Florida Originator Issue Two 2023

REAL ESTATE FREEZE ON FLORIDA INVESTMENTS

BROKER SCHOOL NOW IN SESSION

FLORIDA ORIGINATOR

RISING TIDE OF CHALLENGES

Originators swamped by obstacles to getting deals done timely

REAL ESTATE FREEZE ON FLORIDA INVESTMENTS

BROKER SCHOOL NOW IN SESSION

FLORIDA ORIGINATOR

RISING TIDE OF CHALLENGES

Originators swamped by obstacles to getting deals done timely

From Sea To Shining Sea.

When Sunshine State brokers and lenders need information and opportunity, Florida Originator magazine is there for them. It’s the only mortgage publication that crisscrosses all of Florida, and the only one that lets industry pros from Miami to Jacksonville, from Destin to Key West know it all.

Prepping For 2025

More than 30 years ago, I was standing next to the guy who owned the company I was working at. I was in charge of one of his businesses, and he had a visitor he was showing around. They came up to me, and my boss introduced me to his guest. And then he said something that has stuck with me ever since. “This guy,” he said, pointing at me, “is pretty good at what he does. But when things get tough, that’s when he gets even better.”

I hadn’t realized what he had seen, but after he said that, I went back and thought about it. He was right, but the reasons weren’t as complimentary as one might hope (although I know he meant this as a compliment).

When things are going swimmingly, if you’re basically competent, it’s easy to do well. After all, everything’s on your side. The market is good, the rates are good, and everyone’s hopeful and confident, so business is easy to come by. Some folks maybe capitalize on good times more so than others, but it’s not a great achievement to bask in economic sunshine.

When business gets tighter, harder, and darker, it’s critical to start thinking about how to be innovative, to look at markets in a different light, and to consider what other ways you can generate revenue and sustain income. My boss was saying I was good at that, and I think I still am: I like keeping an open view of what might be coming a year or two out. But I realized that if I were really a good business leader, I would have been thinking about all those things when the market was going great. Instead, I was coasting on easy wins and only turned to a more thoughtful approach when I was forced to. If I’d been better at this earlier, I wouldn’t have had to scramble.

For loan originators now scrambling, we know there are techniques, tactics, and tricks to help secure those loan deals, fewer though they may be. We are glad to tell the stories of LOs who have successfully pivoted. But we’re also impressed by — and delighted to tell the stories of — local originators who laid the groundwork for their success now by being thoughtful and focused two years ago. Many of these success stories share the same characteristics: the LO didn’t just grab the easy money (refinances) but made sure to keep a solid footing with purchase partners, despite that being more time-consuming. Those relationships built then are a bank of profit now.

For many LOs, that’s a lesson to be learned for the next market turndown. For now, the imperative is to know every winning strategy, trend, and insight that can set you up for success. And then to think about what the market will also look like two years from now. The compliment shouldn’t be that we get innovative when we have to but that we never have to scramble in the first place.

STAFF

Vincent M. Valvo

CEO, PUBLISHER, EDITOR-IN-CHIEF

Beverly Bolnick

ASSOCIATE PUBLISHER

Christine Stuart NEWS DIRECTOR

Keith Griffin

SENIOR EDITOR

Gary Rogo

SPECIAL SECTIONS EDITOR

Mary Quinn

MULTIMEDIA PRODUCER

Erica Drzewiecki, Katie Jensen, Ryan Kingsley, Sarah Wolak

STAFF WRITERS

Regina Morgan

ADVERTISING SALES EXECUTIVE

Nichole Cakirca, Nicole Coughlin

ADVERTISING ASSOCIATES

Alison Valvo

DIRECTOR OF STRATEGIC GROWTH

Julie Carmichael

PROJECT MANAGER

Meghan Hogan

DESIGN MANAGER

Stacy Murray, Christopher Wallace GRAPHIC DESIGN MANAGERS

Navindra Persaud DIRECTOR OF EVENTS

William Valvo

UX DESIGN DIRECTOR

Andrew Berman

HEAD OF CUSTOMER OUTREACH AND ENGAGEMENT

Matthew Mullins

MULTIMEDIA SPECIALIST

Melissa Pianin

MARKETING & EVENTS ASSOCIATE

Kristie Woods-Lindig

ONLINE ENGAGEMENT SPECIALIST

Lydia Griffin MARKETING INTERN

Submit your news to editors@ambizmedia.com

If you would like additional copies of Florida Originator Mangazine Call (860) 719-1991 or email subscriptions@ambizmedia.com

www.ambizmedia.com

© 2023 American Business Media LLC. All rights reserved. Florida Originator Magazine is a trademark of American Business Media LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to:

Vincent M. Valvo CEO. Publisher, Editor-in-Chief vvalvo@ambizmedia.com

American Business Media LLC 88 Hopmeadow St. Simsbury, CT 06089 Phone: (860) 719-1991

info@ambizmedia.com

A State Of Denial

The Sunshine State doesn’t shine so bright when it comes to closing the deal on mortgages.

6 22

Florida Originator News Bites

A look at the news that’s important for the mortgage industry across the Sunshine State.

Clamping Down On Foreigners

A new state law makes it more difficult for non-citizens to purchase real estate.

Second-Home Sales Suffer

It’s a down market for vacation dwellings due to high prices.

Florida Fights National Trends

Population growth helps Sunshine State battle national economic trends..

People On The Move

A Roundup of Texans landing new jobs or being awarded promotions

Growing New Mortgage Bankers

Miami university partners with industry group to train next generation of mortgage bankers.

30 38

10 24 12 17 18

Frustration Leads To Origination

Reduced to tears by a bad experience, Marsha Gandy became a loan originator.

Fight Insurance Woes

Don’t let loans slip through your fingers: help clients shop for coverage.

Data Bank

Learn some facts about the leading real estate markets in Florida.

SPECIAL SECTION

40 45

Masters Of Their Craft

Two are honored with the inaugural Florida Originator Magazine’s Mortgage Masters Award for winning in tough times.

FLA. ORIGINATOR

Florida Mortgage Activity Took A Chilly Dip

New data shows that Florida’s largest metro areas slipped down the national list for home buying or refinance activity, according to a Black Knight Inc. report.

The Miami–Fort Lauderdale–Palm Beach metro area slipped from 9th to 10th in the nation between January and February. Meanwhile, the Tampa–St. Petersburg–Clearwater metro also charted down one place to 15th nationally, and the Orlando–Kissimmee–Sanford market fell out of the National Top 20, after charting 19th the month prior.

Mortgage interest rates rose in February after a brief dip, which resulted in a drop in the total number of mortgages taken out nationwide — with a slightly more pronounced decrease in Florida compared to the rest of the country as a whole — according to the latest from Black Knight.

The comparison is based on “rate lock” activity, which analysts rely on to spot trends in real estate, banking, and the overall health of the economy.

The report shows that the number of loans taken out by homebuyers and refinancers decreased overall in February as a result of rising mortgage rates. However, certain mortgage products saw a rise in demand, particularly from buyers who took out larger loans, saw a rise in demand, as certain non-conforming mortgage rates were more favorable than for those who took out traditional loans.

Fed Reserve: Housing Demand Improves Slightly

The Federal Bank of Atlanta reported that housing demand improved

slightly since the previous report as mortgage rates edged lower.

In its report commonly known as the Beige Book, the Fed indicated marginal increases in buyer traffic and sales in January as mortgage rates moderated from the highs experienced in October 2022.

Though down from peak levels, year-over-year home price appreciation throughout the Sixth District was slightly stronger than the nation as a whole.

Affordability remained a significant headwind primarily for entry-level buyers. Also, a larger share of homes sold at a discount from the asking price.

New home builders continued to experience a high rate of cancellations and the majority offered incentives to attract buyers.

Condo Owners Can Get Relief For Repairs With Miami-Dade Program

Miami-Dade County condominium owners facing special assessment payments for structural repairs to their building can seek help through the county’s newly launched loan program.

The program, according to a story in the Miami Herald, allows owners earning less than the area median income — which is $95,620 for singles and $109,200 for couples — to qualify for a zero percent interest rate loan of up to $50,000 to pay for special assessments associated with repairs as a result of building recertification requirements.

At a town hall in Aventura last week, Miami-Dade Mayor Daniella Levine Cava said the collapse of Champlain Towers South in 2021 was only part of the reason for the program. “Unfortunately, it’s a tragedy that brings these things to bear and then we react and

then we do something to try to prevent future tragedies,” Levine Cava said.

Condo owners would have 40 years to pay the loan back with a zero percent interest rate, the Herald said.

The loan program has been allocated $9 million. Owners whose cash assets exceed $50,000 must put down up to 10% of the loan amount. Should the owner sell the condo or it is no longer their primary residence before the loan is paid in full, the balance becomes due.

Broward County’s Sales Down Nearly 32%

Broward County Florida’s February sales decreased 31.6% year-over-year, according to the Miami Association of Realtors.

Existing condo sales decreased 32.4% year-over-year due to lack of inventory and rising mortgage rates.

Single-family home sales decreased 30.5% year-over-year and the current market has lower inventory in specific price points and higher rates.

Total pending sales rose 12.2% month-over-month, from 2,541 in January 2023 to 2,850 in February 2023. Pending sales are an indicator of future sales, but it takes up to 40 days for pending transactions to close and not all pending sales end in deals.

Broward County single-family home

-31.6

> Percentage decrease in year-over-year home sales in Broward County, FL.

ORIGINATOR NEWS BITES

West Palm Beach had the fifth biggest increase (12.8%, up from 11.1%).

> Percentage increase in year-over-year median single-family home price in Broward County, FL, increasing from $519K to $560K.

Million-dollar homes are making up a larger chunk of Florida’s housing stock because many parts of the Sunshine State are still seeing substantial upticks in home values and prices.

Florida was home to six of the 10 metros with the biggest home-value increases last year, and Miami, North Port, and West Palm Beach all saw 5%-plus annual price increases in January.

14.1%

> Amount of Miami homes worth at least $1 million.

7%

median prices increased 7.9% year-overyear in February 2023, increasing from $519,000 to $560,000. Existing condo median prices increased 13.3% yearover-year, from $240,000 to $272,000.

Total active listings at the end of February 2023 increased 79.2% yearover-year, from 4,310 to 7,723.

Inventory of single-family homes increased 93.8% year-over-year in February 2023 from 1,639 active listings last year to 3,176 last month. Condominium inventory increased 70.2% year-overyear to 4,547 from 2,671 listings during the same period in 2022.

New listings of Broward single-family homes decreased 24.2% to 1,248 from 1,646 year-over-year. New listings of condominiums decreased 10.2%, from 2,088 to 1,874 year-over-year.

Percentage Of Miami Homes Worth $1M Or More Show Biggest Increase

Roughly 14.1% of Miami homes are worth at least $1 million, up from 11.5% a year ago, the biggest increase of the metros analyzed in a recent Redfin report. The next-biggest uptick is in North Port (11.3%, up from 9.1%).

Florida homes are holding their value because there’s still healthy demand from buyers, especially out-of-town remote workers moving in from more expensive parts of the country. Five of the nation’s 10 most popular migration destinations are in Florida, despite its status as the most hurricane-prone state in the U.S. Redfin agents report that homebuyers typically move in for the state’s relatively affordable homes, beaches, warm weather, and lack of a state income tax.

