The real estate industry has been hit with a wave of lawsuits and settlements that are shaking up the traditional norms of buying and selling homes. These legal actions are causing a significant transformation in the industry, impacting buyers, sellers, real estate agents, lenders, and industry organizations. Let's explore the major effects that these legal developments are having on the real estate sector.

The mortgage industry is experiencing a tech revolution, transforming the way mortgage lenders operate and enhancing the borrower experience. Advancements in technology are streamlining processes, improving efficiency, and revolutionizing the lending landscape. In this blog, we will explore the new technologies that are reshaping the mortgage industry and empowering mortgage lenders to thrive in the digital age. From automation and artificial intelligence to blockchain and digital mortgage platforms, these innovations are revolutionizing every aspect of the mortgage lending process.

On February 22, 2023 the Department of Housing and Urban Development (HUD) announced a reduction in FHA mortgage insurance premiums to make housing more accessible and affordable for first-time homebuyers. The Biden-Harris administration has stressed the importance of addressing disparities in homeownership and wealth in general. A White House Press Release states  "Homeownership is currently the principal source of wealth creation for most American households. But due to a nationwide shortfall in the supply of affordable homes and shifting demand for housing during the pandemic, first-time homebuyers have struggled in recent years to achieve homeownership."

A mortgage insurance premium is a monthly fee paid either to the FHA or a private mortgage insurance (PMI) provider, in addition to the monthly mortgage payment. The reduction intends to take some weight off new home owners by reducing the monthly amount due, or allowing more aspiring home buyers to qualify for a mortgage. The FHA estimates this reduction will save homeowners approximately $800 a year, on average. 

Mortgage Banker's Association's (MBA) President and CEO Bob Broeksmit mentioned "The lower premiums will expand homeownership opportunities by lowering mortgage payments for qualified FHA borrowers, providing critical relief from the steep rise in mortgage rates and home prices just in time for the spring buying season. This will especially help minority homebuyers and low-and moderate-income households who are predominantly served by FHA loans" (2023 MBA News Release).

The Department of Housing and Urban Development (HUD) announced via press release the new conforming loan limits for 2023. The new conforming loan limit is $726,200, which is a $79,000 increase from last year's limit of $647,200. In addition, the "conforming loan floor and ceiling increased to $472,030 and $1,089,300, respectively, for calendar year 2023." In areas considered low cost, the "floor" figure derives from 65% of the national conforming loan limit. In contrast, the ceiling for high cost areas is 150% of $762,200 conforming loan limit. Detailed information about the new guidelines can be found on the HUD website. 

“Is it the right time? Will it ever be the right time?” First Community Credit Union in Chesterfield, Missouri wrestled with this question for many years before deciding to take matters into their own hands. They created a full-service real estate company to streamline the homebuying process and connect members with a local a real estate agent.

We’ve written in-depth about The Community Reinvestment Act or CRA, which mandates that financial institutions serve their community with equality. Unfortunately, discrimination is far too common in the home-buying market, as many real estate agents discourage home purchases in disinvested communities. Many times this practice leaves borrowers of color and/or those living in low-to-moderate (LMI) income neighborhoods without the ability or desire to purchase a home. (Read more here.)

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Many people think the best way to grow their business is to hire more Mortgage Loan Officers to develop relationships with real estate agents to start bringing more customers through the door. Others wait too long and suffer from disorganization and missed opportunities. That’s why we’ve put together this comprehensive guide so you don’t miss out on any lending opportunities. A quick hint? Not all of it comes down to adding more people. You can leverage your current workforce more efficiently. Take these factors into consideration so you can make a more informed decision about how to effectively win more mortgage business.

First Mid Bancshares recently announced they would be acquiring the St. Louis-based Jefferson Bank in a merger. Since the announcement, First Mid, which is based in Mattoon, Illinois, has been under fire from a number of consumer advocacy groups for not lending to majority-Black neighborhoods. 

“Charlotte is one of the largest financial hubs. And there’s many banks, credit unions, mortgage companies that are based out of there. Our goal is to get hooked up with some of the big national banks and take this nationally as quickly as possible.” CEO Mark Gorman says RevTech has a focus on fintech, and has the connections that he’s looking for. HomeTraq offers home buyers the ability to get an agent to open up a house they want to see without commitment or being automatically put on that agent’s call list. The St. Louis startup distributes its platform through banks, credit unions and mortgage companies to help them retain customers.

For lenders, the problem of mortgage retention has been a long-time tolerated issue, despite the gravity of lenders only capturing less than 0.5% of the mortgage opportunities from their own customer base each year. Solving this challenge efficiently and effectively has been seemingly impossible—until the founders of HomeTraq aligned with the top lenders in the country.