Data Breach At Insurer Affects Up To One Million Customers

ileads insurance market minute

 

Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading Work-From-Home Claims Examiner’s Injury Likely Compensable: Court. This week we’re bringing you:

 

Move to remote work has a bearing on workers’ compensation coverage*

The coronavirus pandemic has upended the way we work. In the US, 97% of respondents to a recent Global Workplace Analytics survey said they were working at home during the pandemic, while 82% of office workers (approximately 75 million US employees) reported that they wanted to continue to work from home even after the pandemic is over.

In light of this trend, employers need to know that the move to remote work has a bearing on their workers’ compensation insurance, and how their employees are classified and covered. According to the National Council on Compensation Insurance’s (NCCI) Classification Codes and Statistical Codes Manual, “For purposes of Code 8871, a residence office is a clerical work area located within the home of the clerical employee. Additional requirements are that the residence office must be separate and distinct from the location of the employer. In the event, an employer operates a business from a residence and the employer has clerical staff at the employer’s business location residence, these clerical employees are classified to Code 8810.”

Find out more in-depth here.

 

Comp insurers face the threat of premium declines, rate pressure*

A sharp drop in direct written premium, low-interest rates, and continued negative premium rate pressure are likely to create challenges for workers compensation insurers in the next few years, experts say.

Although early dire forecasts of pandemic-related effects on the comp line have not transpired, COVID-19 uncertainty could add to those difficulties, they say.

“2020 is an unprecedented year in the roughly 110-year history of workers compensation,” said Robert Hartwig, clinical associate professor, and director of the Risk and Uncertainty Management Center at the University of South Carolina in Columbia. “Even to this day, we’ve recovered only about half of the jobs” lost when the country went into lockdown in March.

“Some of the lessons here are not going to come from historical insurance data, they’re going to come from economic experience and economic expectations,” he said.

While worker’s compensation remains highly profitable, pricing trends have put pressure on the line, said James Auden, Chicago-based managing director of insurance for Fitch Ratings Inc.

Read more in-depth here.

 

Data breach at insurer affects up to one million customers*

One of Sweden’s largest private insurers accidentally allowed several tech giants to gain access to private data in a breach that affected up to one million customers, according to a Bloomberg report.

Folksam Group, which oversees about $50 billion in insurance assets, said Tuesday that it had inadvertently shared client data with Google, Facebook, LinkedIn, Microsoft, and Adobe. The breach was discovered during an internal audit, Bloomberg reported.

“We understand that this can cause concern among our customers and we take what has happened seriously,” Folksam said in a statement. “We have immediately stopped sharing this personal information and requested that it be deleted.”

The insurer, which is a major investor in several of Sweden’s biggest companies, said the breach occurred as it was trying to give its customers customized offers.

“But unfortunately, we have not done it in the right way,” Jens Wikstrom, Folksam’s head of marketing and sales, told Bloomberg.

Read more in-depth here.

 

Finding highly affordable leads to keep sales coming in

At iLeads, we have many great solutions for insurance agents at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!

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You can also schedule a call here.

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    Refis Lead The Way As Mortgage Applications Rise 1.7%

     

    iLeads Mortgage Market Minute

    Welcome back to iLeads Mortgage Market Minute, where we bring you the latest, most relevant news regarding the mortgage market. We hope you enjoyed last week’s edition where we talked about What Could Drive Mortgage Rates In 2021?. This week we’re bringing you:

     

    The housing market faced uncertainty in March, but now ‘it’s a circus’*

    These real estate agents say can barely keep up with demand

    The housing market faced a lot of uncertainty when COVID-19 caused the real estate industry to pause under shut-downs, but low-interest rates and the desire for more space have turned this year into a boom time for real estate agents.

    “It’s been a circus, really,” said Anthony Lamacchia, Realtor, and owner of Lamacchia Realty in the Boston suburbs. “Anything right outside of Boston is going like wildfire, but especially the single-family homes.”

    Even though the average home sale price in Massachusetts is the highest it’s been in the last 10 years, Lamacchia said there are bidding wars everywhere and single-family homes are “just flying off the shelves.”

    “I’ve never seen bidding wars – I mean, you know, randomly here or there – but I’ve never seen bidding wars with consistency in the fall like I have this fall. It’s crazy,” Lamacchia said. “They’re everywhere.”

    HousingWire caught up with real estate agents across the U.S. to ask what their markets look like now compared to the summer and what they think the next few months could hold. Across the different markets, the agents consistently reported bidding wars amid heightened demand for single-family homes, low inventory, and an increase of buyers fleeing big cities.

    Read more in-depth here.

     

    Luxury housing market inspires ‘total frenzy’ in vacation boom towns*

    People settling in vacation home destinations

    In the third quarter, luxury home sales jumped 41.5%, the biggest year-over-year shift since 2013, according to Redfin. And while real estate agents repping luxury homes aren’t seeing as many bidding wars as they did this summer, their respective housing markets are still crazy right now.

    “What we’re seeing here in Palm Beach is a total frenzy,” Dana Koch, a sales associate with Corcoran Group, the Koch Team in Palm Beach, told HousingWire. “I’ve had many conversations with clients of mine from late April through early July, the market was total pandemonium. And, since early July to now, it’s just getting very busy.”

    A recent report from Douglas Elliman and Miller Samuel revealed that the average Palm Beach home price in Q3 was $7 million. Contracts during this time also skyrocketed 62%.

    While the Palm Beach housing market has not seen a lot of bidding wars, Koch said that a lot of the inventory has been absorbed and properties are getting multiple offers.

    Since it’s a summer destination, Palm Beach’s busy season for home-buying starts on Nov. 1 and runs through May 1. Koch said that since this summer — typically the home-buying off-season — was busy for buyers, he thinks it will only get crazier.

    “We normally average roughly like $200 plus million on an annual basis, and during the first three quarters, we’ve sold $350 million worth of real estate,” Koch said. “So it’s been a crazy year. It’s been a very profitable year.”

    Read more in-depth here.

     

    Freddie’s Loan Volume is Up, Delinquency Rate Begins to Retreat*

    Rohit Gupta of Genworth Mortgage Insurance and Tom Wind of U.S. Bank talks about adapting to sudden changes

    Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 17.5 percent in September compared to a 27.7 percent gain in August. The portfolio balance at the end of the period was $2.570 trillion compared to $2.533 trillion the prior month and $2.295 trillion a year earlier. The growth rate for the year to date is 13.7 percent.

