2021 – Page 8 – REI INK

More Than Three in Five US Consumers Would Consider Buying a Home at Auction

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With the expiration of the foreclosure moratorium, more homes are expected to hit the auction market in the coming year – creating an additional option for consumers to purchase property, particularly while supply in the market is tight. ServiceLink, part of the FNF family of companies and the nation’s premier provider of tech-enabled mortgage services, unveiled data from a recent survey that shows a majority of consumers are open to achieving homeownership through options like auction. The survey, conducted online by The Harris Poll on behalf of ServiceLink, includes insights from more than 3,000 U.S. consumers to better understand their perceptions of the overall housing market and their attitudes towards purchasing a home at auction. Key findings from the survey include: Willingness: Despite the opportunity for greater awareness, consumers are open to buying homes at auction. More than one in four U.S. consumers (28%) are not aware that you can buy a home at auction. More than three in five U.S. consumers (62%) would consider buying a home at auction, with one in ten (10%) saying they have done so. Millennials (ages 25-40) are more apt to consider buying at auction than their older counterparts. Seventy-five percent of millennials say they would consider buying a home at auction, compared to 65% of Gen Xers (ages 41-56) and 54% of baby boomers (ages 57-75). One-fifth (21%) of millennial consumers have bought a home at auction, compared to 13% of Gen Z (ages 18-24), 6% of Gen Xers and 4% of baby boomers. Motivation: Price and speed are driving factors for consumers when considering buying a home at auction. Potential cost savings (70%) and a faster homebuying process (57%) are motivating factors for more than half of U.S. consumers to buy a home at auction. Alternatively, not being able to see the home in-person prior to buying (66%) and not being able to get a professional inspection (62%) are factors that would stop U.S. consumers from buying at auction. Forty-two percent of U.S. consumers say the ability to bid remotely (online) would motivate them to buy a home at an auction. For millennials, this jumps to 55%. Younger generations show openness to using remote bidding tools, which can make auctions more accessible, as travel is not necessary in order to participate. Market Outlook: Consumers anticipate the real estate market will continue to be competitive for potential homebuyers in 2022. Many U.S. consumers anticipate the suburbs will continue to thrive, with 41% saying they believe the suburbs will continue to be popular areas for homebuying in 2022, and only 12% believing Americans who left big cities will return to them to live. Almost half of U.S. consumers (45%) expect home prices to increase in 2022. Almost two-fifths of U.S. consumers (39%) believe there will be an increase in foreclosed homes available for purchase at auction in 2022. “It’s not surprising that millennials are pursuing new opportunities to achieve homeownership, particularly in the current real estate market where they are facing challenges due to high prices and low supply,” said Miriam Moore, president of default services at ServiceLink. “We expect that more auction properties will hit the market next year through foreclosure and buying homes at auction will become more mainstream as consumers look to buy quickly and at competitive pricing.” Methodology This survey was conducted online within the United States by The Harris Poll on behalf of ServiceLink from October 25-27, 2021 among 3,058 U.S. adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact servicelink@missionnorth.com. About ServiceLink ServiceLink is the nation’s premier provider of digital mortgage services to the mortgage and finance industries. ServiceLink leads the way by delivering best-in-class technologies, a full product suite of services and proven experience, built on a foundation of quality, compliance and service excellence. ServiceLink provides valuation, title and closing, and flood services to mortgage originators; and default valuation, integrated default title services, vendor invoicing and claims audit services, as well as field services and auction services to mortgage servicers. ServiceLink helps clients in the lending industry and beyond achieve their strategic goals, realize greater efficiencies, and better serve their customers. For more information about ServiceLink, please visit svclnk.com.

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Twelve Times More Properties are Equity-Rich Than Seriously Underwater Nationwide; Portion of U.S. Homes Considered Equity-Rich Up to 40 Percent; Seriously Underwater Properties Down to 3 percent ATTOM, curator of the nation’s premier property database, released its third-quarter 2021 U.S. Home Equity & Underwater Report, which shows that 39.5 percent of mortgaged residential properties in the United States were considered equity-rich in the third quarter, meaning that the combined estimated amount of loan balances secured by those properties was no more than 50 percent of their estimated market value. The portion of mortgaged homes that were equity-rich in the third quarter of 2021 – one in three – was up from 34.4 percent in the second quarter of 2021 and from 28.3 percent in the third quarter of 2020. The report also shows that just 3.4 percent of mortgaged homes, or one in 29, were considered seriously underwater in the third quarter of 2021, with a combined estimated balance of loans secured by the property of at least 25 percent more than the property’s estimated market value. That was down from 4.1 percent of all U.S. homes with a mortgage in the prior quarter and 6 percent, or one 17 properties, a year ago. Across the country, 46 states including the District of Columbia saw equity-rich levels increase from the second quarter to the third quarter of 2021, while seriously underwater percentages decreased in 39 states. Year over year, equity-rich levels rose in 49 states including the District of Columbia, and seriously underwater portions dropped in 47 states including the District of Columbia. The improvements at both ends of the equity scale represented some of the largest quarterly gains in two years and provided yet another sign of how strong the U.S. housing market remained in the third quarter, even as the broader economy only gradually recovered from damage resulting from the Coronavirus pandemic that hit early last year. Equity increases during the months running from July through September came as the median home price nationwide rose 4 percent quarterly and 16 percent year over year, to a new record of $310,500. Median values rose up at least 10 percent annually in two-thirds of metro-areas around the country. Those ongoing price runups continued boosting equity because they widened gaps between what homeowners owed on their mortgages and the value of their properties. Prices have continued rising over the past year amid rock-bottom mortgage rates and a desire of many households to flee virus-prone areas for the perceived safety of a house and yard or find more space to accommodate new work-at-home lifestyles. That has generated a bubble of home buyers chasing a tight supply of properties for sale throughout the past year and a half, spiking demand and boosting home values. Some signs of a possible market slowdown have emerged recently in the form of declining home affordability, rising foreclosures and falling investor profits. But the third-quarter price and equity gains shined as prime examples of how the housing market boom continues surging through its 10th straight year. “Homeowners across most of the United States could sit back with a smile yet again in the third quarter and watch their balance sheets grow as soaring home prices pushed their equity levels ever higher. Amid the best gains in two years, nearly four of every 10 owners found themselves in equity-rich territory,” said Todd Teta, chief product officer with ATTOM. “For sure, some uncertainty lies ahead as other key market barometers have been a bit shaky as of late. And the Coronavirus pandemic remains a threat. But there is no doubt that homeowners continue benefitting big-time from the relentless home price increases we are seeing around the country.” Western and southern states show biggest improvement in equity-rich share of homes Eight of the top 10 states where the equity-rich share of mortgaged homes rose most from the second quarter of 2021 to the third quarter of 2021 were in the West and South. States with the biggest increases were Utah, where the portion of mortgaged homes considered equity-rich rose from 45.5 percent in the second quarter of 2021 to 60.9 percent in the third quarter, Arizona (up from 39.7 percent to 53.2 percent), Idaho (up from 54.2 percent to 65.1 percent), North Carolina (up from 28.4 percent to 38.6 percent) and Nevada (up from 34.9 percent to 44.9 percent). The states where the equity-rich share of mortgaged homes decreased most from the second to the third quarter of this year were Kansas (down from 31.4 percent to 27.1 percent), Wyoming (down from 29.5 percent to 25.8 percent), Mississippi (down from 26.6 percent to 23 percent), Montana (down from 40.8 percent to 38.5 percent) and California (down from 53.8 percent to 52.1 percent). South and Midwest show largest declines in underwater properties The top 10 states with the biggest declines from the second quarter of 2021 to the third quarter of 2021 in the percentage of mortgaged homes considered seriously underwater were in the South and Midwest. They were led by West Virginia (share of mortgaged homes seriously underwater down from 11.7 percent to 7.1 percent), Ohio (down from 7.8 percent to 5.4 percent), Arkansas (down from 8.8 percent to 7 percent), Michigan (down from 5.4 percent to 3.7 percent) and Kentucky (down from 7.7 percent to 6.2 percent). States where the percentage of seriously underwater homes rose most from the second to the third quarter of 2021 were Mississippi (up from 7.6 percent to 17.7 percent), Wyoming (up from 3.6 percent to 11.5 percent), Maine (up from 3.4 percent to 5.8 percent), Kansas (up from 4.6 percent to 6.7 percent) and Montana (up from 3 percent to 3.6 percent). Largest shares of equity-rich homes still in West; smallest in Midwest and South The West continued to have far higher levels of equity-rich properties than other regions in the third quarter of 2021. Eight of the top 10 states with the highest levels in the third quarter were in the West, led by Idaho (65.1 percent of mortgaged homes were equity-rich), Vermont (61.2 percent), Utah (60.9 percent), Washington (56.2 percent) and Arizona (53.2 percent). Thirteen of the 15 states with the lowest percentages of equity-rich properties in the third quarter of 2021 were in the Midwest and South, led by Louisiana (19.8 percent of mortgaged homes), Illinois (21.5 percent), Alaska (23 percent), Mississippi (23 percent) and Oklahoma (24.7 percent). Among 106 metropolitan statistical