> Amount of homes worth at least $1 million nationwide, up from 4.2% just before the pandemic began.

Nationwide, just over 7% of U.S. homes are worth $1 million or more. That’s down from June 2022’s all-time high of 8.6% and essentially unchanged from a year ago — but it’s up from 4.2% just before the pandemic began.

Miami, Tampa Tops In Year-Over-Year Home Price Increases

The Miami area and Tampa topped the list of cities with the highest yearover-year increases in home prices in the United States from December 2021 to December 2022.

+15.9%

reported lower prices in the year ending December 2022 versus the year ending November 2022.

“The cooling in home prices that began in June 2022 continued through year end, as December marked the sixth consecutive month of declines for our National Composite Index,” says Craig J. Lazzara, managing director at S&P Dow Jones Indices. “The National Composite declined by -0.8% in December, and now stands 4.4% below its June peak. For 2022 as a whole, the National Composite rose by 5.8%, the 15th best performance in our 35-year history, although obviously well below 2021’s record-setting 18.9% gain.”

+13.9%

According to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, Miami led the way with a 15.9% year-over-year price increase, followed by Tampa with a 13.9% increase. All 20 cities measured

Miami-Dade County Pending Home Sales, Showing Appointments Rise

Two leading homebuying indicators — pending home sales and showing appointments — surged month over month in Miami-Dade County as the resilient South Florida market continues to illustrate its unique market demand in the face of elevated mortgage rates, according to January statistics released Feb. 21 by the Miami Association of Realtors and the Multiple

Listing Service system. Miami real estate, which posted its second-most total home sales in history in 2022 despite mortgage rates more than doubling over the course of the year, can expect to see more closed sales over the next coming months. It takes up to 40 days for pending sales to close and not all pending sales and showing appointments end in deals.

Showing appointments in the Southeast Florida MLS, which is owned by Miami Realtors, jumped 54.5% month over month to 233,144 showings. It marks the most showings in a month since May 2022 (245,225 appointments). Miami-Dade County total pending sales rose 35.5% month over month, from 1,688 in December 2022 to 2,288 in January 2023. It is the first monthover-month rise of total pending sales since August 2022.

“Miami is a unique market because of our high percentage of cash buyers, surging migration, and soaring number of international and domestic buyers,” Miami Chairman of the Board Ines Hegedus-Garcia said.

“Miami is shielded in a sense from interest rate hikes because of those fundamentals. While other major U.S. markets are seeing decreasing prices, the Miami market is still very strong and still appreciating.” b

> Home price increase in Miami from December 2021 to December 2022.

> Home price increase in Tampa during that same time.

Experience the ultimate upgrade of Morgan and dive into the future of personalized assistance with AngelAi. Say goodbye to mediocrity and embrace the extraordinary. This is your chance to soar above the rest and leave your competitors in awe.

Swi . Accurate. Brilliant: Discover the AngelAi Advantage

AngelAi is not just an Ai personal assistant; she is a guardian angel guiding you through the intricate realm of credit and finances. Powered by the brilliance of Ai, AngelAi ensures every decision you make is informed, strategic, and empowering.

Lightning-Fast Answers: Get immediate responses, keeping you steps ahead.

Guaranteed Deal Structuring and Calculations: With AngelAi, your deals are flawlessly executed.

Ai-Powered Marketing and Social Content: Delight clients with stunning content generated by AngelAi.

Comprehensive Loan Services: AngelAi handles it all-processing, underwriting, closing, and more.

Automated Loan Processing and Disclosures: Streamline your loan journey effortlessly.

8 a.m. TRU Approval®: Trust AngelAi for approvals at the speed of light.

40-Minute Turn Times: Experience efficiency like never before.

Lead Management and Building Tools: Dominate leads with AngelAi's comprehensive tools.

Experience the Game-Changing Capabilities at AngelAi.com

Step into the world of AngelAi and experience why top national agents like Josh Altman of Million Dollar Listings have fallen in love with her.

Embrace the Future and Command Success with AngelAi

Join our exclusive workshop and unlock the full potential of Ai's transformative power. Work directly with certified AngelAi trainers and discover how to leverage its vast features. Step into a new era of confidence in your mortgage business.

Scan the QR Code NOW to Sign Up for the live Webinar!

Visit swmc.com/angelai-university/

Josh Altman is a paid spokesperson for Celligence International, LLC, the creators of AngelAi. Million Dollar Listing is an American reality television series that is not a liated with Sun West Mortgage Company, Inc.

Pavan Agarwal

Vacation Home Sales Sinking

Prospective second-home buyers deterred by high costs, slowing short-term rental market

By Dana Anderson, Special To Florida Originator Magazine

The number of people locking in mortgages for second homes dropped to its lowest level since 2016 in February and remained nearly as low in March. Prospective second-home buyers are deterred by high costs, a slowing short-term rental market, and the declining prevalence of remote work.

Mortgage-rate locks for second homes were down 52% from pre-pandemic levels on a seasonally adjusted basis in March, compared with a 13% decline for primary homes. Second-home rate locks fell to their lowest level since 2016 in February and remained nearly as low in March.

That’s according to a Redfin analysis of Optimal Blue data. A mortgage rate lock is an agreement between a homebuyer and a lender that allows the homebuyer to lock in an interest rate on a mortgage for a certain period of time, offering protection against future interest-rate hikes. Homebuyers must specify whether they are applying to secure a mortgage rate for a primary home, a sec-

ond home, or an investment property. This analysis does not include cash purchases. We define “pre-pandemic levels” as January and February of 2020. We use early 2020 as a comparison point because it provides a baseline for mortgage demand before homebuyer activity fluctuated wildly during the pandemic.

Second-home demand is also down from a year ago and from January 2022, just before mortgage rates started rising from record lows. Mortgage-rate locks

for second homes were down 49% year over year in March and down 71% from January 2022. Mortgage-rate locks for primary homes have dropped 29% year over year and 35% since January 2022.

The drop in second-home demand follows a meteoric rise during the pandemic homebuying boom. Mortgage-rate locks for second homes reached a peak of 89% above pre-pandemic levels in August 2020. At that time, many affluent Americans bought homes in vacation destinations, encouraged by low mortgage rates, remote work, and limitations on traveling from place to place.

A scarcity of new listings, elevated mortgage rates, still-high home prices, and persistent inflation, among other economic woes, are holding back demand for both primary and second homes.

“With housing payments near their all-time high; a lot of people can’t afford to buy one home right now, let alone a second,” said Redfin Deputy Chief Economist Taylor Marr. “Add the recent increase in loan fees,

> Dana Anderson

Mortgage-Rate Locks For Second Homes Are

52% Below Pre-Pandemic Levels

Seasonally adjusted mortgage-rate lock index: 100 = pre-pandemic levels (Jan.–Feb. 2020)

Aug 2020: 189 +89% from pre-pandemic levels

less deterred by rising rates, and we hear a lot from our buyers that they don’t want to wait for perfect market conditions — they are ready to enjoy the benefits of a second home now.”

A variety of factors are causing the outsized drop in second-home demand:

• Many potential second-home buyers are priced out because it’s frequently more expensive to buy a vacation home than a primary home. The typical second home was worth $465,000 in 2022, versus $375,000 for a primary home. Additionally, the federal government increased loan fees for second homes in April 2022.

March 2023: 86.9 -13.1% from pre-pandemic levels

• Vacation-home buyers are quicker to pull back from the market than primary-home buyers because second homes aren’t a necessity.

SOURCE: Redfin analysis of Optimal Blue data

inflation, shaky financial markets, the end of pandemic-related financial stimulus, and many companies calling workers back to the office, and it’s simply a challenging time for most Americans to buy a vacation home.”

But there are still some second-home buyers out there, especially in popular vacation destinations. Redfin agent Van Welborn said some buyers are looking for vacation condos, especially in desirable neighborhoods.

“It’s mostly affluent cash buyers who don’t have to worry about high rates,” Welborn said. “They’re motivated to buy now because they think they can get a vacation home for under asking price — and in some cases, they’re right. There are fewer buyers looking to buy properties to be used as shortterm rentals, though, as they’re finding that the market is saturated.”

“Despite a national cooling in residential real estate, we’re finding that

the luxury real estate market is still in a league of its own,” Pacaso CEO and Co-Founder Austin Allison told Florida Originator Magazine previously. “High-net-worth buyers are not as reliant on financing, so they might be

• Workers are returning to the office. Second homes are less attractive when there’s less time to spend in them. While working from home is more common than it was before the pandemic, the share of job openings that allow remote work has shrunk since early 2022.

March 2023: 47.8 -52.2% from pre-pandemic levels

• Buying a vacation home to rent it out is nowhere near as attractive as it was during the pandemic homebuying and investing boom. Owners of shortterm rentals on sites like Airbnb are reporting a steep decline in business. That’s because many people became vacation-rental hosts during the pandemic, which led to oversupply. Many local governments are also instituting new short-term-rental regulations, like new taxes and stricter permitting. The long-term rental market is also cooling.

• Bank accounts are shrinking as stock markets decline, so would-be buyers have less cash on hand for down payments and monthly payments.

• Many people with the means and desire to buy a second home have already done so, during the pandemic homebuying boom of 2020 and 2021.

b

As a data journalist at Redfin, a full-service real estate brokerage, Dana Anderson writes about the numbers behind real estate trends.

“A lot of people can’t afford to buy one home right now, let alone a second.”

> Taylor Marr, Deputy Chief Economist, Redfin

Florida Braced To Weather A National Recession

Continued population growth will act as sandbags protecting state’s economic activity

By Sean Snaith, Special To Florida Originator Magazine

lorida took it on the chin during the 2008-09 and 2020 recessions. But as what may be the most anticipated recession ever closes in on the U.S. economy in 2023, Florida is in a strong position to weather the storm.

Activity in the housing market has been hard hit as high home prices combined with rising mortgage rates have pushed the size of monthly mortgage payments out of reach of many potential buyers.

Consumer spending on goods has shown signs of weakness as the Federal Reserve continues its fight to bring inflation down to its 2% target.

Because the national labor market remains in a very strong condition, consumers continue to spend on services and experiences, which has reinforced Florida’s important tourism sector.

To be clear, any recession will pull down Florida’s economy. Fortunately, a recession in 2023 in Florida will look nothing like the previous two recessions our state has been through in 2008-2009 (housing collapse) and 2020 (COVID-19 policy).

A recession is never welcome news as always there are those who will experience economic harm, but compared to what our state went through in the previous two recessions, any pain we may have to endure will be far less severe.

If this national economic storm should materialize, it will not be a major hurricane. Florida’s economy is as well prepared to weather it as we possibly could be.

Economically speaking, we have our flashlights, batteries, food, and water. Our gas tanks are full. We have candles as well. Florida’s continued population growth, which led the nation last year, and the associated wealth and income

this has brought to the state will act as sandbags preventing erosion of the state’s economic activity. Record-low unemployment rates and continued job growth thus far will act like storm shutters, lessening the damage that the winds of a recession could do to the state’s labor market.

Like any early storm path and strength predictions, the final outcome isn’t clear. But if we do get “hit,”

the damage to Florida’s economy should be minimal.

