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Fannie Mae is selling agency mortgage backed securities designed to appeal to socially minded investors, as the mortgage giant looks to draw more buyers into the market to help fill a void left by the Federal Reserve stopping purchases.Since March, the government-sponsored enterprise has been selling agency MBS that are scored according to a set of revamped criteria that gives extra weight to mortgages with certain characteristics, such as whether they're used for affordable rental housing or are to borrowers in rural areas with high poverty levels.The goal is to give investors who buy MBS more visibility into the underlying mortgages. Greater availability of data can make it more attractive to buy MBS with loans to underserved borrowers, translating into lower interest rates to borrowers with those types of mortgages."It costs money to originate one of these mortgages," Fannie Mae Chief Executive Officer Priscilla Almodovar said in an interview, referring to the costs that lenders incur when they make mortgages to underserved borrowers. "This is the way for us to incentivize them." The new program is an updated version of the "social" index first rolled out in late 2022. Change is needed, Almodovar said, because the agency MBS market is transitioning to a new era in which two of its biggest investor groups no longer hold the dominant roles in the market that they used to, or are missing in action altogether. Domestic banks have lessened participation and the Federal Reserve is letting MBS roll off its balance sheet.It's hard to overstate how important those two players have been in the market the past 15 years, according to Devang Doshi, a senior vice president at Fannie Mae. Fannie Mae and sister groups Freddie Mac and Ginnie Mae have issued around $4 trillion of MBS over that period — which Doshi said is nearly all accounted for by the Federal Reserve and domestic banks' added holdings.  "Mortgage rates are going to be dictated by asset managers and no longer the Fed's portfolio," he said, adding this is why Fannie Mae must take steps to ensure MBS are attractive to investors.Fannie Mae first auctioned mortgage bonds with Mission scores in March, with a second sale held earlier this month. Freddie Mac will begin applying the new Mission Index criteria to its own bonds starting in June. "It's still too early to tell how effective the mission index will be in creating demand for underserved borrowers," said Erica Adelberg, MBS strategist for Bloomberg Intelligence. "But there currently aren't a lot of [MBS] pools that score high on the Mission rankings, so it seems like there's room for upside."Pools with high scores may not only appeal to investors looking to satisfy social mandates, Adelberg added, but also funds looking for more-favorable prepayment behavior.

Fannie Mae and Freddie Mac on Monday clarified policies regarding interested party contributions in response to legal developments concerning real estate commissions and related questions from trade groups.At issue is a National Association of Realtors settlement that is expected to result in sellers no longer having to pay the commissions of buyers' real estate agents in conjunction with multiple listing services, but rather through other arrangements.The settlement has raised concerns about how the changes affect limits the two major government-related loan buyers have on seller contributions to borrowers' closing costs, which max out in a range of 2% to 9% of a property's value, depending on what's typical for an area.The two government-sponsored enterprises generally take a path similar to that of the Federal Housing Administration in their clarifications, noting that they won't count buyer fees toward limits on contributions so long as they are in line with the regional norm."If a seller or seller's real estate agent continues to pay the buyer's real estate agent in accordance with local common and customary practices, these amounts are not required to be counted toward the IPC limits for the transaction," Fannie said in a selling notice.Freddie issued a similar statement in an industry letter, noting, "If these fees continue to be customarily paid by the property seller according to local convention, they will not be subject to financing concessions limits."Both government-sponsored enterprises also mirrored the FHA in that they left the door open to make future changes to the policy as the Burnett et al. and Moehrl et al. cases play out."We will continue to monitor and assess the impact of the proposed NAR settlement and other real estate agent commission lawsuits to determine if any updates of our requirements are necessary," Freddie said. Fannie used similar language, noting that it will keep following the lawsuits and "evaluate the potential implications to the mortgage industry." It said that its current clarification does not constitute a formal selling-guide change.Meanwhile, the question of how the Department of Veterans Affairs will handle potential changes to buyer real estate commissions was still outstanding at the time of this writing.Borrowers can't directly pay buyer commissions under VA's policy for the loans it partially guarantees, and that's more likely to be a scenario in homebuying going forward given changes contemplated as a result of recent legal developments. In a recent letter to the department, the National Association of Realtors urged the VA to allow the commissions amid the changes to the landscape to ensure borrowers with guaranteed loans can make competitive offers for homes in a market with a supply shortage."Where no offer of compensation is offered from a seller, VA buyers are immediately at a disadvantage, potentially forcing them to forgo professional representation, lose a property in an already limited inventory, choose a different loan product, or exit the market," the NAR said.The VA has been in consultation with the Department of Justice in regard to how to address the issue given a recent DoJ ruling has raised the potential for tweaks to the National Association of Realtors settlement.

