Beyond the Buildings

Home insurance is a critical consideration when applying for a mortgage. Without insurance, it’s exceedingly difficult to purchase a property. However, with climate change influencing weather patterns and contributing to the increasing severity of natural disasters, some insurers are reassessing their coverage to better manage their risk.

Insurance risk management is a topic that has cropped up in several U.S. states. This summer, Allstate and State Farm announced that they would no longer write new policies in California and indicated that the frequency and intensity of natural disasters contributed to their decision.

What drove two of the largest insurers in the U.S. to make this decision? How can regulators help manage risk for insurers, carriers and homeowners?

In this episode of Core Conversations, host Maiclaire Bolton Smith sits down with Senior Product Manager Jamie Knippen to talk about these questions and how understanding wildfire risk scores can help indicate where there are opportunities for risk mitigation.

In This Episode:

3:01 - What happened when two major insurers stopped writing new policies in California?

4:35 – Why are insurers only now saying “This is enough”?

5:54 – Are governmental regulations and mitigation requirements the only answer to rising risk?

8:37 – Erika Stanley gives an overview of the housing market in The Sip

9:36 – How do property, structural and community-level mitigation differ?

12:15 – Maiclaire and Jamie discuss how their jobs have made them hyper-aware of property-level risk

Links:

• U.S. Home Price Insights Report
• Wildfire Risk Report

Up Next: Will Wildfire Risk Mitigation Requirements Change the California Insurance Industry?

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

In the ever-evolving landscape of the property market, recent years have been marked by volatility and unprecedented challenges. However, amidst this shifting environment, there is an opportunity for lenders to reassess their back-of-house operations and embrace the transformative potential of modern technology.

As the market cools, the stage is set for lenders to revolutionize their processes and cater to the demands of today's discerning consumers. The key lies in embracing automation and digitization to streamline operations and create a seamless borrower experience.

In this episode of Core Conversations, host Maiclaire Bolton Smith sits down with Praveen Chandramohan, an executive in origination solutions at CoreLogic to discuss how automated underwriting, digital mortgage software, and property technology intertwine to define the future of the mortgage market. From improved borrower experiences to cost optimization, this conversation unveils the transformative power of embracing property technology and mortgage software in the ever-evolving mortgage landscape.

0:54 – What are the top priorities for lenders according to a Fannie Mae survey? And how will these priorities solve the “industry conundrum”?

4:28 – Digitizing a cumbersome process begins behind the scenes.

8:53 - Are there ways that technology can widen that net and increase business?

10:21 – How will technology lead the charge in creating new business?

12:42 – Erika Stanley provides the Natural Disaster Digest.

13:33 – Praveen offers some real-life examples of how technology is opening the door for self-employed borrowers and those who prefer to use digital currencies.

Links: 2023 Hurricane Risk Report

Up Next: Modernizing Loan Origination Workflows: A Shortcut Through the Mortgage Maze

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

The last several years have been volatile for the property market. However, as the market is slowing, that is freeing up space for lenders to consider their back-of-house processes and rehabilitate them to accommodate the demands of modern consumers. Largely, that means automating and digitizing processes. Think automated underwriting of the borrower and the property, think about a fully digital experience to close alone.

And this is really where the future lies for the mortgage industry.

By separating out run-of-the mill applications to accelerate their processing, lenders are freed up to address the more complex cases that may require counseling or human expertise to fulfil the requirements and close the process.

In this episode of Core Conversations, host Maiclaire Bolton Smith sits down with Praveen Chandramohan, an executive in origination solutions at CoreLogic to discuss why improving the mortgage workflow through technology is an essential next step for the industry.

• 3:40 – The etymology of the word “mortgage” and why homeownership will remain the American dream.
• 6:15 – Why the mortgage industry is decades behind in technological advancements and what can be done.
• 8:15 – What are the key areas lenders can focus on to improve customer retention and acquisition?
• 12:32 – How the U.S. mortgage market is unique and what that means for both borrowers and lenders.
• 17:15 – The future of the mortgage industry lies in accelerating processing speeds.
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Links: Learn about CLIP (CoreLogic Integrated Property number)

Up Next: Modernizing Loan Origination Workflows: A Shortcut Through the Mortgage Maze

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

When it comes to financing a home in the current real estate market, the interest rate on a loan is of chief concern for buyers. That has resulted in a growing interest in rate locks from buyers, sellers, builders and lenders.