FLORIDA’S HOUSING MARKET EBBS

The February 2023 single-family home report released by Florida Realtors shows a market for existing housing that remains depleted of inventory — a shortage that was responsible for fueling rapid price appreciation over the previous two years. The median price has been pushed $137,200 above the peak price of the housing bubble in June 2006. The median sales price for single-family homes increased by $13,519 in February 2023, year over year, and now stands at $395,000 — a year-over-year price appreciation of 3.5%. Price appreciation in the townhome/condominium market continues as well, with an increase in the median sales price of $25,000 year over year, registering at $315,000 in February of this year. This price increase represents an 8.6% increase in median prices year over year.

Inventories of single-family homes in February are up from 0.9 months of supply a year ago to 2.7 months of supply this year. This indicates an inventory balance that is still skewed heavily in favor of the sellers in the single-family market, according to the Florida Realtors report.

From February 2022 to February 2023, inventories of condominiums rose from 1.2 months to 3.2 months, indicating that the condo market also is still tilted in the seller’s favor. Put another way, severe shortages remain in both the existing single-family home and condo markets.

Distressed sales of single-family homes in the form of short sales remain at very low levels despite the impact of the recession. They have

> Sean Snaith

+149,000

> Expected increase in single-family housing starts in 2026, after falling to 137,100 in 2024.

decreased from 57 in February 2022 to 17 in February 2023, a decrease of 70.2%. Foreclosure/REO sales have increased year over year by 12.5% versus February 2022. Traditional sales are down 21.3% year over year versus February 2022, as rapid price appreciation exacerbates affordability problems amid depleted inventories that are worsened by higher mortgage rates. Distressed sales of condos in the form of short sales were at very low levels in February 2023. Foreclosure/REO sales are down from February 2022 (-52.5%). Traditional sales of condos are down 30.0% in February 2023 when compared to February 2022.

In February 2023, the percentage of closed sales of single-family homes that were cash transactions stood at 31.3%. For condos, that figure is much higher, 54.6%. The condo market’s shares of cash transactions declined by 1.8% year-over-year while the single-family home market share of cash transactions has declined by 7.4%, which may indicate a decreasing role of cash investors in Florida’s single-family housing market. This is occurring amidst a sharp decline in mortgage availability.

WOBBLING HOUSING MARKET

Sales have been on a strong upward path over the past few years, and the 12-month moving average and monthly sales have greatly exceeded their peak value during the housing bubble. Sales growth coming out of the bottom has been on a stronger trend than the pre-bubble housing market, but over the past seven months, the 12-month moving average is declining sharply. This reflects decreasing affordability in the face of the rapid price appreciation over the past several years; the depleted inventory of houses for sale; tighter mortgage credit markets; and higher mortgage rates for those able to get loans. The COVID-19 plunge in sales during April and May pulled down the moving average in 2020, but the

$395,000

end of their working lives and this bodes well for continued population growth via the in-migration of retirees, as well as job seekers to Florida.

We expect this upward trend in sales to resume as increases in the supply of new housing coupled with the recession will dampen price appreciation in an environment with continuing strength in the demographic drivers of housing demand, despite higher mortgage rates.

Median sales prices for existing single-family homes continue to climb since bottoming out in 2011. The double-digit pace of price increases in 2016 and 2017, which eased in 2018 and 2019, resumed in 2020. Over the past year, the 12-month moving average of median sales prices has risen by nearly $48,000.

Low inventories of existing homes for sale and lagging housing starts growth since 2016 contributed to the environment where home prices rose at a rapid pace. The shortage in the single-family market will be partially ameliorated as high prices, due to the rapid appreciation of the past several years, have prompted some sellers to get off the sidelines. However, the recession will result in a slowdown in housing starts. A tight housing market may be a persistent feature of Florida’s economy over the next several years.

immediate post-shutdown rebound was strong, fueled by pent-up demand and record-low mortgage rates at the time.

The housing market in Florida is wobbling a bit under the burden of high prices and rising mortgage rates. Economic and job growth in Florida is forecasted to slow somewhat as the economy enters a recession. More baby boomers continue to reach the

This period of unsustainable multiyear price appreciation has ended. The recession, coupled with rising mortgage rates and a last-minute rush of sellers trying to get in before the market cools down, will bring an end to the spike in prices. This may lead to some additional price depreciation but not anything compared to the 2008-09 cycle.

Single-family housing starts in 2026 are expected to increase to slightly over 149,000 after falling to 137,100 in 2024. This 2026 level is 54,000 fewer than the 2021 level of starts. b

Dr. Sean Snaith is director of the Institute for Economic Forecasting at the University of Central Florida.

> The median price of a home in February, 2023 — an increase of $13,519, year over year (+3.5%), and $137,200 above the peak price of the housing bubble in June 2006.

MORTGAGE METEOROLOGY

EXCLUSIVELY ON

PRODUCED BY NMP FOR THE INTEREST

FEATURING SARAH WOLAK, STAFF WRITER FOR NMP TUNE IN EVERY FRIDAY FOR YOUR WEEKLY FORECAST.

Discover Where Your Competitors Stand In The Mortgage Market

Adapting to today’s dynamic mortgage market has changed the way we analyze trends and track competitors. Luckily, we have the tools you need to determine your competitors’ market share and see how individual loan originators are performing in their market.

Mortgage MarketShare Module

Our Mortgage MarketShare Module provides real-time market insights on all lenders, helping you easily benchmark your company’s market share, identify new and emerging markets, and measure your sales performance against your competition.

Loan Originator Module

Our Loan Originator Module provides you with access to the largest and most comprehensive loan originator database in the country. Take advantage of this access to identify top-producing loan officers, verify production, and monitor competitors.

GET A FREE MORTGAGE COMPETITOR ANALYSIS

To show you just how powerful our modules are, we’re offering a free customized mortgage competitor analysis. Simply visit www.thewarrengroup.com/competitor-analysis and provide us with a few details. You’ll receive an updated 2021 vs. 2022 Quarterly Mortgage MarketShare Report at the company level paired with a Loan Originator Report highlighting top LOs and individual performance.

Visit www.thewarrengroup.com to learn more today!

Questions? Call 617.896.5331 or email datasolutions@thewarrengroup.com.

BENEFITS

• Monitor Residential and Commercial Lending

• Measure Sales Performance and Market Activity

• Identify High-Performing Competitors

• Uncover Emerging Markets and New Opportunities

• Pinpoint Top Loan Officers for Recruitment

• Identify and Verify Loan Originator Performance

• Measure Loan Activity Against Competition

• Highlight Success for Market Positioning

NEED MORE DATA?

Inquire about our NMLS Data Licensing and LO Contact Database options.

Moumen Silk was named the branch manager at NFM Lending’s new branch in Orlando.

Kenny Schaaf joined Movement Mortgage in Tampa as a loan consultant. He was the vice president of mortgage lending at Guaranteed Rate in Tampa for two years prior.

Letwiens Gonzalez is the area manager/loan officer for Lenders One at its Walmart-based in-store branch in Orlando.

Dimah Hasan is the area sales manager/ branch manager at the new First Option Mortgage branch in Wesley Chapel.

Shawn Morrow was hired as the area sales manager in November at the St. Petersburg branch of Bay Equity, a full service mortgage lender.

Regional manager Chris Smith is overseeing Waterstone Mortgage Corp.’s office in Tampa. The office focuses on serving customers across Florida and the Eastern Seaboard.

Scott Cooper has transitioned to chief revenue officer at Birchwood Credit Services, a national provider of mortgage credit reporting services, and the promotion of Jen Lord to senior vice president over process, workflow and product.

ON THE MOVE

Moumen Silk

Kenny Schaaf

Letwiens Gonzalez

Dimah Hasan

Shawn Morrow

Chris Smith

Scott Cooper

Jen Lord

A Florida Launch Pad For Mortgage Bankers

MBA, Lennar Mortgage open first mortgage banking program at Barry University

By David Krechevsky, Managing Editor, Florida Originator Magazine

Mortgage originators in Florida won’t have far to travel if they want to move up and become a mortgage banker.

Florida is now home to a first-inthe-nation formal education program focused on developing a group of mortgage bankers.

Miami’s diversity makes it a natural

launching pad for the Mortgage Banker Association’s first mortgage banking certificate program in the nation, called Mortgage Banking Bound.

A strong connection between Miami-based Lennar Mortgage and the president of a university in Miami Shores lead to the new program.

David Upbin, vice president of education for the MBA, said the Mortgage Banking Bound program had a few

false starts before Lennar Mortgage President Laura Escobar brought a proposal to the MBA’s 2022 Independent Mortgage Bankers Conference, held in Nashville, Tenn.

“When we saw it on paper, it was kind of a quick ‘aha’ moment,” Upbin said. “The proposal aligned with the content that we already had on our shelves, … it was almost a 90% match. Knowing that authoring and build-

Barry University Mortgage Banking Bound class.

ing the content is one of the hardest elements of the program, we volunteered to tap into our existing course material.”

THE PROGRAM

According to Tiffani Malvin, director of continuing education and portfolio programs at Barry University, Mortgage Banking Bound was introduced for the first time at the start of the spring semester in January and has 11 students. The program, which costs students $3,000, is 100 hours over 15 weeks, she said, and meets two nights weekly.

The course teaches students about the various aspects of mortgage banking, including loan products, underwriting, loan servicing, regulatory compliance, and marketing, among other topics.

“This is an opportunity to open this up to create a … diverse pipeline to enter the industry,” Malvin said. “There’s a range of careers in the industry, and this program really prepares them for that. It touches on four major elements: loan origination, closing, underwriting, and processing, and each of those areas has a myriad of jobs related: loan originator, loan associate, customer service, and then builds from there into management.”

MBA’s Upbin added that the program is “showing students through this class that no matter what your interests are, no matter what your strengths are — introvert, extrovert, sales ops, technology — that there’s a place for you in this industry.”

In addition to faculty members, Malvin noted that each class is taught by “professionals and experts in the field” — volunteers from southern Florida who are provided by the MBA and Lennar Mortgage who are not paid.

Students also get outside the classroom, Malvin added, including opportunities for internships with lenders that include not just Lennar Mortgage but also Fannie Mae, Marion Bank & Trust, Novus Home Mortgage, and TD Bank.

“We also have an end-of-program networking event and a career fair,” she said, “where students will have an opportunity to talk to organizations that are hiring … so they have a career pathway and opportunities to get a job at the comple-

tion of the program.”

‘WE JUMPED ON IT’

Located on 124 acres in Miami Shores, Barry University was founded in 1940 by the Adrian Dominican Sisters, a Catholic religious institute based in Adrian, Mich. In addition to Barry University, the sisters also sponsor a high school in Illinois, the Rosarian Academy in West Palm Beach, Fla., and Siena Heights University in Michigan.

Escobar suggested using an existing relationship Lennar Mortgage had with Mike Allen, Ph.D., president of Barry University, a private liberal arts school with about 6,000 students located just north of Miami in Miami Shores.

“It became a perfect match,” Upbin said of Barry U. “They’ve got a robust

> Tiffani Malvin, director of continuing education and portfolio programs, Barry University

> David Kopp, Ph.D., vice provost of continuing education, Barry University

"No matter what your interests are, no matter what your strengths are — introvert, extrovert, sales ops, technology — there’s a place for you in this industry.”