It is a slow start to the Spring home purchase season, at least in terms of newly constructed residences, as activity increased in March but at disappointing levels, the Mortgage Bankers Association said.This lackluster performance echoes the flat National Association of Home Builders/Wells Fargo sentiment index released on Monday, which ended a four-month streak of gains. Residential housing starts data that came out the next morning found the pace of new construction to be at the lowest annualized rate since August, with the decline in single-family homes the largest in three years."March is typically a month when new home purchases see a seasonal boost, but this year March applications for new home purchases saw less than a 1% increase over the prior month on an unadjusted basis," said Joel Kan, the MBA's deputy chief economist, said in the group's Builder Application Survey press release. "Applications were still ahead of last year's pace, but at 6%, the annual growth rate was the slowest since September 2023."Continuing high rates of home price appreciation, as well as mortgage rates again getting to 7%, is why this has been an unsatisfactory result.The one bright spot has been in applications for Federal Housing Administration-insured mortgages."The FHA share of applications did increase in March, exceeding 26%, compared to a 24% average for the prior 12 months," Kan said. "A higher FHA share can be a sign of more first-time buyer activity, but that segment of buyers is also more sensitive to affordability challenges."The MBA estimated the annual pace of new home sales in March to be a seasonally adjusted 615,000 units, a decline of 10.7% from February's 689,000, and the slowest rate in four months.New home sales fell 3.2% on an unadjusted basis to 60,000 units, compared with 62,000 in February.Conventional loans (both conforming and jumbo) were sought by 63% of new home buyers in March. The remaining share went to government-guaranteed products: FHA made up 26.4% while Veterans Affairs loans were 10.4% of new home applications and the U.S. Department of Agriculture Rural Housing Service program was 0.3%. The average loan size for new homes decreased to $405,400 in March from $405,719 in February.Mortgage rates that are likely to stay higher for longer are a drag on the Spring housing market for existing homes, the First American Data & Analytics Home Price Index report for March found."Many sellers will remain on strike keeping a lid on supply," First American Financial Chief Economist Mark Fleming said in a press release. "However, as we saw last fall when mortgage rates peaked, demand may also wane. Even though the supply of homes for sale will remain tight, sagging demand should further slow price appreciation in a 'higher-for-longer' mortgage rate environment."In March, First American estimated that prices rose 0.9% from the prior month, a slightly slower pace than the revised 1% month-to-month gain recorded in February. Year-over-year, prices rose by 6.2%, also down from the 6.3% annual increase one month prior.

