Mortgage – HousingWire |
- Rocket closing in on 10% of the mortgage market
- Wall Street investors are the new breed of single-family landlords
- Home Point Capital bounces back in Q3 thanks to MSR sale
- Mortgage rates decline to 3.09%
| Rocket closing in on 10% of the mortgage market Posted: 04 Nov 2021 01:54 PM PDT  Rocket Companies, the parent of Rocket Mortgage, generated a whopping $1.4 billion in net income in the third quarter, up from $1 billion the previous quarter. According to the company's earnings released on Thursday, Rocket originated $88 billion in mortgages, with a net-rate lock close to $87 billion in the third quarter. Rocket's gain on sale margin rose by 27 basis points to 305 bps, a significant leap from 278 bps in the second quarter. The margin boost came in part due the removal of the controversial adverse market fee by the Federal Housing Finance Agency in July, Julie Booth, chief financial officer of Rocket Companies, said during the company’s third quarter conference call. Booth noted that the third quarter “marked a new company record” with purchase closed loan volume growing 70% year over year. “In fact, both our direct consumer and partner networks generated all time highs for purchase volumes,” she added. This growth was "driven by [the company's] focus on a superior, technology-driven client experience, product innovation and our integrated, end-to-end home buying ecosystem," the top-ranked multi-channel lender said.  This content is exclusively for HW+ members.Start an HW+ Membership now for less than $1 a day.Your HW+ Membership includes: Already a member? log in The post Rocket closing in on 10% of the mortgage market appeared first on HousingWire.  |
| Wall Street investors are the new breed of single-family landlords Posted: 04 Nov 2021 10:34 AM PDT  Purchases of single-family rental properties by investors are on the rise in Sunbelt cities like Phoenix; Austin, Texas; Las Vegas; Tampa; and Charlotte, among others, according to research by John Burns Real Estate Consulting. The increased buying activity is raising concerns that large institutional investors are disproportionately represented in these markets and "are driving up home prices to unsustainable levels," said John Burns, CEO of John Burns Real Estate Consulting. His concerns are fueled by business headlines like this, from CNN: "Wall Street is buying up family homes. The rent checks are too juicy to ignore." Burns concedes he is still working with the data and, at this point, only has a working hypothesis. A problem with that data so far, Burns said, is that it is difficult to distinguish large institutional buyers from mom-and-pop landlords with a handful of properties, or even how many are single buyers simply purchasing a vacation home. One trend, however, is clear. Since the beginning of this year, private-label securitizations backed by mortgages on single-family rental properties have risen sharply. This content is exclusively for HW+ members.Start an HW+ Membership now for less than $1 a day.Your HW+ Membership includes: Already a member? log in The post Wall Street investors are the new breed of single-family landlords appeared first on HousingWire.  |
| Home Point Capital bounces back in Q3 thanks to MSR sale Posted: 04 Nov 2021 09:24 AM PDT  Home Point Capital, parent entity of Michigan-based wholesale lender Homepoint, bounced back from a brutal second quarter, posting a net income gain of $71 million in Q3. This is a notable improvement from the $73.2 million net loss posted by the company in the second quarter. Helping the lender rebound was Home Point's sale of its mortgage servicing rights (MSR) portfolio of single-family mortgage loans guaranteed by Ginnie Mae for close to $122 million. The company, which went public earlier in the year, noted in its third quarter earnings report that "the transaction further streamlined Home Point's servicing operations, reduced overall portfolio delinquencies, and provided incremental liquidity which was used to reduce outstanding debt." This content is exclusively for HW+ members.Start an HW+ Membership now for less than $1 a day.Your HW+ Membership includes: Already a member? log in The post Home Point Capital bounces back in Q3 thanks to MSR sale appeared first on HousingWire.  |
| Mortgage rates decline to 3.09% Posted: 04 Nov 2021 07:00 AM PDT The average 30-year-fixed rate mortgage dropped to 3.09% during the week ending Nov. 4, down from 3.14% the week prior, according to the latest Freddie Mac PMMS Mortgage Survey. A year ago, the 30-year fixed-rate mortgage averaged 2.78%. Most economists believe mortgage rates will climb following as the Federal Reserve tightens monetary policy. The central bank's Federal Open Markets Committee announced on Wednesday that it will begin to taper its monthly asset purchases starting in November. "While mortgage rates fell after several weeks on the rise, we expect future upticks due to stronger economic data and as the Federal Reserve pulls back on its stimulus," Sam Khater, Freddie Mac's chief economist, said in a statement. Mortgage rates tend to move in concert with the 10-year Treasury yield, which reached 2% yesterday, after five weeks below the 2% level. The 15-year-fixed-rate mortgage averaged 2.35% last week, down from 2.37% the week prior. A year ago at this time, it averaged 2.32%. The tapering will begin soon thanks to economic "substantial further progress," according to the central bank. It will reduce the pace of its $120 billion in monthly purchases by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities. Lenders – Now is the time to prioritize lead generation HousingWire Editor-in-Chief Sarah Wheeler and Deluxe Senior Business Development Executive Mark McGuinn discuss the challenges lenders are facing to optimize lead generation, even as mortgage rates continue to change. Presented by: Deluxe"Progress on vaccinations and an easing of supply constraints are expected to support continued gains in economic activity and employment as well as a reduction in inflation,” the Fed said. “Risks to the economic outlook remain." Later this month, the Federal Reserve will purchase at least $70 billion Treasury securities and at least $35 billion agency mortgage-backed securities. Rising mortgage rates have already begun to sap demand. Mortgage application activity dropped 3.3% for the week ending Oct. 29, according to the most recent Mortgage Bankers Association (MBA) survey. The Refinance Index decreased 4% in one week, while the Purchase Index dropped 3% in the same period. Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting, said that mortgage rates decreased for the first time since August due to concerns about supply-chain bottlenecks, waning consumer confidence, weaker economic growth, and rising inflation. The post Mortgage rates decline to 3.09% appeared first on HousingWire.  |
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