Wells Fargo agrees to offer credit to DACA recipients
After deliberations with the Mexican American Legal Defense and Education Fund (MALDEF), Wells Fargo extended some good news to the young immigrants known as Deferred Action for Childhood Arrivals, or DACA recipients.
Wells has agreed to make mortgage and home equity loans to eligible DACA recipients “except where prohibited by specific investors,” the bank explained in a press release. Only consumers who have the ability to repay will qualify.
Credit products will include access to education loans; personal credit lines and loans; credit cards; auto loans; and small business credit.
Wells plans to roll out mortgage loans and the series of other products starting in the first half of 2020 and the first quarter of 2021.
Wells, and agreed to provide financial compensation to DACA recipients “who may have been denied credit in the past by Wells Fargo,” according to the release.
Thousands of young immigrants should benefit from the above products and services. The agreement “is a positive acknowledgement of these young immigrants’ ongoing contributions to our national economy,” said Thomas A. Saenz, MALDEF president and general counsel. “This is an important step forward for American banking.”
Digital lending attracts educated, tech-savvy – and single – women homebuyers
Women are changing the housing industry from the inside and out. A new wave of female homeowners is on the rise as many single women reverse tradition by choosing to get a mortgage before marriage or not as co-borrowers with their spouse.
Thanks to online lending the future of homeownership is becoming increasingly female, says a joint report from real estate fintechs Better.com and Compas. It suggests digital lending is attracting well-educated, tech-savvy female borrowers to apply for a loan from the convenience of their mobile device.
In 2019, 23% of Better.com borrowers were single women, a 4.5 times increase compared to previous years. Industry-wide; The number of single female homebuyers increased to one in five; The number of single independent women borrowers aged 30 to 40 years old and earning $10,000 to $20,000 a month was 4.5 times higher than a year ago; The number of single minority women homebuyers was 5 times higher in 2019.
One in three of the married women who secured a loan through Better.com in 2019, did not put their spouse on the application. The majority of married women co-borrowers earned an average monthly salary of roughly $5,600 compared to $3,000 by the men.
Company data show the top 10 cities where single women are actively getting mortgages areAtlanta, Los Angeles, Chicago, Seattle, Denver, San Francisco, Washington, DC, San Diego, Houston, and Oakland. Since 2016, when the company was established, Better.com said it has closed $7.9B in home loans.
Both companies saw large increases in female borrowers during 2019. Many single women are looking to buy, sell or invest, said Danielle Lurie at Compass. Up to 83% of the real estate agents surveyed by Compass said, they have seen the number of primary or sole buyer/seller women increase over the past five years; more than half, 58% of the agents reported the majority of their clients were women.
TD Bank Adds Roostify’s Digital HE Solution
Favorable home-price appreciation trends support a healthy demand for home equity products incentivizing lenders to be ready for it spurring strategic digital partnerships.
TD Bank’s solution further expands the bank’s partnership with digital lending platform Roostify with a new platform for customers interested in home equity loans and lines of credit.
Homeowners can work with a loan officer or access the platform independently, assess loan metrics and apply for a home equity loan or secure a mortgage, says co-founder and CEO of Roostify, Rajesh Bhat.
The digital platform enhancement also enables users to compare various home loan products before application, expedite mortgage loan processing and user cost efficiency. Detailed educational resources are available online.
Top metro home prices reach or exceed pre-recession peaks
The Coronavirus-driven economic carnage may or may not interfere with the housing market expansion into 2020. Lower interest rates, growing first-time buyer demand, and a great turnaround in home prices in the nation’s top metropolitan areas, according to realtor.com, will keep lenders busy.
Home prices in most of the country have reached or exceeded their pre-recession peaks says the realtor.com data team, and the strongest price rebounds are were “where high-wage jobs like tech, health care, and financial services have grown the most during this past decade.”
About 127 months of consecutive growth helped. In Las Vegas, one of the worst hit metro areas during the recession, in November 2019, median sale prices had risen 121.4% from early 2012.
Realtor.com looked at the median home sale prices in the 11 largest metropolitan areas “at the bottom of the market in February 2012” since even though the Great Recession ended in mid-2009, in most markets real estate prices bottomed out in 2012.
San Francisco, CA:
- Median home price February 2012: $430,000
- Highest month (May 2018) median home price: $928,000
- Percentage increase: 115.80%
Los Angeles, CA
- Median home price February 2012: $365,000
- Highest month (July 2019) median home price: $675,000
- Percentage increase: 84.9%
- Median home price February 2012: $169,000
- Highest month (Nov. 2019) median home price: $305,000
- Percentage increase: 80.5%
- Median home price February 2012: $161,000
- Highest month (June 2019) median home price: $285,000
- Percentage increase: 77%
- Median home price February 2012: $296,000
- Highest month (June 2019) median home price: $496,500
- Percentage increase: 67.70%
- Median home price February 2012: $161,000
- Highest month (June 2019) median home price: $260,000
- Percentage increase: 61.50%
- Median home price February 2012: $180,000
- Highest month (July 2019) median home price: $261,000
- Percentage increase: 45%
New York, NY
- Median home price February 2012: $340,000
- Highest month (July 2019) median home price: $457,500
- Percentage increase: 34.6%
- Median home price February 2012: $166,000
- Highest month (June 2019) median home price: $253,000
- Percentage increase: 52.40%
Amilda is a journalist and branding consultant interested in how entrepreneurs turn brilliant ideas into products and services that advance business acumen and improve people’s lives in unprecedented ways. She has covered mortgage finance for over 15 years.