A reader recently asked, “What mortgage rate can I get with my credit score?”  So I figured I’d try to clear up a somewhat complex question.With mortgage rates no longer at all-time lows (sigh), borrowers looking to refinance a mortgage or purchase a home are facing an uphill battle.Today, it’s much more common for your rate to start with a 6 or 7 as opposed to a 2 or 3. While these higher rates aren’t bad historically, the velocity of change over the past few years has been dramatic.This contrasts those 1980s mortgage rates, which were already high before simply moving even higher.But no matter where mortgage rates are, your credit score will play a huge role in determining whether you get a good, average, or not-so-good rate.What you see advertised isn’t always what you get, and could in fact be a lot higher if you’ve got marginal credit scores.Conversely, you might be able to score a below-market rate if you’ve got an excellent FICO score.Let’s explore why that is so you can set the right expectations and avoid any unpleasant surprises when you finally speak to a lender.Mortgage Rates Are Based on Your Credit ScoreThe illustration above should give you an idea of the importance of credit scoresWhen it comes to mortgages even a small difference in rate can equate to thousands of dollarsSomeone could have a rate 0.75% higher (or more) based on credit score aloneSo be sure all 3 of your credit scores are as high as possible before you apply!The graphic above was based on real advertised rates from Zillow’s marketplace for a $400,000 loan amount at 80% loan-to-value (LTV) for a 30-year fixed on an owner-occupied, single-family residence. While interest rates are quite a bit higher today, the same sliding scale rule applies.Those with higher credit scores will get the lowest mortgage rates available, while those with lower credit scores will have to settle for higher rates.Notice that the interest rate is a full 0.75% higher for a borrower with a 620 FICO score versus a borrower with a 740+ FICO score. That can equate to a lot of money over time. And mortgages can last a long time, sometimes 30 years!One thing that determines what mortgage rate you’ll ultimately receive is credit scoring, though it’s just one of many factors, known as mortgage pricing adjustments, used to determine the price of your loan.Along with credit scoring is documentation type, property type, occupancy type, loan amount, loan-to-value, and several others.Each pricing adjustment is essentially applied based on risk. So a borrower with a high-risk loan must pay a higher mortgage rate than a borrower who presents low risk to the lender.This is how risk-based pricing works.Borrowers with Lower Credit Scores Present More Risk to the Lender (And Must Pay More!)Simply put, the less risk you present to your mortgage lender, the lower your mortgage rate will be. And vice versa.That’s because they can fetch a higher price for your lower-risk home loan when they sell it on the secondary market.Lenders consider a number of things to measure risk, as mentioned above.Using credit score alone, it’s impossible to tell a prospective borrower what they may qualify for without knowing all the other important pieces of the puzzle.But I will say that your credit score is definitely one of the most important (if not the most important) factor that goes into determining your mortgage interest rate.And as I always say, it’s one of the few things you can mostly control. Pay your bills on time, keep your outstanding balances low, and apply for new credit sparingly.If you follow those simple tips, your credit scores should solid. It’s not rocket science.How Much Does Credit Score Affect the Mortgage Interest Rate?There are pricing adjustments specifically for credit scoresThey can raise your mortgage rate significantly if you have poor creditThe adjustments grow larger as credit scores move lowerAnd are especially impactful if you also come in with a small down paymentGenerally speaking, a credit score of 780 or above should land you in the lowest-risk bracket (it used to be 740 and before that 720). So it has gotten harder.If all other areas of your unique borrowing profile are also in good standing, you will qualify for a mortgage at the lowest possible interest rate.Of course, you’ll need to comparison shop to find that low rate too. It won’t necessarily come looking for you. But you should at least be eligible for the best a bank or lender has to offer.This lower monthly mortgage payment will allow you to save on interest over the entire mortgage term.As mentioned, credit score can be hugely important in determining pricing because lenders charge massive adjustments if your score is low.Just take a look at the chart above from Fannie Mae. If your credit score is 780 or higher, you’ll only be charged 0.375% (this isn’t a rate adjustment but rather a pricing hit) at 80% LTV (20% down payment).Conversely, if your credit score is between 640 and 659, you’ll be charged 2.25% in pricing adjustments.For the borrower with a 650 credit score, this might equate to an interest rate that is 0.75% higher on a 30-year fixed mortgage versus the 780-score borrower.That difference in rate could stick with you for years if you hold onto your mortgage.This means higher payments month after month for decades, all because you didn’t practice good credit scoring habits.Not only can a good credit score save you money monthly and over time, it will also make qualifying for a mortgage a lot easier.For these reasons, your credit score should be your top concern when applying for a mortgage!What Credit Score Do You Need for Best Mortgage Rate?Most mortgage rate ads you’ll come across make lots of assumptions (if you read the fine print)You’re often required to have a credit score of 740 or higher for the best rateIf your credit scores aren’t that good, expect a higher rate when obtaining a quoteFannie Mae and Freddie Mac now require a 780 FICO score for the lowest mortgage ratesIf you’ve ever seen a mortgage advertisement on TV or the Internet, the lender assumes you’ve got an excellent credit score.This could mean a credit score of 720, 740, or possibly even higher.  