    Purchases and Issuances totaled $114.386 billion and Sales were ($3.064) billion. The August numbers were $131.140 billion and ($898) billion, respectively.

    Single-family refinances loan purchase and guarantee volume was $70.9 billion in September compared to $87.200 billion in August, representing a 69 percent share of total single-family mortgage portfolio purchases and issuances compared to 70 percent the previous month.

    Purchases in Freddie Mac’s Mortgage-Related Investments Portfolio totaled $93.820 billion for the month compared to $94.753 billion during the prior period. Liquidations were ($2.347) billion and ($2.405) billion for September and August respectively and Sales for the two periods were ($89.529) and ($89.432) billion. The ending balance in the portfolio was $198.176 billion, compared to $196.232 billion in August and $221.601 billion in September 2019.

    Read more in-depth here.

     

    Spring Buying Season Shifts, Home Prices Rocket Higher*

    The impact of low-interest rates and pent-up buyer demand played out in sharply increasing home prices in August. Both the Federal Housing Finance Agency (FHFA) and S&P CoreLogic Case-Shiller indices posted significant appreciation on an annual basis and acceleration in that appreciation compared to prior months.

    CoreLogic Deputy Chief Economist Selma Hepp commented, “The forgone spring home-buying season appears to have fully shifted into summer months, leading to sales volumes that are picking up speed at a time when they would normally show signs of slowing. Additional demand was amplified by buyers looking for larger homes and second homes in resort and beach areas. Current home price growth is exceptionally strong given that the U.S. is an economic recession, but it is the historically low inventories and record-low mortgage rates that are outweighing economic and employment headwinds and fueling the price acceleration.”

    The S&P CoreLogic Case-Shiller U.S. National Home Price Index which covers all nine U.S. census divisions rose 5.7 percent year-over-year. The annual gain in July was 4.8 percent. The increase from July to August was 1.1 percent before the adjustment and 1.0 percent afterward.

    Read more in-depth here.

     

    Homeownership is Growing, Especially Among Younger Age Groups*

    The U.S. homeownership rate in the third quarter fell back slightly from the prior quarter. The second quarter saw the highest level for homeownership since the second quarter of 2008. Homeownership in the third quarter, according to the U.S. Census Bureau, was 67.4 percent, a 0.5-point decrease from the previous period, but up from 64.8 percent in the third quarter of 2019. That rate ties with the second quarter of 2009 as the second-highest rate since the onset of the housing crisis.

    The rate was highest in the Midwest and South at 71.2 percent and 70.8 percent and substantially lower in the Northeast (62.0 percent) and West (62.1 percent). All four regions posted annual increases.

    The rate increased for all age groups. Those under the age of 35 jumped from 37.5 percent in the third quarter of last year to 40.2 percent and the rate for those 35 to 44 years old rose more than three points to 63.9 percent. The rate for those 45 to 54 was 72.0 percent, 55 to 64, 76.4 percent, and those over 65 had a rate of 80.7 percent.

    Read more in-depth here.

     

    Refis lead the way as mortgage applications rise 1.7%*

    Purchase apps see a slight gain, but still way up over last year

    After two weeks of slight declines, mortgage applications regained their footing last week, rising 1.7% from the week prior, according to a report from the Mortgage Bankers Association.

    The refinance index led the rebound after it gained 3% from the previous week, however, according to Joel Kan, MBA’s associate vice president of economic and industry forecasting, refinance activity has been somewhat volatile over the past few months. Nevertheless, refis remained 80% higher than the same time a year ago.

    “With the 30-year fixed rate at MBA’s all-time survey low of 3%, conventional refinances rose 5%. However, the government refinances index decreased for the first time in a month, driven by a slowdown in VA refinance activity,” Kan said.

    Overall, refinances gained to two-thirds’ share of mortgage activity last week after they rose to 66.7% from 66.1% the week prior.

    On a seasonally adjusted basis, applications for purchases rose 0.2% and jumped 24% compared to last year as average loan size reached another record high at $372,600, the report said.

    Read more in-depth here.

     

    Finding highly affordable leads to keep sales coming in

    At iLeads, we have many great solutions for mortgage LO’s at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!

    We’re free and are taking phone-calls from 7 AM to 5 PM PST, Monday through Friday.

    You can also schedule a call here.

    Get Started

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      Work-From-Home Claims Examiner’s Injury Likely Compensable: Court

      ileads insurance market minute

       

      Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading Reinsurance Market Sees Broad Range Of Price Hikes. This week we’re bringing you:

       

      Understanding this critical moment for the cyber risk & insurance market*

      The cyber risk and insurance landscape is ever-evolving. In this episode, AXIS Insurance leaders Dan Trueman, Global Head of Cyber and Technology, and Max Perkins, Head of Strategy and Innovation for the Global Cyber and Technology Unit, will explore the biggest themes in cyber insurance today and give a nod to Cyber-security awareness month.

      Find out more in-depth here.

       

      Fairly Group launches COVID-19 coverage for student-athletes*

      Texas-based Fairly Group and its sister company, OccuNet, have announced the launch of an insurance product that covers medical expenses for collegiate student-athletes who contract COVID-19.

      “COVID-19 has taken a toll on every aspect of our lives, including our ability to play and enjoy sports,” said Alex Fairly, CEO of Fairly Group. “We wanted to support collegiate athletes who desire to get back on the field, as well as their parents and the courageous collegiate athletic departments attempting to move forward with fall sports.”

      The policy was inspired by the viral #wewanttoplay campaign created by Ohio State quarterback Justin Fields, Fairly Group said. It provides $250,000 in medical coverage for COVID-19 illnesses.

      “When the NCAA mandated member schools are responsible for medical expenses related to COVID, we immediately began working on a solution,” said OccuNet president Caleb Fairly. “We hope this brings a level of confidence for students and parents who send their talented young men and women off to play college sports.”

      The impetus for developing the product came when the Big Ten and Pac-12 initially postponed their fall 2020 football seasons, Fairly Group said.

      Read more in-depth here.