In fact, rate locks as a negotiation technique have bubbled up to the surface as another tactic for lenders looking to secure loans in the current economy.

In Part 2 of this episode, host Maiclaire Bolton Smith continues the conversation with CoreLogic Principal Economist Molly Boesel to discuss what rate locks are, why they are trending in the housing market and what that may mean for lenders looking to retain or gain new business.

In This Episode:

• 1:31 – By how much can an extra payment lower the total cost of a mortgage?
• 5:55 – Are people starting to come back to the market, or are they still locked into their homes due to mortgage rates?
• 7:27 – Are first-time homebuyers the ones who will begin to break the cycle?
• 9:36 – Erika Stanley gives us insight into what is happening globally with natural disasters.
• 11:00 – What is the forecast for mortgage interest rates? How will inflation affect that?

Links: 2023 Hurricane Risk Report

Up Next: Are Rate Locks the Negotiation Key for Lenders to Secure Loans in this Economy?

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

Anyone who is buying a home with a mortgage almost certainly talks to their lender about interest rates. With real estate market trends defined by some of the highest interest rates in decades and annual home price growth reaching its lowest level in more than a decade, purchasing a property is an undertaking that requires buyers to look at the data and do the math.

The current environment is also opening up rate locks to become a negotiation tactic — a technique that falls in and out of favor with real estate trends. 

In this episode, host Maiclaire Bolton Smith sits down with CoreLogic Principal Economist Molly Boesel to discuss what rate locks are, why they are trending in the housing market and what that may mean for lenders looking to retain or gain new business.

In This Episode:

• 3:19 – What are rate locks and why are they trending?
• 6:24 – Mortgage rate locks come at a price. Does that make them a valuable negotiation tactic?
• 10:11 – Erika Stanley goes over the numbers in the housing market.
• 11:31 – Maiclaire talks about using rate locks as a negotiation tactic when buying her home.
• 13:09 – Are mortgage rate buydowns also becoming more common in this market?
• 16:30 – Are mortgage rate buydowns and rate locks the only tactics available to reduce monthly mortgage payments?

Links: CoreLogic’s monthly Home Price Index (HPI) 

Up Next: Has the Economy Locked in US Housing Market Price Stagnation?

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

Modernization can be boiled down to an equation. The more data and automation available to improve the overall mortgage origination process, the more the overall cost to originate the loan goes down.

In fact, one of the industry’s largest organizations, the Mortgage Industry Standards Maintenance Organization (MISMO), is working steadily to streamline the mortgage origination process by replacing paper forms with digital processes.

In this episode, host Maiclaire Bolton Smith sits down with Sage Nichols, an executive for client success at CoreLogic, to talk about how standards, best practices and property data can pave the way for modernizing the mortgage industry.

• 0:45 –Why is digitizing data the No. 1 priority for customers?
• 1:50 – How do standards around property data contribute to affordability? High cost to originate
• 2:55 – What are the challenges surrounding the adoption of these standards?
• 5:34 – The Natural Disaster Digest with Erika Stanley
• 6:32 – How is MISMO blazing the path to simplify the mortgage closing process (hint: e-closings are important)
• 9:09 – How exactly does accurate and reliable property data reduce the likelihood of fraud?
• 10:33 – What’s next for MISMO?

Up Next: Appraising PropTech Innovation: Do Short-Term Changes Have Long-Term Effects?

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

The word “mortgage” evokes myriad responses depending on one’s relationship with homeownership. But one thing is certain: Mortgages are a big deal for the U.S. — and global — economy. These property payment plans support a large portion of one of the world's largest asset classes and are, therefore, highly scrutinized.

This has led to the mortgage industry garnering a reputation for slow processes and a hesitation to adapt to modern technological innovations. However, reputations are not always representative of reality.