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Accredited investors can now easily purchase shares representing interests in fully-managed rental homes for as little as $1,000 Roofstock, the leading digital real estate investing platform for the $4 trillion single-family rental home sector (SFR), announced the next phase of Roofstock One, its targeted investing platform that gives accredited investors innovative access to this growing asset class. Roofstock One wraps all of Roofstock’s expertise and capabilities, including its deep data science, institutional-caliber research and skilled property acquisition and management services into a single, fully managed product. With Roofstock One, investors can buy shares representing interests in rental homes across markets and multiple properties rather than having to purchase entire homes, making investing in SFR similar to buying a share of stock. Accredited investors can invest in Roofstock One shares for as little as $1,000 with an introductory offer through December 31, 2021. Roofstock One is a radically simple alternative to traditional real estate investing. Roofstock uses its SFR investment expertise to identify and acquire properties in markets that its data science and research teams have identified as potentially attractive investment opportunities. Roofstock One then issues shares that represent ownership interests in the selected SFR properties. These shares are then bundled based on geography or other characteristics of the properties to provide investors exposure to different investing strategies. Accredited investors can select groups of shares that align with their investing goals, add the investment to their shopping cart, and complete their purchase in a matter of clicks. “The attractiveness of SFR has long been its ability to generate strong, consistent returns over the long-term in a way that is almost entirely uncorrelated to the stock market,” said Gary Beasley, CEO and co-founder of Roofstock. “We believe Roofstock One makes SFR real estate investing the simplest it has ever been.”  Benefits and highlights of Roofstock One include: A hands-off, fractional ownership approach: Investors get many of the economic benefits of direct ownership, such as potential cash flows from rent and asset appreciation, without the traditional associated responsibilities, like managing renovations or tenancy issues.   Ability to customize the investment: Roofstock One allows investors to choose targeted portfolios based on their investment goals.  Professional property and asset management: Roofstock One leverages Roofstock’s industry-leading platform to optimize the performance of the properties on behalf of investors with the goal of maximizing returns on an ongoing basis. Simple tax filing: Roofstock One’s innovative structure makes tax time easier by providing investors with a Form 1099, avoiding Form K-1s and partnership tax issues. Roofstock’s founders are pioneers of SFR. They were among the first to bring institutional capital, data science, digital technology, and asset management capabilities to an asset class that lacked a modern investing infrastructure. At its launch in 2015, Roofstock took the radical step to democratize access to SFR by making its investment expertise, data, and operational services, along with an exclusive inventory of rental homes available to everyday investors. The solutions Roofstock offers to investors have driven the company’s tremendous growth; surpassing $4 billion in transaction volume along with explosive expansion of its fully managed investment services, which has grown 50x since the beginning of 2021. The relaunch of Roofstock One marks a significant milestone that further levels the playing field for the individual accredited investor. Roofstock One’s market footprint currently includes homes in affordable markets, such as Georgia, Indiana, and Alabama, that likely will continue to benefit as work-from-home trends become increasingly prevalent. This launch of Roofstock One is just the beginning. Roofstock One is continually innovating on behalf of consumers to create new investment opportunities in SFR. The company is currently exploring a blockchain solution that could reduce transaction costs, streamline reporting, and potentially offer enhanced liquidity options by tokenizing Roofstock One shares or other SFR-related products. To learn more about Roofstock One or start investing, visit roofstock.com/one. About Roofstock Roofstock is the leading digital real estate investing platform for the $4 trillion single-family rental home sector. The company provides extensive resources for investors to buy, manage, and sell investment homes online, including data analytics, property management oversight, and other tools. Roofstock’s transparent, innovative marketplace empowers investors to own cash-flowing rental properties, diversify their investment portfolios, and build long-term wealth through real estate. Founded in 2015, the company has facilitated more than $4 billion in investment transactions to date. Roofstock was named to CB Insights Fintech 250 list in 2021 and has earned a spot on the prestigious Forbes Fintech 50 for the past three years.