> David Upbin, vice president of education, Mortgage Bankers Association

executive certificate program and they cater to the types of students that we’re trying to bring into our industry, students that reflect the diverse nature of southern Florida, of this country, and the future homebuyer.”

Danielle Tocco, Lennar Mortgage’s vice president of communications, said the company had been working on the concept of a mortgage banker training program for a couple of years, and decided to enlist the MBA’s help for its educational knowledge and some financial support. She credited the Lennar Foundation, the company’s charitable arm, as a key to making the program a reality.

“The mortgage industry faces an ongoing challenge of finding and retaining top talent,” Tocco said. “As we stopped to think about it, when a young adult graduates from high school and wants to be a doctor, lawyer, teacher, accountant — there is a clear education path

gage industry, where do they start? Are students and young adults aware that there are robust career opportunities in mortgage? That is where the idea for Mortgage Banking Bound came about.”

According to David Kopp, Ph.D., vice provost of continuing education and graduate studies at Barry, said the school has 100 degree programs, ranging from bachelor to doctorate, and “a full panoply of subjects from business to education, to a school of podiatry, to social work, as well as law.”

The university, he said, is “always seeking out continuing education opportunities for our constituents, realizing that many folks are searching not necessarily for a college degree, but for things like credentials and certificates.”

Kopp said that, when the school was presented the opportunity to add the mortgage banking program, “we jumped on it,” believing there was a need for a certificate that would open “a career path that many may not have access to,

as a young adult in 2010 following the devastating earthquake that struck the small Caribbean nation in January of that year.

Over the succeeding 13 years, he has earned an associate degree in biology from Palm Beach State College; transferred to Florida Atlantic University to work towards a bachelor’s degree but had to leave 13 credits shy due to his financial situation; then worked various jobs and started a nonprofit organization to help children back in in his native land.

He also earned a real estate license, working for Exit Realty Mizner in Boca Raton.

Despite how busy he is, he enrolled in the Mortgage Banker Bound program with the goal of adding mortgage banking skills to his real estate work.

“As a [real estate agent], it helps me understand the market enough to explain it better to my clients,” Sanon said. “Just because of that course alone, I was able to get a new client. I sat down and explained how the whole entire process works.”

He had never heard of the MBA before enrolling in the program, which has allowed him to discover “a whole

Chris Sanon is a native of Haiti. He arrived in Orlando,

“Being able to serve other people is one of the main centerpieces of the course. It’s something worth exploring.”

> Chris Sanon, real estate agent and mortgage banker, Exit Realty Mizner

new world that I didn’t even think about. There are so many entry points. It’s way bigger than I expected.”

His goal now, he said, is to add work as both a real estate agent and a mortgage banker. “I can perform both at the same time,” he said. “Being able to serve other people is one of the main centerpieces of the course. It’s something worth exploring.”

Exploring new options is also what attracted Ekaterina Elagina to the program.

A native of Russia, Elagina arrived in the U.S. six years ago with a master’s degree in art criticism and the ability to speak English and Spanish as well as Russian. She has since added a master’s in human resource development from Barry University, and is working towards another in mental health counseling.

She also does charitable work, founding a program to help refugee Ukrainian children settle in South Florida.

With all of that on her plate, she still found herself drawn to the Mortgage Banking Bound program.

“I was really fascinated about this program,” Elagina said. “I really don’t believe that we should limit ourselves and our abilities to help communities and people and families by just sticking to what we were taught in any program.”

USING EXISTING SKILLS

She believes, in fact, that her other training will help her in the mortgage banking industry.

“I would like to work in this industry,” she said. “What makes me really enthusiastic about joining the industry is just having some background and knowledge in multicultural sensitivity and how we can approach different communities, people with different values, people with different incomes, and make it really diverse and inclusive.”

That, ultimately, is the goal for the Mortgage Banking Bound program. Upbin, vice president of education for the

MBA, says the success of the program will be judged in a variety of ways.

“Number one, we want to graduate students that are excited for the industry and get them placed with jobs or internships,” he said. “If we can get 50%, 75% of the students placed, or at least interviewing with our member companies, then we believe that is a success.”

The MBA and Lennar Mortgage have committed to offering the program for the fall semester, and hope to see enrollment grow. The plan is also to expand by utilizing some virtual instruction, which would allow for instructors nationwide to participate.

“If we can see [the number of students] grow into the low 20s, high 20s, we would be absolutely thrilled,” Upbin said. “And to keep seeing diverse job seekers — whether it’s diversity of gender, color, economic backgrounds — if we see diversity of students who are coming into this classroom really committing themselves to learning about the industry and pursuing a career, that is a success for us.”

FUTURE PLANS

The MBA also hopes to expand the program in 2024 outside of Florida to other colleges and universities, but will do so in a methodical way, Upbin said.

“We want to make sure we’re not overcommitting and under delivering,” he said, adding the MBA will seek schools that have “robust certificate programs” and professors with a background in real estate finance.

But he said the MBA also wants to locate the programs “in an area where we know the industry can support hiring. So think of high production, high volume areas, whether that’s Nashville, or Southern California, or Dallas, or Denver. Those are the kind of matches we’re looking for.”

For the pilot of the Mortgage Banking Bound program, though, Miami seems to have been a perfect match. b

“What makes me really enthusiastic about joining the industry is just having some background and knowledge in multicultural sensitivity.”

> Ekaterina Elagina, Mortgage Banking Bound student

This Land Is Not Your Land …

Lenders await impact of new state ban on foreign nationals owning property

By Erica Drzewiecki, Staff Writer, National Mortgage Professional

Anew law purportedly to protect Floridians from Communist influence and in-

vestment is slated to impact mortgage professionals and borrowers in the Sunshine State and, potentially, beyond. The law, which went into effect on July 1, was signed by Gov. Ron DeSantis on May 8.

WHAT IT IS

The 2024 Republican presidential candidate’s self-proclaimed “crackdown on Communist China” prohibits foreign entities and officers from China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria from buying property in Florida.

Specifically prohibited is property within 10 miles of any military instal-

lation, airport, seaport, power plant, water treatment facility, or any other critical infrastructure.

“Florida is taking action to stand against the United States’ greatest geopolitical threat — the Chinese Communist Party,” DeSantis said during the bill-signing ceremony.

Amidst the changes adopted to Florida statutes, Chinese citizens with non-tourist visas are restricted to owning one home and/or less than two acres, which must be at least five miles from critical infrastructure. Citizens from the aforementioned countries who are not lawful, permanent U.S. residents are prohibited from real estate ownership altogether.

Foreign principals who acquire agricultural land on or after July 1 may not buy more, must register with the

state, and then sell, transfer, or otherwise divest themselves of the property within three years.

IMPACT TO MLOS

If it was just borrowers at risk of violating Florida law, this article wouldn’t need to be written. Lenders and mortgage loan officers who assist banned buyers are subject to criminal penalties, and the state has the right to seize property improperly obtained by foreign nationals.

“We’re going to prevent ourselves

from making loans that break the law; that’s my most important goal,” says Robert Senko, president of ACC Mortgage, a 24-year-old non-QM lender.

Florida is among ACC’s top three states for loan volume, offering bank statement loans, along with buyer and refinancing options for foreign nationals and Individual Taxpayer Identification Number (ITIN) holders. However, foreign nationals represent just 5% of ACC’s loan volume countrywide.

“I’m not sure it’s going to be a massive needle mover,” Senko says of the new law. “To me it feels more symbolic politically. I don’t anticipate it hurting our business.”

Most non-QM lenders have programs for foreign nationals, while prime lenders typically only offer the option to select borrowers with high net worth who they

cially; where there’s a will there’s a way,” Senko says. “If they have an American friend who buys a property, they could probably work behind the scenes to secure that property if they wanted to.”

ACC requires personal guarantees, passports and other special measures of its foreign clients.

“I’m sure there will be some challenges to it, but our system will flag it,” Senko adds.

LoanStream also has various tools to vet potential borrowers.

“For us if we’re going to do a foreign national borrower they need to have U.S.-based credit,” Fisher says. “I think that right there is going to be a filter for us to see their background activities in the country where they’ve been working and what they’ve been doing.”

religion, sex, familial status, or disability.

Congressional Asian Pacific American Caucus (CAPAC) Chair Rep. Judy Chu (CA-28) was “outraged” by the signing, which she called in a May 15 statement, “the latest state-level effort to restrict the property ownership of Chinese home seekers, who are aspiring small business owners, students, and families seeking to build better lives for themselves here in America.”

Several bills seeking to limit or prohibit foreign investment in the U.S. have been introduced at the federal level in recent years, but none have passed.

“If the federal regulators determine the same (as Florida) then I think that becomes more of a bigger issue than a state-specific ruling,” Senko says. “At this point I’m not overly concerned

deem to be low risk.

Wholesale lender LoanStream does a large loan business in Florida, according to EVP of Non-QM and Jumbo Mortgage Will Fisher.

“This will definitely have an impact; how big of an impact is yet to be seen,” Fisher says. “The one thing we have to be smart about is, do we want to stifle investment in the United States? The one thing that’s been nice about allowing foreign investment is they pick up the slack when our economy isn’t so healthy here, and we don’t have anybody to invest.”

A WILL FINDS A WAY AROUND

As far as banned buyers looking to skirt the books, lenders will have to remain adamant.

“Folks buy stuff with LLCs or commer-

Reviewing the fine print of the new statutes and adjusting business dealings accordingly will be a priority for lenders going forward.

“I think there’s going to be a gestation period for everyone,” Fisher says. “The mortgage industry is very reactionary.”

THE LAW OF THE LAND?

The Florida Asian American Justice Alliance (FAAJA) is working to prove the legislation is unconstitutional, while proponents condone state officials’ decision to limit foreign investments on American soil.

Opponents say the law violates the Department of Housing and Urban Development’s (HUD) Fair Housing Act of 1968, which prohibits discrimination in the sale, rental, or financing of homes because of race, color, national origin,

unless the federal government makes it more prohibitive.”

Canada blamed a spike in home prices since 2020 on foreign buyers flooding the housing market. As a result, the Canadian government passed a law on Jan. 1 banning foreign investors from purchasing residential properties for two years. Exceptions were made for immigrants and non-citizen permanent residents.

For now, potential landowners who fall into one of the prohibited groups can still consider other regions in the U.S. besides Florida.

“Whether you’re Chinese or any ethnicity, you have an opportunity here in the U.S. to buy property as a foreign national,” Fisher says. “Don’t limit your markets; do what you consider best for you and your family.” b

“This will definitely have an impact; how big of an impact is yet to be seen.”

> Will Fisher, EVP of Non-QM and Jumbo Mortgage, LoanStream

FromT ears ToT riumph

Marsha Gandy’s journey from first-time homebuyer to loan originator

By Erica Drzewiecki, Staff Writer, National Mortgage Professional

Anightmare homebuying experience led Marsha Gandy down the road to living the dream. Gandy was a successful electrical engineer with international firm CH2M Hill when she discovered her true passion.