In fact, one of the industry’s largest organizations, the Mortgage Industry Standards Maintenance Organization (MISMO), is working steadily to streamline the process by replacing paper forms with digital processes.

In this episode, host Maiclaire Bolton Smith sits down with Sage Nichols, an executive for client success at CoreLogic, to talk about how standards and best practices can pave the way for modernizing the mortgage industry.

• 3:47 – What is MISMO?
• 4:42 – How has the mortgage industry changed and moved toward digitization?
• 6:56 – COVID still has lasting effects on the mortgage industry
• 8:12 – Why are standards important anyways?
• 13:12 – The Sip: Erika Stanley gives a look under the hood at the current state of the property market
• 14:15 – Why are standards crucial for the secondary mortgage market?

Up Next: Appraising PropTech Innovation: Do Short-Term Changes Have Long-Term Effects?

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

As climate change continues to influence weather patterns, not all areas of the U.S. will be equally exposed to natural hazard risks. While some locations may not be ideal choices for property investment in the future, there are other areas that data scientists have demonstrated will be sheltered from the damaging effects of natural catastrophes.

In Part 2 of this episode, host Maiclaire Bolton Smith continues the conversation with CoreLogic Chief Scientist Howard Botts to see where the safest places to live in the U.S. will be in the face of climate change.  

In This Episode

• 1:13 – So where are the safest places to live in the U.S. today?
• 2:44 – Are we expecting these areas to become boomtowns? They have affordable real estate.
• 5:22 – When factoring in future climate change scenarios, where will the safest places to live be?
• 6:21 – Macro- versus micro-migration patterns. Sometimes moving a few blocks can make a home more resilient.
• 9:33 – If El Nino arrives, how will it affect the weather and the subsequent natural catastrophes?
• 10:18 – Are millennial homeowners more likely than baby boomers to consider climate change when purchasing a property?
• 12:42 – How do earthquakes fit into climate change property risk profiles?

 Up Next: Using Data Science to Examine Riskiest US Areas to Live Amid Climate Change

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

Natural catastrophes have long been of concern to the housing and property markets. However, as these events increase in severity and frequency, climate change data science is projecting that not all areas of the U.S. will be equally exposed to these risks in the future. 

Despite the popularity of some migration destinations with Americans, data analysis indicates that, depending on how dramatically current climate patterns change, many of these locations may not be ideal choices for property investment in the future. 

In this episode, host Maiclaire Bolton Smith sits down with CoreLogic Chief Scientist Howard Botts to discuss the riskiest places to live in the U.S. for natural disasters.

In This Episode:

• 3:08  – The climate has always been changing, so what is going on now that makes it so imperative to analyze and forecast natural hazard risk?
• 6:16  – The IPCC’s new report. What is it and how does it change the game for predicting the future?
• 7:34 –  So where are the riskiest places to live in the U.S. as climate change influences natural disasters?
• 10:28 – Our Facts Guru Erika Stanley goes over the numbers in the housing market.
• 11:49 – Is California really going to break off and float away?

Up Next: Listen to our team talk about what it was really like to live through the historic California floods this past winter.

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt

Learn More:

AR6 Synthesis Report: Climate Change 2023 — IPCC

Seven of 10 Riskiest US Climate Locations Are Appreciating Faster than National Rate

As annual home price growth reached its lowest level in more than a decade, all eyes are on the housing market as a bellwether for the larger economy. 

In Part 2 of this episode, host Maiclaire Bolton Smith sits down with CoreLogic Principal Economist Molly Boesel to discuss what is really happening in the housing market and what low inventories, high interest rates and lack of upcoming supply mean for real estate.

Up Next: Listen to Molly Boesel talk about myths in the housing market on Core Conversations.

In This Episode:

• 0:37 - How closely are people tracking interest rates? Is it worth doing so?
• 2:26 – Is this a brave new world full of high interest rates for first-time homebuyers?
• 6:27 – Why is inventory in the housing market still so low?
• 9:00 – Construction and labor costs are transforming starter homes into luxury purchases.
• 12:08 – The Natural Disaster Digest: Learn about global natural catastrophes’ effect on real estate
• 13:10 – What does the future hold for the property and housing market?

Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt