz discusses how a national shortage of housing inventory and rising lumber prices have contributed to an increase in construction costs, which is making it much more difficult for builders to introduce affordable housing supply to the market.During the interview, Dietz also explains where America’s housing inventory currently stands when compared to historical home-building trends.According to him, the housing market is experiencing a housing deficit of about a million homes, which includes the combination of both apartments and single-family homes.“While estimates may vary, most economists agree there is a housing deficit. Freddie Mac had an estimate of about two and a half million homes as a shortage, and you can see the critical impacts of that shortage,” Dietz said. “One of these impacts is that home prices are rising faster than incomes during the post-Great Recession period, and that, of course, has led to declines in housing affordability.”The Daily Download examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.HousingWire articles covered in this episode: The answer to the affordable housing shortage no one wants to hear Spike in lumber prices boosts construction costs High home prices erase homebuyers' increased purchasing power US inventory of homes for sale reaches record low NAHB's Robert Dietz talks housing inventory and homebuyer affordability

Today’s Daily Download episode, features an interview with HousingWire Real Estate reporter Julia Falcon. In this episode, Falcon discusses her recent article that claims rising home prices have erased the increased purchasing power homebuyers gained in early 2020.For some background on the story, here’s a summary of the article:Homebuyer purchasing power increased 6.9% this July, meaning a homebuyer with a $2,500 monthly housing budget can afford a home priced $33,250 higher than a year ago, Redfin found, which it credited to historically low mortgage rates.But with home prices up 8.2% year over year in July, this homebuyer purchasing power is essentially canceled out, data from Redfin shows.“Low mortgage rates are motivating many people to purchase a home, particularly those who want more space to work from home,” Redfin Chief Economist Daryl Fairweather said in a release. “But because there hasn’t been an increase in the number of homes for sale since rates started dropping with the onset of the pandemic, many buyers end up competing for the same homes, driving up prices.”During the podcast interview, Falcon delves into how the COVID-19 pandemic and historically low mortgage rates have impacted the nation’s housing inventory.“These low rates are increasing purchasing power, so for instance, if the mortgage rate is about 3%, a homebuyer can afford a slightly higher mortgage payment,” Falcon said. “This is encouraging people to buy, especially first-time buyers who might be able to afford a mortgage payment a little higher than they believe they would.”Falcon also shares what homebuyers continuing to migrate means for the overall real estate market, as well as what trends she’s currently watching.The Daily Download examines the most compelling articles reported by the HousingWire newsroom team. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria WickhamHousingWire articles covered in this episode:High home prices erase homebuyers' increased purchasing power