Here’s Why Mortgage Rates Are Outperforming

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 Are Existing Home Sales Showing A Housing Bubble?. This week we’re bringing you:

 

More Evidence For Mass Exodus To The ‘Burbs*

It has been rumored since the first wave of the coronavirus struck in some of the densely populated urban centers, especially in New York and New Jersey. Now, however, there is substantiation of a population shift from the National Association of Home Builders (NAHB). Its second quarter Home Building Geography Index (HBGI) shows that, while the pandemic caused widespread economic impacts for many businesses, housing has weathered the economic storm, rebounding quickly from an April slump. It also shows that, the only region posting a quarterly gain for single-family construction during the second quarter was small metro suburbs.

Litic Murali, writing in NAHB’s Eye on Housing blog says that more than 55 percent of the U.S. population resides in “large metro areas” but these large areas make up only 8.2 percent of all land in HBGI’s surveyed areas (all of the U.S. excluding the territories.) Given the risks in the current pandemic are exacerbated by a lack of social and physical distancing, single-family homebuyers are seeking less densely populated areas, i.e., suburbs, for housing. This began to play out in the second quarter with relative growth in lower density markets that represent half of all single-family construction on a four-quarter moving-average year-over-year basis. Those small suburbs saw 2nd quarter single-family construction rise 10.6 percent on a four-quarter moving average basis.

Read more in-depth here.

 

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

Home prices grew in July by the fastest rate in nearly two years, a 5.5 percent annual gain. According to CoreLogic’s Home Price Index (HPI), the month-over-month change was 1.2 percent. The company said it was “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” that has driven upward pressure on home price appreciation.

“On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic. A long period of record-low mortgage rates has opened the flood gates for a refinancing boom that is likely to last for several years,” said Frank Martell, president and CEO of CoreLogic. “In addition, after a momentary COVID-19-induced blip, purchase demand has picked up, driven by low rates and enthusiastic millennial and investor buyers. Spurred on by strong demand and record-low mortgage rates, we expect to see more home building in 2021 and beyond, which should help support a healthy housing market for years to come.”

There is, as always, different rates of increase by locality. CoreLogic notes that homebuying activity is rising in “traditionally affordable suburban and rural areas that allow for more space as schools and work remain online.” It points to two Long Island counties where home prices were up 4.3 percent on an annual basis in July. Nassau and Suffolk have become destinations for residents moving from metro New York-Jersey City-White Plains where prices, in contrast, rose only 0.4 percent.

Read more in-depth here.

 

Construction Spending Report Saved by Multi-Family Sector*

Construction spending as a whole was essentially flat in July, but residential spending showed significant growth. The U.S. Census Bureau reported that total expenditures from both public and private sources were at a seasonally adjusted annual rate of $1.365 trillion, a 0.1 percent increase from June but down 0.1 percent from July 2019.

On an unadjusted basis $124.747 billion was spent compared to $123.675 billion the previous month. For the year-to-date (YTD) $792.641 billion has been expended, a 4.0 percent increase over the first seven months of last year.

Privately funded construction increased by 0.6 percent compared to June, an annual spending rate of $1.014 trillion. This is down 1.8 percent from the July 2019 total. Private spending for the month was $89.787 billion on a non-adjusted basis up from $89.467 billion in June. YTD spending has increased by 3.3 percent compared to 2019, to a total of $596.309 billion.

Read more in-depth here.

 

Refi fee is delayed, but what are lenders doing about loans that were already locked?*

Here’s what Home Point Financial, UWM and loanDepot are doing

The Federal Housing Finance Agency announced on Tuesday it is delaying the implementation of its adverse market refinance fee to Dec. 1 – three months past its intended start date. But what about lenders whose refi loans were locked with closing dates after Sept. 1 and carrying the 50bps LLPA?

Phil Shoemaker, president of originations at Home Point Financial, said that for every Home Point borrower who had the adjustment added, the fee will be removed. However, with several thousand loans in the pipe, it does require staff to go in and manually touch every single loan to reverse the fee.

According to Home Point, the adjustment has been removed from the pricing for new locks as long as the term does not have a lock expiration date greater than Nov. 15, 2020.

“There are loans that are locked on a 90-day or so lock, where the lock is actually long enough that by the time the loan delivers the fee will be in place. So, we’ve identified a cut off where if the lock expiration is past this point the fee will apply,” Shoemaker said.

Home Point will credit its wholesale and correspondent clients the 50-basis point adverse market fee for loans locked between Aug. 13 and Aug. 15, unless the loan has already been purchased.

Read more in-depth here.

 

Here’s Why Mortgage Rates Are Outperforming*

For most lenders, mortgage rates improved again today, adding to the 3-week lows achieved yesterday. We normally view mortgage rate movement primarily as a function of the bond market, but the bond market says rates should only be falling modestly from their recent highs. What gives?

This is a 2 part issue. First, there’s a difference between the overall bond market and the bonds that underlie mortgages. So-called mortgage-backed securities (MBS) did a better job of holding their ground in August when compared to the broader bond market via the quintessential 10yr Treasury yield.

