Go Mortgage and PacRes Mortgage merge

Good morning. This is Mortgage Nuggets, the newsletter that transforms mortgage news into an easily digestible email for you. Today's newsletter is a 3-minute read.

1. Go Mortgage and PacRes Mortgage merge

Pacific Residential Mortgage has merged with Columbus-based Go Mortgage. The merger creates a nationwide lender with over 100 loan originators and 31 branches across 45 states.

Go Mortgage remains the surviving entity, expanding its reach by incorporating Pacific Residential’s 30 originators and 10 branches in AZ, CA, NV, OR, and TX. Both companies reported similar mortgage volumes in 2023, ~$615M each.

In the merged company, Michael Isaacs retains his role as CEO of Go Mortgage, now leading the larger, unified organization. Eric Wiley, Pacific Residential’s co-founder and executive vice president, will serve as Go’s Chief Growth Officer.

2. Pennsylvania banks to combine in $214M deal

Clearfield, Pennsylvania-based CNB Financial Corp. has agreed to buy in-state peer Stroudsburg-based ESSA Bancorp in an all-stock transaction valued at roughly $214M.

The combined entity will have roughly $8 billion in assets, $7 billion in deposits, and $6 billion in loans and expand CNB’s services to eastern Pennsylvania and the greater Lehigh Valley market.

The transaction — expected to be completed in the third quarter of this year — has been approved by the respective boards but awaits approval from shareholders of both companies and regulators.

💡 Play Offense, Not Defense: AI Propensity Modeling

Traditional lead scoring and triggers notify you too late; your leads show signs of intent to buy a home far before trigger events like pulling credit. AI Propensity Modeling proactively identifies opportunities in your database, allowing you to “play offense” when it comes to database marketing.

How:

• 5,000+ consumer behavior data points: Property data, household dynamics, finances, shopping trends, life events, behaviors, and more.

• Advanced AI algorithm: Calculates readiness to transact, and consistently improves upon itself utilizing machine learning.

• Readiness to Transact Scores: These scores update daily factoring in new data and can be used to trigger Aidium automations or send real-time alerts to your team.

Learn more about Aidium Intelligence and how you can start maximizing your lead opportunities using AI Propensity Modeling.

3. More Nuggets

🏘️ Troubled rent-to-own startup Divvy Homes acquired in surprise 'fire sale'. (MSN)

📣 Fannie Mae reminds homeowners, renters, and mortgage servicers of disaster relief options for those affected by the Southern California wildfires. (Fannie Mae)

🇺🇸 Why it’s so hard to find starter homes in the U.S. (CNBC)

📊 Survey reveals nearly 30% of Americans expect Trump’s return to slump the real estate market. (Resimpli)

4. 400K+ mortgages may be underinsured for flood risk

The Consumer Financial Protection Bureau (CFPB) reports that over 400K mortgaged homes in the southeastern and central southwestern are likely underinsured for flood risks from rivers and creeks, surpassing coastal areas.

Analyzing mortgage applications from 2018 to 2022 using FEMA and First Street Foundation data, the CFPB found that flood exposure is broader and more dispersed than previously recognized.

The underinsurance stems from reliance on FEMA’s flood maps, which may not accurately reflect future risks. Additionally, coastal homeowners generally have higher incomes and assets, enabling better flood recovery, whereas those near inland waterways often lack sufficient financial resources.

5. Supreme Court denies NAR’s appeal request, allowing DOJ investigation to proceed

On Monday, the NAR faced another legal setback when the Supreme Court declined to hear its case against the DOJ.

The Supreme Court didn’t explain its reasoning for the decision, which will now allow the DOJ to reopen its investigation into the association’s cooperative compensation rule.

NAR and the DOJ had agreed to a proposed settlement in 2020. However, in 2021, the DOJ withdrew the settlement and resumed its investigation into the association’s commission rules.

☀️ You’re all caught up. See you on Friday!

🚀 Wanna help our newsletter grow? Forward it to a friend or colleague.

Would you like to receive a ready-to-send weekly marketing email for your realtors and/or clients? Start your 30-day free trial here.

Was this email forwarded to you? Subscribe here.

Interested in advertising to 40k+ loan officers? Get in touch.