June 2024 – Page 4

Markerr Announces the Launch of RealRent Comps for Multifamily and Single Family Rental Properties

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Largest source of publicly aggregated, real-time rental comps covers 28m units and includes floor plan granularity, amenities and concessions Markerr, a leader in data and AI for real estate, announces the launch of RealRent Comps, a new product delivering unique insight into rental markets for investors, owners, operators and property managers. Integrated within Markerr Data Studio, RealRent Comps provides unprecedented coverage, timeliness and granularity to comps analysis, setting new standards for investment and operational decision-making in the industry. Markerr clients are actively leveraging RealRent Comps to power a range of decisions across the asset life cycle including pricing, asset management, rent optimization and acquisitions and underwriting. RealRent Comps, accessible via Markerr Data Studio, not only provides advanced search and analytical capabilities but also utilizes Markerr’s broad data network to enhance our proprietary comps algorithm. This algorithm leverages machine learning to analyze key property and unit attributes, enabling clients to quickly identify and rank competitive properties. By integrating comprehensive, daily updated data at the floor plan level, users can make informed pricing decisions and evaluate investment potential with greater accuracy and insight. “Implementing Markerr’s data has allowed us to build out proprietary analytics and insight to make data driven decisions at granular levels,” said Charlie Garner, Principal, Fulton Peak Capital LLC. “We are excited to expand our relationship with Markerr with the addition of RealRent Comps, which will further enhance our real-time and innovative decision making.” The introduction of RealRent Comps arrives at a time when much of the industry is moving away from rental data sources aggregated via private data sharing and call centers. RealRent Comps provides clients with critical insight into rent trends, comps, pricing and concessions while mitigating risk from private data shared via “give and get” data aggregation models. In creating the RealRent dataset, Markerr has developed a sophisticated and comprehensive approach to public data aggregation. By integrating data from diverse sources including marketplaces, aggregators, originators, community websites, and authoritative government datasets, Markerr ensures RealRent data is complete, accurate and timely. This rich mix of data, ranging from asking rental rates by floorplan to detailed property features, unit mix, concessions and availability, underpins RealRent’s ability to offer real estate professionals, investors, and analysts a multifaceted view of the rental landscape. Andrew Jenkins, Chief Product Officer at Markerr, highlighted the company’s commitment to integrating advanced data science with practical real estate business applications. “Markerr RealRent Comps is steering pivotal decisions among top real estate industry leaders. The integration of AI with our publicly-sourced rental data empowers our client with critical rental insights that dramatically improve strategic decision-making while mitigating risk.” Jenkins noted. Markerr RealRent Comps is immediately available to clients. About Markerr:Markerr is at the forefront of the real estate industry, offering innovative data products that empower investors to thrive in multifamily real estate investments. Leveraging real-time data, advanced machine learning, and generative AI, Markerr enables clients to gain a competitive edge and make more confident, efficient decisions. Trusted by leading institutional real estate owners and operators worldwide, Markerr is supported by top investors including RET Ventures, Pretium, and Bridge Investment Group. Visit www.markerr.com for further details. SOURCE Markerr CONTACT: shlomo.morgulis@antennagroup.com

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CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, released the Homeowner Equity Report (HER) for the first quarter of 2024. The report shows that U.S. homeowners with mortgages (which account for roughly 62% of all properties) saw home equity increase by 9.6% year over year, representing a collective gain of $1.5 trillion and an average increase of $28,000 per borrower since the first quarter of 2023. This brought total net homeowner equity to more than $17 trillion at the end of Q1 2024. U.S. homeowners with a mortgage continued to see healthy annual equity gains in the opening quarter of 2024. As one of the nation’s most expensive states with perpetually high housing demand, California homeowners saw the largest equity gain in the country at $64,000, with those in the Los Angeles metro area netting $72,000 year over year. Most of the other large equity gains were concentrated in the Northeast, including New Jersey ($59,000), a state that has ranked in the top three for annual appreciation in CoreLogic’s monthly Home Price Insights report since last fall. “With home prices continuing to reach new highs, owners are also seeing their equity approach the historic peaks of 2023, close to a total of $305,000 per owner,” said Dr. Selma Hepp, chief economist for CoreLogic. “Importantly, higher prices have also lifted some 190,000 homeowners out of negative equity, leaving only about 1.8% of those with mortgages underwater.” “Home equity is key to mortgage holders who have seen other homeownership costs soar, including insurance, taxes and HOA fees, as a source of financial buffer,” Hepp continued. “Also, low amounts of negative equity are welcomed in markets that have shown price weaknesses this spring, such as Florida (1.1% of homes underwater) and Texas (1.7% of homes underwater) — both of which are below the national rate — as further price declines could drive more homeowners to lose their equity.” Negative equity, also referred to as underwater or upside-down mortgages, applies to borrowers who owe more on their mortgages than their homes are currently worth. As of the first quarter of 2024, the quarterly and annual changes in negative equity were: Because home equity is affected by home price changes, borrowers with equity positions near (+/- 5%), the negative equity cutoff, are most likely to move out of or into negative equity as prices change, respectively. Looking at the first quarter of 2024 book of mortgages, if home prices increase by 5%, 111,000 homes would regain equity; if home prices decline by 5%, 153,000 properties would fall underwater. The next CoreLogic Homeowner Equity Report will be released in September 2024, featuring data for Q2 2024. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence. Source: CoreLogic

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Residential Loans Down Another 7 Percent, to Smallest Level Since 2000; Total Lending Activity Off Almost 70 Percent in Three Years; Purchase, Refinance and Home-Equity Lending All Decrease ATTOM, a leading curator of land, property, and real estate data, released its first-quarter 2024 U.S. Residential Property Mortgage Origination Report, which shows that 1.28 million mortgages secured by residential property (1 to 4 units) were issued in the United States during the first quarter, representing a 6.8 percent decline from the previous quarter. The drop-off marked the 11th in the last 12 quarters, to the lowest level since 2000. The latest decline left total residential lending activity down 4.8 percent from a year earlier and 69.3 percent from a high point hit in 2021. It came amid another period of rising mortgage interest rates and elevated home prices unaffordable to significant portions of American households, on top of low supplies of homes for sale. Ongoing decreases in lending activity during the first quarter resulted from losses in all major categories of residential lending. Purchase-loan activity went down another 9.9 percent quarterly, to about 565,000, while refinance deals dipped downward by 1.9 percent, to 491,000. Home-equity credit lines slipped 9 percent, to 222,000. Measured monetarily, lenders issued $405.6 billion worth of residential mortgages in the first quarter of 2024. That was down 4.8 percent from the fourth quarter of 2023 and 4.5 percent from the first quarter of last year. The varying paces of change among different loan types helped reduce the portion of all residential mortgages represented by purchase lending for the third straight quarter while pushing the refinance component upward. Still, purchase loans were the most common form of mortgages around the U.S. in early 2024, comprising more than 40 percent, followed by refinance packages and home-equity lending. “There is reason to hope that we will see something of a turnaround when second-quarter data comes in, given the jump in lending activity that happened during the peak home-buying season of 2023,” said Rob Barber, CEO at ATTOM. “But with little sign that interest rates are coming down, which could fire up refinance and HELOC lending, or that supplies of homes for sale are going up, any increase is likely to be limited.” Home-mortgage lending took another hit in the early months of 2024 as average interest rates for 30-year fixed loans rose close to 7 percent (it has since increased). That continued to push up home ownership costs at a time when near-record home prices in most of the country already were unaffordable, or a significant financial stretch, for average wage earners. Purchase lending was further eroded amid counts of homes for sale that were less than half the levels seen five years ago. Total lending activity down in two-thirds of nationBanks and other lenders issued a total of 1,277,899 residential mortgages in the first quarter of 2024, down from 1,371,344 in the fourth quarter of 2023. The fallback continued a three-year run of declines that was broken only by a spike in the second quarter of last year. The latest total also was down annually from 1,343,010 in the first quarter of 2023, and from a recent high point of 4,165,204 hit in the first quarter of 2021. A total of $405.6 billion was lent to homeowners and buyers in the first quarter of this year, which was down from $426.1 billion in the prior quarter and down from $424.6 billion in the first quarter of 2023. The latest figure stood at less than one-third of the recent peak of $1.29 trillion hit in 2021. Overall lending activity dipped lower from the fourth quarter of last year to the first quarter of this year in 125, or 69 percent, of the 182 metropolitan statistical areas around the U.S. that had a population of 200,000 or more and at least 1,000 total residential mortgages issued in the first quarter of 2024. Total lending also remained down from the first quarter of 2023 in 118, or 65 percent, of the metro areas analyzed. It was off by at least 5 percent annually in almost half of those markets. The largest quarterly decreases were in St. Louis, MO (total lending down 40.5 percent from the fourth quarter of 2023 to the first quarter of 2024); Buffalo, NY (down 29.9 percent); Albany, NY (down 28.6 percent); Syracuse, NY (down 27.4 percent) and Pensacola, FL (down 25.6 percent). Aside from St. Louis and Buffalo, metro areas with a population of least 1 million that had the biggest decreases in total loans from the fourth quarter of 2023 to the first quarter of 2024 were Minneapolis, MN (down 21.2 percent); Hartford, CT (down 18.2 percent) and Honolulu, HI (down 16.3 percent). The biggest quarterly increases among metro areas with a population of at least 1 million came in Tucson, AZ (total lending up 15.2 percent from the fourth quarter of 2023 to the first quarter of 2024); Phoenix, AZ (up 14.9 percent); Birmingham, AL (up 8.8 percent); Virginia Beach, VA (up 8.6 percent) and Memphis, TN (up 8.3 percent). Purchase mortgages slump throughout U.S. but remain top loan typeLoans issued to home buyers fell back in the first few months of 2024 for the third straight quarter after a surge of about 25 percent in the Spring of last year. The latest total of 564,598 dropped from 626,759 in the fourth quarter of 2023. It was also down 12.3 percent from 643,988 a year earlier and almost two-thirds from a high point of 1,516,377 hit in the Spring of 2021. The $214.8 billion dollar volume of purchase loans in the first quarter of 2024 was down 6.7 percent from $230.2 billion in the fourth quarter of 2023 and 7.8 percent from $233.1 billion in the first quarter of last year. Residential purchase-mortgage originations decreased quarterly in 132 of the 182 metro areas in the report (73 percent) and annually in 77 percent of those markets. The largest quarterly decreases were in Wichita, KS (purchase loans down 66.5 percent from the fourth quarter of 2023 to the first quarter of 2024); Mobile AL (down 54.2 percent); St. Louis, MO (down 45.3 percent); Manchester, NH (down 39 percent) and Buffalo, NY (down 38.3 percent). Aside from St. Louis and Buffalo, the biggest quarterly decreases in metro areas with a population of at least 1 million in the first

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Citing Unaffordability, 86% of Consumers Say It’s a Bad Time to Buy a Home The Fannie Mae Home Purchase Sentiment Index® (HPSI) decreased 2.5 points in May to 69.4 as the component measuring consumer attitudes toward homebuying conditions fell markedly, reaching an all-time survey low. This month, only 14% of consumers indicated that it’s a good time to buy a home, down from 20% last month, while the share believing it’s a good time to sell fell from 67% to 64%. Meanwhile, consumers continue to believe affordability will remain tight for the foreseeable future, as respondents believe that, on net, home prices and mortgage rates will go up over the next year. Among the positives from the survey: A growing share of respondents, now 20%, indicated that their household income is significantly higher than it was a year ago. The full index is up 3.8 points year over year. “Consumer sentiment toward housing declined from its recent plateau, as an increasing share of consumers struggle to find the positives in the current housing market,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. “While many respondents expressed optimism at the beginning of the year that mortgage rates would decline, that simply hasn’t happened, and current sentiment reflects pent-up frustration with the overall lack of purchase affordability. This is most clearly evidenced by our ‘good time to buy’ component falling to a new survey low this month. On the