And they use that assumption to produce a favorable mortgage rate in their ad.For example, Wells Fargo’s mortgage rate page has a disclaimer that reads, “This rate assumes a credit score of 740.”But without that great credit score, your mortgage rate could be significantly higher when all is said and done.And now that Fannie Mae and Freddie Mac have added new credit scoring tiers, these credit score assumptions may rise to 780 for the lowest advertised rates.Long story short, aim for 780+ credit scores from now on if you want to qualify for the best rates.Borrowers With Low Credit Scores May Have Trouble Getting ApprovedAt the other end of the spectrum, borrowers with credit scores of say 660, 640, and 620 will have greater difficultly securing a mortgage.Assuming they are able to get approved for a home loan, they will receive higher mortgage rates.Unfortunately, I can’t say you’ll get X or Y mortgage rate if you have Z credit score, there are just too many factors in play all at once. And credit score is just one of them, albeit a very important one.But I can say that your credit score is hugely influential in determining both the mortgage rate you’ll receive and whether you’ll successfully obtain home loan financing to begin with.So it’s recommended that you check your credit score(s) 3+ months before applying for a mortgage to see where you stand.  And continue to monitor them up until you apply.This shouldn’t be much of a chore or even an expense now that so many companies provide free credit scores, including major banks and credit card issuers.For example, the many banks and credit card companies I do business with offer free scores. And it’s actually interesting to see the divergence in scores across different companies.[How to get a mortgage with a low credit score.]Check Your Credit 90+ Days Before Shopping for a Mortgage!Don’t chance it – check your credit scores 3+ months in advanceThis allows you to see where you stand credit-wise and gives you time to fix thingsIt may take months to turn things around if you need to improve your scoresThings like disputes may take 90 days or longer to complete and reflect in your scoresAim for a 780 FICO score to qualify for the best mortgage ratesIf you don’t know your credit scores several months in advance of applying for a mortgage, you may not have adequate time to make any necessary changes.Trust me, surprises come up all the time when it comes to credit.An erroneous (or forgotten) late payment could deflate your credit scores substantially, even if it’s reporting in error.And that lower score could increase your mortgage rate a percentage point or more. Yes, credit scores can make that much impact!Disputing errors and/or addressing other credit missteps can take many months to complete, so don’t hesitate to check your credit if you think you’ll be applying for a mortgage at any point in the near future.It’s good to know where you stand at all times, but especially before applying for a home loan. Don’t just assume you’ve got excellent credit. Verify it!And while you’re at, don’t make a lot of purchases before applying for a mortgage. That too can sink your scores.The good news is poor credit scores can be improved. You’re aren’t stuck with them. If your credit scores need some TLC, take the time to improve them instead of settling for a higher rate today.If your scores are already excellent, don’t forget to shop around! Simply comparing a few different lenders can be just as important as maintaining good credit.Read more: What credit score do I need to get a mortgage?

Guaranteed Rate paid $1.4 million in bonus incentives to a former executive under the agreement that he would stay employed with the company for two years. Richard Faust, former VP of Mortgage Lending at Guaranteed Rate, left after a year and four months.Now Guaranteed Rate is requesting for over half a million dollars to be paid back, according to a suit filed in a federal court in California. The mortgage lender is accusing Faust of failing to pay back a part of his bonus within ten days of his final day of employment, thereby breaching a contract. The former executive quit July 23, 2023 and the outstanding sum of the bonus should've been paid back by Aug. 6, 2023, the complaint filed March 5 said.Reporting by the Wall Street Journal found that hundreds of former Guaranteed Rate employees received clawback requests in 2023.Guaranteed Rate declined to comment on pending litigation Monday. Faust did not respond to a request for comment.In the original compensation plan, signed by the mortgage executive in 2022, Guaranteed Rate said it would advance a signing bonus in the amount of $1.4 million in two installments– $700,000 on his first eligible payroll date and another $700,000 on his fourth eligible payroll date. But the lender stipulated the signing bonus would be "subject to repayment unless and until the respondent achieved two years of continuous employment with GRI from the effective date of Feb. 8, 2022."If the respondent resigned or was terminated for cause prior to the two-year anniversary, he would "be obligated to repay the full net amount of the advance of the signing bonus to GRI within ten days of the last day of his employment," the complaint said.The money was advanced via a promissory note. According to the complaint, if Faust defaulted on the promissory note by failing to repay any unearned portion interest would begin to "accrue at a rate of 9% per annum from the date of default."Alongside the compensation plan, Faust signed an arbitration agreement, which automatically triggers arbitration if there are any disputes arising out of the respondent's employment. Guaranteed Rate is seeking $533,712 in damages, plus money to cover legal fees and costs arising from this complaint.According to one industry stakeholder, lofty sign-on bonuses with a clawback period became a norm during the refi boom and now many production employees are struggling to perform on volume that they promised to deliver. However, there have been instances where a producer received a hefty sign-on bonus from their employer but left prior to the required clawback period, where new employers will cover the outstanding amount, the stakeholder added.

