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Oil, Eggs, & Education
By Jeff Walton & Kelly Guest
Somewhere on the spectrum of reactions to current economic policy between MAGA and mass hysteria, the price of oil and eggs went down. For those who wish to focus on their own financial fishbowl and look for opportunities to nurture business as we wait for what unfolds on the world stage, industry polls provide some insight. Though many surveys are best consumed with a healthy grain of salt, a recent release from NeighborWorks found that consumers see benefit in financial education. Looking beyond the unsurprising revelation that 64% of respondents said they would like down payment assistance (who would answer no?), the answers got more interesting: 62% said they want education on mortgage options, and over half see value in financial coaching. Even if you don’t fire up the ring light and go on a TikTok tear, lenders and agents have a real opportunity to differentiate and provide value the public wants through their marketing and outreach efforts.
No shoes, no dancing? Move over interest rates and sales figures, this headline hit HousingWire Friday: "First American CEO Kenneth DeGiorgio choked dancing, barefoot man on cruise ship, FBI says." What happens on Virgin Voyages cruises apparently doesn't stay there. We have so many questions.
CHATTER
A&D Mortgage announced the official closing of its acquisition of the wholesale and non-delegated correspondent mortgage business from Mr. Cooper on April 1. The combination of the two businesses represents a powerhouse in the wholesale mortgage space, with more than $10B in originations funded in 2024 and an expanded broker network of over 8,500 partners. This was just one day after Rocket dropped the news it purchased Mr. Cooper's servicing enterprise.
In an article about UWM severing ties with Mr. Cooper after the Rocket deal, HousingWire published some spicy thoughts from Mat Ishbia including, but not limited to, "[Rocket] bought a real estate business because real estate agents won’t work with them.”
Thanking Trump: National Association of Home Builders is "pleased" that "President Trump recognized the importance of critical construction inputs for housing and chose to continue current exemptions for Canadian and Mexican products.
Sternly Worded Letter: 3 House Members Write to HUD Secretary Turner
The letter admonishes Turner for "disconcerting reports that the Trump Administration is exploring ways to broadly apply unproven uses of blockchain technology and cryptocurrency (crypto) in the operations of the U.S. Department of Housing and Urban Development (HUD)." The letter that attempts to educate Turner refers to Elon Musk as "co-President" and asserts that crypto and blockchain bear resemblance to the precursors to the Great Recession that were "risky, unregulated, and predatory financial products that enriched banks while ultimately devastating American wealth."
Mutual of Omaha Mortgage Throws Hat into Proprietary Ring
HW reports MoM rolled out a proprietary reverse mortgage product initially available in CA and FL that aligns with others available from Longbridge Financial, Finance of America, University Bank, Smartfi Home Loans, and Nationwide Equities.
Did they slash the 'stache? Finance of America hired a new agency, but the announcement doesn't mention whether Tom Selleck will remain as spokesperson.
Gunning for the HMID: An Urban Institute post asks, "How Can the Tax Code Make Housing More Affordable?" The two authors suggest reserving the Home Mortgage Interest Deduction for first-time home buyers only, and excluding existing homeowners who "tend to be wealthier."
Brookfield Asset Management entered strategic partnership with Angel Oak in which Brookfield will acquire a majority ownership stake in Angel Oak and offer its investors access to the firm’s residential mortgage credit strategies.
Not to be outdone by CoreLogic's transformation to Cotality, Altos Research announced that it's rebranding its data licensing product to HousingWire Data.
MOVING & SHAKING
Cross Country Mortgage named Brian Covey Divisional SVP.
Panorama Mortgage Group announced Juan Cepeda as Chief Operating Officer.
Waterstone Mortgage recently added Margie Hennessy as VP of Eastern Region Sales.
Former Fannie Mae Chief Economist Doug Duncan announced on LinkedIn that he's formed a new company, "Duncanomics."
CMG Home Loans announced hiring of Gus Floropoulos as Regional VP.
Rami Hasani is the new CFO at UWM; Andrew Hubacker will move to a senior advisory role.
Patrick Harrigan is now Director - Co-Issue at PHH Mortgage.
Supreme Lending announced that Sarah Middleton is their new Chief Growth and Chief Marketing Officer.
MARKET/INDUSTRY
March was the first month in five years that stocks and rates went down. Bill Bodnar looks through the tariff noise in his latest Master the Markets segment, and takes encouragement from the drop in oil prices and pause on quantitative tightening.
