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6 Journal Leading the way for 20 years Since our founding in 2002, CRFS has grown to become the recognized leader in pre- and post-default claims management outsource and consul ng solu ons. Our diverse mix of services includes: • Government claims management • FHA emergency loss mi ga on • FNMA deferment claims While our 20th anniversary is a me to celebrate what we've accomplished, CRFS is commi ed to innova ng for the future. And we will con nue to respond to the emerging needs of our industry with best-in-class services. • HUD audit support • Investor and GSE claims • Por olio acquisi on due diligence Visit crfservices.com to learn more U.S. HOUSING SUPPLY RISES According to data analyzed by the U.S. Census Bureau and the U.S. Department of Housing & Urban Development (HUD), sales of new single‐family homes in September 2022 were at a seasonally adjusted annual rate of 603,000, 10.9% below the revised August rate of 677,000, and 17.6% below the September 2021 year-over-year estimate of 732,000. "e decline in September sales was consistent with our view that the large jump seen in August would be a temporary deviation from a generally slowing sales pace due to the short-lived mid-summer pullback in mortgage rates," said Douglas G. Duncan, Chief Economist at Fannie Mae. "Since then, mortgage rates have continued to rise, with the 30-year fixed-rate mortgage (as reported by Freddie Mac) up roughly 195 basis points since the mid-summer lows. We, therefore, anticipate a further slowdown in home sales over the coming quarters. Higher mortgage rates continue to weigh on the purchasing power of buyers while also increasing the 'lock-in' effect felt by potential move-up buyers. Homeowners with a mortgage at a lower rate than current rates continue to have a strong incentive to remain in their current homes." HUD and the Census Bureau found the median sales price of new houses sold in September 2022 nationwide was $470,600, with the average sales price at $517,700. enues have dropped, and expenses continue to rise," Walsh said. "Lenders have started to shrink excess capacity by reducing staffing levels, exiting less profitable channels, or exiting the business entirely." e MBA further predicts that mortgage employment will drop an additional 25-30%, given the decrease in production from record levels that occurred in 2020 and 2021. On the servicing side of the business, profits rebounded in 2022. Mortgage servicers are benefitting from slower prepayments and low delinquencies that have helped boost mortgage servicing right (MSR) valuations. "e national mortgage delinquency rate reached a record low in the second quarter of 2022 but will likely increase with the uptick in unemployment and the destruction caused by Hurricane Ian in Florida, South Carolina, and other nearby states," Walsh concluded. Continued from previous page