Second, and more importantly, the delay of the recently announced adverse market fee (an abrupt hit to all conventional refinances that unintentionally also affected purchase rates) is responsible for the lion’s share of mortgage rate outperformance. It’s worth keeping in mind, then, that the fee will be back very soon depending on the lender and on the length of time borrowers seek to lock their rates. In fact, some lenders have already added the fee again for lock time frames of 60 days or more.

Read more in-depth here.

 

Featured iLeads Solution:

Looking for the most qualified leads? iLeads credit-based leads might be the answer. Learn more…

We are ready to help you navigate through the COVID-19 mortgage environment.

 

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

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

|

    Are Existing Home Sales Showing A Housing Bubble?

    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 Here Are 2020’s Hottest Housing Markets According To ZIP Code. This week we’re bringing you:

     

    Home Price Gains Shrug off Covid Concerns*

    Both the Federal Housing Finance Agency’s (FHFA’s) Housing Price Index (HPI) and the several S&P CoreLogic Case-Shiller indices showed price gains across the U.S. in June. Case-Shiller’s numbers showed more moderation in the rate of increase than did those from FHFA.

    The Case-Shiller’s National Home Price Index, covering all nine U.S. census divisions, was up 4.3 percent for the 12 months ended in June, the same annual increase as was posted in May. Prices rose 0.2 percent month-over-month on a seasonally adjusted basis (SA) and were 0.6 percent higher before adjustment (NSA).

    The 10-City Composite annual increase came in at 2.8 percent, down from 3.0 percent the previous month while the 20-City Composite gain was 3.5 percent compared to 3.6 percent in May. The 10 and 20-City Composites had NSA increases of 0.1 percent and 0.2 percent, respectively. After seasonal adjusted the 10-City dipped 0.1 percent and the 20-City index was unchanged. In June, 16 of 19 cities (data remains unavailable from Detroit because of COVID-19 related shutdowns) reported increases before seasonal adjustment, while 12 of the 19 cities reported NSA gains. Read more in-depth here.

     

    The migration to the suburbs continues*

    Read more in-depth here.

     

    New Home Sales Explode in the Midwest, Boosting National Numbers*

    New home sales were expected to dip slightly in July after posting 13.8 percent growth in June and setting a 13-year high. Instead, the June sales were revised upward, from 776,000 to 791,000, bringing that month’s increase to 15.1 percent and July still managed a 13.9 percent gain. Last month’s sales were at a seasonally adjusted annual rate of 901,000 units, the fourth consecutive month-over-month increase. The month’s sales of newly constructed homes were up 36.4 percent from the seasonally adjusted rate of 661,000 units during the same month in 2019.

    Analysts polled by Econoday had expected sales to be in the range of 735,000 to 800,000. The consensus was for sales to be essentially unchanged from June at 774,000.

    The U.S. Census Bureau and the Department of Housing and Urban Development said the strength in national sales came despite a substantial decline in the Northeast. Sales there fell 23.1 percent although they remained 25.0 percent higher on an annual basis. Read more in-depth here.

     

    That Big Bad Fee on Refinances Has Been Delayed! Here’s What It Means*

    Two weeks ago, Fannie and Freddie announced a new guaranty fee (aka “g-fee”) for virtually all refinances. To say this has been a hot topic for the mortgage market would be an understatement. I’d highly recommend reading my initial coverage if you haven’t already:

    • Here’s the initial reaction from Wednesday night
    • Here’s a more detailed list of bullet points from the following morning

    For those who don’t like reading or who already know everything I’m about to say, feel free to skip to the next section (“what does this all mean”) below.

    G-fees are a longstanding ingredient in the mortgage market equation. They are collected by Fannie Mae and Freddie Mac (collectively the “agencies” or GSEs) in order to guarantee timely repayment to mortgage investors. In other words, if borrowers don’t pay, the GSEs will make sure investors get paid. No objection there! This guarantee makes mortgages more affordable in the bigger picture and it makes credit more available to more people. Read more in-depth here.

     

    Are existing home sales showing a housing bubble?*

    Not at all, as the two main drivers of housing remain rock solid

    Today, existing home sales blew out estimates, coming in at 5,860,000. With new home sales, pending home sales, housing starts, housing permits, and purchase applications already in v-shape recovery mode, this last metric completes the v-shaped recovery across the board for housing.

    Let’s just say this is the final nail in the coffin for the housing bear troll camps that were so sure that this time, housing would finally crash. COVID didn’t get the housing market, but it did pull a fast one on those pesky bears.

    Look, I get it. For the casual observers of the market, it may seem intuitive that with all the economic chaos we suffered during the first half of 2020, the housing market would take a drastic hit – from which it would be difficult to recover. Massive job losses and stay-at-home measures seem like a perfect storm for a disastrous housing market.

    That belief, however, assumes that one does not understand the two main drivers of housing: demographics and mortgage rates. All that other stuff, my friends, is just stamp collecting. For the last many years I have been writing that the years 2020-2024 would have the best demographics for housing ever recorded in U.S. history. As it happens, these fabulous demographics are accompanied by the lowest mortgage rates ever recorded in history. Read more in-depth here.

