TheMReport

MReport Jan 2019

TheMReport — News and strategies for the evolving mortgage marketplace.

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TH E M R EP O RT | 11 4 2 7 10 3 8 6 1 5 9 steps to apply for corporate, government, and public grants as well as testing interest among our customer base for support. M // On the lending side, is lending to veterans different than other groups? ROSE // As an industry, we should strive to treat all of our customers with equal respect and transparency in all of our dealings. That said, if we can stretch just a bit further in our efforts for the benefit of those that have fought and may have sacrificed protecting our freedom, it is certainly a well-deserved extra effort, and veterans have a special place in the hearts of our mortgage lending team. We're very active in lending to veterans—be- tween 20 and 25 percent of our loan volume are VA loans. Those loans give veterans some benefits that other borrowers don't have; for example, veterans can get 100 percent financ- ing with a VA loan, eliminating the need for a down payment. There are other benefits that reduce borrowing costs and offer special refi- nancing options. Our team has been trained to look for all of the available benefits and deliver them to our borrowers who have served in the armed forces. M // How can the industry become involved to help support CCF? ROSE // CCF represents one of the best veterans-focused foundations sponsored by a financial services firm outside of the major de- positories. While we have enlisted the assistance of our vendors, professional relationships, and the communities around us, we would love the support from any willing participants elsewhere in the industry and welcome the direct discus- sion. We need capital, fundraising participation, and references to grant opportunities that we can apply for to further our mission. I am open to a discussion with anybody looking to help our efforts or start one on their own. "If we can stretch just a bit further in our efforts for the benefit of those that have fought and may have sacrificed protecting our freedom, it is certainly a well-deserved extra effort, and veterans have a special place in the hearts of our mortgage lending team." MDWELL Stretching Your Dollar The top 10 cities for middle-class homebuyers. W ith home prices rising faster than inflation and wage growth, first-time buyers and middle- class earners are in a tight spot when it comes to buying a good home. However, a new study by Realtor.com finds 10 metro markets where a $60,000 annual income can afford more than half the homes on the market. While homes in California won't be located on the list, there are many regions where this demographic can afford a home—such as Pittsburg. "Despite all the changes, home prices have stayed low here," the report stated. "Many houses built in the early 20th centu- ry during the city's heyday were neglected during the city's years of population loss. But now, these places are getting investor attention." Young buyers, in particular, are flocking to Pittsburgh to "snag and remodel homes priced under $125,000," the report stated. Like Pittsburgh, Buffalo and Rochester (Nos. 2 and 3 respectively) suffered the ills of manufacturing decline that led to a glut of houses left unattended after a high outflow of residents. But a resurgence in the downtowns has brought investors back, the report found. In fact, the remaining six markets where a $60,000 annual income can afford at least half the homes on the market are in cities that saw manufacturing dry up or which are making a comeback after years in trouble. TOP 10 CITIES City Median List Price Share of Affordable Homes 1. Pittsburgh, Pennsylvania $179,000 64.3% 2. Rochester, New York $177,500 63.1% 3. Buffalo, New York $185,100 61.8% 4. St. Louis, Missouri $209,500 61.7% 5. Cleveland, Ohio $179,500 61.7% 6. Birmingham, Alabama $219,200 55.7% 7. Memphis, Tennessee $214,000 53.5% 8. Oklahoma City, Oklahoma $235,100 53.4% 9. Cincinnati, Ohio $240,000 49.2% 10. Detroit, Michigan $232,500 47.4%

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