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Issue link: http://digital.themreport.com/i/911047
TH E M R EP O RT | 39 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION LOCAL EDITION ORIGINATION the homebuyer an edge by earning the seller's confidence that the loan will be approved quickly and the sale will close on time," said Jason Bateman, head of Redfin Mortgage. "In a bidding war, a buyer with a fully underwritten pre-approval can consider waiving the financing contingency to make their offer nearly as appealing to a seller as an all-cash offer," according to Bateman. Redfin Mortgage integrates an affiliated lending operation with its own existing brokerage and title businesses to work towards the goal of an entirely digital process. This process is meant to cover all steps from applying for the loan to closing. Redfin hopes to be the fastest and most transparent way for homebuyers to receive a quote, get pre-approved, and submit an offer to buy a home. According to the release, Redfin real estate agents have no incentive to offer Redfin loans over others and will continue to encourage consumers to work with lenders that offer the best service and rates. Everything's Bigger in Texas, Including Housing Gains A RECENT INDEX CALCULATES A MARKET'S HEALTH BY COMPARING IT TO NORMAL ECONOMIC AND HOUSING CONDITIONS, FINDING THAT TEXAS MARKETS COME OUT ON TOP. TEXAS // A new National Association of Home Builders/ First American Leading Markets Index (LMI) report shows sustained growth across the country, although single-family housing permits continue to struggle. According to the LMI, multiple Texas, metros are leading the way—with Odessa and Midland, Texas coming in one and two respectively on the Top 10 Small MSAs list and Austin-Round Rock, Texas, coming in third on the Top 10 Large MSAs List. Topping the Large MSAs list was Baton Rouge, Louisiana. Three Alabama metros also represented the South on the Top 10 Small Metros List: Florence-Muscle Shoals, Gadsden, and Auburn- Opelika. The LMI calculates a market's health by comparing it to normal economic and housing condi - tions. LMI tracks three particular factors: home prices, employment, and single-family housing permits. According to this latest report, the LMI Score grew in 84 percent of the tracked areas—282 metropoli- tan statistical areas—during the third quarter of 2017. The index tracks 337 total local markets and MSAs, and uses this data to assign each area an LMI Score. The nationwide LMI Score has reached 1.03. A metropolitan area is consid- ered to have normalized when those three components average out to an LMI score of 1.0. LMI Scores now exceed 1.0 in 197 out of the 337 metro areas the index tracks. The number of normal- ized metro areas has jumped by 40 compared to last year, and by six just since the second quarter of 2017. The primary driver for re- covery in many of these areas appears to be housing prices, which have risen above 1.0 or are normalized in 332 out of 337 mar- kets. Overall, housing prices have normalized in 98.5 percent of the tracked metro areas. Nationwide, the LMI's house prices component sits at 1.55, easily the strongest performer of the three. Employment also appears to be stabilizing, with 118 metro areas leveling off in the third quarter of 2017. That's up by 11 compared to the second-quarter total of 107. However, nationwide the employ- ment component is just shy of 1.0, currently sitting at 0.99. Single-family permits remain the biggest problem area highlight- ed by the LMI. The nationwide LMI Score for single-family per- mits is only at 0.56. Those num- bers do fare better in areas where overall economic performance is stronger, however, suggesting that continued economic recovery can drive those numbers up. Guild Mortgage Announces Record Growth GUILD HAD ITS BEST QUARTER IN HISTORY WITH $4.7 BILLION IN TOTAL LOANS IN THE THIRD QUARTER OF 2016. TEXAS // Guild Mortgage, based in Dallas, announced record overall loan volume of $11.7 billion through the nine months ended September 30, 2017, up 1.4 percent from the $11.5 billion in the same period of 2016. Purchase loans reached $9.5 billion, up 20.5 percent from $7.9 billion for the nine months of 2016, while the refinance market dropped 39.9 percent to $2.2 billion in 2017 from $3.7 billion. Third quarter comparisons reflected the shift in interest rates over the past year. Guild had its best quarter in history with $4.7 billion in total loans in the third quarter of 2016, led by $3.1 billion in purchase loans and a record $1.6 billion in refinanced loans. Purchase loans represented 65.2 percent of all loans in the 2016 quarter, with 34.7 percent in refinanced loans, the second highest level in Guild history, to 37.1 percent in the fourth quarter of 2016. In the third quarter of 2017, total loan volume was $4.4 billion, off 7 percent from the record 2016 quarter. Purchase loans hit a new quarterly high of $3.6 billon in Q 3 2017, up 17 percent from the 2016 period, representing 81.5 percent of all loans versus 18.5 percent for refinanced loans. Mary Ann McGarry, President and CEO, said the regions and states exhibiting the fastest growth benefited from lower housing costs and better inventories, making qualifying for a loan easier than in more expensive areas. "The Southeast region led with 26.8 percent growth and had the lowest average loan size of $174,507," said McGarry. "Compare that with our California Coastal Region, with an average loan size of $282,725, or Northwest, close behind at $279,947." McGarry continued, "We are optimistic about future growth in all areas based on continued strengths in the regional economies and more millennials reaching the age when they are in a position to consider buying a home instead of renting. To meet this need, we are always searching for new options to help potential homebuyers, such as our 1 Percent Down conventional loan program." "We are optimistic about future growth in all areas based on continued strengths in the regional economies and more millennials reaching the age when they are in a position to consider buying a home instead of renting." — Mary Ann McGarry, President and CEO, Guild Mortgage