     

    Featured iLeads Solution:

    Looking for the most qualified leads? iLeads credit-based leads might be the answer. Learn more…

    We are ready to help you navigate through the COVID-19 mortgage environment.

     

    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

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

    |

      Coronavirus Raises Fears Of Increase In Insurance Fraud

      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 Has Lloyd’s Just Found The Answer For Pandemic Insurance Cover?. This week we’re bringing you:

       

      P/C insurers report a sharp decline in first-half net income: A.M. Best*

      U.S. property/casualty insurers reported a 21.6% decline in net income to $25.0 billion in the first half of this year, as realized capital gains fell $5.5 billion amid the COVID-19 pandemic, A.M. Best Inc. said in a report Tuesday.

      Premium credits issued to policyholders in the second quarter due to pandemic-related exposure declines because of stay-at-home orders and government-ordered business closures pushed P/C insurer underwriting and dividend expenses higher in the first half, A.M. Best said.

      The P/C industry’s first-half underwriting expenses rose by 5.5% as some insurers recorded policyholder credits as an expense rather than a premium reduction, Best said. Read more in-depth here.

       

      Insurers expect higher returns post-pandemic*

      The coronavirus crisis appears a rolling nightmare for the insurance industry as it is assailed by huge claims and locked in damaging legal fights with customers.

      But in recent months investors have quietly poured billions of dollars into insurance companies, betting the pandemic will ultimately prove the catalyst that ends a period of fallow returns for the industry.

      Their calculation is simple, if risky, one: the wave of claims from the pandemic won’t overwhelm insurance companies but will allow them to justify hefty price rises for new policies.

      It is the pitch insurers have been making this summer to pension funds, private equity houses, and sovereign wealth funds as they seek funds to back new business. Read more in-depth here.

       

      Coronavirus raises fears of an increase in insurance fraud*

      As if the insurance industry didn’t have enough to worry about amid the coronavirus pandemic, from how business interruption coverage lawsuits will be decided to how long term remote working arrangements will impact insurers’ services, they also have to keep an eye out for an uptick in insurance fraud. After all, hard economic times often bring about an increase in fraud, including more opportunistic fraud, such as policyholders faking claims or exaggerating the nature of a loss, as well as a potential increase in liability and casualty fraud as businesses, come under greater stress.

      “The last three or four months when [the pandemic has] created economic instability in our country and around the world, it has also created, unfortunately, some desperate and opportunistic circumstances, so we see an uptick in fraud, particularly on the auto side,” said Mike Flato, chief claims officer for Liberty Mutual, during a Q&A on the future of insurance at the Connected Claims USA virtual summit. Read more in-depth here.

       

      Featured iLeads Solution:

      Looking for the most qualified leads? iLeads insurance leads might be the answer. Learn more…

      We are ready to help you navigate through the COVID-19 insurance environment.

       

      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

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

      |

        Here Are 2020’s Hottest Housing Markets According To ZIP Code

        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 Homes Flying Off Market At Record Pace – 46% Accept An Offer Within 2 Weeks. This week we’re bringing you:

         

        Mortgage refinancing will be more expensive as Fannie Mae and Freddie Mac raise fees*

        Consumers will have to pay more to refinance their mortgages after Fannie Mae and Freddie Mac announced that they are raising fees for lenders on the loans.

        The change is designed to shield the two entities from the additional risk brought on by the coronavirus pandemic. In a letter to lenders, Fannie Mae specifically cited “market and economic uncertainty resulting in higher risk and costs.”

        The price adjustment adds 0.5% of the loan amount to the consumer’s cost. That amounts to $1,400 on the average mortgage originated today. It will begin in September, which means it will basically apply to all refinances that aren’t already in process.

        The move was met with strong criticism from the mortgage industry, seen as a slap in the face of the one sector of the economy that has been thriving during the pandemic. Read more in-depth here.

         

        Homebuilding is on Fire; Best Pace in Over a Decade*

        Residential construction rates soared in July with both permits and starts increasing from their June pace by double digits and topping 2019 numbers for the same period. Completions also rose, but at a more subdued rate.

        The U.S. Census Bureau and Department of Housing and Urban Development said permits were issued during the month at a seasonally adjusted annual rate of 1,495,000, an 18.8 percent gain from June. That June rate was also higher than originally reported, revised from 1,241,000 to 1,258,000. Permitting is now up by 9.4 percent from the same period in 2019.

        Permitting was significantly higher than had been forecast – with estimates among analysts polled by Econoday of 1,200,000 to 1,380,000 units. The consensus was 1,300,000.

        Single-family permits were issued at the rate of 983,000 compared to a revised (from 834,000) June rate of 840,000 units. This was a 17.0 percent change for the month and 15.5 percent year-over-year. Multifamily permitting jumped 23.5 percent to 467,000 but that number was down 0.4 percent on an annual basis. Read more in-depth here.