A Supreme Court decision last year in a "home equity theft" case involving limits on government recoveries from tax liens holds potential short-term complications for mortgage servicers in some areas, but it could be beneficial in the long run.The case involved Hennepin County, which took $25,000 in excess funds from the foreclosure sale of 94-year old Geraldine Tyler's condominium over $15,000 in tax debt. The court ruled that the county could not take the excess amount under constitutional law, largely agreeing with the plaintiff's attorneys, who argued that the issue has been a widespread concern. Their estimates suggest more than $860 million in surplus funds have been taken by public entities.The decision is of interest to housing finance firms because tax liens generally trump all others, including those that secure mortgages. They're a particularly large concern for the industry right now given that property assessments have been rising at a fast clip.Mortgage companies may require escrow accounts to keep tabs on property taxes and insurance and to manage potential issues, but not all do. Escrow accounts also may be removed once equity reaches a certain threshold.The Tyler v. Hennepin County precedent could help borrowers and servicers when there is a tax default risk in that context if it compels jurisdictions to adjust their policies in line with what attorneys say is the court decision's main message."One of the things the Supreme Court said very clearly is local governments can take what they are owed, but no more," said Matt Kreis, general counsel at the Center for Community Progress, in a webinar the anti-blight group staged with the National Consumer Law Center."This is very important for states like Minnesota and roughly a dozen other states that historically have some measure of being able to do so — to keep the property and keep the excess value in it," Kreis said.The restrictions on what public entities can claim could benefit borrowers and servicers, said John Rao, senior attorney at the NCLC, in a recent interview."In general, I would say that as states reform their laws in light of Tyler, there may be more opportunity for mortgage holders to recover something when, in the past, they would have lost their interest in the property, just like the owner would," Rao said.However, while the general limit on government recovery in Tyler may be clear, other ramifications of the decision are not.One of the key questions around Tyler is, "How can local governments determine whether a surplus exists?" Kreis said, noting that this gets into questions about how the property's valuation should be measured.The Supreme Court decision suggests that having a public sale in which the market comes in to bid on property seems to be an acceptable way for local governments to establish a home's value, but specific direction on this point is lacking, said Kreis.Such uncertainties are sidelining some public entities like the city of New Bedford, Massachusetts until states can interpret and pass some of the legislation they've been working on to address the Supreme Court's decision as many are."A lot of states are going to be looking at their tax foreclosure laws because of the Tyler v. Hennepin case," said Andrea Bopp Stark, another senior attorney at NCLC, during the webinar.That could lead to a lengthening of the foreclosure process in some jurisdictions. Where there are delays, tax obligations often remain outstanding longer and increase."These liens can grow pretty quickly because of the statutory penalties and interest, and the interest for nonpayment of property taxes is substantially higher than any other type of interest. There are some states where it's 18%," Rao said.How big a concern these liens turn out to be for the mortgage industry in the context of Tyler or otherwise may depend on a property tax default rate that's generally not as well-measured on a national scale as loan performance is, he added.While overall mortgage delinquencies have remained historically low amid some broader reports of consumer finance stress, what's happening in tax foreclosures is tougher to draw a bead on because information tends to be jurisdictional, or in line with investments that may be, said Rao.