The 30-Year Fixed-Rate Mortgage Continues to Tick Down: Freddie 4-3-25
Mortgage applications decreased 1.6% from one week earlier: MBA Weekly Survey for the week ending 3-28-25.
Friday's jobs report showed 228,000 jobs created in March, almost 100K above expectations. Federal employment declined, but there were increases in multiple private sectors. Unemployment changed little at 4.2% according to the Bureau of Labor Statistics.
MBA SVP & Chief Economist Mike Fratantoni reacted to the jobs report: “In light of the tariff announcements this week and the sharp drop in stock markets around the world in response, these data are likely not capturing the moment with respect to the actual strength of the economy. However, the Federal Reserve, in data-dependent mode, is likely to remain cautious with respect to any rate cuts so long as inflation is above target, and the job market data continues to come in strong.”
Peeling Prices: The NAHB says nearly a third (29%) of builders cut home prices in March, up from 26% in February, and about 59% of builders used sales incentives in March, unchanged from February.
BUSY BOOMERS: NAR Generational Trends Report
Americans between the ages of 60 and 78—the baby boomer generation—are commanding a sizable presence in the housing market lately, regaining their top spot as the largest share of home buyers. They accounted for 42% of buyers and 53% of sellers, the highest of any other age group.
“In a plot twist, baby boomers have overtaken millennials—the largest U.S. population—to become the top generation of home buyers. What’s striking is that half of older boomers and two out of five younger boomers are purchasing homes entirely with cash, bypassing financing altogether.” Jessica Lautz, NAR’s deputy chief economist.
Will "Blended Rate" Gap Loans Crack the Rate-Lock Effect? Roam Gets $11.5M in Series A Funding
Khosla Ventures and Founders Fund made the multi-million dollar bet on a platform that helps buyers get into homes with a combination of assumable mortgages and gap financing. The idea is to motivate sellers, allow buyers to come in with down payments as low as 5%, and obtain gap financing for the difference between the outstanding assumable mortgage and the down payment.
Market Weaker Than We Think? First American
Existing-home sales as a percentage of total households have declined to early 1990s levels, just above 3%, and well below the long-run average of 4.1%.
The number of new-home sales as a percentage of the total number of households over time has fallen to levels not seen since the early 1990s, about 0.5%, and well below the long-run average of 0.7%.
“Comparing the pace of home sales today to those in the past without considering the overall market size is like comparing today’s apples with yesterday’s oranges.” - First American Chief Economist Mark Fleming
AFFORDABILITY INCREASES: Q125 Affordability Report ATTOM Data
Median-priced single-family homes and condos remain less affordable than historical averages in 97% of U.S. counties with sufficient data. Homeownership continues to be a financial challenge for the average American worker. Here are 5 of the top 10 U.S. counties with the largest yearly increase in Affordability Indexes in first-quarter 2025:
#1 – Linn County, IA: YOY Percentage Change in Index: 130%
#2 – Mercer County, PA: YOY Percentage Change in Index: 73%
#3 – Black Hawk County, IA: YOY Percentage Change in Index: 38%
#4 – Rensselaer County, NY: YOY Percentage Change in Index: 29%
#5 – Madison County, AL: YOY Percentage Change in Index: 24%
Insurance Insecurity: ValuePenguin Taps Into Homeowner Fears
In just a year, the rate of home insurance policyholders who worry their homes will become uninsurable nearly doubled. 50% of policyholders fear this’ll happen in the future, up from 26% in 2024. These fears are justified, as
25% of policyholders received nonrenewal notices, up from 19% in 2024.
67% say their home insurance rates rose in 2024, though that’s lower than the 72% who reported this last year. Among those with 2024 rate increases, 38% said theirs was 10% or higher.
75% believe their home insurance rates will rise in 2025, with 44% saying their premiums are more difficult to afford now than in prior years.
34% of policyholders have downgraded or reduced their coverage to save money.
$125T Up for Inheritance: ATTOM on The Great Wealth Transfer
“Millennials will be inheriting the most of any generation over the next 25 years ($46 trillion).
Gen X stands to inherit the greatest portion of assets in the next 10 years, totaling $14 trillion to Millennials’ $8 trillion.”
Half the transfers – about $62 trillion – will go to just 2% of all households.