         

        Still Reeling From Last Week, Mortgage Rates Tiptoe Lower*

        Mortgage rates managed to improve modestly for the average lender today, but they remain significantly higher than they were before last week’s regulatory drama. By the time we consider the size, scope, and the precipitous imposition of the new refi fee, we’ve never seen anything remotely similar. Lenders were definitely taken by surprise and they’ll definitely be paying dearly for all refis that were already locked. Read more in-depth here.

         

        In a super-low rate environment, how can lenders get purchase loans done without putting refis on the back burner?*

        Consumers are shopping around for rates, pushing the fallout rate for refis

        Last week, the MBA reported that refinance activity rose to its highest level since May, now accounting for 65.7% of total applications – and everyone involved in the mortgage process is working hard to make sure those transactions go through. But as companies continue to compete on low rates, lenders are trying to balance maintaining a strong purchase presence with meeting client expectations in the refi market.

        Lenders are faced with strong external pressures on both kinds of loans, but with purchase loans, there is a homeowner waiting to move into a house, which exerts its own kind of stress. As companies try to manage longer appraisal turn times and a finite number of underwriters and support staff for all loans, refinances might get put on the back burner. To top it off, low rates are pushing homeowners to shop around — even walking on deals when they realize that the numbers they see advertised don’t meet their expectations.

        According to Sean Johnson, branch manager at loanDepot, historically low rates have been the greatest driver of the refi boom, but people working from home is also a factor. Read more in-depth here.

         

        Here are 2020’s hottest housing markets according to ZIP code*

        Colorado Springs tops the list

        Compared to last year, the housing market this year has seen some big changes. Notably, people are moving inland from the large cities as the pandemic has created a coastal exodus, prompting apartment dwellers to seek more space and big yards.

        Realtor.com released its hottest ZIP codes of 2020 report on Tuesday, which revealed that more towns in the Northeast made the list than last year.

        “The hottest zip codes have bucked the national trend of a housing market slowdown during the COVID-19 pandemic,” Danielle Hale, realtor.com’s chief economist said in the report.

        “Even during the pandemic, homes in the hottest markets were selling at a blistering pace, with the median days on market in all of the top neighborhoods being under a month,” Hale said. “Likewise, all of the hottest zip codes saw demand increase, with rising views per property on realtor.com compared to last year.”

        Although the east coast was hit first and arguably the hardest by COVID-19, seven ZIP Codes from that area made the list – although outside of the bigger cities. Read more in-depth here.

         

        Featured iLeads Solution:

        Looking for the most qualified leads? iLeads credit-based leads might be the answer. Learn more…

        We are ready to help you navigate through the COVID-19 mortgage environment.

         

        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

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

        |

          Has Lloyd’s Just Found The Answer For Pandemic Insurance Cover?


          Welcome to iLeads Insurance Market Minute, where we bring you the latest, most relevant news regarding the insurance market. Last week you were reading Ralph Lauren Sues Insurer For $700 Million Over Restricted Business Loss Claim. This week we’re bringing you:

           

          Businesses and insurers globally face survival showdowns*

          (Reuters) — Wynand du Toit’s safari camp in South Africa’s Pilanesberg National Park lies abandoned, its tents ripped open by baboons and its survival in the balance after his insurer rejected his COVID-19 claim.

          In the United States, Miami restaurant owner Luis Debayle has laid off two-thirds of his staff and is desperate for an insurance payout that could help avert the prospect of closure.

          Meanwhile, Munich beer garden boss Christian Vogler is heading to the German courts in an attempt to wrestle about €1 million ($1.2 million) from his insurer.

          Businesses around the world, hamstrung by lockdowns, are facing often-existential showdowns with insurance companies that are reluctant to pay out on business interruption policy claims for a disaster unknown in living memory. Read more in-depth here.

           

          Small businesses and insurers battle over Covid-19 interruption claims*

          Read more in-depth here.

           

          CFC takes life sciences insurance solution to new level*

          Specialist insurance provider CFC is expanding its life sciences insurance solution to accommodate the needs of mid-market companies on a global basis, according to a press release.

          CFC will now be able to provide excess products liability, E&O, and clinical trials solutions for global clinical research organizations and companies manufacturing or selling medical devices, functional food and dietary supplements with a revenue threshold of £2.5 billion (around $3.3 billion). The provider can also offer limits up to $15 million.

          “The life science sector is possibly one of the most dynamic and has expanded faster than most other industries in recent years, fuelled by an increasing patient and consumer demand for high-quality products and treatments,” said Sean Burke, CFC’s life science team leader. “While it hasn’t escaped the impact of the global pandemic, it is an industry sector that could make tremendous future contributions to economies around the world as it continues to pioneer treatments for new and existing conditions.” Read more in-depth here.

           

          Has Lloyd’s just found the answer for pandemic insurance cover?*

          Insurtech start-up Thimble has been selected to take part in the Lloyd’s Lab accelerator program, in which the company will develop an insurance solution to address the pandemic coverage gap of small businesses.

          According to a release by Thimble, the COVID-19 pandemic has forced many small businesses to learn the hard way that their business interruption insurance does not cover losses related to the outbreak. Not only has this trend led to a severe blowback for the insurance industry, but it has also led to multiple lawsuits from business owners seeking payment, Thimble explained.

