Mortgage – HousingWire |
- Opendoor acquisition can preapprove applicants in 1 minute
- Fannie & Freddie made $5.3B from adverse market fee
- Rising home prices are fueling the private-label market
- Breakout: The Evolution of the Real Estate Brokerage
- HousingWire Annual On-Demand
- Expanding Homeownership
- Taming unstructured data to break the review cycle
- Q&A with Timothy Mayopoulos
- The biggest missed opportunity in mortgage lending
- Who will win the purchase market?
| Opendoor acquisition can preapprove applicants in 1 minute Posted: 05 Nov 2021 02:47 PM PDT Instant homebuyer Opendoor has acquired “tech”-focused mortgage brokerage RedDoor, the companies announced Friday. The purchase comes amid questions of whether iBuying is a viable business model following Zillow's announcement Tuesday that the company is winding down its iBuying arm. Founded in 2018 and headquartered in Sacramento, RedDoor calls itself a "digital first mortgage brokerage" that can preapprove a loan applicant "within 60 seconds," likely what was appealing to the iBuyer. The company has funded over $200 million in mortgages and partners with over 70 lenders, according to its website. RedDoor will be rebranded to become part of Opendoor. An Opendoor spokesperson declined to discuss how much buying RedDoor cost, and messages left with RedDoor went unreturned. IBuying is empirically a money-losing industry even amid a historic housing boom. But some investors see add on services including mortgage as a possible way for iBuyers to eventually turn a profit. Opendoor began Opendoor Home Loans in 2019, and the mortgage loan originator operates today in 26 markets and eight states. However, one of those states is not California where RedDoor is licensed to do business. Opendoor Home Loans present size is not totally clear as the company has not broken out its earnings. Opendoor has $25.4 million in mortgage loans held for sale under agreement to repurchase as of June 30, according to a public filing. According to a blog post from Opendoor Chief Product Officer Tom Willerer, the company first heard of RedDoor, "From someone at Opendoor who had a fantastic experience working with them – in fact, she called RedDoor 'magical.' We immediately reached out to co-founders Heather Harmon and Ali Mackani." RedDoor's chief operating officer, Harmon's background is in real estate. She is still broker and CEO of Harmon Real Estate in Auburn, California, according to her LinkedIn profile. Mackani is RedDoor's CEO. His prior experience includes being part of an ultimately successful effort to keep the National Basketball Association's Kings in Sacramento. RedDoor appears to have just a handful of loan officers, who are salaried and don’t receive commission. The RedDoor deal is one of multiple announcements Opendoor has issued prior to the company's earnings call next Wednesday. The company – which has repeatedly maintained it is "open for business" amid Zillow's struggles – has announced a "real-time offers" partnership with Realtor.com, a new technology platform (Opendoor Complete), and a hiring plan in Canada all within the last 10 days. The post Opendoor acquisition can preapprove applicants in 1 minute appeared first on HousingWire.  |
| Fannie & Freddie made $5.3B from adverse market fee Posted: 05 Nov 2021 12:20 PM PDT The money Fannie Mae and Freddie Mac earned from the adverse market fee paid for nearly the entire cost of the agencies' Covid relief options, according to a Federal Housing Finance Agency inspector general report. The March 2020 CARES Act was meant to blunt the impact of Covid's economic toll on homeowners, by letting them defer mortgage payments for an initial year without penalty. The legislation also placed a moratorium on foreclosures, which the FHFA later extended to July 2021. But deferring payments and foreclosure actions "imposed significant costs on the Enterprises," the inspector general report said. How much? FHFA estimated the forbearance and foreclosure programs will cost the GSEs $7 billion to $8 billion over the next two-to-four years. The FHFA's division of research and statistics, until recently led by Calabria-appointee Lynn Fisher, made the cost projections. Of that total cost, the office expects $4 billion in anticipated defaults. But in addition to the $59 billion Fannie Mae and Freddie Mac have on hand, most of that cost is easily recouped by the 50 basis point adverse-market fee, which the GSEs applied to nearly all refinances starting in October 2020. The fee netted the agencies $5.3 billion before its elimination 10 months later, to the jubilant cheers of mortgage lenders. The number of homeowners who have participated in forbearance at some point over the past 18 months has now climbed to 7.7M, or approximately 15% of all U.S. mortgage-holders, Black Knight reported in October. Initially, some expected forbearance levels — and therefore potentially the costs to the agencies — to be higher. Then-FHFA Director Mark Calabria testified before Congress in late 2020 that early estimates predicted overall forbearance rates could reach 50%. Instead, forbearance rates peaked in May 2020 at 9%, and steadily declined in the months that followed. And although the GSEs account for 60% of the mortgage market, with $5.5 trillion in outstanding mortgage debt, by May 2020 its forbearance rate was only 6.4%. The forbearance rate at the GSEs continued to decline steadily, and by mid-August 2021, just 1.6% of Fannie Mae and Freddie Mac-backed loans were in forbearance. The post Fannie & Freddie made $5.3B from adverse market fee appeared first on HousingWire.  |
| Rising home prices are fueling the private-label market Posted: 05 Nov 2021 09:43 AM PDT  J.P. Morgan, through its private label conduit, J.P. Morgan Mortgage Trust, so far this year has sponsored 13 private-label securitization offerings backed by jumbo loans valued at $13.8 billion. Those offerings, current through the end of October, involved more than 14,000 jumbo mortgages, according to bond-rating agency presale reports. The data show that J.P. Morgan has been a dominant force in the jumbo-loan securitization market so far this year. MAXEX, an Atlanta-based digital mortgage exchange in which J.P. Morgan is an investor, issued a report this month on private-label market activity revealing that there were a total of eight jumbo-loan securitizations priced in September alone. They were backed by pools of mortgages valued at $5.73 billion, according to the MAXEX report and additional information from Kroll Bond Rating Agency. The offerings included "a massive deal from J.P. Morgan," which was priced at $1.647 billion, "and included loans traded through the [MAXEX] exchange," the report states. The other jumbo securitization deals in September, with the associated loan-pool values, were undertaken by the following issuers:
Total jumbo-loan residential mortgage-backed security (RMBS) issuance for 2021 now exceeds $33 billion, according to the MAXEX report.  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 Rising home prices are fueling the private-label market appeared first on HousingWire.  |
| Breakout: The Evolution of the Real Estate Brokerage Posted: 05 Nov 2021 02:00 AM PDT The consolidation of real estate brokerage and mortgage services continues as both seek out ways to combine services to offer more to consumers. Real estate brokerages have long added core services to increase profitability. Now, mortgage firms such as Rocket and Better are adding real estate brokerage services. In this panel, we talk to real estate brokerage leaders about this evolution, competition from the mortgage side and what the industry will look like going forward. Watch the full session below. To go back to the full HousingWire Annual 2021, go here. Panelists:
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 Breakout: The Evolution of the Real Estate Brokerage appeared first on HousingWire.  |
| Posted: 05 Nov 2021 02:00 AM PDT All Things Housing In every single residential real estate transaction, the housing industry comes together. Real estate agents partner with lenders. Underwriters rely on appraisal and valuation professionals. Lenders and agents put their trust in title partners. And servicers and investors depend on originators to produce high-quality mortgage loans and securities. HousingWire Annual brings together the housing industry in an entirely new way. Housing professionals from across the ecosystem will convene in Frisco, Texas to learn, engage and move the housing economy forward. Click on the buttons below to view the full sessions on-demand. The full session videos are only available to HW+ members. Not a member yet? Join here. Reducing Bias is the Gold Standard for AppraisalsPanelists:
Sponsored by:  Expanding HomeownershipPanelists:
Sponsored by:  Taming unstructured data to break the review cyclePanelists:
Sponsored by:  Break Out: The Future of ValuationsPanelists:
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| Posted: 05 Nov 2021 02:00 AM PDT How can the mortgage and real estate industries responsibly expand homeownership among individuals and communities that are currently under-represented? To answer that question, this panel of experts will discuss recent FHA updates, the role of credit scoring and credit alternatives, and how real estate professionals can play a vital role in changing the script. Watch the full session below. To go back to the full HousingWire Annual 2021 on-demand page, go here. Panelists:
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 Panel brought to you by: The post Expanding Homeownership appeared first on HousingWire.  |
| Taming unstructured data to break the review cycle Posted: 05 Nov 2021 02:00 AM PDT This session unpacks the importance of innovation in the housing industry as our panelists dwell on the possibilities of unstructured data for mortgage technology. Learn more about the future of technology as these three panelists brainstorm and highlight some of the ways their companies are taking a step forward into the future. Watch the full session below. To go back to the full HousingWire Annual 2021 on-demand page, go here. Panelists:
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 Panel brought to you by: The post Taming unstructured data to break the review cycle appeared first on HousingWire.  |
| Posted: 05 Nov 2021 02:00 AM PDT HW Media CEO Clayton Collins will sit down with Blend President Timothy Mayopoulos to discuss the digital mortgage landscape and the innovations that will define the next year of originations. Blend is a Silicon Valley technology company backed by Greylock Partners, Emergence Capital, Founders Fund, Andreessen Horowitz, 8VC, Lightspeed Venture Partners, and other leading venture investors. Before joining Blend in 2019, Mayopoulos served as President and CEO of Fannie Mae for more than six years. Under his leadership, the company returned to sustained profitability and delivered more than $167 billion in dividends to taxpayers. Mayopoulos has also served as the General Counsel of Bank of America for five years, and held senior roles at Deutsche Bank, Credit Suisse First Boston, and Donaldson, Lufkin & Jenrette. Watch the full session below. To go back to the full HousingWire Annual 2021 on-demand page, go here. Panelists:
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 Q&A with Timothy Mayopoulos appeared first on HousingWire.  |
| The biggest missed opportunity in mortgage lending Posted: 05 Nov 2021 02:00 AM PDT Knowing where borrowers are at in their home-buying journey is key to any successful mortgage lending strategy, but it's often overlooked in the busy operations of an origination shop. This session will explore how to make it easy to keep borrowers on your radar, and in your pipeline. Watch the full session below. To go back to the full HousingWire Annual 2021 on-demand page, go here. Panelists:
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 Panel brought to you by:  The post The biggest missed opportunity in mortgage lending appeared first on HousingWire.  |
| Who will win the purchase market? Posted: 05 Nov 2021 02:00 AM PDT The digital revolution in mortgage lending is coming. Will you be ready? The industry is plagued with inefficiencies and outmoded regulations, only exacerbated by the COVID-19 pandemic. There is a better way, one that unites the industry and creates a safer, more streamlined experience for both the customer and the lender. In the next chapter, consumers have the power and will partner with organizations that put them first and embrace the digital transformation. Watch the full session below. To go back to the full HousingWire Annual 2021 on-demand page, go here. Panelists:
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 Panel brought to you by:  The post Who will win the purchase market? appeared first on HousingWire.  |
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