       

      Aflac CEO on earnings, how the pandemic has impacted sales and more*

      Global insurance company Aflac reported better-than-expected third-quarter earnings. Aflac CEO Dan Amos joins “Squawk Box” to discuss.

      AFLAC

       

      Read more in-depth here.

       

      Work-From-Home Claims Examiner’s Injury Likely Compensable: Court*

      A New York appeals court on Thursday reversed a state board’s denial of a worker’s comp claim from a claims examiner who was injured while carrying boxes of yet-to-be-assembled office furniture that were delivered to his home for work use.

      A workers compensation law judge and later the state Workers’ Compensation Board concluded that Christopher Capraro’s injuries were “not sufficiently work-related” to establish his comp claim, according to documents in In the Matter of the Claim of Christopher Capraro, Appellant, v. Matrix Absence Management et al., Workers’ Compensation Board, filed in the Appellate Division of the Supreme Court of New York, Third Department, in Albany.

      Citing several similar cases of workers who were injured while working from home, the appeals court called on the Board to determine whether Mr. Capraro, “when moving the boxes, was engaged in a ‘purely personal’ activity that was not ‘reasonable and sufficiently work-related under the circumstances.’”

      Read more in-depth here.

       

      Finding highly affordable leads to keep sales coming in

      At iLeads, we have many great solutions for insurance agents at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!

      We’re free and are taking phone-calls from 7 AM to 5 PM PST, Monday through Friday.

      You can also schedule a call here.

      Get Started

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        What Could Drive Mortgage Rates In 2021?

         

        iLeads Mortgage Market Minute

        Welcome back to iLeads Mortgage Market Minute, where we bring you the latest, most relevant news regarding the mortgage market. We hope you enjoyed last week’s edition where we talked about What Will Mortgage Regulation And Enforcement Look Like In 2021?. This week we’re bringing you:

         

        Mortgage Rates Moving Higher*

        It began last week. It was subtle–so subtle as to pass largely unnoticed. But the gentle drift toward slightly higher rates has taken bigger steps so far this week. As of this afternoon, the average lender is quoting the highest rates since late September! That’s quite a realization when juxtaposed with last week’s (misleading) headlines about “all-time lows.”

        If the highest rates in nearly a month sound scary, don’t freak out just yet. During that time, rates have held inside one of their narrowest ranges ever. By the time we consider how low rates are in the bigger picture there’s actually never been a comparable example of “this low for this long.”

        Read more in-depth here.

         

        Home Purchase Demand Still Strong, but Slowing Down*

        While applications for new home purchase mortgages jumped in September, the Mortgage Bankers Association (MBA) expects only modest changes in the September sales data. MBA’s Builder Application Survey (BAS) data shows mortgage applications for new home purchases increased 38.2 percent in September compared to a year earlier but were down 5 percent from August 2020. The latter change does not include any adjustment for typical seasonal patterns.

        MBA estimates new single-family homes were selling at a seasonally adjusted annual rate of 869,000 units in September 2020. This estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors. The estimate is a decrease of 0.2 percent from the August sales rate of 871,000 units. On an unadjusted basis, MBA estimates that there were 67,000 new home sales during the month, down 1.5 percent from 68,000 sales in August.

        “The strong year-over-year results for non-seasonally adjusted new home sales applications – up 38 percent – and estimated home sales – up 20 percent – are indicative of the fundamental strength seen in the housing market since the spring,” according Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Demand for newly built homes is strong, as many buyers appear to seek more space for work, in-home schooling, and leisure,” he said. “However, the moderation in the seasonally adjusted sales pace the last two months could mean that demand has slowed recently – likely because of tight inventory conditions and the slowing improvement in the job market.”

        Read more in-depth here.

         

        Low rates won’t last forever: Here’s how mortgage leaders should be preparing for what’s next*

        Rohit Gupta of Genworth Mortgage Insurance and Tom Wind of U.S. Bank talk about adapting to sudden changes

        Along with the rest of the economy, the housing market has been dealing with the fallout of a global pandemic, leading to an uncertain “new norm.” In a HousingWire panel on Tuesday, Rohit Gupta, CEO and president of Genworth Mortgage Insurance, and Tom Wind, executive vice president of consumer lending at U.S. Bank, discussed adapting to sudden winds of change and how to focus on what’s next.

        In a typical recession, Gupta noted, increased unemployment and lack of consumer confidence slow the market as delinquencies rise and origination volume begins to decline. But 2020’s pandemic threw that trend out the window. With record high unemployment in April and increased delinquencies that may last through 2022, low interest rates triggered solid originations for nearly six months – and companies pivoted quickly.

        “We had to refocus our efforts, both from an energy perspective, and from our resources perspective. Our focus became both putting people in homes on the front end so our customers were well positioned to close loans and then also on the servicing side, to make sure that we were taking care of families that were encountering financial issues and were in forbearance or delinquency,” Gupta said.

        Read more in-depth here.

         

        September single-family housing starts reached highest level since 2007*

        Multifamily starts fell 16.4%

        Single-family housing starts soared in September, a new report from the U.S. Census Bureau shows, despite an overall rate that was dragged down by a decline in multifamily starts.

        Privately owned housing starts in September rose to an annual rate of 1.415 million, 1.9% above the revised August estimate of 1.388 million and 11.1% above the September 2019 rate of 1.274 million, the Bureau said. Single-family housing starts in September were at an annual rate of 1.108 million, which is 8.5% above the revised August figure of 1.021 million, and a level not seen since 2007, Doug Duncan, chief economist at Fannie Mae, said.

        “While starts were up 10.4% from a year prior, the somewhat modest month-over-month change was due to largely offsetting trends in single-family and multifamily starts,” Duncan said. “The former rose 8.5% over the month to 1.1 million annualized units, a level not seen since 2007. In contrast, multifamily starts fell 16.4%, to one of the slowest monthly paces since 2013, not including this past April.”

        Mortgage Bankers Association Senior Vice President and Chief Economist Mike Fratantoni noted that single-family permits jumped 24.3% from a year ago.

        Read more in-depth here.

         

        Builder Confidence Sets a New Record Once Again*

        For only the second time in its 35-year history, the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) topped 80 this month. The first time was in September. The index, a measure of builder confidence in the market for newly built single-family homes increased two points to 85, breaking the previous high of 83 set last month.

