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Are Zillow Flex Agents Forced to Refer Buyers to Zillow Home Loans?

by Priya Shah – Business Editor October 23, 2025

written by Priya Shah – Business Editor

Zillow Flex⁢ program and Home Loan Referrals: ⁤A ‌Closer Look

The zillow Flex program, designed to ⁤connect agents with potential clients in exchange for a portion of their commission (typically 25-40% upon closing), is facing scrutiny over its requirements regarding referrals to zillow Home Loans (ZHL). ⁤Recent reports indicate a tightening of‍ rules concerning how agents connect homebuyers with financing options.

Initially, participation‌ in the Flex program required prospective buyers to simply have a brief phone call with a ZHL agent. However, agents speaking to⁢ The⁣ Capitol Forum report that Zillow has recently increased this ‍requirement, now mandating that ⁤roughly ‍10%⁣ of⁢ leads generated through the⁢ program‌ obtain a mortgage preapproval.

This preapproval requirement is tied ⁢to an agent’s standing within the Flex program. Teams failing ⁣to meet the quota of preapprovals risk receiving fewer leads, and ‌repeated failures ‍can lead to removal from the program. Conversely, ⁣teams exceeding the requirement are reportedly rewarded with increased lead volume and quality. Zillow maintains⁣ a team leaderboard ranking agents ‍based‌ on predicted conversion rates and the number ⁢of ZHL⁣ preapprovals secured.

Agents interviewed expressed concerns that this system ⁢incentivizes steering homebuyers towards ZHL, potentially violating the Real Estate Settlement Procedures Act (RESPA) due to a lack of disclosure regarding⁣ the financial incentive.They feel “forced” to connect buyers with ZHL services. Concerns were also ⁤raised about ‌potential financial disadvantages for buyers, particularly first-time homebuyers, who may miss out on rebate programs or alternative mortgage products⁢ offered by other lenders.

Furthermore, Zillow requires agents ‌to manage ‍Flex ⁢leads through the Zillow⁢ app or Follow Up⁤ Boss, a CRM platform owned by zillow Group, leading to concerns‌ about‌ increased‍ oversight of agent-buyer interactions.

In ⁤a statement to HousingWire,a⁤ Zillow spokesperson emphasized‌ the company’s commitment⁤ to consumer experience,clarity,and operating in compliance with applicable laws. The spokesperson ‍stated that Zillow ⁤prioritizes providing consumers⁢ with ‌facts and services they request⁢ throughout their real ⁣estate journey and that the program considers⁢ multiple factors beyond preapprovals when‍ evaluating agent⁣ performance.

October 23, 2025 0 comments

Business

Weekly Housing Inventory Data Slowdown: Key Trends and Forecasts

by Priya Shah – Business Editor October 5, 2025

written by Priya Shah – Business Editor

Housing Inventory Growth Stalls as Mortgage rates Dip, Government Shutdown Looms

WASHINGTON – A surprising slowdown ⁢in housing ‌inventory ⁢growth is occurring despite a recent surge in purchase applications, fueled by falling mortgage rates and a resilient market. Year-over-year growth currently stands at 16%, but recent weekly data reveals a complex⁤ picture complicated by potential disruptions from ⁣the ongoing government shutdown.

The housing market is showing strong signals of recovery. Through 35 ⁤consecutive weeks, purchase applications have demonstrated positive year-over-year ‌data, with 22 of⁢ those weeks exhibiting double-digit growth. This momentum⁣ has accelerated since mortgage rates fell below 6.64%, approaching the key 6% level closely watched by analysts. In the nine⁤ weeks‌ since rates‍ began to decline,the market‌ has experienced⁤ 7 positive weeks of application data,alongside only 2 negative weeks,and a current‍ streak of 9 straight weeks of double-digit year-over-year growth.

However,translating these applications into actual inventory gains has proven slower than anticipated. Typically, 12-14 weeks⁣ of consistent positive purchase app data are needed to ⁣significantly impact housing supply. While the last nine weeks represent ⁢the strongest period of the year in terms of week-to-week data, the effect on inventory remains muted. Purchase applications generally translate to sales ‍within 30-90 days.

Weekly ⁣pending home sales data offers a⁢ near real-time glimpse into market activity, though it can be affected by seasonal factors. The ‍latest data shows‍ a slight year-over-year ⁣increase: 64,232⁣ pending sales in 2025 compared to 61,043 in 2024. Last week marked the highest weekly ‍pending home sales figure since ⁣the market downturn in 2022.