          As part of the Lloyd’s Lab accelerator, Thimble will tackle this issue by developing low-limit parametric contingent business interruption coverage that would protect businesses from future pandemics. The insurtech hopes that the development of the coverage solution will serve as a “first line of defense” for small businesses that pay them once the parameters of the insurance are met. Read more in-depth here.

           

          Featured iLeads Solution:

          Looking for the most qualified leads? iLeads insurance leads might be the answer. Learn more…

          We are ready to help you navigate through the COVID-19 insurance environment.

           

          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

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

          |

            Ralph Lauren Sues Insurer For $700 Million Over Restricted Business Loss...

            iLeads Mortgage 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 How Pandemic Insurance Can Be Available To Businesses In The Future. This week we’re bringing you:

             

            NCCI on the direct and indirect impacts of the pandemic*

            “Business as usual” is what the National Council on Compensation Insurance (NCCI) has promised as it navigates through COVID-19 challenges to complete its workers’ compensation rate filing season for 2021. The organization, which gathers workers’ compensation data, analyzes industry trends and provides objective insurance rate and loss cost recommendations in 38 states, intends to “make rate filings […] according to the normal schedule,” despite a distinct lack of COVID-19 data and ongoing uncertainty around how the pandemic will develop.

            The NCCI has made several COVID-related changes over the last few months, as Jeff Eddinger (pictured), senior division executive – regulatory business management at the NCCI, explained: “We began collecting payroll for furloughed workers, so that [it] would not be used in the premium calculation for those workers that were at home and not performing their usual job duties. A second rule change we made was to exclude COVID claims from the experience rating calculation. In addition to that, we’ve also been tracking orders or proposed legislation on different COVID compensability presumptions.” Read more in-depth here.

             

            Bet against the banks but don’t bet against the insurance companies*

            There is a grim calculus for insurers handling coronavirus claims, laid bare by Legal & General’s half-year results. It paid out £36m in life insurance claims to the families of those who sadly died from Covid-19 – but made a £32m gain from mortality, as it will pay out pensions for fewer years than expected as the elderly pass away.

            In late March, the Bank of England strong-armed banks into halting dividends and bonuses and made it clear that insurers should consider doing the same too.

            But while the guidance made sense for banks, facing huge losses from bad debts, for insurers coronavirus has turned out very differently – with some parts of their business doing rather well. Read more in-depth here.

             

            Ralph Lauren sues insurer for $700 million over restricted business loss claim*

            Ralph Lauren is suing its insurer after the American fashion label was barred from claiming the full amount of its business loss insurance.

            The fashion company saw first-quarter losses of $112 million, and revenue dropped 66% overall compared to last year. Ralph Lauren’s wholesale business for the quarter also saw a staggering 93% drop.

            When Ralph Lauren filed a claim for its financial losses resulting from the pandemic, its insurer Factory Mutual Insurance allegedly attempted to limit coverage. The fashion company had purchased the “all-risk” insurance policy just last year, which is worth $700 million.  Read more in-depth here.

             

            Featured iLeads Solution:

            Looking for the most qualified leads? iLeads insurance leads might be the answer. Learn more…

            We are ready to help you navigate through the COVID-19 insurance environment.

             

            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

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

            |

              Homes Flying Off Market At Record Pace – 46% Accept An...

              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 Housing Affordability Best in Four Years, Purchase Rate Locks Surge. This week we’re bringing you:

               

              Biggest Jump in 2 Months For Mortgage Rates*

              With most lenders still easily able to quote a 30yr fixed under 3%, mortgage rates are very low in outright terms. But relative to the recent trend and the general level of volatility, today was a bit rough. Rates rose as fast as they’ve risen since early June, ultimately hitting the highest levels in more than 2 weeks.

              Some prospective borrowers will now be looking at an eighth of a point (0.125%) increase versus yesterday’s rates. That comes out to roughly $20/month on a $300k mortgage. Others will experience the shift in the form of higher upfront costs (or a lower lender credit). Either way, today is noticeably more expensive than yesterday. Read more in-depth here.

               

              Pandemic Reveals Flaws in Loan Reporting*

              New research by dv01, a loan data agent (LDA) providing securitization reporting and analytics on consumer unsecured, mortgage, small business, and student loans, says the pandemic has revealed serious weaknesses in the reporting structure for mortgages. The company found significant numbers of unreported loan modifications and says it was these types of reporting errors during the global financial crisis (GFC) which led to an increase in price volatility when those errors were later corrected.

              A new white paper says that, in stark contrast to the GFC, consumer loan performance across asset classes has remained relatively strong. Dv01 has released bi-weekly reports of both loan performance and the relief efforts by issuers and servicers to aid borrowers but has found significant irregularities and inconsistencies across the multiple parties involved in the mortgage process. Even four months into the pandemic there are numerous cases of underreported or entirely omitted modification behavior. Data report quality varies across deals and even between reporting parties within a single deal and there appear to be significant differences between online lending and that of the mortgage industry. Read more in-depth here.