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RealtyTrac®, the largest online marketplace for foreclosure and distressed properties, and TKI, a software development company with more than 20 years of real estate experience, announced a partnership to market nSkope, an AI-powered sales enablement platform that identifies properties likely to be listed for sale, to real estate investors and Realtors® across the country. nSkope utilizes proprietary algorithms enhanced by artificial intelligence to identify patterns and correlations that fuel its predictions, analyzing over 300 data points in 95% of U.S. ZIP codes to identify the homes that are most likely to be listed for sale within the next 6-12 months. These predictions help real estate investors, brokers and agents identify potential prospects with insight that allows for more targeted marketing and greater conversion rates. “The biggest challenge cited by both real estate investors and Realtors is the historically low number of homes available for sale today, which makes it difficult for investors to find properties to buy and equally hard for agents to find properties to list,” said Rick Sharga, executive vice president for RealtyTrac, an ATTOM company. “By partnering with TKI to identify properties with a high probability of being brought to market soon, we can help address that challenge, and provide our subscribers with a competitive advantage.” While only a small percentage of homes in any market are sold each year, TKI’s nSkope platform identifies homes that it projects will come onto the market in the 180-240 days, while also providing contextual sales insights that provide real estate investors and agents the ability to potentially lower marketing costs by more effectively targeting prospects and increasing conversions. “Marketing to a wide swath at the ‘top of the funnel’ with the hopes of finding home selling clients is costly and inefficient,” said Tom Gamble, co-founder and CEO of TKI. “Our use of data has changed this approach as we have been extremely successful in predicting homes that will come on the market. We also utilize elements of storytelling to help investors and real estate professionals best understand the needs of these potential sellers so that their marketing messages truly resonate.” Gamble pointed out that in its most successful markets, TKI has whittled down a potential seller’s base by as much as 75%, creating a return-on-investment of more than 500% in some markets when using nSkope. About RealtyTracFounded in 1996, RealtyTrac publishes the largest database of foreclosure property information in the U.S. in addition to other real estate and mortgage data used by real estate investors and agents to find, analyze and invest in residential and commercial distressed properties. RealtyTrac is owned and operated by Attom Data Solutions, a leading provider of publicly recorded tax, deed, mortgage and foreclosure data as well as proprietary neighborhood and parcel-level risk data for more than 150 million U.S. properties. For more information, visit www.RealtyTrac.com. About TKITKI was founded in 2002 and has worked with such clients as Comcast, QVC, Coldwell Banker Real Estate, Realogy, Cox, CTAM and the NFL. The software development company specializes in lead generation brand asset management and marketing automation.

