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92 CALIFORNIA Will San Francisco Experience an IPO Housing Boom? A report by Trulia states that expecta- tions of the housing market in San Francis- co based on the projected boom of IPOs are overstated and will only reinforce existing trends. "In particular, despite being centered on San Francisco instead of Silicon Valley, its impact is still likely to diffuse throughout the broader Bay Area. Rather than breaking with the past, the current wave of IPOs is likely to reinforce existing trends: undulat- ing but maintained pressure on the gas pedal, not an abrupt kick down," the report states. Companies such as Lyft, Uber, Pinter- est, Slack, and Zoom, among others, are expected to release IPOs, which have fueled large expectations on the housing market. e New York Times reported on the expected boom, saying, "even conservative estimates predict hundreds of billions of dollars will flood into town in the new year." Trulia reports that the estimated value of the anticipated IPOs is around $200 billion, and could add an additional 10,000-15,000 workers to the San Francisco Bay Area. Despite added money and workers, Trulia anticipated that the San Francisco housing market will remain steady. Trulia stated that only a fraction of the employees received wealth from the IPO. e report added that, as of 2017, only 17% of the Uber shares were in the hands of the employees. "If we conservatively take 25% of $200 billion to be employees' share, we arrive at a $50 billion figure, but that too is an overesti- mate of the employees' likely windfall in the wake of the offerings," the report stated. Another reason why estimates are over- stated, according to Trulia, is that many of the home buyers benefiting from the IPOs will seek homes outside the city. Trulia states the "immediate housing impact" will extend in all directions: south along the San Francisco Peninsula, north to Marion County, and east past Oakland and Berkeley. e secondary impact of the IPO boom will extend farther, "diffusing the housing component for the IPO windfall" throughout the Bay Area. An Extended Partnership LoanScorecard, a provider of nonagency automated underwriting systems has expanded its partnership with Deephaven Mortgage to power IDENTI-FI AUS for Deephaven's correspondent division. LoanScorecard already powers IDENTI-FI AUS for the mortgage lender's wholesale division. With this expanded partnership, LoanS- corecard's Portfolio Underwriter technology will power IDENTI-FI AUS, a non-QM point-of-sale/pre-qualification tool, for Deep- haven's correspondent division. IDENTI-FI AUS lets approved correspondent partners run loan scenarios and instantly determine poten- tial options across Deephaven's non-agency loan programs—allowing them to expand their potential borrower base. Correspondent lenders can run an AUS findings report on any loan file for a detailed breakdown of Deephaven's qualification crite- ria and documentation requirements through this platform. "We've been using LoanScorecard's tech- nology for the past six months in our wholesale division and have already seen tremendous success helping LOs at the ever important point of sale," said Mike Brenning, Chief Production Officer at Deephaven. "We're con- fident leveraging LoanScorecard's technology will allow our partners to offer non-QM prod- ucts that can help them responsibly expand their businesses—and ultimately replicate the success we've had in our wholesale division." Deephaven Mortgage provides private- capital liquidity for non-Qualified Mortgage (non-QM) loans. e company partners with correspondent lenders who share its vision for rebuilding the non-government mortgage market while providing common sense-driven underwriting decisions centered around a borrower's ability to repay. Deephaven's products include expanded-prime, near-prime, non-prime, investor advantage, and foreign national. "Taking borrowers through the origination process only to encounter they don't qualify is a reason many correspondent lenders shy away from non-QM products," said Ben Wu, Ex- ecutive Director at LoanScorecard. "IDENTI- FI AUS empowers correspondent lenders to offer non-QM products by analyzing loan data against product guidelines and determining fit within seconds." LoanScorecard provides non-agency AUS, loan pricing solutions and borrower point- of-sale designed to meet today's regulatory challenges and capitalize on current market opportunities. e company helps institutions address CFPB regulations through its QM Findings, a qualified mortgage (QM) engine, which has rendered more than five million QM findings reports to-date and supports banks and credit unions preparing for the upcoming impacts of CECL. Housing and Transit in La-La Land Searches for listed homes that are more ac- cessible to public transit are gaining ground in Los Angeles (L.A.), a city that has so far been known for its sprawl and car culture. According to a report by Trulia, the share of listings in L.A. that include public transit keywords such as "metro" or "subway" have doubled since 2013. In fact, when home sellers include transit keywords, the lowest priced three-quarters of listings sell for an average premium of 4.2% more than similar listings without transit keywords. In contrast, the top quarter sees an average price penalty of 10.5%. e report indicated that the share of L.A. County listings that mentioned transit-related keywords rose from 2.3% in 2013 to 4.5% in 2018. And while that is still a small fraction of the keywords used for home searches, the re- is the inventory growth seen in Los Angeles over the past year. The pace of sales is also slowing down, in favor of buyers, with month's supply up 31%+ over last year. Source: realtor.com's "Ten Housing Markets Enter Buyer Friendly Territory" report STAT INSIGHT 24%

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