“I found myself as a first-time homebuyer in the parking lot of the mortgage company crying,” she remembers. “They kept telling me I needed more money for closing, and I was a young college student and didn’t have more money.”

Gandy earned her Bachelor of Science in Electrical Engineering from the University of Florida and went on to build a successful career in that field. At the same time she was researching and investing in real estate, and was dismayed that her loan originator could not estimate the total cash she needed to close.

“I learned a lot from that experience — what I didn’t want my clients to experience,” Gandy recalls. “I eventually felt someone needed to enter the industry that would work as an educator and advocate for the consumers, which is what I have now done for my 33-year career.”

South Florida Agent Magazine’s Loan Officer of the Year for the 2022 Agent Choice Awards, Gandy has served as SVP of Mortgage Lending at Guaranteed Rate since February 2010. She is the lead of her team, which also consists of a junior, an assistant, and processing staff. Gandy is licensed in 16 states and self-reported closing $57.5 million in loans in 2022.

Gandy is licensed in 16 states and self-reported closing $57.5 million in loans in 2022.

Even during this challenging market, Gandy says she still hasn’t changed her approach.

“It is all about relationships and consistently delivering to my clients as committed,” she says. “Due to the volatile market the consumers and referral partners want the strongest mortgage partner possible to help them successfully navigate the market and their transactions.”

is the grandson of a client she closed decades ago.

“I have now closed several loans for them, as well as their children and now their grandchildren via referral business,” Gandy says.

Lisa Bailey Levy, a real estate agent with EXP Realty, says she was referred to Gandy during a challenging deal and now she won’t work with any other team.

“I was in the midst of a deal that was not going well with a big bank,” Levy recalls. “I was new to the business, and the title company I was working with said you have to call Marsha — she’ll get it done. I’m an absolute control freak. I contacted them, they were on point, and got the deal closed. Their team responds in a timely fashion to everything. I’ve been with them ever since and I don’t go to anybody else. Their team is tenacious … I have had some incredibly challenging deals, but their team does whatever they have to do to get them done.”

Denise Silk, a Remax real estate agent, recalls Gandy saving a deal that could

Gandy says her business is 100% referral-based. What does that mean, exactly?

“That means I am blessed to have three decades of past clients and referral partners that rely on me to deliver successful transactions for them,” she explains. “They continue to refer their clients, in addition, the past clients re turn and also send their family, friends, and business associates to me to make sure they also have consistent successful mortgage closing experiences.”

She’s currently working with a client she closed for the first time 26 years ago and another who

> Marsha Gandy, SVP of Mortgage Lending, Guaranteed Rate

“It is all about relationships and consistently delivering to my clients as committed.”

> Marsha Gandy

have been compromised by a hurricane.

“We were under contract,” Silk says. “While we were waiting to close, a hurricane came through. It was a nightmare.”

Amidst other delayed closings and repeat appraisals, Gandy came through with flying colors.

“We never skipped a beat; we closed on time,” Silk says. “She saved that deal, and that’s when I said, ‘This lady is special.’ I consider her word gold. She is the best loan officer I’ve ever worked with.”

Gandy resides in Boca Raton, where she is a member of Sunrise Rotary Club and a founding member of the Business Networking International All-Stars Group.

Guaranteed Rate Regional Manager Ann Marie Howser met Gandy about five years ago and has been consistently impressed with her ability to cultivate relationships.

“She is definitely a strong individual,” Howser says. “She is always present and available when needed. One of the things that makes her as good as she is is her passion for the business and wanting to get families into homes. She is a driver for success. I’m very proud of her accomplishments.”

Gandy attributes her positive track record to consistency and delivery.

“Consistently delivering the results I promise to each of my clients,” she explains. “I do this with honesty, integrity, and transparency, even when the news is not good. Consumers know when they come to me that my depth of knowledge is unparalleled, and that I will tell them how it is and deliver what I promise. It is a demanding industry. If you’re not doing the right thing by the consumers, you’re not going to last very long.”

The challenge, Gandy says, is getting above the marketing and noise of the industry (social media, television, etc.) to recognize the big picture and “pull back the curtain” for borrowers and agents. Gandy teaches the Situation Mastermind Class, where she walks top real estate agents through the marketing of the mortgage lending in-

dustry to the bottom line of products, costs, benefits, and challenges they need to navigate to meet their goals.

“This industry changes constantly; it’s never boring,” she says. “My goal and intentions are always the same, and that is to provide a consistent, transparent, smooth purchase process

properties from anywhere in the world.

“This year we closed one client on eight loans at one time while they lived in Germany,” Gandy says. “In the past it would have been quite an undertaking, that level of cost and coordination.”

In her free time, this LO enjoys photography and travel. She has visited 19 countries and her work has been featured in art galleries and national publications.

“Currently one of my favorite places to visit is Mount Dora, Fla.,” she says, of the town located northwest of Orlando. “It is a small town, where you can park and walk around all weekend, watch amazing sunsets, have great food and fun adventures.”

Her advice to fresh-faced LOs? To always operate from a place of integrity, and honesty.

for my clients and referral partners.”

Gandy was honored by the “Loan Officer of the Year” award since it came from nominations and votes from fellow industry professionals. “I always feel honored to be recognized by my peers,” she says. “We all work so hard, and we truly appreciate each other and our success because we respect each other and what it takes to be successful in our industry, not to mention to continue that success for over three decades.”

Guaranteed Rate has embraced leading-edge technology, and now has the ability for clients to close on multiple

“Align yourself with a strong originator so you can watch and learn the industry,” Gandy says. “Unfortunately, there is no real training for our industry, and the learning curve is based on real world experience.”

Once you jump the hurdles, she adds, there is no better reward than guiding people through one of the biggest financial decisions of their lives.

“I have the honor and blessing of working with families over the decades and have helped several generations in some families buy real estate,” Gandy explains. “The reward that means the most to me is when I have a parent who sends their child — or a grandparent who sends their grandchild — to me to do their first home. That level of confidence and trust is the biggest reward I can ever get.” b

“I do this with honesty, integrity, and transparency, even when the news is not good.”

> Marsha Gandy

SMASHING T H

EXCLUSIVELY ON

PRODUCED BY NMP FOR THE INTEREST

FEATURING DAVID LUNA, PRESIDENT OF MORTGAGE EDUCATORS & COMPLIANCE TUNE IN EVERY WEDNESDAY FOR YOUR REGULATORY UPDATE.

Insurance Storms Whip The Sunshine State

As premiums rise, helping borrowers shop their coverage may save your loan

By Ryan Kingsley, Staff Writer, Florida Originator Magazine

Florida’s affordability crisis is escalating, and mortgage loan originators in the state find themselves in a battle against high interest rates, home prices, and homeowners’ insurance premiums, which are nearly triple the national average and are busting borrowers’ budgets.

The challenges, while new, will worsen, says Cameron Mackie, owner and originator at Rateplicity Mortgage Corporation in Naples, who began to observe the impact of elevated insurance costs on originations as far back as three years ago.

“My question is: Are costs ever going to go down?” he asks. “We’re in a peak of inflation and when things normalize, I just see it as they’re going to continue to stabilize and give some excuse that they’re never going to bring it back down. It’s just something we have to really adjust … and prepare for the future.”

The result of these higher costs on borrowers is that potential homebuyers and investors are being squeezed out of the Florida market by narrowing qualification margins, in particular.

“Unfortunately, I lost a couple of deals (recently) because of the insurance,” says Peter Bitzas, an originator for NEXA Mortgage based in the greater Tampa region. “Not only does it affect people’s budgets and what they want to spend, but it’s also affecting debt-to-income ratios for qualifying — not only on the primary purchase of their home, but also for investors

looking to buy investment properties.”

Over the past year, Bitzas estimates that 10 to 20% of his loan applications have fallen through on account of insurance rate increases.

Rich Williams, principal broker for Florida Mortgage Pros in centrally located Lakeland, has seen a similar impact on origination on account of insurance costs. He calls the situation “unstable, quite unstable” for originators like himself who are seeing home shoppers priced out of the market as interest rates and skyrocketing premiums lay siege to debt-toincome ratios.

Parallel rising home prices, “with the interest rates going up and now with the insurance rates going up as well, it’s definitely affecting origination. … What they’re qualifying for, there’s limited to none or no homes available at those prices,” he says.

AN AILING INDUSTRY

With 8,436 miles of shoreline, Florida is the most catastrophe-prone region in the United States, yet its insurance market is dominated by local insurers too small to accumulate sufficient capital to balance future losses. The market depends heavily on reinsurance, or insurance for the primary insurer to help when claims spike. After back-to-back years (2020-21) of insurance companies experiencing net underwriting losses exceeding $1 billion, reinsurance rates have risen — and swamped — many of Florida’s smaller, private carriers.

+33%

> Amount homeowner’s insurance rates in Florida increased, compared to the national rate increase of 9%.

The purpose of reinsurance is to disperse the risk of catastrophe outside of Florida’s borders through the global reinsurance market. In its January 2023 Property Insurance Stability Report, the Florida Office of Insurance Regulation (OIR) indicated that for 2022-2023, the amount of 2022 reinsurance coverage purchased by insurers increased an average of 17% from 2021. However, the cost of that reinsurance has increased by 52% from 2021 figures.

At present, primary insurers are putting 50% of policyholders’ premiums toward their reinsurance costs, up from 30% in 2018.

If the health of an industry can be gleaned from a statistic, since 2017, 14 property and casualty insurers have entered receivership with the Florida Department of Financial Services. Recently, other carriers like Farmers and AAA are opting to leave the state, drop policyholders, not renew policies, or severely tighten policy eligibility requirements, in addition to hiking rates substantially.

The surge of insolvencies has contributed to massive growth in the number of policies that Citizens Property Insurance Corp. — the state-backed insurer of last resort — has had to absorb.

As of September 2022, Citizens held more than one million policies — more than double the number from two years prior: a number predicted to swell to two million policies in 2023.

Meanwhile, the most current data shows 19 insurers are presently subject to enhanced monitoring by the OIR’s Insurer Stability Unit. Referrals to the unit can be triggered by myriad events, including (but not limited to) requesting a rate increase that exceeds 15%, filing a notice that the company intends to not renew more than 10,000 residential property insurance policies within a 12-month period, or filing financial statements which demonstrate the insurer is in an unsound condition, has exceeded its powers, is impaired, or is insolvent.

In 2022, homeowner’s insurance rates in Florida climbed 33% compared to the national rate increase of 9%. In Hillsborough County, which includes Tampa, rate increases have been particularly severe,

and annual premiums for property insurance are estimated to jump from an average of $2,500 to $3,500 in 2023. In neighboring Pinellas County, which is largely surrounded by water and had the highest rates in the state in 2022, premiums are projected to surge from an average of $2,938 to well over $4,000, nearly triple the national rate of $1,428.

Philip La Rue, a homeowner’s insurance agent serving clients in Pinellas County, is optimistic that the state’s insurance reforms will help moderate premium hikes, providing relief to homeowners in the state.

A pair of insurance reform bills Gov. Rick DeSantis signed into law in May and December 2022 seek to stabilize the ailing industry by, among other measures, disincentivizing frivolous lawsuits that are crippling insurers. An Insurance Information Institute study released in June 2022 found that less than 10% of homeowners’ property claims nationwide are filed in Florida, yet the state accounts for 79% of homeowners’ insurance lawsuits.