               

              Here’s why we won’t see a housing crisis after COVID-19*

              Recent job gains should reduce some forbearance loans

              August is upon us, and the growth in the rate of new infections appears to be slowing. Vaccine development is progressing with some promising early results. The time has come to start thinking about what life will be like on the other side of this crisis. What can we expect post COVID-19?

              Some things will not have changed. I already hear murmurs from the fear-mongering housing bears that once the forbearance plans expire, we can expect to see a collapse of the housing market in America like we haven’t seen since the bubble years. This is the same sorry song the bubble boys have been singing for the last eight years, with just a new verse.

              But there are several economic conditions today that were not present before the previous housing collapse that almost ensure that a catastrophic failure will not happen. Read more in-depth here.

               

              How a cloud-based tax platform benefits mortgage servicers*

              CoreLogic works with over 22,000 taxing authorities in the U.S.

              HousingWire President and CEO Clayton Collins recently sat down with Eric Christensen, product management executive at CoreLogic, to discuss recent updates to the company’s DigitalTax Platform.

              CoreLogic has invested more than $35 million into its DigitalTax Platform over the last three years, providing customers with a unified and consistent view of property tax data across the mortgage ecosystem. Features of the DigitalTax Platform include near-real-time data as well as on-demand portfolio analytics and reporting, which gives customers timely and actionable insights.

              The DigitalTax Platform is engineered on a cloud platform for both tax information and making tax payments, allowing customers to transition from a static to a dynamic environment using things like real-time tax collector data and portfolio analytics. The platform is fully integrated with the top loan servicing systems through tested and developed IP technology. Read more in-depth here.

               

              Homes Flying Off Market at Record Pace—46% Accept an Offer Within 2 Weeks*

              Key takeaways for the 4-week period ending August 2:

              1. A record-high share of homes are selling fast: 46% of homes sold within the first two weeks on the market, the highest level since at least 2012 (as far back as our data on this measure goes).
              2. Home sale prices were up 9% year over year to another new all-time high of over $311,000. “The combination of ultra low inventory, very high buyer demand, and super duper low interest rates is a very successful formula for sellers, not so great for buyers,” said Brian Morales, a Redfin agent in Orange County, California.
              3. Pending home sales were up 10% year over year and have plateaued over the last month, up just 0.2% from the four-week period ending July 5. Sales declined an average of 1.4% over the same period the last two years.
              4. The supply of homes for sale continued to fall; year over year, new listings were down 2.7% and active inventory of homes for sale was down 28%.

              Read more in-depth here.

               

              Featured iLeads Solution:

              Looking for the most qualified leads? iLeads credit-based leads might be the answer. Learn more…

              We are ready to help you navigate through the COVID-19 mortgage environment.

               

              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

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

              |

                Housing Affordability Best in Four Years, Purchase Rate Locks Surge

                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 U.S. Homeownership Rate Soars To An Almost 12-Year High. This week we’re bringing you:

                 

                How a pragmatic approach to eClosings helps lenders succeed during COVID-19 and beyond*

                A digital closing expert weighs in

                Many lenders are thinking about digital closings in a way that’s preventing them from achieving the ROI they want. Many have been solely focused on Remote Online Notarization (RON), since RON is seen as the quickest solution to the immediate challenges that COVID-19 has created.

                However, as lenders try to conduct business remotely and keep up with high loan volumes while switching from fully paper closings to completely digital RON closings, they experience firsthand how difficult this is. My goal here is to provide helpful guidance on how lenders can implement a successful digital closing strategy that goes beyond RON and addresses current pain points and long-term goals. You’ll be able to create a plan that works in any environment and scales digital closings quickly.

                Lenders need to have a digital closing strategy that’s successful in any environment and in every state, regardless of the speed with which individual states and stakeholders adopt new technology or change their policies. After onboarding dozens of lenders, we’ve learned that there are two concepts that are fundamental to success. Read more in-depth here.

                 

                More Home Buyers are in the Market, but Shopping Takes Longer*

                In the second quarter of 2020, 11 percent of American adults were planning on purchasing a home over the next 12 months, and of those, almost half were actively engaged in doing so. Rose Quint, writing in the National Association of Home Builders’ (NAHB’s) Eye on Housing blog says that the 49 percent who were actively shopping was significantly higher than a year ago when 41 percent were in the game but was identical to the share in Q1. Quint says this suggests that the COVID-19 crisis and its accompanying record-low mortgage rates have converted some prospective buyers into active buyers.

                The share of buyers who were actively looking versus thinking about it differs significantly by age group. Of Millennials planning a home purchase in the next year, 57 percent are already actively looking but among Boomers, that share is only 37 percent. Among Gen Z and Gen X buyers the share who were active was 40 percent and 47 percent, respectively. Regionally those in the Northeast are the most likely to be actively engaged in the purchase process (57 percent), compared to 44 percent in the Midwest, 45 percent in the West, and 50 percent in the South. Read more in-depth here.

