Mortgage news you might have missed: July 2024

July 15, 2024 11:54 AM

From trends in hiring (or firing) to the marketing methods lenders use on social media today, the mortgage industry continues to take on new contours on while some of us take time away to enjoy the summer.

Catch up on what you might have missed from National Mortgage News here.

These articles were reported by Brad Finkelstein, Maria Volkova, Bonnie Sinnock, Spencer Lee, Riley Edenbeck and Andrew Martinez.

Can mortgage shops function without middle management?

Low origination volume in today's market has pushed some mortgage lenders to cut out their middle management to save money, raising the question of whether it's needed in the first place. Although the premise drew mixed opinions from stakeholders, many agreed that cutting them out is purely a cost measure, not a reflection of the value they bring to the organization.

Read the full story here.

Project 2025’s impact on financial, housing services

The conservative Heritage Foundation released a proposed blueprint for federal change that involves drastic measures to housing. The plan, called Project 2025, includes hypothetical initiatives that would impact all government agencies handling financial services, including HUD, the FHA and the CFPB. Recommendations include breaking up HUD, raising the FHA's mortgage insurance premiums, unwinding the CFPB and releasing Fannie Mae and Freddie Mac from conservatorship. Project 2025 would also limit the Federal Reserve's ability to intervene in the mortgage-backed securities market, among other plans.

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Minority communities disproportionately hit by climate change

Nikitra Bailey, executive vice president at the National Fair Housing Alliance, sat for an interview with National Mortgage News to discuss how the effects of disinvestment in minority communities partially caused by redlining are still being felt today. Some minority communities are particularly vulnerable to climate-related housing risks. Because of those practices, communities of color were redlined to areas in close proximity to hazardous waste sites and poor air quality sites. Bailey and NFHA are hopeful HUD will pass the final iteration of its Affirmatively Furthering Fair Housing Rule to lessen the consequences of former practices.

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FHLB’s Ryan Donovan on what’s next for affordable housing initiatives

The FHLB is under scrutiny with its regulator seeking input on its affordable housing program and role in the mortgage market. The system's second-ever impact report may assist in those evaluations. The FHLB's president and CEO weighed in on the report and what it will mean looking forward. Donovan highlighted levels of liquidity in 2023 that will support affordable housing development as well as the report's intention of providing transparency for stakeholders.

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More Gen-Zers are buying homes with friends

Purchasing a home in today's market has gotten so expensive that potential buyers of all ages, but especially younger ones, are pooling their assets with unrelated parties to make it work. Among recent Gen Z buyers, 22% had combined their money with friends' to buy a home together, one report found. Gen Z is the most willing age group to buy, with 63% of research respondents planning to buy a home this year. Younger generations' approach to housing is an opportunity expand the potential buyer base for properties, according to a house-hacking startup.

Read the full story here.

Loan officers say social media is effective for lead generation

In today's housing market, it is more difficult for loan officers to generate leads, which resulted in thousands leaving the industry last year. Some loan officers are thinking outside the box by marketing their knowledge on social media platforms such as TikTok and Instagram. They shared their strategies for building an audience, creating engaging content for mortgage education and translating that engagement into loan closings.

Read the full story here.

Lenders test out AI marketing despite concerns

Mortgage companies, more than in other industries, seem open to exploring the benefits of AI in their marketing. Some of the greatest potential of artificial intelligence within company workflows lies in its uses for marketing. AI is demonstrating value as a tool that drives efficiency and fuels inspiration among mortgage professionals, even though some are hesitant to embrace it.

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Managing talent is top priority for lenders amid market struggles

Talent management and leadership have become mortgage lenders' top priority for their business, overtaking cost cutting, Fannie Mae found. Many lenders said it's important to have strong leadership to navigate downturns in the market. More than half of lenders surveyed this year expect not to make any staff changes. Staff sizes are normalizing and lenders are less pessimistic about the direction of the economy than they were a year ago.

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Financial firms feel behind on ability to handle fraud scams

Financial institutions know the importance of mitigating risks and potential losses from money transfer scams, but many still struggle to address threats, research from Lexisnexis Risk Solutions found. Only 50% of financial service leaders said they were confident in their ability to deal with fraud crimes, where perpetrators convince victims to send them money through various schemes. Newer, sophisticated scams require more advanced tech to identify potential fraud. Mortgage lenders and related businesses involved in real estate transactions are "targets of opportunity" according to some cybersecurity experts.

Read the full story here.