After a 2017 state Supreme Court decision made Florida a favorable litigation environment by allowing courts to award plaintiffs’ attorneys more than two times their hourly billing rates when courts rule in favor of policyholders, litigation expenses incurred to fight rampant, fraudulent roof-replacement schemes — orchestrated through contractors’ manipulation of assignment of benefits agreements — became a key driver of property insurers’ massive underwriting losses over the past few years.

One of DeSantis’s reforms eliminates one-way attorney fees for property insurance claims, which state regulators expect will have an immediate impact on the industry. One-way attorney fees entitle policyholders to reasonable attorney’s fees in any lawsuit in which any amount of recovery is awarded, granting policyholders leverage to fairly engage in disputes with insurers.

“I think you will start to see insurers come back into the state,” LaRue says. “Maybe not all at once, but I think you will see a trickle of carriers back into the state because of that tightening and getting those fraudulent claims out of there.”

Bitzas, of NEXA Mortgage, disagrees. “I don’t see it getting any better. What happened over in Sanibel last year doesn’t help things. We’re a peninsula. Natural disasters happen.”

Sanibel Island, off the coast of Fort Myers, took a catastrophic hit from last September’s Hurricane Ian. The Sanibel Causeway, which directly links the island to the Florida mainland, was broken into

“What they’re qualifying for, there’s limited to none or no homes available at those prices.”

> Rich Williams, Principal Broker, Florida Mortgage Pros

six pieces. As many as one in 10 structures on the island were destroyed. At $112 billion in damage, Hurricane Ian was the costliest hurricane in Florida history, and the third costliest in United States history, according to the National Oceanic and Atmospheric Administration.

Williams, of Florida Mortgage Pros, also doesn’t see the situation improving anytime soon.

“If you can’t go through the standard companies that are available, the next step is Citizens insurance, which is the state-funded insurance,” he says. “So, I don’t really see this being resolved quite yet until we get a lot more insurance companies coming back into the market and offering competitive prices.”

In zip codes hard hit by hurricanes or flooding, searching for coverage — let alone affordable homes — can be next to impossible, with carriers unwilling to write new policies for older homes borrowers want to buy in those high-risk locations. Of course, homeowner’s insurance is a requirement for originators to close mortgage loans. Limited options for carriers mean originators have to get creative to help borrowers make the insurance aspect of mortgage applications work.

NEW FLOOD INSURANCE GUIDELINES

As an added hardship, redrawn floodplain maps that the Federal Emergency Management Agency (FEMA) released in Novem-

ber 2022 are forcing many Floridians who’d never had to buy flood insurance add those premiums to their list of monthly bills. The new maps incorporate many non-coastal areas that are now deemed to be at-risk for flooding, such as properties near canals.

According to Alan Crummack, a mortgage broker from Lakewood, depending on the property and where it’s located on the floodplain maps, flood insurance ranges from $485 a year to as much as $4,000, if not more.

“A lot of homes that previously were not in flood zones are now finding themselves in flood zones,” he says. “If you have a mortgage and you’re in a flood zone, even if you didn’t have flood insurance, the lender’s going to require you to get it.”

It’s just another cost for buyers to factor into the affordability equation.

Williams acknowledges that there are companies which may provide insurance on a consistent basis, “but you may try one thing today and it’s not going to work tomorrow. All of a sudden it changes, just stops. The companies are no longer there. They’re dealing with term exposure management. They’re saying, ‘Hey, we’re a little exposed here so we’re no longer writing in this area.’”

Making matters worse, policyholders are paying higher insurance rates for less coverage, according to Rateplicity Mortgage’s Mackie, who’s been analyzing the new policies insurers are writing.

“In the details of what they actually cover

“Insurance can be the difference between borrowers getting a house or not getting a house . . . That’s why I always recommend for my clients to get insurance quotes prior to going all the way.”

> Peter Bitzas, LO for NEXA Mortgage

> Alan Crummack, mortgage broker, Rateplicity Mortgage Corporation

now, it’s probably about a 10-25% decrease in coverage; however the insurance premiums have skyrocketed an extra 30%,” Mackie says.

Of particular significance, property insurers have reduced the lifespan of roofs from 20 years to 15 years. Mackie says replacing a roof used to be $30,000-$40,000. With reduced coverage and inflated prices for building materials and labor, replacing a roof can now cost homeowners upwards of $60,000-$70,000. It’s wholly unaffordable, he says, especially for Florida’s large retirement and fixed-income communities.

Meanwhile, the Insurance Information Institute, an organization focused on industry research and consumer education, projects premiums could increase by up to 40% statewide this year. The projections are accurate, given what La Rue has seen so far. “A majority of them have been Citizens policies, but I have had other policies where I have seen premiums go from $1,800 to $2,700 – so, I would say that 40% is

probably pretty close,” he says.

The net result is homeowners’ insurance is getting costlier and scarcer in Florida.

TO CLOSE LOANS, GET CREATIVE

Borrowers across the state are experiencing these affordability constraints, not just those living on the coasts or in catastrophe-prone areas.

“It’s been harder across the board, absolutely,” says Naples-based Mackie. “When I say that roughly the premiums have gone up 30%, that’s across the state. And then if you go into those flood-prone zones, that’s additional.”

Williams, the Lakeland originator, agrees, according to his conversations with other originators and professionals within the market. In the context of rising insurance premiums, he hasn’t seen a slowdown in mortgage applications, but rather a slowdown in going from the application to closing, or the application to pre-approval to finding a home in that price range.

As of March 2023, home prices in Florida had risen 3.2% year over year to reach a median home price of around $400,000. Tampa, where Bitzas is based, has outperformed the rest of the state, with median home prices around $405,000, up 8% year over year, per Redfin’s data.

One of the deals that fell through for Bitzas was with an investor — the homeowner’s insurance comprised almost 35% of the monthly mortgage payment.

“Florida, we’re busting at the seams,” Bitzas says. “We’re getting people from everywhere, which has increased the values tremendously. This used to be a safe haven to retire, to get a cheaper home, and for those borrowers who are looking to purchase something for $250,000, it’s extremely limited.”

Relative to the rest of the country, Florida has a low income-to-home-value ratio, with the typical home priced 15% higher than the typical U.S. home and the median household income in the state 10% lower than the median U.S. income. If premiums do increase the projected 40%, by year’s end the average Florida homebuyer with a gross monthly income of $5,000, a 20% down payment, and a mortgage rate of 7% would see an 11% decrease in the home they could afford. That means a homebuyer who could have afforded a home worth $182,000 would now be able to afford one worth $162,000.

“Where the insurance gets you today,” Crummack says, “is when you have an older roof, you don’t have hurricane-proof doors and windows, and the proper-

> Cameron Mackie, owner and originator, Rateplicity Mortgage Corporation

ty is not elevated above the floodplains. Elevating the property, making the house hurricane-proof, and having a new roof will reduce those insurance costs. Not only that, if you have, let’s say, just 5-10% to put down, by the time we get finished, your LTV (loan-to-value) that we can use puts you more at like 60-70%. So, you’re not going to have mortgage insurance, and you’re going to get better terms because you have a lower LTV. Not only that, but you have a brand-new home that’s also energy efficient and has [fewer] energy costs associated to it.”

Lengthening the amortization schedule to 40 years has helped to keep Mackie’s volume from declining. Mackie also thinks borrowers and originators should know that with significantly fewer all-cash buyers than a year ago, borrowers have more leverage to negotiate prices with sellers.

“The market has changed, so make it in your favor,” Mackie says. “Try to negotiate a better price point on the property. And that’s where I find a lot of people are coming back able to knock off 10-15% on the purchase price, and you’re actually able to get them squeezed into a mortgage. It’s definitely harder — I’d say about

balanced playing field between buyers and sellers, with more 3.5% down mortgages and more down payment assistance.

“Now we’re starting to see insurance being more of a factor because those mortgage amounts are higher, which means principal and interest payments, higher PMI payments if they’re putting less than 20% down, and then you factor in the insurance and that can blow it up,” he says.

Those whose income ratios are tight suffer the most from rising premiums, which is why Bitzas helps borrowers shop for more affordable coverage as they’re going through the loan application process. Not only does this help his clients save money, but it helps them qualify for mortgages that might otherwise fall through. He recommends insurance brokers — over agents — who can help borrowers shop a variety of insurance carriers to find the right coverage, and price, for their properties and budgets.

By helping to salvage borrowers’ debt-to-income ratios, originators can help borrower’s qualify and keep the loan from falling through. Like using a mortgage broker, Bitzas says he encourages people to use insurance brokers who can get

10% of the book has suffered from the changes, not just insurance, but interest rate increases, too. Everything’s gone up, as a whole.”

Redfin data released at the end of May support Mackie’s assertion, as the rate that home sellers nationwide giving concessions to buyers rose to 42.9% during the three months ending April 30, up from 25.5% a year earlier.

Tampa saw a bigger year-over-year jump in seller concessions than any other metro Redfin analyzed, with sellers giving concessions to buyers in 58% of home sales for the time period analyzed, up from 12% a year earlier.

Bitzas also notes how, following the cash craze, the Tampa market has settled into a more

them multiple quotes from different carriers.

“Insurance can be the difference between borrowers getting a house or not getting a house. That’s why I always recommend for my clients to get insurance quotes prior to going all the way,” he says. “We’ll take your application and we’ll pre-approve you. You find a specific house in mind, we can help you find an insurance broker.”

NEW CONSTRUCTION, LOWER PREMIUMS

Those homeowners struggling to meet their premiums — or worried about future increases — have little opportunity to move elsewhere in the state, with home prices

“Everybody’s jumping on the new construction. I would say close to 50% of my pipeline right now that we have in contract are homes that were built after 2019.”

> Peter Bitzas

appreciating so rapidly, relatively low inventory, and hurricane season approaching.

“I’m seeing ranches at 1,800 square feet with two bedrooms, one-and-a-half baths for $450,000. That’s levels we’ve never seen here,” according to Bitzas.

In 2018, in the Lakewood area where Crummack is based, “which is only like five minutes from downtown 5th Avenue in Naples and the beaches, a three-bedroom, two-bath, single-family home, around 1,500 square feet, was selling for about $285,000. Now, that same house, they’re asking upwards of $700,000.”

As a result, many borrowers are looking toward new construction, in part because of the greatly reduced cost in homeowner insurance.

Originators are, too.

“The biggest thing we’ve seen as a shift down here is a lot of people going for new construction, because when it comes to new construction, insurance is a lot cheaper,” Bitzas says. “Believe it or not, we still have some land here in Florida that’s being built on.”

Not only is the insurance more affordable, but it’s actually available

“Here, there’s a lot of properties that you can buy where the lots are two-five acres, like 600feet long, and they go from block to block. You could feasibly have your rental units on one side of the property and your own dwelling on the other side with two separate entrances,” he says. “You can create a situation where now you’ve got revenue coming from those properties.

“FHA, believe it or not, will allow you to buy up to four units with as little as 3.5% down and use 75% of the rents from those three units in qualifying. When you do the appraisal, you’ll ask the appraiser to provide a rental survey. Then, what they will do is they will do a rental survey in that area to determine what those units will rent for. FHA will use that in calculating an income that you will get from those rental properties.”

