Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

LoanDepot cleared $2B in profits, but margins are shrinking

Margins fell in the fourth quarter to 3.38% from 4.98% in the prior quarter

Just a week after its initial public offering, multichannel lender loanDepot announced that it had earned over $547 million in profits during the fourth quarter, giving it over $2 billion in earnings across 2020.

The lender, whose stock price skyrocketed following a downsized IPO that debuted at $14 a share, originated $37.4 billion in mortgages during the fourth quarter. LoanDepot captured $49.6 billion in rate lock volume, a quarterly record.

Though loanDepot originated $10.2 billion more in mortgages than it had in the third quarter, net income was down to $547.2 million from $728 million in the third quarter, and overall revenue ticked down 5% to $1.3 billion.

The declines in revenue and income were attributed largely to reduced gain-on-sale margins and increased expenses.

In the third quarter, loanDepot posted outsized margins of 4.98%. It fell to a more normalized 3.38% during the fourth quarter of 2020, the company disclosed in its earnings statement on Thursday. Throughout 2020, loanDepot averaged a gain on sale margin of 4.27%, easily a record for the California-based lender.


How one lender is tackling demand for jumbo loans in 2021

Following its rebrand from Citadel Servicing Corp. to Acra Lending, the company has also launched a new jumbo prime program. 

Presented by: Acra Lending

In its financial disclosures, loanDepot noted that its retail and wholesale channels delivered $28.3 billion in purchase originations during 2020, a 53% increase from the prior year. Still, the nonbank’s refinancing operation dwarfed its other business lines: loanDepot originated $72.5 billion in refinancings during 2020, a 170% increase over that of 2019.

Total expenses for the fourth quarter 2020 increased $110.4 million, or 17% from the third quarter 2020, due to higher payments to loan originators, an increase in staff, and a new national brand campaign.

In its earnings statement, loanDepot claimed to have achieved a higher degree of efficiency in the fourth quarter, stating that the number of team members grew 15% but loan originations grew 38%. The company also said its “Mello” technology allowed for an 8% decline in the cost per loan in 2020, while customer acquisition costs declined 28% year over year.

The company’s stock closed at $25.77 on Thursday, up 3.74% from the prior day.

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