                 

                 

                Jumbo Mortgage Rates Are No Longer the Cheapest Mortgages Around*

                Record-low interest rates are helping home buyers lock in years of savings on future mortgage payments. But those searching for larger homes or in expensive markets aren’t reaping the same rewards.

                The average rate on a 30-year jumbo mortgage was 3.77% in mid-July, more than 0.4 percentage point above the average rate on smaller, conforming loans, according to Bankrate.com, a personal-finance website. From mid-2015 until this spring, jumbo rates had been consistently lower than or equal to the rates on conforming loans.

                The reversal is just one of the ways the coronavirus crisis has wreaked havoc on the mortgage market. The same force pushing most mortgage rates to record lows—investors piling into safe-haven assets like government bonds—has pushed jumbo loans out of favor. Read more in-depth here.

                 

                Construction Spending Largely Unchanged as Shutdowns End*

                Construction spending held firm in June, inching down fractionally from the May level and increasing a bit compared to June 2019. The U.S. Census Bureau said total spending during the month was at a seasonally adjusted annual rate of $1.355 trillion, down 0.7 percent from the $1.365 trillion spending rate in May. On an annual basis the rate was up 0.1 percent.

                On an unadjusted basis there was $123.377 billion spent compared to $117.226 billion the prior month. Spending for the first six months of the year was up 5.0 percent from the same period in 2019 at $667.920 billion.

                Privately funded construction expenditures were also down 0.7 percent month-over-month at a rate of $1.002 trillion compared to $1.009 trillion in May. The June rate was 1.9 percent lower on an annual basis. Read more in-depth here.

                 

                Fed official says lockdown now or see sluggish recovery*

                The U.S. needs a national strategy to suppress the virus, Kashkari says on Face the Nation

                A member of the Federal Reserve’s rate-setting Federal Open Market Committee said on Sunday that the only way to secure a robust economic recovery is to lock down the country again and reopen with a focus on testing and tracing.

                The current path, which has state and local governments dealing with the virus in a patchwork fashion, will suppress economic growth for a year or more and lead to an increase in bankruptcies, according to Neal Kashkari, president of the Federal Reserve Bank of Minneapolis, who appeared on CBS’ Face the Nation.

                “If we were to lock down hard for a month or six weeks, we could get the case count down so that our testing and our contact tracing was actually enough to control it the way that it’s happening in the Northeast right now,” Kashkari said. “That’s the only way we’re really going to have a real robust economic recovery.”

                The U.S. death toll from COVID-19 passed 155,000 on Monday, according to Johns Hopkins University data. The U.S. has 4.7 million confirmed cases of the virus, about half of them occurring during July. The number of cases in America is almost double the number in Brazil, the country with the next highest number of infections. Read more in-depth here.

                 

                Housing Affordability Best in Four Years, Purchase Rate Locks Surge*

                The last report from Freddie Mac put its 30-year fixed rate mortgage (FRM) at 2.99 percent, up 1 basis point from the all-time low. Black Knight, in its new Mortgage Monitor, says that has made home affordability the best in four years. As of mid-July, it required only 19.8 percent of the nation’s median monthly income to make the mortgage payment on an average priced home using that 30-year FRM and a 20 percent down payment. That is more than 5 percent below the average over the 1995-2003 period. The required monthly payment, $1,071, is 6 percent less than last July despite an average $12,000 increase in home prices over that same period.

                Read more in-depth here.

                 

                Featured iLeads Solution:

                Looking for the most qualified leads? iLeads credit-based leads might be the answer. Learn more…

                We are ready to help you navigate through the COVID-19 mortgage environment.

                 

                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

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                |

                  How Pandemic Insurance Can Be Available To Businesses In The Future

                  iLeads Mortgage 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 Why It’s Time For The Insurance Industry To Live Up To Its Promise. This week we’re bringing you:

                   

                  The unique advantage of independent agents in a pandemic*

                  Independent insurance agents have a unique tool in their toolkit when it comes to helping small businesses through the COVID-19 pandemic. They have the advantage of true empathy. Why? Because the vast majority of agencies in the United States are small businesses themselves. They’ve had to weather the same storms as their small business clients; they’ve had to make the same transitions to enable remote working; and they’re all facing the same concerns and considerations about bringing people back to the workplace and safely ramping up in-person business.

                  These similarities, and the potential camaraderie they produce, are going to be vitally important as insurance agents help small businesses through the reopening and return-to-work process, according to Dan Killins (pictured), loss control program manager at EMPLOYERS, a small business workers’ compensation provider. He told Insurance Business: “From my experience thus far with policyholders and agents, I think this is a huge opportunity for agents to deepen and solidify their relationship with their clients. The events that have happened are tragic, and, unfortunately, they’re ongoing – but this is an opportunity for agents to really bond and become a valued partner with their clients. Read more in-depth here.

                   

                  What impact is coronavirus having across the political and credit risk insurance market?*

                  It’s fair to say that the COVID-19 pandemic has had a widespread impact on the insurance market – but what about the credit and political risk sector, specifically?

                  Brokerage giant Gallagher has attempted to address this issue through new research it carried out in early July.