CONSTRUCT AN ALTERNATIVE

Alternatively, Crummack says borrowers can use construction-to-permanent loans. “That is, you either own the lot or you buy the lot through the construction loan and you build. When you do something like this, we can structure it in a way where instead of using the cost to construct, we can actually use future market value,” Crummack says. “There are increases in valuations based on the fact you are going energy efficient. So, the appraiser can actually add additional value for that. I did one in Cape Coral not too long ago where the client paid $260,000 for the lot, they put $600,000 into improvements, and the house appraised for $1.2 million. You see, the cost to construct was less, but we can use the additional value in creating the LTVs which will provide you with better pricing.”

“Everybody’s jumping on the new construction,” Bitzas says. “I would say close to 50% of my pipeline right now that we have in contract are homes that were built after 2019. So, instead of paying $550 a month toward insurance in your payment, [homebuyers] are paying anywhere from $100-$150 a month toward insurance.”

Crummack stresses investment strategies with clients as part-and-parcel of affordability considerations. Hurricane- and flood-proof new construction will appreciate more reliably, making new construction a stronger investment opportunity than buying a pre-owned home that’s 15 or 20 years-old and needs updating, such as a new roof.

In the Lakeland area, too, “there’s a lot of new construction,” Williams says. “So, the availability for insurance coverage is there for new construction, but the older home — and when I’m talking older home, I’m talking maybe 10 years or older — it’s become a task.”

It varies, Williams says, but insurance for new construction can be 50% cheaper or more.

La Rue, the insurance agent, agrees, saying the new-home-build growth rate is strong in the greater Tampa region. Some parts of Hillsborough County are in the midst of a building boom that’s quickly making its way toward the north part of Hillsborough County and the southern part of Pasco County, specifically the Odessa area. b

“I have people saving thousands of dollars by using brokers.”

> Peter Bitzas

VALVO BERMAN

EXCLUSIVELY ON

PRODUCED BY NMP FOR THE INTEREST

FEATURING VINCENT VALVO & ANDREW BERMAN TUNE IN EVERY FRIDAY FOR A NEW ROUND.

THE LO DOWN

KNOW YOUR STATE & ITS MARKETS

The best originator is a prepared originator. Part of being prepared is knowing the facts and figures in the real estate markets across Florida.

To keep you better informed, Florida Originator Magazine tracks information provided about the Sunshine State from various data sources.

For example, it’s important to know (and we cov-

er it on p. 24) how Florida compares with other states when it comes to homeowner premiums. It’s not necessarily good news but you still need to know, especially if dealing with out-of-state clients.

Hurricanes will always be a problem in Florida with various parts of the state being affected at different times. See what areas are bouncing back. There’s one area coming back that is great when it comes

to affordability for those earning $75,000 or less. Where the market has been is almost as important as where it is headed. Research compiled by Florida Realtors shows the growth in active listings is particularly strong along the bottom half of the major west coast towns along with an active swath of activity through the center of the state. b

Haveanydatasourcesyou would like to see featured? Sendustherequestat editors@ambizmedia.com and we will see what we canfindoutforyou.

Florida Battles A Riptide Of Closing Problems

Florida Originator Magazine analysis finds Alligator State among toughest to close a mortgage

By David Krechevsky, Editor, Florida Originator Magazine

Blame it on the sand. That was one of the reasons loan originator Nathaniel Bittman cited for why Florida was among the top five most difficult places to close a mortgage in 2022.

The Sunshine State ranked the third toughest state to close a loan last year, based on an analysis of 2022 Housing Mortgage Disclosure Act (HMDA) data conducted on behalf of Florida Originator Magazine by Richey May, a Denver-based financial services firm.

The analysis, which included reviewing first- and second-lien loans, determined that Texas ranked as the toughest place to close a loan, with just 46.33% of mortgage applications ultimately getting funded. Louisiana ranked second, at 46.75% of applications funded, followed by Florida at 46.98%, Mississippi at 47.75%, and Georgia at 48.13%.

That compares to a rate of 52.8% of loans funded nationwide. In addition to the 50 states, the analysis included data from the District of Columbia and the grouped-together U.S. territories of Guam, Puerto Rico, and the Virgin Islands.

According to the analysis, 21 of the 52 states and territories had rates of funded loans below the U.S. average.

It is no coincidence that the top five toughest states to close a loan in were all located in the South; that was by far the toughest of the four U.S. regions, with just 49.38% of loans funded. The three other regions — the Midwest (57.62%), Northeast (55.44%), and West (53.41%) — all had funded-loan rates above the U.S. average.

Based on HMDA data, there were six reasons for a mortgage not to be funded:

• The application was denied;

• The application was approved but not accepted by the borrower;

• The pre-approval request was

denied;

• The pre-approval request was approved but not accepted;

• The file was closed for incompleteness; or

• The application was withdrawn.

In 2022, nearly 2.5 million applications nationwide were recorded as denied and another 2.2 million were withdrawn, compared to 1.25 million for the other four reasons combined.

Talk to loan originators, though, and they offer a frontline perspective for why so many mortgage applications fail to close in the Sunshine State.

‘SAND STATES’

You might have noticed that none of the six reasons above for loans to fail mention anything about the beach.

That brings us back to Bittman, who

Toughest Places To Close

These states were the toughest to close a loan in during 2022, based on the percentage of of loan applications that closed, according to an analysis of Housing Mortgage Disclosure Act (HMDA):

is a loan originator and regional manager for the Jane Floyd Team of NFM Lending in southeastern Florida, as well as president of the Florida Association of Mortgage Professionals (FAMP).

Bittman said the South in general, and Florida in particular, are popular destinations for people relocating from elsewhere in the U.S., partly because of the great beaches. Of the top five toughest-to-close states, Texas, Louisiana, and Mississippi are all on the Gulf of Mexico, while Florida has a coastline on both the Gulf and, like Georgia, the Atlantic Ocean.

“We are one of the ‘sand states,’” Bittman said, “and … we have just seen a surge of consumers that are now buying properties here in our state.”

A report from Redfin backed up that claim, stating that Florida was the most popular destination for buyers who were relocating. In fact, Redfin said, five of the top 10 destinations for homebuyers who relocated were in Florida, including Miami, Tampa, and Orlando.

“As a result of that, you still see massive demand, even in a high-interest-rate market,” Bittman said. “But part of the challenge that we’ve experienced is that property values continue to rise, and interest rates are the highest they’ve been in a very, very long time. So, you just have difficulty from a debtto-income ratio (DTI) [standpoint] in many cases for consumers to be able to qualify for residential lending.”

He also noted that many out-ofstate buyers are purchasing either a second home or an investment property, which also can create DTI issues

INSURANCE & TAXES

There are, of course, certain affordability issues related to buying a home in Florida, whether the buyer resides within its borders or not. Emily Tolbert, a mort-

*U.S. Territories combines data from Guam, Puerto Rico, and the Virgin Islands

Source: Analysis of HMDA data by Richey May

gage loan originator with Motto Mortgage Signature Plus in Daytona Beach Shores, cited the dramatic increase in insurance costs that have occurred in the state over the past couple of years.

Property insurance companies continue to drop coverage in Florida, in part because six of the 10 most financially destructive storms in U.S. history have hit the state and in part because of insurance fraud. According to Bankrate.com, Florida is home to 78% of the home insurance lawsuits in the U.S.

With fewer options for homeowners, insurers have boosted premiums. The Insurance Information Institute predicted earlier this year that property insurance rates in Florida could jump at least 40% in 2023.

“Sometimes that number is so high that it bumps up those debt-to-income ratios,” Tolbert said. “So, I think that right there has been a big … increase in why people may not be qualifying.”

Mary Babinski, a senior loan officer with Motto Mortgage in Trinity, Fla., says she also has seen issues arise because of the cost of insurance.

Some buyers are “just too uncomfortable with the monthly payment, once they actually get a homeowner’s insurance quote and realize how much the property taxes are and what the total payment is going to be,” she said.

Bittman agreed that insurance costs, as well as property taxes, can

Easiest Places To Close

These states were the easiest to close a loan in during 2022, based on the percentage of of loan applications that closed, according to an analysis of Housing Mortgage Disclosure Act (HMDA):

become an issue for potential buyers.

“Taxes do go up because their properties get reassessed at the new purchase price, which in many cases could be substantially higher than what it was from the individual who sold the home when they purchased their home many years ago,” he said. “Insurance is definitely a challenge. Absolutely.”

He continued, “So when you compound property taxes, insurance, when you compound the interest rate that’s

still very high — that does make it a challenge for several consumers to be able to buy here.”

BUYER BE … EDUCATED

All three mortgage professionals agreed that the most effective way to shepherd a potential homebuyer through the mortgage approval process is to educate them.

Babinski said she has seen potential buyers, including but not limited to first-time buyers, who aren’t prepared to respond to the breadth and depth of information required to get a loan approved.

“Consumers kind of come into this with an expectation of still wanting to maintain a lot of privacy and be a bit guarded when it comes to their business affairs and their financial affairs,” she said. “The way the mortgage industry is now is … the borrowers have to be prepared to share it all.”

She continued, “I mean, anything

“When you compound property taxes, insurance, … the interest rate that’s still very high — that does make it a challenge for several consumers to be able to buy here.”

> Nathaniel Bittman, loan originator and regional manager, Jane Floyd Team of NFM Lending, as well as president of the Florida Association of Mortgage Professionals

and everything that could be asked about needs to be expected to be asked about, more now than ever. The guidelines and regulations are very black-and-white. And people have to just be prepared for that.”

Tolbert said that makes loan pre-approvals an important part of the process. “You’ve got to put in the upfront work,” she said. “And it’s not just, ‘Hi borrowers, this is what I’m going to need from you.’ It’s, ‘Hi borrower, this is what I’m going to need from you, and here’s why.’”

With first-time homebuyers, she added, it can be a mixed bag. “In my experience,” Tolbert said, “I’ve got some who they’ve really prepared ahead of time for the process. I’ve got some who, maybe they’ve been long-time renters, they have credit issues, and they think that it takes two minutes to get pre-approved for a loan, and that there’s all these programs out there that allow them to get something for nothing.”

That makes it important, she added, for the mortgage professional “to deliver a positive message, but also a realistic message: ‘There’s work that goes into it and you should prepare in advance.’ And preparing in advance is going to allow you to proceed with confidence and come out with … a closed loan in the end.”

Babinski noted that even homeowners with existing mortgages may lack

Closing Rates By Region

done, is a bit mind-blowing for people,” she said. “They have to register, set up logins, go into portals, upload documents. … Customarily, we don’t see our clients face-to-face anymore like we did back in the day.”

“Just the process alone can be daunting for people,” she added, “even when they have all their ducks in a row.”

‘SHEER SHOCK’

an understanding of the modern application process, especially if they’ve owned their home for a long time.

“If it’s been a little while, even a couple of years or so, I just think the technology involved in today’s world … to get anything done, but especially to get something like a mortgage

Still, Bittman notes that pre-approval can be both a blessing and a curse, because many potential borrowers are shopping not only for a home, but for the best mortgage rate. That means even if they receive a pre-approval, they may not accept it or may withdraw their application.