Looking ahead, the ongoing government shutdown presents a growing threat to data availability and transaction timelines. ‌The absence of the⁣ jobless claims report ‌is already confirmed, and further ⁣delays‍ in closings are anticipated the longer the‍ shutdown persists. Critically, the release of⁤ key inflation reports (CPI and PPI) will ‍be suspended if the shutdown continues ⁢into the ⁣following week, further obscuring the economic landscape.‍

Fed speeches and upcoming bond auctions will be monitored,⁤ but the primary focus ‌remains on resolving the government shutdown and mitigating its impact on the housing market.

October 5, 2025 0 comments

Business

Ohio Homeowners Grant: Eligibility & Funding Details

by Priya Shah – Business Editor September 23, 2025

written by Priya Shah – Business Editor

Ohio Homeowners Could receive Up to $3,000 Annually in New Housing Relief Package

Columbus, OH – Ohio homeowners struggling with rising housing costs may soon be eligible for financial assistance through a newly proposed program. The initiative, currently under consideration by state lawmakers, aims to provide grants to help cover essential housing-related expenses, including property taxes, insurance premiums, homeowners association fees, utilities (gas, electricity, water, trash removal, and internet).

The program, which would be administered by the Ohio Housing Finance Agency, has been allocated up to $10 million in funding. To qualify, applicants must be Ohio residents and homeowners with an adjusted gross income of $75,000 or less. additionally, applicants must be at least 65 years old, live with a disability, or be responsible for the care of someone with a disability.

Legislators intentionally designed the bill to bypass the Ohio Housing Finance Agency’s standard income restrictions, broadening access to the aid. While eligible homeowners can apply for multiple grants throughout the year, the total amount received will be capped at $3,000 annually.

The agency will be tasked with establishing clear application procedures and verification methods for disability status and caregiving responsibilities should the bill pass.

The introduction of this relief package comes amidst ongoing debate surrounding broader property tax reform in Ohio. Recent proposals to completely abolish property taxes have faced resistance, largely due to concerns about the feasibility of replacing lost revenue for local governments, public schools, and emergency services. This new grant program offers a more targeted approach to easing the financial burden on vulnerable homeowners.

September 23, 2025 0 comments

Business

Non-QM Loans: A Guide for Self-Employed and Unique Borrowers

by Priya Shah – Business Editor September 15, 2025

written by Priya Shah – Business Editor

Beyond the Checklist: Non-QM Loans⁤ Offer Path to Homeownership for Growing Segment of Borrowers

WASHINGTON – As ‍conventional ⁢mortgage lending ⁢tightens, a growing ⁤number of Americans with complex financial⁢ situations are finding a pathway to homeownership through non-qualified mortgage (Non-QM) loans. These loans, often misunderstood, are gaining traction ⁣as a viable‍ option for self-employed individuals, investors, and those ‌with non-traditional ‌income streams-a demographic increasingly‌ underserved by conventional‍ financing.

Non-QM loans represent a significant shift in the mortgage landscape, offering an alternative for borrowers who don’t fit neatly into the standardized boxes of Fannie Mae, Freddie ⁢Mac, FHA, or VA lending. While ‌often⁣ perceived as riskier, Non-QM loans⁢ are⁣ fully documented and underwritten with a focus on ability-to-repay, simply utilizing ‍different verification methods than traditional mortgages. This‌ expanding market is particularly⁣ relevant now as stricter lending standards implemented‍ in response‌ to economic uncertainty limit access to homeownership for a considerable ⁢portion of the population.

Who Benefits from non-QM Loans?

Non-QM loans aren’t designed for borrowers with poor credit.Actually, many applicants have‍ “strong ‌credit and healthy assets,” according‍ to industry experts. The key differentiator is income ‍verification. Traditional mortgages⁤ rely heavily on W-2s and‌ standard tax returns. Non-QM loans, ⁤however, can utilize alternative⁣ documentation like‍ bank statements, profit and loss statements prepared by‌ a Certified Public Accountant (CPA), asset depletion, or rental income cash flow to demonstrate financial stability.

This makes them ideal⁤ for:

* Self-Employed Individuals: Those who write off significant business expenses, reducing their reported income, may struggle to qualify ⁤for a traditional mortgage despite having substantial cash flow.
* real Estate Investors: Individuals with income derived from rental properties can leverage this income to qualify,‌ even if it isn’t reflected on standard tax forms.
* High-Net-Worth individuals: Borrowers with⁤ significant assets but⁢ non-traditional income sources can utilize their wealth to secure financing.
* Individuals with‌ Variable Income: Freelancers or those with commission-based earnings may find Non-QM loans more accommodating.