        “Traffic remains high and record-low interest rates are keeping demand strong as the concept of ‘home’ has taken on renewed importance for work, study and other purposes in the Covid era,” said NAHB Chairman Chuck Fowke. “However, it is becoming increasingly challenging to build affordable homes as shortages of lots, labor, lumber and other key building materials are lengthening construction times.”

        Derived from a monthly survey of its new home builder members, the HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

        Read more in-depth here.

         

        What could drive mortgage rates in 2021?*

        Mortgage rates, bond yields, the election and COVID are all factors

        I’ve seen a number of articles lately predicting that mortgage rates will rise in 2021, a couple even from other HousingWire contributors. The rationale for these predictions have been erudite, multifactorial and complex. I am, on the other hand, a simple man. Most days I don’t even wear shoes. When I think about the direction of mortgage rates there is only one factor I consider – and that is economic growth.

        Over the years I have professed that the rate of economic growth pretty much explains the whole lasagna so that should be the entire focus. When the economy gets better, bond yields rise and mortgage rates follow. When the economy slows, bond yields drop and mortgage rates follow. I expect mortgage rates in 2021 to stick to the same pattern.

        The trick is to find a respectable range within each economic cycle. I started to incorporate bond yield forecasts for my yearly prediction articles and every year since 2015 I had said the same range. The 10-year yield would range between 1.60%-3%. In 2020, that range broke but continued a long-term downtrend in yields which started in 1981.

        Read more in-depth here.

         

        Finding highly affordable leads to keep sales coming in

        At iLeads, we have many great solutions for mortgage LO’s at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!

        We’re free and are taking phone-calls from 7AM to 5PM PST, Monday through Friday.

        You can also schedule a call here.

        Get Started

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          Reinsurance Market Sees Broad Range Of Price Hikes

          ileads insurance market minute

           

          Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading Walmart Announces Plan To Sell Insurance. This week we’re bringing you:

           

          Many Americans will eventually need long-term care. Here’s how to pay for it*

          Chances are, you aren’t seriously thinking about how to pay for long-term care when you are older.

          Most people only think about it at two points in their lives: when their parents need it or when they start to get much older and realize they need to have a plan, said Carolyn McClanahan, a physician and certified financial planner at Life Planning Partners in Jacksonville, Florida.

          Yet someone turning 65 years old today has almost a 70% chance of needing some type of long-term care services in their remaining years, according to the U.S. Department of Health and Human Services. Women need 3.7 years of care, while men need 2.2 years.

          The average lifetime cost of formal long-term care is $172,000, according to PWC.

          “The big thing that you at least need to think about is your aging, periodically, and how you are going to plan for it,” said McClanahan, a member of the CNBC Financial Advisor Council.

          “Not just the cost, but the whole logistics for how you’re doing to thrive as you get older.”

          Read more in-depth here.

           

          Travelers beats Q3 profit expectations*

          Travelers Companies surpassed third-quarter profit expectations in its latest financial results release thanks to higher premiums, lower costs and an increase in return from non-fixed income investments, according to a Reuters report.

          The property and casualty insurer reported that net written premiums rose 3% to $7.77 billion in Q3. Core income was $3.12 per share, surpassing analysts’ average estimate of $3.03 per share. Total revenue was up by 3%.

          Overall profit more than doubled to $827 million, or $3.23 per share, in Q3, partly driven by a one-time gain of about $403 million from Pacific Gas & Electric’s emergency from bankruptcy, Reuters reported. The gain stemmed from payments Travelers made for claims on wildfires in 2017 and 2018.

          Read more in-depth here.

           

          Reinsurance market sees broad range of price hikes*

          Reinsurance prices have risen over the past several months, but the level of increases varied widely, experts say.

          In addition, the inclusion of communicable disease exclusions depends on the type of coverage offered, they say.

          Recent reinsurance renewals have seen a range of results, said Doug May, Seattle-based president of Willis Re North America, a unit of Willis Towers Watson PLC.

          He was speaking during a panel discussion at the annual meeting of the American Property Casualty Insurance Association, which was held online due to the pandemic.

          A sample of property/catastrophe reinsurance placements from April 1 to July 1 a variation in rate increases, Mr. May said.

          The Florida market was up 20% to 35%, Mr. May said, and July renewals increased by more than 20%.

          There was also tremendous differentiation in the layering of increases, Mr. May said.

          About 10% of renewals were “pretty flat,” about 35% experienced a less than 15% increase, another 35% were up 15% to 30% and about 20% were up more than 30%, he said.

          “That was unprecedented,” Mr. May said. “We had never seen that kind of pricing variation before. That says that this market is very much an individual market.”

          Read more in-depth here.

           

          Finding highly affordable leads to keep sales coming in

          At iLeads, we have many great solutions for insurance agents at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!

          We’re free and are taking phone-calls from 7AM to 5PM PST, Monday through Friday.

          You can also schedule a call here.

          Get Started

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            What Will Mortgage Regulation And Enforcement Look Like In 2021?

             

             

            iLeads Mortgage Market MinuteWelcome back to iLeads Mortgage Market Minute, where we bring you the latest, most relevant news regarding the mortgage market. We hope you enjoyed last week’s edition where we talked about Home Prices Up 14%, But Price Growth May Wane Soon. This week we’re bringing you:

             

            Interest Rates Increasingly Focused on Stimulus*

            The bond market, which drives interest rates, is in the habit of reacting to big developments that impact the economy and inflation. At present, bonds are forced to wait for several such developments, but only one of them might come into focus this month.

            1. The developments in question are all very different, but all are important in their own way. They are:
            2. The path of the pandemic and the resulting impact on the economy
            3. The presidential election and resulting fiscal policy changes

            The much-debated 2nd installment of fiscal stimulus (covid-19 relief)
            Naturally, the pandemic’s economic impact will take years to be fully understood. On that front, there will be no single event that decides the fate of the market and interest rates.

            The election, on the other hand, has a definitive result and deadline attached to it, but it’s still a month away.

            In the meantime, fiscal stimulus is an important consideration for the economy, the election, and especially for interest rates. A decision could come at any time. It could be delayed until after the election. It could be bigger or smaller than expected. But odds are something will happen before the election and despite all the political posturing, that it will fall somewhere between the two ideological boundaries guarded by either side of the aisle.

            Read more in-depth here.

