Attendees of next week’s MBA Secondary conference can look forward to… A giant hot dog in Times Square that spits out confetti at high noon. (Keep your risqué comments to yourself please.) They can obviously look forward to much more at the actual conference, including information about the economy, regulators, and seeing what the Agencies and aggregators are up to in terms of products. Every client is important, and originators want a full product suite from their companies and vendors. (The current STRATMOR blog is titled, “Down Payment Assistance Programs Helpful But Not a Universal Remedy.”) For good news, homeowner equity has hit almost $17 trillion, as values in March hit a historic all-time high according to a report from Intercontinental Exchange. But looking at units this year (a better measure than the estimated $1.5-2 trillion) the MBA expects the lowest production in decades. If recent conferences are any indication, look forward to atte
There is always non-mortgage financial news. Mark Cuban is both selling his share in the Dallas Mavericks and leaving Shark Tank. Berkshire Hathaway’s Vice Chairman Charlie Munger has died. When I want something bougie to give as a Christmas present, I go to… Alabama? U.S. airlines lose 2 million suitcases a year, and they all go here along with the contents up for sale. Will Rogers came up with, “Things will get better… Despite our efforts to improve them.” Things certainly aren’t getting better in the credit & verification world. Costs keep going up. Blame the CRAs (credit reporting agencies), Fair Isaac, or the bureaus (Experian, Transunion, or Equifax). Lenders of all shapes and sizes have a renewed interest in managing those costs. At this point, why wouldn’t you charge the borrower up front? Meanwhile, originators are continuing to scramble for business, despite rates having dropped somewhat in recent weeks. (STRATMOR&#
The CFPB takes action against alleged mortgage kickbacks, adding more confusion to the boundaries of RESPA. And many firms are unprepared for increased scrutiny.
Today is 092023 and I head to Savannah, GA for the SECUREN (credit union) conference. Did you know that the last day of 2023 is 123123? In other “fun with numbers,” as a stockholder in a lender, how’d you like $5 million because your company couldn’t keep its costs down? The median sale price per square foot in Savannah is $197, up 13 percent since last year, if you believe Redfin. Want to build wealth? The median sale price per square foot for new single-family homes in the U.S. has increased a whopping 368 percent since 1980. Additionally, the median square footage for homes in the U.S. has increased 52 percent since 1980, while the median sale price has increased 609 percent. Compared to 2008, the peak financial crisis, home buyers today face an 85% higher median sale price per square foot of homes. California is the most expensive state when looking at price per square foot. Highest and lowest cities? San Jose at $845 per square foot, Cleveland at $133 p
If I am not borrowing money, the impact of higher rates isn’t a big direct hit to my lifestyle or spending. But if I had a credit card from Kohl’s, paying 30 percent would sure dissuade me from buying something and putting it on “layaway.” Lowe’s? 28.99 percent. Nordstrom’s is over 31 percent! With credit card debt moving about $1 trillion for the first time ever, something has to slow down, right? Today I head to Las Vegas, forecast 103 degrees, and I have already been fielding emails about lenders are selling servicing, busy further cutting costs, or making sure they collect money that is due them (like appraisal fees, as noted in this STRATMOR piece). Some companies are looking to acquire or be acquired. Mergers and acquisitions don’t only happen with lenders. For example, yesterday, in the compliance consulting biz, Firstline Compliance announced that Mark Wilson, Managing Partner, and Dustin Pfluger, Partner and Mortgage Banking Pra