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Typical Profit Margin on Home Sales Nationwide Increases to 48 Percent ATTOM, curator of the nation’s premier property database, released its third-quarter 2021 U.S. Home Sales Report, which shows that profit margins on median-priced single-family home and condo sales across the United States jumped to 47.6 percent – the highest level since the end of the Great Recession a decade ago. In yet another sign of how strong the U.S. housing market remains, the report reveals that the typical home sale across the country during the third quarter of 2021 generated a profit of $100,178 as the national median home price hit a record of $310,500. The latest profit level – also a new high – was up from $88,800 in the second quarter of 2021 and from $69,000 in the third quarter of 2020. Those gains raised the typical return on investment that sellers made on their original purchase price nationwide from 42 percent in the second quarter of this year and 34.5 percent a year earlier. The investment-return increases marked the biggest quarterly jump since 2014 and the biggest annual surge since at least 2008. Soaring profits in the third quarter came as the national median home price increased 3.5 percent from the second quarter of 2021 and 15.9 percent from the third quarter of 2020. The annual price surge marked the fifth straight quarter with year-over-year increases of at least 10 percent. So hot was the national market in the third quarter that median home prices rose annually in 93 percent of U.S. metropolitan areas with enough data to analyze, while profit margins increased in 86 percent. The latest price and profit improvements reflect a housing market that kept speeding ahead even as the U.S. economy only gradually recovered from widespread damage caused by the Coronavirus pandemic that hit early last year and continues to pose a threat. Amid rock-bottom interest rates and worries about living in congested virus-prone parts of the country, a glut of buyers has been chasing a tight supply of homes for sale over the past year and a half, raising demand and spiking prices. “The third quarter of this year marked another period in a banner year for a housing market boom that’s steaming ahead through its 10th year. Prices and seller profits again hit new highs since the market started coming back from the Great Recession in 2012,” said Todd Teta, chief product officer at ATTOM. “There have been a couple of small hints of a possible slowdown in recent months, as we head into the normally quiet Fall and Winter seasons. The pandemic also remains a constant presence that could tamp things down. But, for now, the market engine seems to have nothing but high-octane gas in the tank.” Profit margins rise annually in nearly 90 percent of metro areas around the U.S. Typical profit margins – the percent change between median purchase and resale prices – rose from the third quarter of 2020 to the third quarter of 2021 in 175 (86 percent) of 204 metro areas around the United States with sufficient data to analyze. Margins also increased from the second to the third quarter of this year in 168 of the 204 metros (82 percent). Metro areas were included if they had at least 1,000 single-family home and condo sales in the third quarter of 2021 and a population of at least 200,000. The biggest annual increases in profit margins came in the metro areas of Boise City, ID (margin up from 61.4 percent in the third quarter of 2020 to 130.3 percent in the third quarter of 2021); Claremont-Lebanon, NH (up from 41.1 percent to 93.8 percent); Augusta, GA (up from 19.6 percent to 56.6 percent); Raleigh, NC (up from 30.4 percent to 67 percent) and Bellingham, WA (up from 69.5 percent to 105.6 percent). Aside from Raleigh, the biggest annual profit-margin increases in metro areas with a population of at least 1 million in the third quarter of 2021 were in Detroit, MI (margin up from 43 percent to 68 percent); Rochester, NY (up from 39.4 percent to 63.8 percent); Austin, TX (up from 47.6 percent to 70.9 percent) and Pittsburgh, PA (up from 40.1 percent to 61.9 percent). Profit margins stayed the same or dropped, year over year, in just 29 of the 204 metro areas analyzed (14 percent) while they declined quarterly in 36 (18 percent). The biggest annual decreases were in Salem, OR (margin down from 75.6 percent in the third quarter of 2020 to 48.3 percent in the third quarter of 2021); Brownsville, TX (down from 37.1 percent to 13 percent); Kansas City, MO (down from 43.6 percent to 25.1 percent); San Jose, CA (down from 86.2 percent to 71 percent) and McAllen, TX (down from 33.4 percent to 19.9 percent). Aside from Kansas City and San Jose, the largest annual drops in profit margins among metro areas with a population of at least 1 million came in Los Angeles, CA (down from 54.3 percent to 44.5 percent); Cleveland, OH (down from 32.8 percent to 25.7 percent) and Las Vegas, NV (down from 43.8 percent to 37.2 percent). Largest profit margins again in West; smallest in South The West continued to have the largest profit margins on typical home sales around the country, with eight of the top 10 returns on investment in the third quarter of 2021 from among the 204 metropolitan areas with enough data to analyze. They were led by Boise City, ID (130.3 percent return); Bellingham, WA (105.6 percent); Claremont-Lebanon, NH (93.8 percent); Spokane, WA (87.7 percent) and Prescott, AZ (84.7 percent). Eleven of the 15 smallest margins were in the South region of the country. The lowest were in Shreveport, LA (2 percent); Gulfport, MS (7.4 percent); Columbus, GA (9.9 percent); Atlantic City, NJ (12.4 percent) and Brownsville, TX (13 percent). Prices up at least 10 percent in two-thirds of nation Median home prices in the third quarter of 2021 exceeded values from a year

