Will title insurers face financial stress going forward?

Title insurance premiums written increased on a sequential period basis in the second quarter, but they were down 37% from one year ago as mortgage originations continued to decline, the American Land Title Association found. High mortgage interest rates, combined with high home prices have contributed to what some housing economists feel is a sector-specific recession. In the second quarter, originators produced $463 billion, the latest data from the Mortgage Bankers Association estimated. This was up from $333 billion in the first quarter, but down from $696 billion in the second quarter of 2022. As a result, title insurance premium volume ended the period at $3.91 billion, compared with $6.21 billion a year ago, ALTA said. Because of the lower volume, operating income was down 48.5% from the prior year period.?

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Servicing platform Haven taps Figure leader as CEO

Servicing platform Haven is naming Figure Technologies leader Daniel Wallace to be its next CEO, tapping the industry veteran who has been heavily involved in blockchain efforts.? The Brooklyn-based Haven allows customers to pay their mortgage bills and purchase other home services on a same platform, potentially giving real estate players more retention and recapture opportunities. The company covers 1.4 million loans and works with firms including LoanCare.? Jonathan Chao, Haven's co-founder and CEO, will move to a chief product officer role this month.

RE/MAX settles broker fee suits for $55 million

RE/MAX will make changes to its business practices as part of a pending eight-figure settlement to end legal challenges to its broker commission fees. The real estate player will put $55 million into a settlement fund to end its involvement in two class action suits, it said Monday in a Securities and Exchange Commission filing. The complaints accuse Realtor firms of violating antitrust laws in requiring home sellers to pay broker fees for both the buyer and seller, which they say could lead to inflated costs.The business in a statement Monday denied the allegations.?

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Monthly mortgage payment average inches up as economic uncertainty brews

The combination of elevated mortgage rates and low housing inventory is making homeownership more unaffordable for borrowers. Housing costs grew to an average of $2,632 during the four weeks ending Sept. 10, up from $2,605 the prior reporting period, according to a recent Redfin report. As a result, buyers have opted to sit on the sidelines instead of purchasing a home, pushing pending sales downwards. The brokerage's data shows that sales during this time period declined across all the 50 metros it tracks.?

Pennymac REIT may fund asset acquisitions with new notes

PennyMac Mortgage Investment Trust has priced a public offering of $50 million in 8.5% senior notes due 2028 that could be used for purposes that include investments in servicing rights and the paydown of a relatively near-term obligation. The offering is set to close Thursday and also may fund the purchases of credit risk transfers or other mortgage securities. Correspondent purchases of agency-eligible loans also could be funded. Debt set for possible reduction includes some 5.5% exchangeable notes due next year.

Housing is in a double-dip recession, First American says

While the U.S. economy at large has yet to reach downturn status, commentary from First American Financial said the housing market has been in its own recession since May, and it is actually a double-dip recession. The title insurer's housing recession indicator model is based on the National Bureau of Economic Research Business Cycle Dating Committee's determination of downturns based on eight economic indicators. Based on that methodology, the U.S housing market entered into recessionary status in May, declared Mark Fleming, First American's chief economist.

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