Products lenders should offer in 2024, according to mortgage leaders
National Mortgage News
In-depth analysis, strategy and data spanning the entire residential mortgage industry. An Arizent brand.
With a great deal of mortgage industry conversation revolving around how companies might best survive the current downturn, a theme has emerged around the value of offering more, even if the market expects to originate less. Having a full slate of products to stay competitive next year when originations are expected to remain muted is a matter of necessity, lenders stress. A diverse mix — potentially including some products outside traditional home lending channels — is a way for lenders to set themselves apart and stay top-of-mind to consumers, referral agents and mortgage brokers that bring them to the table.
After three straight months of increasing home lending credit availability, it tightened in November largely due to companies pulling back on jumbo offerings amid falling affordability, the Mortgage Bankers Association said. The MBA's Mortgage Credit Availability Index, or MCAI, dropped 1.7% between October and November to a reading of 96.5. In the two previous months, the index had risen to 98.2 and 97.2. The MCAI took an even steeper fall from its November 2022 level, declining 6.7% from 103.4. The index was benchmarked to 100 in early 2012 to reflect conditions following the Great Financial Crisis.
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Consumers are getting better at recognizing that they need to do something about the risk that water damage from storms could pose to their houses, but many are still misinformed, Fannie Mae found in a newly released survey. Last year, 28% of consumers took action to address the concern, up from 21% in the influential government-related mortgage investor's last survey, done in 2020. The percentage taking action corresponded with the risk in their area, but many had incorrect information about it. The research could be setting the stage for mortgage lenders to distribute new documentation about the concern.
A federal bankruptcy judge has rescinded $1.95 million slated for Sprout Mortgage employees who were laid off abruptly last summer, the latest twist in the lender's dramatic shutdown. Over 100 former workers were due to receive a $3.5 million settlement in a class action lawsuit. A trustee for the non-qualified mortgage lender in a separate bankruptcy case asked the court to halt that payout as the Chapter 11 proceeding gets underway. U.S. Bankruptcy Judge Robert Grossman on Dec. 1 also ordered former Sprout president Shea Pallante be held in contempt for his failure to comply with bankruptcy court orders to produce documents and submit a deposition.
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