Amy Lessinger is taking the reins of real estate giant RE/MAX at a critical time for both the business and its industry at-large.The Nevada native joined the ubiquitous brokerage 26 years ago out of college and has since worn about every hat at the firm. After leading a massive team for 15 years, she joined the corporate ranks, becoming president of RE/MAX in February following former leader Nick Bailey's departure.  Amy Lessinger. Courtesy of RE/MAX Lessinger will now guide her firm, which counts over 144,000 agents nationwide, into the new home buying landscape following commissions settlements, including RE/MAX's own $55 million agreement last year. National Mortgage News recently spoke to her about her journey, her thoughts on today's housing market, and how commission changes will impact buyers, sellers, agents and lender relationships. RE/MAX also operates Motto Mortgage, a brokerage franchise brand. Lessinger, in response to questions about the business which today has 246 branches, said it will remain a key part of the RE/MAX's operations. She also declined to comment on real estate agents seeking dual agency roles, citing challenges with regulatory compliance. This interview has been edited for clarity and length.

We’ve finally got data for 2023 and United Wholesale Mortgage (UWM) left no doubt that it was the top mortgage lender during the year. And by a wide margin.The Pontiac, Michigan-based company mustered an impressive $108.5 billion in home loan volume, despite only operating in the wholesale lending channel.That was more than enough to unseat Rocket Mortgage from the top spot, with their crosstown rivals only able to originate about $76.3 billion.It then dropped off significantly, with third place Chase closing just $38.4 billion in home loans.In total, more than 5,000 mortgage companies nationwide funded roughly $1.8 trillion in home loans during 2023, a sizable drop from the $2.3 trillion seen in 2022.Last year was a very difficult year for the mortgage industry, with rapidly rising mortgage rates wreaking havoc on refis and challenging home buyer affordability.Still, some companies managed to increase market share and climb the leaderboard. Read on to see who else made the top 10.Top Mortgage Lenders of 2023 (Overall Leaders)RankingCompany Name2023 Loan Volume1.United Wholesale Mortgage$108.5 billion2.Rocket Mortgage$76.3 billion3.Chase$38.4 billion4.Wells Fargo$32.1 billion5.CrossCountry Mortgage$29.6 billion6.Bank of America$28.5 billion7.Fairway Independent$26.9 billion8.U.S. Bank$25.7 billion9.DHI Mortgage$21.7 billion10.loanDepot$21.5 billionAs noted, UWM claimed the #1 spot in the country after coming in second place last year, per freshly released HMDA data from Richey May.And their annual loan volume only slipped to $108.3 billion from $128.8 billion in 2022. Not bad considering the rapid ascent of mortgage rates during that time.They operate solely in the wholesale channel, meaning borrowers must be working with a mortgage broker to use them. But the fact that they came in first place illustrates the strength of the mortgage broker model, which post early 2000s mortgage crisis was all but done and dusted.It’s doubly impressive because second place Rocket Mortgage also operates a wholesale division (Rocket Pro TPO) in addition to their wildly popular retail unit.Speaking of, they dropped one spot from 2022 after sitting atop the rankings for several years. And their volume fell more drastically, to $76.3 billion from $128.9 billion.In third was Chase, which may have been helped along somewhat by their acquisition of failed bank First Republic Bank. They climbed one spot from a year earlier.Prior to its collapse, FRC was one of the largest mortgage lenders in the nation, specializing in jumbo loans (often adjustable-rate mortgages) to wealthy clients.This may allow Chase to grow larger if they continue to offer these types of loans post-acquisition.In fourth was Wells Fargo, which swapped places with Chase, likely because it announced that it was reducing its mortgage footprint.After being number one for many years prior to Rocket’s reign, the company announced an exit from correspondent lending while choosing to focus on bank clients and minority borrowers.They funded just $32.1 billion in home loans, down from $124.8 billion in 2022.Fifth place was claimed by CrossCountry Mortgage, which wasn’t even in the top 10 a year earlier, thanks to volume of $29.6 billion.The Brecksville, Ohio-based direct lender managed this feat despite the closure of Costco Mortgage, for which it was the main partner.The rest of the top 10 for 2023 included Bank of America, Fairway Independent Mortgage, U.S. Bank, DHI Mortgage, and loanDepot.Top Home Purchase Lenders of 2023RankingCompany Name2022 Loan Volume1.United Wholesale Mortgage$94 billion2.Rocket Mortgage$44.8 billion3.Chase$27.9 billion4.CrossCountry Mortgage$27.2 billion5.Fairway Independent$25.7 billion6.Wells Fargo$21.9 billion7.DHI Mortgage$21.7 billion8.Guaranteed Rate$19.4 billion9.U.S. Bank$19.3 billion10.Movement Mortgage$18.5 billionIf we focus our attention to home purchase loans only, which held about a 75% share, the list doesn’t look too different.UWM still held the top spot, more than doubling the volume of second place Rocket Mortgage.And Chase still managed to come in