Origination

The Demand index, based on Redfin customer requests for home tours and writing offers, shows that buyers requesting tours were down 8.2 percent while buyers requesting writing offers were down 7.7 percent month-over-month. Redfin blames the slight reduction in demand on the small inventory.

Major metros could be especially vulnerable to rising interest rates, according to a new study by Pro Teck. San Francisco could see a 10 percent drop in home prices if rate rises more aggressively than predicted. Meanwhile, inventory in top-selling metros remains tight.

According to Urban Institute, the FHA has more power to increase credit access. The GSEs do risk-based pricing through their loan-level pricing adjustments. However, the FHA does not do risk-based pricing, and so it has insured borrowers and so it has insured borrowers with less-than-pristine credit. Charging the same fee for those with good credit as those with bad credit has limited credit availability.

Fannie Mae’s survey respondents point to competition from other lenders and market trend changes, such as a shift from refinance to purchases, as top reasons for low profit margins. However, respondents point to government regulatory compliance, a historically top reason for lenders’ decreased profit outlooks, as a lesser reason.

The Valuation Visionary award recognizes a standout collateral valuation professional every year who has demonstrated outstanding leadership, innovation and professionalism. Winners are nominated by their peers within the Collateral Risk Network. The recipient will be awarded at the Valuation Expo East on March 20, 2017, in Orlando, Florida.

The company has also increased the size of the Board from eight members to nine after the appointment of the newest Board member. Ronald J. Korn, a Director at Ocwen, has informed the Board that he will retire from the Director position this May. Upon Korn’s resignation, the size of the Board will be reduced from nine members to eight.

Foreclosures, loan modifications, and forfeitures have been on a decline for a couple years, according to a report form the Office of the Comptroller of the Currency. The amount of completed foreclosures dropped from 2 years ago by almost 19,000, while deed-in-lieu-of-foreclosure actions have dropped from 1.2 thousand to 0.8 thousand, Home forfeiture actions in total decreased by 32.3 percent year-over-year.

Technology report says that current loan origination systems (LOS) are not adequate for the coming age of the digital mortgage. Specific functions must be achieved through add-on applications. The reasoning is that more efficient LOS systems will produce better client satisfaction in the loan process.

The increase in new home sales could be due to the warm winter which allowed construction to stay on schedule, last year’s strong home construction starts, and a gradual shift from building apartments to individual homes. However, Kirchner says that while construction is up overall, existing home sales are falling.

Buying a home in today’s competitive market is stressful, according to 72 percent of participants in a recent survey. Fears include losing earnest money, not finding a home in their budget range, and becoming involved in a bidding war. Prospective homeowners said they spend 1 - 3 hours a day in their search.