Mortgage – HousingWire |
- Homepoint looks to match broker partners with builders
- Mortgage applications nosedive as rates continue to soar
- Redwood Trust reveals five new VC deals
| Homepoint looks to match broker partners with builders Posted: 20 Apr 2022 04:18 AM PDT Wholesale lender Homepoint is becoming a broker of sorts…for mortgage brokers. The Ann Arbor, Michigan-based company has launched a referral program aimed at connecting mortgage brokers with regional homebuilders as well as homebuyers. Homepoint’s “New Build program” connects homebuilders with business purpose construction financing through in-region mortgage brokers, with loan amounts up to $4 million per unit or $25 million per project. Brokers can help builders close new construction loans for single-family residences, multifamily homes, condos and townhomes. The program is offered in partnership with private portfolio lender Level Capital, which is originating the loans to the regional homebuilders. “There is tremendous opportunity for small to midsize home builders throughout the country to boost the nation’s housing supply which could have a leveling effect on housing prices,” Brady Yeager, president of Level Capital said in a prepared statement. “We strongly believe that mortgage brokers can provide builders with a more efficient process, better technology, market and project risk analysis via our Level Tech platform.” Homebuilder confidence in April fell for the fourth consecutive month due to persistent supply chain disruptions and a slowdown in sales traffic. Level Capital and Homepoint are pitching the program to builders as an alternative to loans from credit unions or banks. Rates aren’t as cheap, but they can provide funding much faster and with far less red tape, Will Pendleton, senior managing director of wholesale production at Homepoint, said in an interview. Homepoint’s new program with Level is currently available in Arizona, California, Colorado, Florida, Idaho, Montana, Oregon, Texas, Utah and Washington. The lenders plan to launch in Nevada, New Mexico and North Carolina later this year. The program is the latest effort to give broker partners more lending options as rate-term refis disappear and cash-out refinancings move like a rollercoaster to higher rates. “We really are leaning in to find partnerships that will help to differentiate our broker partners at a time of need for them — they need to differentiate their value proposition,” said Pendleton. “We’re looking at additional products to help bolster that.” Homepoint, the third-largest wholesaler in the nation, is weighing jumping into non-QM, namely bank statement and investor cash flow loans. It’s also assessing a variety of other products to service a market that is now heavily purchase-focused. “We’re heavily scouring the market with the ARM market with all of our investor contacts,” Pendleton said. “That’s obviously a big play…additionally, home equity lines — obviously some do not want to leave their their two-and-a-half interest rate. That’s not a big revenue generator for a lender like us, but we’re happy to provide a critical value to our partners.” Homepoint is also launching jumbo ARMs and considering the possibility of dipping into renovation loans, Pendleton said. The higher-rate landscape has taken a toll on the profitability of Homepoint's parent company, Home Point Capital, in recent quarters as margins have declined. The company turned a $19.3 million profit in the fourth quarter, a sequential decline from the $71 million it recorded in the third quarter. The company sold $13.1 billion in Ginnie Mae servicing rights, which generated nearly $175 million. Homepoint is exiting the Ginnie Mae servicing space, and recently announced it would also move all of its mortgage servicing processing work to ServiceMac, another cost-cutting move. The post Homepoint looks to match broker partners with builders appeared first on HousingWire. |
| Mortgage applications nosedive as rates continue to soar Posted: 20 Apr 2022 04:00 AM PDT With rates at the highest level in a decade, mortgage applications for the week ending April 15 fell 5%, according to the latest survey by the Mortgage Bankers Association. The drop was largely driven by an 8% decline in refinancing applications, which was 68% lower than the same week one year ago. The seasonally adjusted purchase index dropped 3% from the week prior, according to the trade group. Purchase mortgage applications were down 14% from the same week a year ago. "Ongoing concerns about rapid inflation and tighter U.S. monetary policy continued to push Treasury yields higher, driving mortgage rates to their highest level in over a decade. Rates increased across the board for all loan types, with the 30-year fixed rate hitting 5.2%, the highest level since 2010," said Joel Kan, the MBA's associate vice president of economic and industry forecasting. The dramatic uptick in mortgage rates – now 2 percentage points higher than they were a year ago – has effectively eliminated rate-term refinances. Home buyers have also seen their purchasing power erode, all while home prices keep rising. "Home purchase activity has been volatile in recent weeks and has yet to see the typical pick up for this time of the year," said Kan. As a result, other types of mortgage products are seeing renewed interest. Adjustable-rate mortgages, which were all but cast aside during the low-rate years of 2020 and 2021, saw a surge up to 8.5% of total applications last week. That’s the highest level since 2019, the MBA noted. "As ARM loans typically have lower rates than fixed rate mortgages, and as this spread has widened, ARM loans have become more attractive to borrowers already facing home purchase loan amounts close to record highs," Kan added in a statement. The refinance share of mortgage activity decreased to 35.7% of total applications from 37.1% the previous week. The FHA share of total applications increased to 9.9% from 9.5% the week prior. The VA share of total applications also increased, to 10.1%, up from 9.9% the week prior. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 5.20% from 5.13%, with points increasing slightly to 0.66 from 0.63. The average interest rate on 30-year fixed-rate jumbo mortgages jumped 8 basis points to 4.76%, with points increasing to 0.46 from 0.37 a week prior, the MBA reported. As of Monday, rates on 30-year-fixed mortgages averaged 5.27% on Black Knight‘s Optimal Blue OBMMI pricing engine. The MBA last week lowered its forecast for both refinance and purchase originations this year. The trade group now forecasts purchase originations to rise 4.6% to $1.72 trillion in 2022, followed by gains of 3% in 2023 and 4% in 2024. Refinances are expected to fall 64% to $841 billion in 2022, followed by a 20% drop in 2023. The post Mortgage applications nosedive as rates continue to soar appeared first on HousingWire. |
| Redwood Trust reveals five new VC deals Posted: 19 Apr 2022 03:54 PM PDT  At an investor conference last fall, Redwood Trust Inc. CEO Christopher Abate outlined the company’s strategy to expand its reach in existing markets while also seeking out strategic investments in new markets. Those new investments include venture capital plays, particularly in the financial-technology arena. Abate described technology as being key to "building efficiencies" to accomplish the real estate investment trust’s goals. The Mill Valley, California-based REIT operates as a specialty finance house that invests in, acquires and securitizes residential loans. Redwood is not backing away from its venture capital pursuits. RWT Horizons, the venture investment arm of Redwood Trust, announced that five new VC investments were finalized during the first quarter of this year. RWT Horizons, according to the company's announcement, "targets early and mid-stage companies that are transforming financial and real estate technology and that have the potential to enhance scale and efficiency of Redwood's businesses." To date, RWT Horizons has made 21 investments in 18 companies. The Q1 2022 deals including the following:
The amount of the investments was not revealed. The Vesta Equity and Dwellsy investments were made in partnership with Frontiers Capital. Minneapolis-based investment bank and financial-services firm Piper Sandler revealed in a report issued last fall, soon after the Redwood investor conference, that the REIT planned to quadruple capital allocated to its venture capital segment to $100 million by the end of 2022. The analyst report also indicated that Redwood is willing to commit up to 10% of the REIT's total capital to this venture capital strategy. "During the first quarter of 2022, RWT Horizons made several exciting new investments to complement our existing portfolio," said Ryan McBride, chief investment officer of RWT Horizons. "These innovative companies have a direct strategic nexus to Redwood's operating businesses and also align with Redwood's corporate mission of supporting housing accessibility." The post Redwood Trust reveals five new VC deals appeared first on HousingWire. |
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