Debunking Common Myths

Several misconceptions surround Non-QM loans. They⁣ are not a return to the subprime lending practices that fueled the 2008 financial crisis.⁤ They are documented,‍ underwritten, and ability-to-repay focused.⁣ Moreover, Non-QM loans aren’t limited to risky loan features; they can be fixed-rate or adjustable, and while interest-only ⁣options are available, they are a⁤ choice, not a requirement.⁢

“Non-QM isn’t a workaround-it’s a smarter match,” ‍says⁢ Darrin Seppinni, president of HomeLIfe Mortgage. “When the standard checklist misses⁣ your‌ real capacity, Non-QM lets ⁣bank statements, CPA-prepared P&Ls, assets, or rental cash flow tell the full story.”

Navigating the Non-QM Landscape

For those considering ‍a Non-QM loan, experts recommend exploring all options⁣ first.If ⁣qualifying ⁤for a conventional loan is feasible, that’s typically the most cost-effective route. However, if your financial situation is complex, Non-QM can‌ be‍ a⁤ “tailored solution” and, for many, the “best-fit path.”

it’s crucial to work‌ with a licensed mortgage professional experienced in Non-QM lending‍ and to compare at least two loan quotes to ensure you’re securing the most favorable terms. Ultimately, the goal is to find an option that aligns with your individual ‌financial circumstances and long-term wealth-building goals-without⁢ relying on guesswork.

September 15, 2025 0 comments

Business

Mortgage Lead Laws: New Rules Protect Borrowers

by Priya Shah – Business Editor September 6, 2025

written by Priya Shah – Business Editor

Trump Signs Bill into Law, Ending “Trigger ⁤Lead” Practice in Mortgage Industry

WASHINGTON, D.C. – President Trump has signed legislation into⁢ law that will substantially alter how⁤ mortgage lenders generate leads, effectively ending the controversial practice of “trigger leads.”‍ The new law, going into effect March 5, 2026, requires explicit consumer consent‌ before companies can offer credit, limiting ⁢solicitations to ⁤those initiated by a consumer’s existing ⁣lender, servicer, bank, or ‌credit union.The “trigger lead” system,which has drawn criticism for inundating mortgage applicants with unsolicited calls,texts,and emails promptly after submitting financial information,has long been a point of contention within the mortgage industry. The new law aims to create a more consumer-friendly and responsible home buying experience.

“this new law ‌is a major victory for mortgage borrowers that ⁤will protect them from the barrage of unwanted calls, texts and emails they too frequently ⁤enough received immediately after applying for a mortgage,” said Bob Broeksmit, ⁤president ‍and CEO of the Mortgage Bankers Association (MBA), in a statement. “it will create a more efficient,responsible,and‌ respectful home buying process.” The MBA plans to‌ work with its members and federal agencies to ensure a smooth transition over the next six months.The legislation stipulates that any credit offers extended must be “bona fide.” ⁣While largely welcomed by industry trade groups, the opt-in requirement has sparked some debate. Some industry professionals‍ worry the rule could disproportionately benefit larger retail‌ lenders, potentially limiting competition.

“Consumers now have more control over the information they receive as part of⁤ the homebuying process, and they can now eliminate ⁤trigger⁢ lead abuses while preserving their use in appropriately limited circumstances,” stated Jim Nabors, president of ‍the National Association of Mortgage Brokers⁣ (NAMB), calling the bill a⁢ “victory” for American consumers.Brendan McKay, chief advocacy officer for the Broker Action Coalition (BAC), lauded the collaborative effort⁣ that lead to the bill’s passage.”The BAC ‍is proud to see this fight finally cross the finish line. This bill shows what’s possible when the industry puts differences ⁤aside and works together toward a⁣ common goal,” he said.

Industry leaders also expressed optimism about the law’s broader impact. Isaac Boltansky, head of public policy at Pennymac, believes the change will benefit both consumers⁤ and lenders. “By curbing abusive data practices while preserving responsible competition, this framework strengthens trust in the mortgage process and creates a healthier, more sustainable marketplace,” Boltansky explained.

Craig Ungaro, chief operating officer at AnnieMac home Mortgage, acknowledged the collaborative spirit⁢ that ⁣brought the legislation to fruition. “We ‍appreciate President Trump’s willingness to collaborate ⁣with industry experts to ‍tackle ⁢problems and implement practical, ⁣common-sense protections for consumers,” Ungaro said.

September 6, 2025 0 comments

Business

Caliber Fined $2.3M: California Borrower Refunds & License Surrender

by Priya Shah – Business Editor August 19, 2025

written by Priya Shah – Business Editor

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Caliber Home Loans Hit‌ with $1.8 Million Penalty,‍ Loses Licenses

Table of Contents

Caliber Home Loans Hit‌ with $1.8 Million Penalty,‍ Loses Licenses

SACRAMENTO, CA – ⁤Caliber Home ⁤Loans, a⁣ formerly prominent mortgage lender, will pay $1.8 ⁤million in penalties and relinquish its California lending licenses following a settlement with state regulators. The action stems from deficiencies in trust accounting and ‌failures to properly refund consumers, marking a significant downturn for the company acquired in⁢ 2021.