other hand, homeowners’ perception of home-selling conditions declined only slightly and remains largely positive after a steady increase over the last few months. This suggests to us that, despite the so-called ‘lock-in effect,’ some homeowners may increasingly want or need to sell their homes for a myriad of non-financial reasons, which may lead to an increase in listings in the near future. As our latest forecast notes, we expect improvements to housing inventory will lead to slightly increased sales activity through the end of the year.” Home Purchase Sentiment Index – Component Highlights Fannie Mae’s Home Purchase Sentiment Index (HPSI) decreased 2.5 points in May to 69.4. The HPSI is up 3.8 points compared to the same time last year. Read the full research report for additional information. Detailed HPSI & NHS FindingsFor detailed findings from the Home Purchase Sentiment Index and National Housing Survey, as well as a brief HPSI overview and detailed white paper, technical notes on the NHS methodology, and questions asked of respondents associated with each monthly indicator, please visit the Surveys page on fanniemae.com. Also available on the site are in-depth special topic studies, which provide a detailed assessment of combined data results from three monthly studies of NHS results. SOURCE Fannie Mae

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The merger gives real estate investors access to a robust technology platform Brown Gibbons Lang & Company (BGL) announced the merger of Mynd, the company transforming how investors find, finance, lease, manage, and sell SFR properties, with Roofstock, a leading real estate services and investment platform specializing in the single-family rental (SFR) sector. BGL’s Real Estate & Property Technology investment banking team served as the exclusive financial advisor to Mynd in the transaction. The specific terms of the transaction were not disclosed. Headquartered in Oakland, California, Mynd is a tech-enabled real estate company serving the $85+ billion property management and real estate investment market. Powered by a proprietary, all-in-one digital platform and local listing and property management experts, Mynd aims to simplify the entire investment journey for both first-time and veteran investors, allowing more Americans access to the single-family residential sector as a way to build intergenerational wealth. Founded in 2016, with operations in more than 25 markets across the U.S., Mynd is backed by top venture capitalists, including Lightspeed, Canaan, Jackson Square, and QED. This merger gives real estate investors access to a robust technology platform, deep data insights to inform their buying and selling decisions, and a property management system built specifically for SFR to ensure their units are leased, well maintained, and generating strong returns. Headquartered in Oakland, California, Roofstock is a provider of Real Estate Investment as a Service (REIaaS) for investors in the $5 trillion SFR sector across the entire investment lifecycle. Its proprietary data, technology, and integrated services help investors maximize opportunities across the U.S. and realize substantial returns. Founded in 2015, Roofstock is backed by a blue-chip roster of venture capital investors, including Khosla Ventures, Bain Capital Ventures, Lightspeed Venture Partners, Canvas Ventures, and SoftBank Vision Fund 2. SOURCE Brown Gibbons Lang & Company

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By T. Robert Finlay, Esq. and Kathy Shakibi, Esq. of Wright, Finlay & Zak, LLP INTRODUCTION On May 30, 2024, the Supreme Court of the United States (“SCOTUS”) issued its opinion on a matter of far-reaching consequence – whether the National Bank Act preempts a New York State consumer financial law requiring payment of interest on mortgage escrow accounts. Cantero v. Bank of Am., N.A., 2024 U.S. LEXIS 2367. The Cantero case arose from New York General Obligations Law §5-601, which requires a minimum two percent interest to be paid on mortgage escrow accounts, maintained for payment of property taxes and insurance. The Second Circuit had decided that the minimum interest requirement would exercise control over a banking power granted by the federal government, so it would impermissibly interfere with national banks’ exercise of that power and was thus preempted. SCOTUS vacated the Second Circuit’s ruling and remanded with instruction to analyze the preemption under the second prong of Dodd-Frank Act’s preemption standard, known as the Barnett Standard. THE DUAL BANKING SYSTEM AND THE INCONSISTENCY BETWEEN RESPA AND STATE LAWS REQUIRING INTEREST ON MORTGAGE ESCROW ACCOUNTS “Both federal and state governments are empowered to charter banks and to regulate the banks holding their respective charters.” Lacewell v. OCC, 999 F.3d 130, 135 (2d Cir. 2021). The National Bank Act of 1864, 12 U.S.C. §21 et seq., authorizes the federal government to issue bank charters and grants national banks enumerated powers as well as incidental powers necessary to carry on the business of banking. 