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Furthers Pretium’s Mission to Provide Solutions for U.S. Housing Market Through Diversified Platform Meets Growing Residential Real Estate Needs by Providing Loans to Upgrade Aging Homes Positions Anchor to Drive Innovation and Enhance Service Capabilities Pretium, a specialized investment management firm with approximately $30 billion in assets, announced that it has acquired Anchor Loans LP, the nation’s leading provider of financing to residential real estate investors and entrepreneurs, from affiliates of Wafra Capital Partners Inc. and other owners. Terms of the transaction were not disclosed. Founded in 1998, Anchor Loans was the first institutional lending platform built to serve the diverse financing needs of professional residential real-estate investors. Over the last two decades, Anchor Loans has grown to become the nation’s leading capital provider to experienced residential real-estate sponsors through its bridge and construction products. Anchor Loans serves a professional customer base where 95% of loans are made to established borrowers who have completed more than 40 projects. To date, Anchor Loans has originated more than $10 billion in loans – more than any other lender of its type. “As we continue to experience a dynamic housing market defined by a growing shortage of total housing supply and an insufficient stock of move-in ready homes, we are seeing a significant increase in the investments required to upgrade today’s aging homes and modernize our infrastructure,” said Don Mullen, CEO and Founder of Pretium. “Pretium was formed with the goal to solve the shortage of housing in the U.S. and, today, is contributing to our local communities by creating attractive rental homes, offering capital solutions to homebuyers, and now providing loans for residential real-estate investors and entrepreneurs. Andrew Pollock and the Anchor Loans team are leaders in this industry, and we look forward to partnering with them to continue providing private capital solutions to the U.S. housing market.” “This transaction is a unique opportunity to partner with an organization that shares our passion about the importance of supporting our communities with great homes and investments,” said Andrew Pollock, Chief Executive Officer at Anchor Loans. “With Pretium’s resources, operational expertise, and complementary businesses, we see immediate opportunities for cross collaboration that will naturally accelerate our growth and strengthen the services we provide to our clients. At the same time, we remain well positioned to drive innovation in our lending programs and position our pioneering business for continued long-term success.” Following the close of the transaction, Anchor Loans will continue to be led by Chief Executive Officer Andrew Pollock and the current management team and retain its headquarters in Thousand Oaks, California. American Equity Investment Life Insurance Company provided financing for the acquisition as part of an expansion of its strategic partnership with Pretium. In addition, American Equity acquired approximately $1 billion of loans originated by Anchor Loans concurrent with closing. Nomura Securities International, Inc. acted as financial advisor and Sidley Austin LLP acted as legal advisor to Pretium. Piper Sandler & Co. acted as financial advisor and O’Melveny & Myers acted as legal advisor to Anchor Loans. About Pretium Pretium is a specialized alternative investment management firm focused on U.S. residential real estate, residential credit, and corporate credit. Pretium was founded in 2012 to capitalize on secular investment and lending opportunities arising as a result of structural changes, disruptions, and inefficiencies within the economy. Pretium has built an integrated analytical and operational ecosystem within the U.S. housing, residential credit, and corporate credit markets, and believes that its insight and experience within these markets create a strategic advantage over other investment managers. Pretium’s platform has approximately $30 billion of assets under management as of October 31, 2021 and employs approximately 3,000 people across 30 offices. Please visit www.pretium.com for additional information. About Anchor Loans Anchor Loans is the nation’s leading lender to residential real estate investors and entrepreneurs, with a total funding of more than $10 billion since 1998. With advanced, intuitive and innovative technology, Anchor provides fast, reliable funding and an exceptional customer experience—forging long-term client relationships and helping customers achieve and exceed their business goals. More than 85% of Anchor’s borrowers are repeat customers, over 70% of the Company’s new borrowers were referred by an existing customer, and approximately 95% of loans go to established borrowers who have completed more than 40 projects. Ranked for two consecutive years on the Inc. 5000 list of the fastest-growing privately held small companies in the U.S. https://www.anchorloans.com.