third, though CrossCountry grabbed fourth while Wells Fargo fell in sixth.In between them was Fairway Independent Mortgage, all originating just over $25 billion in home purchase loans each.Seventh place went to DHI Mortgage, which is the captive lender of D.R. Horton, the nation’s largest home builder.It’s common for home builders to have their own financing department, and lately they’ve been hard to beat because of the massive interest rate buydowns they’re offering.Chicago-based Guaranteed Rate took the eighth spot, followed by U.S. Bank and nonbank lender Movement Mortgage.No major surprises here given the large share of purchase loans. And those on this list have proven that they are adaptable to a mortgage market with very few refinances.Top Mortgage Refinance Lenders of 2023RankingCompany Name2023 Loan Volume1.Rocket Mortgage$29.5 billion2.United Wholesale Mortgage$14.5 billion3.Wells Fargo$9.1 billion4.PNC Bank$8.8 billion5.Bank of America$8.2 billion6.Chase$7.9 billion7.Citizens Bank$6.5 billion8.loanDepot$5.1 billion9.U.S. Bank$4.8 billion10.Mr. Cooper$4.6 billionAs we all know, mortgage refinance activity has plummeted thanks to a 30-year fixed that rose from around from 3% to over 8%, before settling down a bit.This has virtually destroyed rate and term refinance volume, and has made cash out refinances only feasible for those in desperate need of cash.Still, mortgage companies nationwide managed to fund over $400 billion in refinance loans during the year.The leader was Rocket Mortgage, which led in 2022 as well. The company funded roughly $30 billion in refis, followed by UWM with about half of that.Wells Fargo snagged the third spot with about $9 billion, with PNC Bank right on their heels with $8.8 billion.Rounding out the top five was Bank of America with $8.2 billion in refinances funded.The bottom half of the top 10 refinance lenders list included the likes of Chase, Citizens Bank, loanDepot, U.S. Bank, and Mr. Cooper.Depository banks seemed to dominate this list other than the top two names.Looking ahead, it seems likely UWM will retain its lead in 2024 as well barring some major unexpected change.And loan volume is looking fairly similar, with high mortgage rates and limited housing inventory continuing to dampen loan volume.You can also blame the mortgage rate lock-in effect, which has disincentivized millions of existing homeowners from moving and listing their homes.

Mphasis announced a collaboration with Amazon Web Services to focus on expansion of the technology firm's dedicated AI business, with plans to broaden both its reach and capabilities. The New York-based company and parent to mortgage technology consultancy Digital Risk expects to tap into AWS to establish its own generative AI unit "as a dynamic platform for modeling industry use cases and developing proof of concepts." Expecting to better assist financial services operations, including home lending, Mphasis said it plans to take advantage of the multiyear agreement to later expand into other industries.  "The Gen AI Foundry for Financial Services, led by Mphasis.AI, is our commitment to accelerating AI adoption and business modernization for our clients," said Mphasis CEO and managing director Nitin Rakesh in a press release. Greater utilization of generative AI and machine learning tools stand to greatly improve data extraction and analysis, as well as contact-center interactions. In the immediate future, Gen AI Foundry aims to expedite intelligent document processing for new bank accounts and mortgages, as well as in insurance claims processing and fraud investigation.  The creation of the foundry also comes on the heels of similar AI-based product rollouts this year specifically targeting mortgage businesses, including an analytics module from Paradatec. "Customers have told us they are investing in their own capabilities or third-party systems to automate complex workflows," said Neil Fraser, the company's director of U.S. operations, at product launch, adding that businesses turned to companies like Paradatec for help in identifying and cleansing data. More recently, Rocket Mortgage unveiled its AI-based underwriting tool that it claims can pull essential data from borrower documents. At the same time, other lenders have jumped on the bandwagon with different types of AI-powered services, including A&D Mortgage, which released a platform for broker partners. Newrez also entered into its own partnership with Microsoft at the end of last year to improve borrower engagement. Mphasis will offer business clients opportunities to view demos and examine proof of concept cases in virtual forums at its experience center or at a AWS office location, both in New York City.   "AWS is pleased to collaborate with Mphasis to support the introduction of the Gen AI Foundry for the financial services industry. Mphasis' expertise in AWS services and AI/ML capabilities, combined with their dedication to industry-specific solutions, aligns seamlessly with our mission to enable customer innovation with cloud computing," said Scott Mullins, managing director and general manager, AWS Worldwide Financial Services.Digital Risk was originally founded in 2005 to help originators navigate due-diligence processes. Mphasis, a global technology services provider, later acquired the company in 2013. 