12 U.S.C. §24. Among the enumerated powers is the power to “make, arrange, purchase or sell loans…secured by liens on interests in real estate.” 12 U.S.C. 371(a). National banks have incidental powers to provide escrow services in connection with home mortgage loans. Among Congress’s regulation of national banks, the Real Estate Settlement Procedures Act of 1974 (“RESPA”), 12 U.S.C. §2601 et seq., regulates how a bank may handle an escrow account in connection with a home mortgage. 12 U.S.C. §2609(a)(1). RESPA does not require that national banks pay interest on escrow accounts. At least thirteen states, however, have enacted laws which require payment of interest on mortgage escrow accounts. Thus, there exists an inconsistency or conflict between RESPA and state laws requiring interest on mortgage escrow accounts. DODD-FRANK’S STANDARD FOR PREEMPTION OF STATE CONSUMER FINANCIAL LAWS Further among Congress’s regulations of national banks, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, (“Dodd-Frank”), Pub. L. No. 111-203, defines a state consumer financial law as “…a State law that does not directly or indirectly discriminate against national banks and that directly and specifically regulates the manner, content, or terms and conditions of any financial transaction (as may be authorized for national banks to engage in), or any account related thereto, with respect to a consumer.” 12 U.S.C. 25b (a)(2). Dodd-Frank Act also provides the preemption standard for state consumer financial laws as follows: “(1) In general, State consumer financial laws are preempted, only if – The preemption standard provided by Dodd-Frank has three prongs and any one prong is sufficient. The second prong in subsection (B) is codification of the 1996 SCOTUS ruling in the Barnett case and is known as the Barnett standard. The Barnett case involved a conflict between 12 U.S.C. §92, which empowers a national bank to sell insurance, if located in an area with a population less than five thousand, and a Florida state law, which restricted that power. In Barnett SCOTUS discussed and analyzed its prior decisions where SCOTUS had found preemption of a state law – Franklin Nat. Bank of Franklin Square v. New York, 347 U.S. 373 (1954), (a New York state law which prohibited banks from using the term saving in their advertising was preempted) and Fid. Fed. Sav. & Loan Ass’n v. de la Cuesta, 458 U.S. 141 (1982), (Home Owner’s Loan Act authorizing due-on-sale clauses preempted a conflicting California law). SCOTUS also discussed and analyzed its prior decisions where SCOTUS had not found preemption of a state law – Anderson Nat. Bank v. Luckett, 321 U.S. 233, (1944); McClellan v. Chipman, 164 U.S. 347, 358 (1896); and National Bank v. Commonwealth, 76 U.S. 353 (1870). Barnett itself held that the Florida state statute was preempted. When Dodd-Frank codified the Barnett decision in the preemption standard, the language included is “in accordance with the legal standard for preemption in the Barnett decision …” SCOTUS REMANDED TO SECOND CIRCUIT TO APPLY THE DODD-FRANK AND BARNETT STANDARD In its decision to vacate and remand Cantero to the Second Circuit, SCOTUS stated that the Second Circuit had relied primarily on an unbroken line of case law since McCulloch v. Maryland, 4 Wheat. 316 (1819), and held that federal law preempts any state law that purports to exercise control over a federally granted banking power, regardless of the magnitude of its effects. Cantero v. Bank of Am. N.A., 2024 U.S. LEXIS 2367 at *12. SCOTUS reasoned that: “New York’s interest-on-escrow law does not discriminate against national banks. The question of whether New York’s interest-on-escrow law is preempted therefore must be analyzed under Dodd-Frank’s “prevents or significantly interferes” preemptions standard. To guide judicial application of that preemption standard, Dodd-Frank expressly incorporates this Court’s decision in Barnett Bank. The preemptions question here therefore must be decided “in accordance with” Barnett Bank, as Dodd-Frank directs.” Canero supra at * 13, 14. The Cantero case involved two putative class actions, which were decided together – one brought by Alex Cantero and another brought by Saul Hymes. Alex Cantero had obtained his mortgage loan before the effective date of Dodd-Frank and Saul Hymes had obtained his mortgage loan after the effective date of Dodd-Frank. The Second Circuit appears to have applied its analysis of the Barnett standard to Alex Cantero case and its analysis of Dodd-Frank to the Hymes case as can be seen on pages 126, 127, 130, 131, 132, 133, 135, 136 and 139 of the Second Circuit’s ruling. Cantero v. Bank of