             

            Mortgage Rates Slightly Lower*

            Mortgage Rates have been exceptionally calm recently. The only major exception has been the implementation, delay, and re-implementation of a new fee that affects almost all refinance transactions. The coming and going of this “adverse market fee” has accounted for the biggest day-to-day differences in rates for any given lender who flipped the switch. Those days vary by the lender because the fee’s deadline applies to a post-closing event for lenders that cannot be accurately predicted. In other words, they know they’ll pay the fee on any loans delivered to the housing agencies on or after December 1st, but they don’t know how long it will take to get the loans from the closing table to the “delivery” milestone.

            As unfortunate as the extra expense has been for homeowners, we’ll fortunately soon be able to put this period of indecision behind us–at least as far as it concerns this fee. Other sources of uncertainty remain, and they’re contributing to a relative paralysis for interest rates.

            Read more in-depth here.

             

            Late-Stage Delinquencies Now Twice Great Recession Peak*

            Mortgage delinquencies continued to rise in July according to CoreLogic’s new loan performance report. The company found that 6.6 percent of all mortgages were at least 30 days past due (including those in foreclosure.) This represents a 2.8-percentage point increase in the overall delinquency rate compared to July 2019, when it was 3.8 percent. It was, however, a lower rate than the 7.1 percent reported for June, at that point a 3.1-point annual increase.

            The improvement was in early-stage delinquencies, those loans 30 to 59 days past due. They declined from 1.8 percent in July of last year after spiking in April of this year to 4.2 percent.

            The rate of adverse delinquencies, loans 60 to 89 days past due, rose to 1 percent from 0.6 percent a year earlier but were down from 2.8 percent in May. These improvements were offset by serious delinquencies, loans at least 90 days past due, including loans in foreclosure. That category surged from 1.3 percent in July 2019 to 4.1 percent. It is the highest serious delinquency rate since April 2014.

            Read more in-depth here.

             

            What will mortgage regulation and enforcement look like in 2021?*

            Experts at HW Annual outline what might happen after the election

            As the election creeps ever closer, there are plenty of forecasts about how it could impact housing. HousingWire has reported on both the fate of the GSEs and the nation’s economic outlook as a red vs blue battle stirs in Washington. But what about the regulatory bodies that will decide the priorities for enforcement over the next four years?

            At the HousingWire Annual panel, industry veterans Ed DeMarco, president of the Housing Policy Council, Kris Kully, partner at Mayer Brown, and Richard Andreano, Jr., partner at Ballard Spahr, discussed the future of regulation and enforcement as the industry gears up to run headlong into 2021. Julian Hebron, the founder of The Basis Point, moderated the panel.

            The most notable topic of discussion was the Consumer Financial Protection Bureau’s recent rescinding of a 2015 compliance bulletin related to marketing services agreements (MSAs), which the bureau said: “does not provide the regulatory clarity needed on how to comply with RESPA and Regulation X.” Alongside the rescinding, the CFPB released an FAQ for guidance on the Real Estate Settlement Procedure Act (RESPA), which many companies have been accused of violating over the years – through several of those cases were thrown out.

            “The Bureau’s rescission of the Bulletin does not mean that MSAs are per se or presumptively legal,” the bureau said. “Whether a particular MSA violates RESPA Section 8 will depend on specific facts and circumstances, including the details of how the MSA is structured and implemented.”

            Andreano said that in the past, the Department of Housing and Urban Development targeted arrangements that may violate RESPA, whereas the CFPB turned their focus to arrangements that could cause harm to the consumers and used RESPA as a tool to stop or alter the practice. For lenders who want to properly protect themselves from violating RESPA, Andreano said they had to examine the source of the CFPB’s enforcement: Does this action prohibit consumers from the ability to shop, and were they improperly steered?

            Read more in-depth here.

             

            Finding highly affordable leads to keep sales coming in

            At iLeads, we have many great solutions for mortgage LO’s at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!

            We’re free and are taking phone-calls from 7AM to 5PM PST, Monday through Friday.

            You can also schedule a call here.

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              Americans Are ‘Panic Buying’ Life Insurance Due To Coronavirus Pandemic

              ileads insurance market minute

               

              Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading Walmart Announces Plan To Sell Insurance. This week we’re bringing you:

               

              Brokers face ‘uphill battle’ in college insurance renewals*

              The COVID-19 pandemic is disrupting almost every aspect of college and university life. According to New York Times data, there were at least 130,000 cases of COVID-19 reported on more than 1,300 college campuses, as of September 25, and that case number continues to inflate as students progress through the fall semester. The response from academic institutions towards the coronavirus pandemic has been varied. Some started the semester with a fully remote learning strategy, while others welcomed students back on campus with open arms. Many have opted for a hybrid solution, where students attend some classes in person, but only once appropriate health and safety procedures have been implemented.

              Whatever their chosen strategy, academic institutions across the United States are contending with an entirely new set of risks and considerations amid the pandemic. One area of risk that is particularly gray, according to Howard Shulman, ARM, and assistance vice-principal at NFP, is a liability. It remains to be seen how future liability claims might be processed now that most classes are being taught online as opposed to in-person and on campus. Shulman pointed out: “With liability, the major instances used to be a slip and fall-type situations, but now, nobody’s on-campus and yet they’re still involved with college life in a different setting. It’s a very gray area that’s yet to be forecasted.”

              Read more in-depth here.

               

              Most commercial rates rise in Q3: Ivans*

              Average premium renewal rates increased across most commercial lines of business in the third quarter, according to insurance exchange Ivans Insurance Services, a division of Tampa-based Applied Systems Inc.

              Rates rose in commercial auto, business owner’s policy, general liability, umbrella, and commercial property compared with the third quarter of 2019. Worker’s compensation average premium renewal rates declined, however.

              The third-quarter premium renewal rate change for commercial property insurance averaged 5.30%. The quarter high was 5.48% in August and the low of 5.01% was in September.

              In commercial auto, the premium renewal rate change averaged 4.46% for the quarter, with a quarter high in July at 5.10% and the quarter low in August at 3.20%.

              For the business owner’s policy, the quarterly premium renewal rate change averaged 4.76%. The quarter high was 5.00% in August and a low of 4.38% in July.

              The third-quarter premium renewal rate change for general liability insurance averaged 3.44%. The quarter high was 3.61% in August and the low of 3.25% was in September.

