Turmoil in banking industry has had little impact on day-to-day lending, LOs say

Those working in the industry say it has been business as usual, with two exceptions: interest rates have declined and borrowers have expressed concerns about what the bank failures could mean for the economy and for their home-buying journey.  "It's never good to see banks fail," said Breon Price, branch manager at UMortgage. "But for the average consumer [that is looking to buy a home], you're not going to see much impact because they don't invest into crypto." An event that would have significant ramifications on mortgage lending is if a big depository institution, such as Wells Fargo, JP Morgan Chase or Bank of America, runs into financial trouble, a handful of loan officers said. Meanwhile, mortgage professionals are watching to see if turbulence in the financial markets will continue to put downward pressure on rates.

READ MORE: Turmoil in banking industry has had little impact on day-to-day lending, LOs say

Mortgage activity is up for the third straight week

Mortgage applications came in higher again last week, as more consumers took advantage of another pullback in mortgage rates, according to the Mortgage Bankers Association. The MBA's Market Composite Index, a measure of weekly loan volume based on surveys of association members, increased 3% on a seasonally adjusted basis for the seven-day period ending March 17. The Refinance Index climbed up 4.9% but activity is currently running 68.4% lower than a year ago, with many borrowers already sitting on favorable mortgage rates far below current levels. 

Former Nationstar exec joins BSI Financial as COO

An industry veteran who was at one point was president and chief operating officer at Nationstar Mortgage prior to its rebranding as Mr. Cooper will now be filling those same roles in a newly created position at BSI Financial Services. The executive, Harold Lewis, also formerly served as president for Nationscredit for Bank of America/Barnett Bank, and was the COO of Fannie Mae's real estate division and Citigroup's housing finance unit at different periods in his career. He also was formerly the COO at Resource Bancshares Mortgage Group. Most recently, Lewis worked as a senior advisor for consultancy McKinsey & Co. and was CEO for fintech Renovate America.

Down payment size down 10% from last year

The typical home purchaser is putting 10% fewer dollars down as the market slows and  reduced competition shifts dynamics, Redfin said. During January, the typical buyer made a $42,375 down payment. It's the third consecutive month this has shrunk and it marks a 10% decline from the same month in 2022. This is also a drop of 35% from the peak month of June, but it's 30% above levels prior to the pandemic, Redfin pointed out. The median amount put down on a percentage basis was 10% of the purchase price, the lowest share since early 2021. In January 2022 the median down payment was 13.6% of the purchase price.

AnnieMac acquired Family First Funding

AnnieMac Home Mortgage, a Mount Laurel, N.J.-based nonbank lender, has apparently acquired another firm headquartered in the state, Family First Funding of Toms River. A check of the Nationwide Multistate Licensing System & Registry entry for American Neighborhood Mortgage Acceptance Company, the legal name of AnnieMac lists Family First as a division of the company. Reportedly Family First was having liquidity issues, which led to the sale. Family First is in litigation against Sprout Mortgage, a non-qualified mortgage lender that shut its doors suddenly last July. It sued Sprout last May for defaulting on a $5.1 million loan purchase. 

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