                  Speaking to insurers in the market it asked about claims trends and discovered that just one in three – 29% – reported claims that they considered to be attributable to the coronavirus pandemic. However, it highlighted that this is likely because much of the credit risk underwritten in the segment typically comes from Governments and companies they own, as well as sizeable corporates. It believes that their exposures are easier for those firms to deal with – and, as such, it may not be until the fourth quarter of this year and beyond that we truly grasp the full picture.

                  There were concerns expressed among current portfolios, however. In particular, underwriters pointed to aviation and oil and gas (both highlighted by 27%), as well as tourism (highlighted by 10%), as the main areas of concern. Read more in-depth here.

                   

                  Firms consider COVID waivers before bringing workers back onsite*

                  As employers make plans to bring their employees back to the workplace in the fall, questions over liability and responsibility are leading some to require workers to sign waivers or acknowledgments concerning COVID-19. However, experts question whether these documents may be necessary, advisable or even enforceable.

                  Companies are “absolutely” concerned about the liability issue of workers coming down with COVID-19 after returning to the workplace, said Matt Zender, Las Vegas-based senior vice president of workers compensation strategy at AmTrust Financial Services Inc.

                  “I think the reason people are concerned about it is it’s not always 100% clear whether or not you have taken all the steps you might need to (to protect workers from COVID-19),” he said. “We see businesses feeling more comfortable having employees sign a waiver that indicates that they’ve done everything they possibly can imagine. But I’m not entirely convinced that the waivers will actually have any legal standing.” Read more in-depth here.

                   

                  How pandemic insurance can be available to businesses in the future*

                  As businesses continue to see forced closures due to the pandemic, insurance company Chubb has created a partnership with the government to provide business interruption insurance. Evan Greenberg, chairman and CEO of Chubb, joins “Squawk Box” to discuss the initiative.

                  See more in-depth here.

                   

                  Featured iLeads Solution:

                  Looking for the most qualified leads? iLeads insurance leads might be the answer. Learn more…

                  We are ready to help you navigate through the COVID-19 insurance environment.

                   

                  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

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                  |

                    Why It’s Time For The Insurance Industry To Live Up To...

                    iLeads Mortgage 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 Insurers Lobby For Federal Pandemic Insurance Program. This week we’re bringing you:

                     

                    Does “All Risk” insurance cover pandemics?*

                    The question of whether an “all-risk” insurance policy should cover business losses resulting from the COVID-19 pandemic continues to dominate industry headlines, as a Miami, FL-based casino sues its insurer over a denied claim.

                    Operators of Magic City Casino filed the lawsuit in federal court in South Florida last week, The News Service of Florida reported. The complaint names four insurance companies, which allegedly wrongfully denied the casino over business interruption losses. The four companies named are AXA XL Insurance Group, Indian Harbor Insurance (an AXA subsidiary), Hallmark Specialty Insurance, and Ategrity Specialty Insurance.

                    The lawsuit claimed that the four had sold “all-risk” property insurance policies to the casino, which includes covering business interruption losses. Read more in-depth here.

                     

                    Why Elon Musk’s autonomous driving ideas don’t worry insurers*

                    Five years ago, the impact of technology on auto insurers was thought to be straightforward: Self-driving cars were coming soon, and they would be so safe, and people would need car insurance about as much as printed newspapers.

                    If only it had been so simple.

                    Instead, technology is coming to cars, and insurance, much more gradually. Insurance companies like Allstate, Progressive, and Berkshire Hathaway’s Geico are embracing it, but in a measured way. And the impact on their business seems likely to be slow and steady, rather than rapidly transformative.

                    Instead of self-driving cars, the auto industry is moving cautiously toward better safety equipment and information sharing. Research into autonomous and more-connected vehicles is helping to make those goals more attainable. And insurers are settling for baby steps like in-car monitors that let customers get discounts if they let carriers track how often they accelerate, swerve or stop suddenly — all behavior tied to accident rates. That means change is coming, but much more slowly, to a once-hidebound business that tech seers thought was next in line to get disrupted. Read more in-depth here.

                     

                    Why it’s time for the insurance industry to live up to its promise*

                    If the for-profit world of business is suffering as a result of the coronavirus, you can imagine the toll that the pandemic has taken on non-profit sectors around the world. Volunteering Australia noted that the decline in volunteering during COVID-19, and specifically from February to April this year, has been substantial, with 65.9% of volunteers estimated to have stopped volunteering. Similar trends have been observed in other countries, including Canada, the US, the UK, and across Asia-Pacific.

                    The impact of the pandemic has also been reflected in the bottom lines of non-profit associations. Imagine Canada found that almost three-quarters of surveyed non-profits reported that donations are down, while a similar percentage of organizations in the US surveyed by La Piana Consulting reported a drop in revenue. Read more in-depth here.

                     

                    Featured iLeads Solution:

                    Looking for the most qualified leads? iLeads insurance leads might be the answer. Learn more…

                    We are ready to help you navigate through the COVID-19 insurance environment.

                     

                    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

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |

                    |