              Read more in-depth here.

               

              Americans are ‘panic buying’ life insurance due to coronavirus pandemic*

              Life insurance is enjoying something of a renaissance as a result of the coronavirus pandemic.

              Consumers, especially younger adults, have been buying insurance in elevated numbers since the spring when thousands of Americans began getting ill and dying from Covid-19.

              That result is logical, experts said, given the core use of life insurance: as a financial backstop in the event of death.

              For example, what if the breadwinner of a family dies unexpectedly from Covid-19? Insurance is meant to plug that immediate gap in household income.

              “It’s forced the idea of financial protection and mortality to the top of mind for consumers in a way very few events have,” said Jennifer Fitzgerald, the CEO, and co-founder of Policygenius, an online marketplace for life insurance.

              ‘Panic buying’
              Insurance sales have been dwindling for years. In 2020, just over half of American adults reported having a life insurance policy, down from 63% a decade earlier.

              Read more in-depth here.

               

              Finding highly affordable leads to keep sales coming in

              At iLeads, we have many great solutions for insurance agents at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!

              We’re free and are taking phone-calls from 7AM to 5PM PST, Monday through Friday.

              You can also schedule a call here.

              Get Started

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                Home Prices Up 14%, But Price Growth May Wane Soon

                iLeads Mortgage Market Minute
                Welcome back to iLeads Mortgage Market Minute, where we bring you the latest, most relevant news regarding the mortgage market. We hope you enjoyed last week’s edition where we talked about 5 Reasons Mortgage Rates Will Rise In 2021. This week we’re bringing you:

                 

                400,000 mortgage borrowers are “needlessly delinquent”*

                The loans are spread across servicers, Urban Institute says

                There are about 400,000 mortgage borrowers “needlessly delinquent” as a result of the COVID-19 pandemic, according to a report from the Urban Institute.

                These are borrowers with mortgages backed by the federal government who could have gotten help by getting a forbearance agreement, a right given to them by the CARES Act passed by Congress at the end of March.

                “These borrowers may not know they are eligible for forbearance or do know but wrongly fear having to make ‘double payments’ when the forbearance period ends,” the report said.

                There is little difference in the creditworthiness of the borrowers, compared with borrowers who are in forbearance, the report said. The loans are spread across servicers, and “are almost equally likely to be serviced by banks and nonbanks,” it said.

                The age of the loan was not a factor, per the report. The share of “needlessly delinquent” loans remained constant at about 2% regardless of the year of origination, the report said. Looking just at loans in forbearance, the share increases with more recent mortgages, the report said.

                 

                Read more in-depth here.

                 

                Forbearances Ending at a Faster Pace*

                Black Knight said its weekly forbearance survey found the number of mortgages in active forbearance decreasing at an accelerated rate. Those mortgages fell by 2.6 percent or 95,000 loans over the last week, bring the decline over the last month to 357,000 loans. It was the fifth straight week of improvement and Black Knight noted that since peaking in late May, the total number of forbearances has fallen by 1.17 million or 24 percent.

                As of September 22, 3.6 million homeowners remain in COVID-19-related forbearance plans, or 6.8 percent of all active mortgages, down from 7 percent last week. Together, they represent $751 billion in unpaid principal. Some 78 percent of those remaining loans have had their terms extended at some point since March.

                There are 1.1 million plans still set to expire by the end of September as servicers work to assess them for termination or renewal. This is .6 million fewer potential expirations than a week earlier.

                Read more in-depth here.

                 

                July’s Home Prices Increase by 5.5%, Breaking a Two-Year Record*

                Entry-level priced homes, which continue to be in short supply, are, helping to drive strong price gains. CoreLogic says home prices nationwide, including distressed sales, increased year over year by 5.5 percent in July 2020 and were up 1.2 percent compared to the previous month. The annual increase was the fastest in nearly two years.

                The company said the “one-two punch of strong purchase demand – bolstered by falling mortgage rates, which dipped below 3 percent for the first time ever in July – and further constriction of for-sale inventory has driven upward pressure on home price appreciation.”

                Dr. Frank Nothaft, CoreLogic’s chief economist said, “Lower-priced homes are sought after and have had faster annual price growth than luxury homes. First-time buyers and investors are actively seeking lower-priced homes, and that segment of the housing market is in particularly short supply.”

                CoreLogic Home Price Increase (HPI) Forecast is for home prices to increase from July 2020 to August 2020 by 0.1 percent and by 0.6 percent from July 2020 to the same month in 2021. The HPI report says growth will slow over the next year, reflecting the anticipated elevated unemployment rates during the next year. “This could lead to an increase of distressed-sale inventory as continued financial pressures leave some homeowners unable to make mortgage payments, especially as forbearance periods come to a close.”

                Read more in-depth here.

                 

                Reis: Office, Mall and Apartment Vacancy Rates Increased in Q3*

                From Reis economist Barbara Byrne Denham:

                The Apartment Vacancy Rate rose to 5.0% in the third quarter, the highest rate since the first quarter of 2012.

                The Office Vacancy Rate rose 0.3% to 17.4%, the highest since Q3 2011 as occupancy declined by 5.85 million square feet; the Average Office Asking Rent increased 0.2%, but the Effective Rent declined 0.2% in the quarter.

                The Retail Vacancy Rate increased 0.2% in the quarter to 10.4%, the highest since Q4 2013 as occupancy declined 2.63 million square feet; the Average Asking Rent declined 0.1% while the Average Effective Rent fell 0.4%.

                The average Mall Vacancy Rate climbed 0.3% in the quarter to 10.1%, the highest in more than 20 years. The average Asking Rent decreased 0.7% in the quarter and 0.6% over the year.

                Conclusion

                Read more in-depth here.

