Home prices rise for the first time in eight months

Good morning. This is Mortgage Nuggets. The newsletter you lean on for fresh news. This week is stuffed: the jobs report, Trump’s arraignment tomorrow, Passover, Easter prep, the Masters, etc. Friday will be here before we know it.

1. Home prices rise in February

According to Black Knight, home prices rose 0.16% nationally in February, marking the first monthly increase after seven months of declines.

Lower mortgage rates in February didn't improve home affordability, as the demand increased and supply remained limited, pushing up home prices.

In total, 39 of the 50 largest markets saw home prices increase on an adjusted basis in February. To compare, prices fell in November in 48 of 50 markets.

“The purchase market increased when rates declined in the early part of the month, and borrowers were quick to take advantage of limited inventory,” Andy Walden, Black Knight’s vice president of enterprise research, said in a statement. “In many areas of the country, that dynamic – low inventory and a modest rise in demand – led to an uptick in home prices.”

However, the scarcity of inventory isn't getting better, which is the source of market gridlock. The number of homes available for sale fell for the fifth consecutive month, and new listings ran 27% below pre-pandemic levels.

2. CFPB issues final rule for small business lending data

The CFPB has issued a final rule requiring lenders to collect and report data on small business credit applications they receive. The rule aims to increase transparency in small business lending and combat unlawful discrimination.

The rule requires lenders to collect and report information about small business credit applications, such as geographic and demographic data, lending decisions, and credit prices.

Although the rule does not change reporting requirements for residential mortgage lenders under the Home Mortgage Disclosure Act, it could affect mortgage originators working with property investors, as rentals and other income-generating properties are now treated as small businesses.

The CFPB has set different reporting timelines for lenders of varying sizes, with the largest lenders required to begin data collection in October 2024.

3. More Nuggets

✍️ Boston-based Notarize will be able to execute digital real estate closings in Massachusetts after Governor Maura Healey signed legislation legalizing remote online notarizations, making Massachusetts the 43rd state to do so. (CFI)

💰 The danger of getting creative with housing down payments (Axios)

💼 MISMO is seeking public comment on its new Servicing Transfer Catalog, which includes industry-standard templates and best practices for servicer-to-servicer transfers of residential mortgage loans. The comment period runs for 60 days until May 30, 2023. (MISMO)

4. Big Purple Dot integrates with ChatGPT

Big Purple Dot has integrated ChatGPT's API into its mortgage and real estate customer relationship management platform to create an AI assistant that uses natural language processing to understand and respond to queries in a more human-like way.

The chatbot aims to improve customer satisfaction, lead generation, and operational efficiency, and can also help users manage teams by facilitating sales and communication coaching.

The integration is available to all BPD clients, with an official release date set for April 30.

☀️ See you on Wednesday!

1 fun thing: Eggs too expensive? Paint a potato for Easter instead.

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