Regulatory Action and Settlement Details

The California department of Financial Protection and Innovation (DFPI) reached the settlement with Caliber,requiring the company to refund over $550,000 ⁢to impacted California consumers. The⁤ agreement resolves concerns about Caliber’s adherence to state regulations regarding trust accounting practices. This penalty holds⁤ Caliber accountable and returns ⁤interest to ‍California borrowers, stated ⁢DFPI Commissioner KC Mohseni. It is‌ indeed an example of DFPI’s strong regulatory oversight in California’s mortgage industry and its commitment to protect California consumers.

This isn’t the first time Caliber has faced regulatory ⁤scrutiny. The company previously addressed similar issues in‌ 2020, resulting ‍in five separate‍ citations. In that same year,⁢ Caliber agreed⁣ to $17 million in mortgage forgiveness⁣ for New York borrowers who alleged they were steered toward unfair loan modifications.

Acquisition and Declining market⁢ Share

Caliber was acquired by New Residential Investment Corp.(Newrez) in 2021 for $1.7 billion. However, the company’s ⁤market ⁣position has significantly diminished since then. While Caliber originated‍ $71.4 billion in mortgages in 2021, that figure plummeted ‍to just $3.5 billion last year, according to Home Mortgage Disclosure Act data. ⁤

It remains uncertain whether Newrez ⁢will assume the⁢ costs associated with‍ this latest settlement. newrez did not respond to requests for comment regarding the financial implications.

Did You No? The Home Mortgage ‌Disclosure Act (HMDA) provides public data on mortgage lending activity, offering insights into market trends and potential disparities.

Key⁤ Timeline ‍and Financials

date	Event	Amount
2020	Settlement with new York Borrowers	$17 million
2021	Acquisition by ⁢new Residential Investment Corp.	$1.7 billion
2021	Mortgage ‌Origination ‌Volume	$71.4 billion
2024	Caliber’s Origination ⁣Licenses ‌Expired	N/A
2024	Settlement with California DFPI	$1.8⁣ million (penalty) + $550,000+ (consumer ‍refunds)

As part of the settlement, Caliber ⁢will surrender ⁤its California Financing Law ⁢license, and also its California⁤ Residential ⁤Mortgage Lender and Servicer license. The company’s origination licenses expired earlier in 2024.

Pro Tip: when evaluating mortgage lenders, always check⁣ their ⁣licensing ‍status and ‍regulatory ‌history with state and federal agencies.

Impact on⁣ Consumers and the ⁢Mortgage Industry

The DFPI’s action underscores the importance of robust regulatory oversight ⁤in the mortgage industry. The settlement aims to protect California consumers from unfair lending practices and ensure accountability for financial institutions. What long-term effects will this have on Newrez’s mortgage operations?

Will other⁢ lenders face similar‍ scrutiny regarding‌ trust accounting and consumer‌ refunds?

The mortgage industry‍ has undergone significant shifts in recent years, influenced by fluctuating ‍interest rates, economic conditions, and evolving regulatory landscapes. The rise of non-bank lenders,⁤ like Caliber, has increased competition but also raised⁢ concerns about consumer protection. Understanding thes trends is crucial for borrowers and industry professionals alike. The Consumer Financial Protection Bureau (CFPB) plays a vital role in regulating mortgage lending practices, ⁢ensuring fair access to credit and‍ protecting consumers from predatory lending. Learn more about the CFPB.

Frequently Asked Questions about ⁤Caliber ‌Home Loans

What happened with Caliber ⁤Home Loans? Caliber Home Loans ⁢settled with California‍ regulators, agreeing to pay $1.8 million in penalties and surrender ⁤its state lending licenses.
Why was ⁤Caliber penalized? The penalties stemmed from deficiencies in trust ⁢accounting practices and failures to properly⁢ refund consumers.
Who acquired Caliber ‍Home Loans? New Residential‌ Investment Corp. ⁢(Newrez) acquired Caliber in 2021 for $1.7 billion.
What‌ does ⁣this mean for Caliber’s customers? Impacted California consumers will receive refunds totaling over $550,000.
Is Newrez responsible for the settlement costs? It remains⁢ unclear whether Newrez will cover the costs of the settlement.

Disclaimer: This article provides information for general ⁢knowledge and informational purposes only, and does ‌not⁣ constitute financial advice.

We hope this report provides valuable insight into this developing story.Share this article with your network,leave a comment below with your thoughts,and subscribe to our newsletter ⁤for the latest financial ⁣news and analysis.