                 

                Home Prices Up 14%, But Price Growth May Wane Soon*

                Growth in list prices is down 3 percentage points since the end of August, but pending sales were still up 30%

                Key housing market takeaways for 434 U.S. metro areas during the 4-week period ending September 27:

                • The median home sale price increased 14% year over year to $319,769—the highest on record. The 14% jump was the largest since August 2013. Since the four-week period ending July 5, home prices have increased 6.5%. Over that same period in 2018 and 2019, prices declined an average of 4.2%.
                • The median asking price of new listings was up 12.8% from a year earlier. This growth rate has been declining since the four-week period ending August 30, when it peaked at 15.7%.
                • Pending home sales climbed 30% year over year.
                • New listings of homes for sale were up 5% from a year earlier. Year-over-year growth in new listings have been above 5% since the four-week period ending August 16.
                • Active listings (the number of homes listed for sale at any point during the period) fell 28% from 2019 to a new all-time low. The rate of year-over-year supply declines has remained consistent at this level for the past few months.
                • 45.8% of homes that went under contract had an accepted offer within the first two weeks on the market. This has also held relatively steady for the last 17 weeks.
                • The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, rose to 99.4%—an all-time high and 1.2 percentage points higher than a year earlier.
                • For the week ending September 27, the seasonally adjusted Redfin Homebuyer Demand Index was up 34.8% from pre-pandemic levels in January and February.
                • Mortgage applications decreased 2% week over week during the week ending September 25. For the week ending October 1, 30-year mortgage rates fell to 2.88%. Rates have been below 3% since late July.

                Read more in-depth here.

                 

                Finding highly affordable leads to keep sales coming in

                At iLeads, we have many great solutions for mortgage LO’s at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!

                We’re free and are taking phone-calls from 7AM to 5PM PST, Monday through Friday.

                You can also schedule a call here.

                Get Started

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                  Walmart Announces Plan To Sell Insurance

                  ileads insurance market minute
                  Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading Insurance Agencies Can Beat Writer’s Block By Pre-Planning Online Content. This week we’re bringing you:

                   

                  New insurer focuses on sharing economy*

                  CSAA Insurance Group on Tuesday launched Mobilitas Insurance Co., a commercial insurer focused on the sharing economy and mobility sector that has partnered with Lyft Inc. to provide ride-sharing coverage in 11 states from Oct. 1.

                  Mobilitas, which is based in Glendale, Arizona, and a wholly-owned subsidiary of CSAA, will create customized insurance coverages available online or via an app for businesses and individuals in the sharing and mobility space, CSAA said in a statement.

                  Under the partnership with Lyft, Mobilitas will provide a blanket auto policy for Lyft drivers in Colorado, Idaho, Minnesota, Montana, Nebraska, North Dakota, Oregon, South Dakota, Washington, Wisconsin and Wyoming.

                  Read more in-depth here.

                   

                  Aon offering intellectual property cover*

                  Aon PLC is offering coverage for intellectual property used as collateral in a loan, the broker said Tuesday.

                  The first deployment of the coverage was in a deal involving Indigo Ag, an agriculture technology company, which is borrowing over $100 million from a lender utilizing its intellectual property as collateral, the Aon statement said.

                  The value of that collateral is insured by a group led by Markel Specialty, using an insurance-linked security structure. Hudson Structured Capital Management was the largest capacity provider, the statement said.

                  Jim Gray, executive underwriting officer of professional liability at Markel Specialty, said the insurer “looks forward to building this new market with Aon in the future.”

                  Edouard von Herberstein, the partner at HSCM Bermuda, said, “We believe there are significant and growing opportunities and interest in that sector.”

                  “As an innovative company using microbial and digital technologies to facilitate the positive transformation of the agriculture system, Indigo sought to find a way to collateralize its extensive IP asset portfolio,” said Jim Young, Indigo’s chief financial officer, said the deal allowed his company to “collateralize its extensive IP asset portfolio.”

                  Read more in-depth here.

                   

                  Walmart announces plan to sell insurance*

                  Walmart is making its first foray into the health insurance space, with its newly established insurance brokerage selling Medicare insurance plans in time for this year’s enrollment period.

                  The retail corporation’s brokerage, Walmart Insurance Services, will be participating in this year’s Annual Enrollment Period for Medicare insurance plans, which runs from October 15 through December 07 annually.

                  Walmart Insurance Services will provide Part D, Medicare Advantage, and Medicare Supplement plans at launch. These plans are offered by major health insurance carriers, including Humana, UnitedHealthcare, Anthem Blue Cross Blue Shield, Amerigroup, Simply Health, Wellcare (Centene), Clover Health, and Arkansas Blue Cross and Blue Shield. The brokerage also hinted in a statement that more carriers may be added in the future.

                  “We want customers to feel confident in selecting a Medicare plan that best fits their needs, budget, and lifestyle,” said Walmart Insurance Services general manager David Sullivan. “And we want to be a trusted partner on their healthcare journey. Helping customers select the right Medicare insurance plan to meet their needs aligns with Walmart’s mission of helping people save money and live better.”

                  Read more in-depth here.

                   

                  Finding highly affordable leads to keep sales coming in

                  At iLeads, we have many great solutions for insurance agents at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!

                  We’re free and are taking phone-calls from 7AM to 5PM PST, Monday through Friday.

                  You can also schedule a call here

                  Get Started

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                    5 Reasons Mortgage Rates Will Rise In 2021

                     

                    iLeads Mortgage Market Minute

                    Welcome back to iLeads Mortgage Market Minute, where we bring you the latest, most relevant news regarding the mortgage market. We hope you enjoyed last week’s edition where we talked about The 2020 Refi Wave: Where Activity Is Strongest, Where It’s Not, And What’s Ahead. This week we’re bringing you:

                     

                    New home sales hot but not bubbly*

                    Credit standards prevent bubble 2.0 action

                    The recent new home sales data is at levels last seen in 2006, with monthly supply back down to the low levels seen the last time new home sales data was really strong.

                    For the first time in more than a decade we have the demand needed to prompt builders to really push housing starts. This growth in demand is consistent with what I have been saying for many years – if interest rates stayed low, good housing demographics in the years 2020 to 2024 would substantially drive up demand for housing, including new home sales. .

                    However, we did have a bump on the road getting here.

                    Compare today’s housing market with that in 2018, when mortgage rates were heading toward 5% and monthly supply went above 6.5 months. The monthly supply of new homes was mostly higher every month in the previous expansion (2008-2019) than any period from 1996-2005. At that time, the new home sales sector got so bad that I put it in the penalty box. Many assumed that this was the peak for new home sales – but I cautioned against this idea.

                    In December 2018, I wrote: “Despite the terrible optics for the new home sales market, I caution everyone not to assume that we have hit our peak and are heading for an epic crash in housing starts and new home sales. New home sales and starts are still very low.”

