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The unique challenges facing minority first-time homebuyers

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Servicers must be powered by nimble technology to be heroes to borrowers, stalwarts to investors, and stewards of consumer protection to regulators.

Savvy lenders are already preparing for the next valley – Here’s how

Despite increased rate of tech adoption, the industry still has room for continued tech development and usage. Read here to learn more about key technologies that lenders need to give more attention to.

Mortgage

New home applications drop in November

But year-over-year purchases up, according to survey

New home purchases in November 2020 increased 34.7% from a year ago, but new home applications decreased from October, according to the Mortgage Bankers Association builder application survey.

New home applications decreased 16% from October, said Joel Kan, MBA associate vice president of economic and industry forecasting.

“November new home sales activity, both mortgage applications and home sales, ran at a pace considerably ahead of 2019, showing the ongoing strong growth in housing demand and new residential construction,” Kan said. “Signs of a slowdown in the economic recovery likely contributed to the expected monthly decrease in activity.”  

The average loan size of new homes increased from $355,684 in October to $357,554 in November, according to the survey.

New, single-family home sales were running at a seasonally adjusted annual rate of 827,000 units in November 2020, based on data from the survey. The seasonally adjusted estimate for November is a decrease of 10.8% from the October pace of 927,000 units.

On an unadjusted basis, MBA estimates that there were 59,000 new home sales in November 2020, a decrease of 15.7% from 70,000 new home sales in October. 

Conventional loans composed 71.8% of loan applications, FHA loans composed 16.8%, RHS/USDA loans composed 0.9 % and VA loans composed 10.4%

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