Wells Fargo reports lower origination volume in Q2

Wells Fargo reports lower origination volume in Q2

Wells Fargo originated $51.9 billion worth of mortgages in the third quarter, down slightly from $53.2 billion in the previous quarter.

The depository’s retail business made up most of its origination volume from July to September, coming in at $32.5 billion, while the correspondent channel produced $16.7 billion worth of mortgages.

Despite earlier reports in the mortgage industry that refis were waning, Wells Fargo’s third quarter results revealed that 55% of their origination business was refi business, remaining unchanged from the previous quarter.

Furthermore, Wells Fargo reported revenue of $2.01 billion from home lending, down slightly from $2.07 billion in the second quarter, but down 20% year-over-year.

The depository noted in their earnings report that the decrease in revenue for home lending was a result of “lower mortgage banking income and lower net interest income primary driven by lower loan balances.”

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Millennials struggle to compete with boomers for homes

Millennials struggle to compete with boomers for homes
Young people make up a smaller share of recent homebuyers than in previous years most likely due to the increased market activity of baby boomers, a new Zillow report published on Thursday found.

It’s hardly breaking news that the demand for housing has drastically increased over the past 18 months, but the report suggests that this has more to do with demographic trends than the pandemic. Overall, however, individuals aged 30 and older, across all age groups, were buyers at higher rate than those in the same age group a decade ago,

In the past decade, as more and more millennials have aged into their peak home-buying years, Americans aged 60 and over have been more active in the housing market than those of the same age 10 years prior. From 2009 to 2019, the share of recent buyers who are 60 years and old grew 47%, while the share of recent buyers ages 18-39 fell by 13%. In addition, the median age of a homebuyer who completed their purchase within the past year rose from 40 in 2009 to 44 in 2019.

Over the same time period, home values grew 31.2%. In the past two years, prices have grown an additional 22%, which should come as no surprise, as more than half of homes sold this past July went for above list price and there appears to be no end in sight, as Goldman Sachs predicts that home prices will rise another 16% in 2022.

These drastic increases in price, mean that longtime homeowners have seen massive equity gains, giving them more cash to use toward a potential new home, giving them an advantage in a bidding war against younger buyers who may be trying to purchase their first home. All cash offers are more common among repeat buyers than first time buyers and a survey of Zillow Premier Agent partners found that all-cash offers are the top strategy for winning a competitive bid.

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“Whether downsizing or moving to a new town, baby boomers being more active means competition that previous generations did not have when buying their first home,” Jeff Tucker, a senior economist at Zillow said in a statement. “And older buyers have the advantage of a lifetime’s worth of savings and home equity to leverage in a competitive offer.”

In addition to struggling with rapidly rising home prices, over half of non-homeowning millennials (60%) report that student debt is making it harder for them to purchase a home.

Compounding these generational struggles is the construction slowdown that came out of the Great Recession. The resulting housing shortage has only worsened over the course of the pandemic as homebuilders have faced supply and labor shortages.

Together, all of these factors suggest a likely reason why the share of buyers who were buying their first home has dropped from 46%in 2018 to 37% in 2021.

“Even before the pandemic, the largest-ever generation entering their 30s and the hangover from more than a decade of underbuilding were on a collision course set to define the U.S. housing market,” Tucker said in a statement. “The pandemic supercharged demand for housing, bringing the shortage into relief sooner than we expected, as millennials sought bigger homes with Zoom rooms, and older Americans accelerated retirement plans, spurring moving decisions.”

However, there was some positive news in the housing market report, as it found that younger buyers are seeing more luck in less expensive markets such as Buffalo and Salt Lake City where buyers aged 18-39, made up 57% and 56% of all recent buyers, respectively. A notable exception is tech mecca San Jose, where 54% of 2019 buyers were aged 18-39.
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Congress nears deal on key housing bills

Congress nears deal on key housing bills

As Congress haggles over funding for the social infrastructure package, a Senate Democrat who chairs the Senate Finance Committee promised a key housing provision will make the cut.

Sen. Ron Wyden of Oregon, a Democrat, told attendees of a Housing Oregon virtual conference on Friday that the committee he chairs had an “enormous interest” in the Neighborhood Homes Investment Act.

Wyden told those in the virtual meeting he would “make sure that wonderful program gets well-funded in this legislation.”

“It’s time for the finance committee to step up and deal with housing,” Wyden said.

There is also hope for another cornerstone of Biden’s housing agenda. Some form of down payment assistance is likely to be part of the final social infrastructure package, but questions remain over how much money Congress will allocate to it.

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Fannie Mae’s sales of reperforming loans are on the rise 

Fannie Mae’s sales of reperforming loans are on the rise 

Sales of reperforming loans nosedived in 2020 as the pandemic took root in America, but sales volume appears to have recovered with vigor, based on an analysis of RPL offerings for government-sponsored enterprise Fannie Mae.

The GSE earlier this month announced its 23rd sale of reperforming loans, which are defined by Fannie Mae as mortgages that were previously delinquent but are performing again because payments have become current — with or without the use of a modification plan. 

Including the recent October offering, Fannie Mae year to date has put on the market some 100,000 reperforming loans across five offerings with an aggregate unpaid principal balance of $14.5 billion, according to an analysis of the GSE’s records. By comparison, over the same period in 2020, a total of 57,235 RPLs were put on the sales block by Fannie Mae through four pool offerings that collectively had a total unpaid principal balance of $8.7 billion — or a bit more than half of the RPL sales volume recorded this year and $5.7 billion shy of the 2021 aggregate value mark. 

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Florida Agency Network merges with International Title Partners

Florida Agency Network merges with International Title Partners
Florida Agency Network (FAN) completed its merger with International Title Partners (ITP), a Clearwater, Fla., title agency, expanding FAN’s presence in the Tampa Bay area. The merger brings the total number of FAN offices to over 30, with nearly 300 employees located in Florida. Read on for more about the merger.
Source: thetitlereport.com

NFIB: Supply chain disruptions affecting more small businesses

NFIB: Supply chain disruptions affecting more small businesses
Half of small-business owners reported supply chain disruptions have a significant impact on their business, according to a recent NFIB Research Center COVID-19 survey. That’s up from 32 percent in July. Read on for more from the survey.
Source: thetitlereport.com

BSpoke Title Holdings names management team

BSpoke Title Holdings names management team
BSpoke Title Holdings recently made several executive management appointments. The company named a chairman, CEO, president, general counsel/executive vice president, and chief financial officer/chief information officer. Read on for more about the appointments.
Source: thetitlereport.com

Redfin expands Direct Access home tours

Redfin expands Direct Access home tours
Redfin launched a nationwide roll out of Direct Access, which lets homebuyers self-tour vacant homes with or without an agent, using an app to unlock the door. Redfin also partnered with home security company ADT to provide smart locks and sensors and 24/7 monitoring of Direct Access homes. Read on for more.
Source: thetitlereport.com

SoftPro releases integration with Agents National Title

SoftPro releases integration with Agents National Title
SoftPro released a new integration with Agents National Title Insurance, allowing agents to generate closing protection letters and policy jackets through the SoftPro 360 portal. Read on for more.
Source: thetitlereport.com