                    Now in 2020, we are seeing a spike in new home sales back to levels we enjoyed post 1996.


                    Read more in-depth here.

                     

                    Forbearances Ending at a Faster Pace*

                    Black Knight said its weekly forbearance survey found the number of mortgages in active forbearance decreasing at an accelerated rate. Those mortgages fell by 2.6 percent or 95,000 loans over the last week, bring the decline over the last month to 357,000 loans. It was the fifth straight week of improvement and Black Knight noted that since peaking in late May, the total number of forbearances has fallen by 1.17 million or 24 percent.

                    As of September 22, 3.6 million homeowners remain in COVID-19-related forbearance plans, or 6.8 percent of all active mortgages, down from 7 percent last week. Together, they represent $751 billion in unpaid principal. Some 78 percent of those remaining loans have had their terms extended at some point since March.

                    There are 1.1 million plans still set to expire by the end of September as servicers work to assess them for termination or renewal. This is .6 million fewer potential expirations than a week earlier.

                    Read more in-depth here.

                     

                    Refi Sugar High: How to balance your lending diet*

                    Stay in the purchase game even during the refi boom

                    As the Fed pulls out all the stops to stimulate economic activity, mortgage rates have reached record lows. In light of rampant uncertainty and economic hardship, homeowners are leaping at the opportunity to save thousands in annual payments, and the refi market is booming. This sounds like great news for lenders, for whom millions of newly refi-eligible mortgages mean a lot of new business coming in.

                    But just as we saw in the early 2000s, a boom is just that — a short-term rise, which will inevitably be followed by a drop. It’s like a sugar high: for about a half-hour, you get a rush of energy, and then you crash. Of course, no one knows when the refi sugar high will end, but we know it eventually will. When it does, will you be prepared for its potential shortcomings?

                    To help prepare, the industry experts at TMS have compiled a list of proactive steps to take to make sure that, when refi sweets are less abundant, your business will already be nutritious. You are what you eat, after all.

                    Tip #1: Balance your diet

                    In all likelihood, the boom has given you more conventional refi volume than you can handle, and you’re devoting the lion’s share of your resources to processing them. You’ve probably staffed up on loan officers equipped to handle this influx, and you may be shunning riskier, less immediately gratifying business.

                    Read more in-depth here.

                     

                    Perfect Storm For Home Prices?*

                    Regulators don’t take a break when the housing market is doing well

                    The growth of home prices nationally continued to accelerate in July according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. The National Index, which covers all nine U.S. census divisions, rose 4.8 percent in July on an annual basis compared to a 4.3 percent year-over-year gain in June. There was 0.8 percent appreciation month-over-month before seasonal adjustment and 0.4 percent afterward.

                    The 10-City Composite grew at an annual rate of 3.3 percent, up from 2.8 percent the previous month while to 20-City Composite posted a 3.9 percent increase compared to 3.5 percent in June. Each composite gained 0.6 percent before seasonal adjustment. The 10-City change was 0.5 percent and the 20-City was 0.6 percent post adjustment.

                    The report notes that data for March through June out of Wayne County, Michigan (Detroit), previously unavailable due to coronavirus related office closures is now online. However, there were not enough records for the month of July to generate a current valid index for the Detroit metro area.

                    Read more in-depth here.

                     

                    More New Homes Bought With Non-Conventional Financing in 2019*

                    Non-conventional lending enjoyed a substantial increase in its share of the market for financing new home purchases in 2019. The National Association of Home Builders (NAHB) says, while conventional loans continued to dominate those purchases, its share shrunk from 71.4 percent of the market in 2018 to 65.0 percent in 2019 while non-conventional mortgages increased accordingly, from 28.6 percent to 35.0 percent.

                    A conventional mortgage is a home loan that isn’t backed by a government agency. Non-conventional forms of financing include loans insured by the Federal Housing Administration (FHA), VA-backed loans, cash purchases and other types of financing such as the Rural Housing Service, Habitat for Humanity, loans from individuals, state or local government mortgage-backed bonds.

                    NerdWallet says conventional mortgages often meet the down payment and income requirements set by the GSEs Fannie Mae and Freddie Mac, and they often conform to the loan limits set by the Federal Housing Finance Administration (FHFA), the GSE regulator. Conventional loan borrowers who put at least 20 percent down don’t have to private mortgage insurance which is typically required with lower down payments or government-backed loans.

                    Read more in-depth here.

                     

                    5 reasons mortgage rates will rise in 2021*

                    David Stevens looks into his mortgage crystal ball

                    Let me be contrarian: Get ready, because mortgage rates are going to rise in 2021. Now before you respond, just read the rest as to why.

                    The Mortgage Bankers Association in its most recent forecast sees two things that stand out. First, 2020 will prove itself to be the second-biggest mortgage year in history. Topping $3 trillion will put it only behind 2003 in single-family mortgage production history.

                    Second, the MBA joined the GSEs and other economists who forecast a significant drop in mortgage production in 2021, with most estimating declines in the range of $700 – $800 billion year over year.

                    Some will try to argue, “but wait, Powell said the Federal Reserve would keep rates low for the foreseeable future! You must be wrong.” There is a difference here. Yes, the Fed will likely keep short rates low, but mortgage rates and some longer-term Treasuries likely won’t enjoy the same ride.

                    Here are the reasons why upward pressure on mortgage rates could stall the refinance wave and cut overall national originations volume in 2021:

                    1. The Fed: The Federal reserve is the single biggest buyer of agency mortgage-backed securities (MBS) in the world. According to the Urban Institute, “In March the Fed bought $292.2 billion in agency MBS, and April clocked in at $295.1 billion, the largest two months of mortgage purchases ever; and well over 100 percent of gross issuance for each of those two months. After the market stabilized, the Fed slowed its purchases to around $100 billion per month in May, June, and July. Fed purchases in July were $104.6 billion, 35 percent of monthly issuance, still sizable from a historical perspective.”

                    Read more in-depth here.

                     

                    Finding highly affordable leads to keep sales coming in

                    At iLeads, we have many great solutions for mortgage LO’s at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!

                    We’re free and are taking phone-calls from 7AM to 5PM PST, Monday through Friday.

                    You can also schedule a call here.

                    Get Started

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