The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Zillow analyst on whether home prices can keep climbing

Today’s episode of HousingWire Daily features an interview with Nicole Bachaud, as she discusses annual and monthly home price appreciation growth, rising inventory levels and rent prices.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Mortgage

Genworth: 3% down mortgages key to lock in first-time homebuyers in 2018

Where will credit expand in 2018?

With overall mortgage originations projected to decrease in 2018, mortgage lenders are looking to first-time homebuyers to make up a large portion of their business.

According to a new survey from Genworth Mortgage Insurance, the majority of respondents anticipate strong first-time homebuyer growth in 2018, with more than half (57%) believing that the first-time homebuyer market will grow at a faster pace than the overall housing market in 2018. 

And for the products that will be in high demand, respondents said that the majority (63%) of mortgage lenders believe demand for 97% loan-to-value products will grow in 2018.

Genworth conducted its survey of 200 mortgage industry professionals at this year’s Mortgage Bankers Association annual convention and expo in Denver.

Rohit Gupta, president and CEO of Genworth Mortgage Insurance explained in an exclusive interview with HousingWire that there is more optimism around 3% down mortgage products.

The fact that the growth has been across all lender types shows there is broad demand for the 3% down, he added. 

“As long as the underwriting is strong, borrowers going into higher LTV loans is completely prudent and safe,” said Gupta.

Given that Genworth does mortgage insurance, Gupta pointed to their own business as an example for the health of the product. He stated that all their new books are in line with expectations or better than their expectations, adding that 3% down loans are performing well and they have no concerns right now.

The survey also found that industry professionals were divided on what they viewed as the most likely source of credit expansion in 2018, with a higher mix of above-80 LTV loans (45%) and a higher mix of borrowers with below-700 FICO scores (38%) as the most heavily cited.

After those two, 17% of respondents believed that a higher mix of borrowers with above-41 debt-to-income would be the most likely source of credit expansion.

“Despite their emergence as today’s fastest-growing homebuying demographic, first-time homebuyers still face many headwinds,” said Rohit Gupta, president and CEO of Genworth Mortgage Insurance.

“While some of these, such as shortages in affordable inventory, are environment-driven, others can be addressed via improved awareness on the various low-down-payment solutions available in today’s market,” said Gupta. “Ensuring that the right tools from both a product and educational standpoint are in place is imperative to supporting the continued positive trajectory for these buyers.”

Most Popular Articles

These are the hottest housing markets in America

A housing market report from RE/MAX found that 36 of 51 metro areas had double-digit year over year sale price increases in August. Boise led the way.

Sep 17, 2021 By

Latest Articles

Housing permits hold the key for economic expansion

Housing permits, for me, is one of the most important housing and economic data lines we have in America. As long as housing permits are moving upward, not only is housing doing ok but the economic expansion is moving along nicely post-1996. HW+ Premium Content.

Sep 21, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please