Lenders aren't targeting right customers for new loans, ICE says
National Mortgage News
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Mortgage lender customer retention, normally an issue during refinance waves, is at a 17-year low, as lenders are missing the mark on their marketing efforts, the latest Intercontinental Exchange Mortgage Monitor report found. That comes as principal and interest payments on newly originated mortgages topped $2,500 a month for the first time ever in October, according to the company's data. Mortgage rates were above 7.5% throughout October — except for one single day — topping out at 7.8% on Oct. 25, Andy Walden, ICE vice president of enterprise research, said in a press release. "The situation was already dire, but recent weeks have seen rates climb to where it now takes nearly 41% of the median monthly income just to make the P&I payment needed to purchase the median-priced home," Walden said.?
Long-time mortgage industry executive Patricia "Patti" Cook died on Nov. 3. She was 70 years old and passed away from pancreatic cancer according to an online obituary. Most recently, Cook was the CEO of Finance of America and steered it through going public via a special purpose acquisition company merger in April 2021. "The entire Finance of America team is deeply saddened by the passing of our former fearless leader, Patti Cook," a statement from the company said. "Patti embodied all that was good about leadership and mentorship. She will be truly missed.” The lender also posted a written and video tribute to Cook on its LinkedIn page.
Loandepot is suing its former chief operating officer for allegedly stealing confidential information in November 2020, right before she departed and filed a complaint against the mortgage lender for questionable practices. According to Loandepot's suit, filed in the Superior Court of California for the County of Orange in late October, over 8,000 files of customer data were taken by Tammy Richards by way of a "secret video recording application on her personal cell phone."? The discovery of this surfaced during a deposition in which Richard's supposedly admitted to taking files before going on medical leave in late 2020. If this is the case, the former executive? may have breached Loandepot's policies and procedures.
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Stress on other consumer debt classes has been slow to impact mortgage performance, but a rise in housing default clients at one counseling provider adds to signs that conditions are changing. The number of people seeking help with delinquent home loans is up 90% year-over-year, nonprofit Money Management International reported Monday. MMI attributed the jump to high home prices and dwindling pandemic relief, noting that there's one demographic that's been strained the most by a nearly 52% increase in housing valuations from January 2019 to December 2022.
New Western, which works with investors in fix-and-flip properties, has migrated its affiliated lender, Sherman Bridge, into its own marketplace that helps owners to find financing. The majority of fix-and-flip properties — or their alternative, fix-and-rent — are purchased by what the industry has termed "mom-and-pop" investors. However, most transactions are all-cash. Approximately 37.4% of second quarter sales used some sort of financing, but that was up from 34% in the first quarter, according to Attom Data Solutions."With rates now rising again, there will be more pressure on investors to use cash to finance their activity,” Rob Barber, Attom's CEO, said in a press release. ”The third quarter should reveal more about that trend."
The top five cities in this ranking have an average median price per square foot for a single-family home of $148. The average median square footage in these cities is 1,981. Read on to find out which cities are in the top 20.
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