In what is becoming a bifurcated housing market, the median time to sell a home remains relatively quick, but the share of sellers that decided to reduce the price was the highest in over a decade, Zillow said.In the U.S. during March, it took on average 13 days for a home to sell, but certain markets are laggards. For example, homes sold in Kansas City, Missouri and Columbus, Ohio were at a rapid 4 days from listing.On the other hand, in Miami, the median time for a property to go from listing to pending sale was 35 days, followed by San Antonio at 34 days and Jacksonville, Florida at 32 days."Shoppers in the market today should expect competition, especially for attractive listings on the lower end of the price range — a rare opportunity these days," said Skylar Olsen, Zillow's chief economist in a press release. "That's kept prices ticking upward in most areas, despite affordability challenges."Other market data also supports this dueling thesis of more acceptance of higher rates — the Mortgage Bankers Association reporting a loosening of credit — versus a more pessimistic consumer as seen in the downturn of the Fannie Mae Home Purchase Sentiment Index.In some markets, new construction has provided some relief for both rising prices and competitive pressures, but not in the most expensive areas."In costly areas, homeowners hold extensive mortgage debt at previously low rates, and the pressure is dialed up even further," said Olsen.The median age of listings on the Zillow website is 43 days, which the company attributed to some homes being difficult to sell. However, that was 10 days shorter than in February.The median days from listing to pending is likely to continue to decline in April and stay low in May, the Zillow report said.Meanwhile, during March, 20.6% of sellers decided to reduce the listing price, the highest percentage in more than a decade. This was about five percentage points higher than pre-pandemic norms. In February 20.1% of sellers had a price cut.Separately, a growing number of sellers are being more realistic about the state of the housing market, a Realtor.com survey said.The typical person who said they were looking to sell in 2024 had been thinking about listing at some point within at least the past two years, with nearly 59% of survey respondents stating they had been considering this within that time and another 33% for between two and three years."Plenty of homeowners have been eagerly waiting for mortgage rates to come down so that they can sell their current home and more affordably upgrade to a new one," said Realtor.com Chief Economist Danielle Hale in a press release. "With mortgage rates expected to ease slowly throughout the year, some potential sellers are planning to get off the sidelines in 2024 and make a move, with the majority expecting to buy a new home at the same time that they sell their current one."Among those then-homeowners that completed a transaction last year, nearly eight in 10 wished they had listed earlier to take advantage of that red-hot environment.This survey of 1,003 respondents planning to sell their home in the next year, and 1,000 respondents that did so in the last year, took place between Feb. 22 and March 4.For the first few weeks of this year, mortgage rates were around 6.6%, according to Freddie Mac. Right around the time of the survey, they zoomed back up to near 7%. Some sites, including National Mortgage News, which gets data from LenderPrice, have the 30-year fixed well above 7% as of April 15.Rates are playing a role in the decision making, with just under half of potential sellers planning to wait until they decline before acting. Another 29% want to wait, but said they need to sell soon for personal reasons. But 21% don't feel they are locked in to their current home because of where mortgage rates are.In the Realtor.com survey, just 12% expected a bidding war on their listing, compared to 27% in 2023. Meanwhile, only 15% thought the property would sell above their asking price, down from 31% last year.The latest sales price data from the Zillow report was from February and found that 26.6% of homes sold above their list price, compared with 24.2% a year ago, and 20.6% in February prior to the pandemic.Meanwhile, among Realtor.com survey participants, 15% expected to have an offer within a week after listing, down from 37% in 2023, and 15% expect buyers to be willing to forgo contingencies like inspections and appraisals to make the deal, down from 35% in 2023.