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Hello, LOs!
Given the challenge of finding a new home at a good price, many homeowners are opting to stay put and work on their existing homes.
A few LOs I've spoken with in recent weeks have told me they've seen an increase in inquiries for renovation loans, partly because the value of their clients' homes has risen and it makes sense financially to do a cash-out. The challenge? Finding contractors to take on the work and complete it within a reasonable time frame. And of course, the materials costs, which are pretty outrageous these days.
On a personal note, my wife and I have been pursuing a Fannie Mae Homestyle Purchase-Reno loan in one of the country's hottest housing markets, the Hudson Valley (where real estate agents have waiting lists for new clients). We even found a few gut reno fixer-uppers that worked within our budget. But we haven't been able to find a contractor who is both qualified to take on a job of that magnitude, and available to do that work within nine months. The loan can't be originated without a contractor who's ready to go. So, for now, it's back to the drawing board.
LOs, I'd love to hear what you've experienced of late. Are more of your clients seeking out renovation loans? What are the pros and cons of the various products? Any particular challenges in underwriting that you've come across?
Competition makes the nation's mortgage industry thrive and offers the consumer the best options, as competition will usually drive costs down and service levels up.
After eight consecutive months of improvement, the national mortgage delinquency rate rose in February from 5.85% to 6%, according Black Knight on Tuesday.
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We're a year into the pandemic, and while smart policy has delayed a default wave, the threat still looms large. Servicers must be powered by nimble technology to be heroes to borrowers, stalwarts to investors, and stewards of consumer protection to regulators. Presented by Sagent Lending
When I look at today's report, the most significant data point to my mind is the 9.1% year-over-year growth in existing sales. This is the best February sales data we have had in a long time, and it's working from a high comp. HW+ Premium Content
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