“We have a lot of consumers that are approved in shopping,” he said. “Two challenges have arisen from that, if they do qualify from a debt-toincome ratio. Sometimes what may stall them is just the sheer shock that when they look at the price points of the homes that they want to buy, when they realize what that monthly payment is between principal and interest, taxes, and insurance and mortgage insurance. It’s so extremely high for them that it just, in many cases, stops them in their tracks and really stops them from wanting to go ahead and purchase.”

That leads to two options, he said. If the consumer stalls “and sort of

“You’ve got to put in the upfront work. And it’s not just, ‘Hi borrowers, this is what I’m going to need from you.’ It’s, ‘Hi borrower, this is what I’m going to need from you, and here’s why.’”

>

Emily Tolbert, a mortgage loan originator with Motto Mortgage Signature Plus

goes dormant for 90 days,” the loan becomes inactive. “Or they just tell us ‘we’re not going to be shopping at this point right now,” and the loan is withdrawn.

Bittman said consumers also often discover there is a big difference between what they think they can afford and what they actually qualify for.

“I do spend a considerable amount of time coaching and educating my real estate agents on what are some of the tactics that they could do up front to set the proper expectation for the consumer, “ he said.

When it comes to getting over the obstacles that prevent mortgage applications from closing, Bittman said, the work has to be done.

“Mortgage professionals, whether

they’re brokers or lenders or even bankers, we all sort of fit in the same bucket,” Bittman said. “We’re mortgage professionals, and mortgage professionals that are on the front end of the process. For those that are committed to the process,

we end up having a very in-depth consultation with a consumer.”

He continued, “There was a time, many, many moons ago, that people could get in for limited money down, with very little documentation to verify. That is not what the world is like now. Now you typically have to qualify for a mortgage, you have to have the ability to repay.

“And,” he added, “there are more guidelines about making sure the consumer has the ability to repay. So educating yourself on that process is really the best thing that people can do right now. And find a great professional … that can take the time to properly consult with you, review your assets, review your budget, [and] have a conversation.” b

Comparison Of Loan Approval Data

UNITED STATES: Total # of mortgage applications: 15,834,464 Total # of funded applications: 8,361,198

% of total applications funded: 52.8%

Total application volume: $5,290,814,270,000

Average application amount: $334,132.83

Total funded application volume: $2,825,051,590,000

Average funded application amount: $337,876.41

Source: Analysis of HMDA data by Richey May

FLORIDA:

Total # of mortgage applications: 1,377,029

Total # of funded applications: 646,884

% of total applications funded: 46.98%

Total application volume: $436,305,705,000

Average application amount: $316,845.69

Total funded application volume: $227,840,510,000

Average funded application amount: $352,212.31

Source: Analysis of HMDA data by Richey May

“Consumers kind of come into this with an expectation of still wanting to maintain a lot of privacy and be a bit guarded when it comes to their business affairs and their financial affairs.”

> Mary Babinski, a senior loan officer with Motto Mortgage

Recognizing Florida’s Mortgage Masters M

FLORIDAORIGINATOR

2023MORTGAGEMASTE R S

asters are those who can make the most of a difficult situation and turn it into a positive outcome. Well, here at Florida Originator Magazine, we know that 2023 has been a difficult situation with the combination of higher interest rates and increased home prices (not to mention dwindling inventory).

That’s why we created Florida Mortgage Masters. We wanted to honor those who found a way to boost their business and push past the instability of the 2023 mortgage market.

The two we honor are Tyler Nguyen from Bluegrey Mortgage and Rajin Ramdeholl from Fluent Mortgage Corp.

Tyler’s path to becoming a “Mortgage Master” started when, as a Realtor, he was flipping homes. His real estate company did not have an in-house

lender, so Nguyen, who always liked working with numbers, volunteered to learn the ropes.

Rajin found himself at the age of 22, married, and in need of a job. He enrolled in a mortgage training class at First Republic Bank in 2004, the only student among the 19 without any sales experience. But he was one of four hired after two weeks of training.

Learn more about how their backgrounds helped them become masters.

Tyler Nguyen Succeeds By Driving To The Finish Line

Tough times are not all bad for the profession

By Gary Rogo, Special Sections Editor, Florida Originator Magazine

Tyler Nguyen’s path to becoming a “Mortgage Master” started when, as a Realtor, he was flipping homes. His real estate company did not have an in-house lender, so Nguyen, who always liked working with numbers, volunteered to learn the ropes.

“I took that opportunity to get my mortgage license and started my journey,” Nguyen says.

And just like that, a career was born in 2015. “It changed my life,” Nguyen, 41, says.

“Tyler is considered one of the best in the business, always finding solutions for his clients and going above and beyond to help clients obtain homeownership,” writes Pablo Cotto, Bluegrey Mortgage’s business administrator, in his nomination.

One of the traits that makes him one of the

best is his perseverance. Some loans are trickier than others, Nguyen says, but he works on them until they are completed.

“I keep driving until I get to the finish line,” is how he puts it.

Nguyen says that the majority of the loans he and his team close are special in their own ways.

“This year we had a client that was referred by her son that we closed a loan for the prior year and also referred by the Realtor partner,” he recalls. “Her father passed away, and in his trust gave her the opportunity to take ownership of the home. Keep in mind, she’s in her mid 50s and never owned a home in her life.”

Nguyen acknowledges challenges during the process, but he was able to persevere and close the loan.

“She was so grateful, and we still keep in touch throughout the year,” he says. “During the loan process, what I enjoy is building rapport and getting to know the client on a personal level, and it is so satisfying once we make it to closing day.

“That’s why I chose to be a loan officer, to help these clients obtain the American dream of homeownership.”

One such satisfied client from Land O’ Lakes wrote this testimonial on Zillow in June 2022: “Tyler was a phenomenal expert mortgage broker. Him and his team getting our home closed in six weeks. Finally, we’ve got our dream home. Thank you so much!”

In a down market, Nguyen says, ”It’s important to show value to our partners. I have partaken in coaching for years now, and share that information and knowledge with my partners.”

Tough times are not all bad for the profession, he points out.

The mortgage business is all about relationships, he says. Good lenders and those just

TYLER NGUYEN Branch Manager

FLORIDA ORIGINATOR

starting out should take the opportunities to forge new relationships that will endure beyond the lean years and pay off once the good times return. It is a time to master the basics of the business and how to build a client base.

“A challenging market can make you stronger in the long run,” says Nguyen, who is licensed in Florida, Colorado, Kansas (where he is originally from), Oklahoma, Pennsylvania, and Texas.

Nguyen has no secret sauce for managing through a down market.

“Honestly, I treat all my partners as extended family, and I always show my appreciation for their partnership. You build rapport, show the love, and build relationships. The way you treat people is paramount,” he says. “Being humble and hungry is our motto.”

And, “honestly, yes,” Nguyen would recommend the mortgage business as a career if someone sought his advice.

But Nguyen is adamant about one part of the business needs fixing: Appraisals. He would like to see better standards in appraising properties. “Appraisals are very spotty, very inconsistent,”

he says. “It’s hard to say why.”

Nguyen says two appraisers can see the same piece of property and come up with significantly different values. “Mind boggling,” adding, “Appraisals should be science, not art. They should be consistent.”

Nguyen works long hours during the week, so weekends are reserved for his family.

“Spending time with my girls (two daughters, ages 8 and 10, and his wife) is what I look forward to the most,” says Nguyen. b

“During the loan process, what I enjoy is building rapport and getting to know the client on a personal level.”

Problem Solving Makes Rajin Ramdeholl A Master

For him, there is much more to the mortgage business than crunching numbers

By Gary Rogo, Special Sections Editor, Florida Originator Magazine

So how did Rajin Ramdeholl rise to the level of a Mortgage Master? “It’s just circumstances, it’s just life,” he says.

It all started when Ramdeholl found himself at the age of 22 married and in need of a job. He enrolled in a mortgage training class at First Republic Bank in 2004, the only student among the 19 without any sales experience. But he was one of four hired after two weeks of training.

Ramdeholl then fell in love with the mortgage industry, a love that has remained constant to this day. “I look back at when I started, and I have the same type of excitement as I had then,” he says. “Every day is a new adventure.”

Ramdeholl, 41, feels it is his ability to be a problem solver that makes him stand out from the crowd. “Every day my job is to problem solve,” he says. “No two loans are the same.”

He enjoys being in the position to help people achieve their dreams of homeownership, especially first-time buyers. “I like the challenges when I put together that deal that shows my expertise, my ability to get those deals together,” he says.

Every day, Ramdeholl says, he hears stories of sacrifice from people who work tirelessly to scrape together enough money to buy new homes, for themselves or their children. Some of these people who migrated from other countries associate the American Dream with homeownership, and struggle to achieve this dream. “It hits straight to the heart,” Ramdeholl says

It’s no surprise to Jerome Jagmohan that Ramdeholl is being honored as a Mortgage Master.

“Rajin knows what works and what doesn’t when it comes to the mortgage and financial industry,” says Jagmohan, a branch coordinator for Meadowbrook Financial who nominated Ramdeholl. “Navigating the real estate market’s ups and downs for many years, Rajin learned that there is much more to the mortgage business than crunching numbers and calculating interest rates. It is about helping people realize their dreams.”

Ramdeholl acknowledges the mortgage industry is not for everyone. Those who enter the industry with thoughts only of financial gains for themselves will not last, he says. The enduring motivation must be actually helping people achieve homeownership.

That’s why Ramdeholl says he is thriving

during these down times. “Our clients have so much confidence in us,” says Ramdeholl, noting doing repeat business or business with families and friends of previous customers. “My business has the referral base.”

Ramdeholl wants to make the mortgage business stricter and tougher to be licensed. “It’s not hard enough to get a license,” he says.

He would like to weed out those originators who do not have their clients’ best interests at heart, instead being in the business only to enrich themselves, selling mortgage products not in the best interest of their customers.

Ramdeholl is one of the top voices in the mortgage space on social media, Jagmohan says, with a following of more than 40,000 combined and growing, as well as being featured on a handful of podcasts. He is a sought-after TV and radio personality for his articulate and candid conversations regarding loans, educating consumers on how to protect themselves and what types of loans might be best for them.

Ramdeholl, who is licensed in Florida, New Jersey, and New York, has closed north of $1.5 billion in business from his 19-plus-year career, Jagmohan says. He employs his own team of 14-plus loan orig-

inators, underwriters, processors, and marketers.

Fluent Mortgage is Ramdeholl’s newest endeavor to set up offices across Florida to help residents obtain their dream of homeownership, Jagmohan says. A bulk of Ramdeholl’s business has been originating from Florida, given the popularity of the real estate market in the state.

For all of Ramdeholl’s long hours, balancing family and friends with his career is critically important to him.

“At the end what is it worth if I can’t spend time with the ones who are most important to me,” he says. b

“I like the challenges when I put together that deal that shows my expertise, my ability to get those deals together.”

The same hard hitting news, but with a twist. More fun, more irreverent, more hands on. More commentary on the news you need to know. The Interest, it’s all new and just for you. Don’t miss the launch on August 23rd. Make sure you’re signed up for the NMP Daily so you don’t miss an episode.