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October 2023 » thefivestar.com 29 October 2023 I N D U S T R Y U P D A T E payment, so in addition to reducing their debt ratio, it helps them buy a little bit more property, or make sure they're not overextending themselves." Carrington also has introduced tem- porary buydowns for homebuyers seeking Government and Conforming Conven- tional loans. Temporary buydowns are when up-front funds paid by a seller are deposited into a reserve account to tem- porarily reduce the interest rate, as well as the effective monthly mortgage payment, for a specific period of time. For example: in a 2-1 temporary buydown, the rate is bought down for the first two years of the mortgage loan. If the note rate is 5%, then the rate is reduced to 3% for the first year, 4% for the second year, and then remains at the note rate (5% in this example) for the remaining life of the loan. "A temporary buydown benefits homebuyers during the first couple years of the loan, providing them with a reduced payment," Austin said. "For potential homeowners who need more fi- nancial flexibility, a temporary buydown can help get these buyers into a home." From a cashflow perspective, tempo- rary buydowns can make a lot of sense. In addition to providing greater initial affordability, the temporary interest-rate reprieve can give homebuyers time for interest rates to drop a bit, at which time they might choose to refinance their home at a lower interest rate. And as the housing market transitions from a purely seller's market to more of a buyer's market, some sellers might offer to pay for a temporary buydown to incentivize buyers. For now, temporary buydowns are only available for Carrington's Gov- ernment and Conforming Conventional purchase loans, although the company's future plans include offering temporary buydowns for its non-QM loan products. In addition to Carrington's non-QM offerings, FHA, VA, USDA, and conform- ing Conventional products, the compa- ny's products include ProcessIQ, where approved CMS Wholesale brokers have the option of having Carrington process the loan as part of its underwriting. When an enrolled broker submits a loan, they can request that the Carrington ProcessIQ team handle all of the logistics and work directly with the borrower. In June 2022, CMS' Second Lien program began providing a welcome source of liquidity to existing CMS servicing cus- tomers who have seen an increase in the value of their homes, and who now face a rising-interest-rate market in which they may not see a benefit accessing their home equity by replacing a low first-lien rate to obtain a cash out. "At Carrington, it's our company's mission to enable a lifetime of simple and attainable homeownership," Austin said. "For homebuyers looking for greater affordability, our 40-year loan and tem- porary buydowns are options that we are proud to offer. These products are another demonstration of Carrington's unceasing commitment to homebuyers." QBIQ SECURES $10M IN SEED FUNDING TO ACCELERATE REAL ESTATE DEALS WITH GENERATIVE AI q biq, a generative AI and visualiza- tion platform for real estate space planning, announced it has raised $10 million in seed funding from strategic investors includ- ing JLL Spark Global Ventures as well as 10D, Ocean Azul, Randomforest, and M-FUND, to use generative AI to instant- ly unlock the potential of any space and accelerate decision-making. This new funding will continue to support qbiq's rapid growth and deepen its market presence in the United States. Real-estate transactions rely on space planning decisions that are based on questions of fit, cost, and ROI optimiza- tion. This inherently creates the need for a quick turnaround time and high-scale architectural planning capabilities that can enable fast, space-driven business decisions. However, architectural plan- ning is a long, manual process that has remained stagnant since the introduction of AutoDesk decades ago and remains one of the biggest bottlenecks in real estate transactions. Architects need to apply specific requirements within a given space and provide the best poten- tial layout alternatives, considering best practices, building constraints and local regulations, while striving to optimize for cost, utilization, efficiency, and more. To this day, architects try to solve these com- plex Hard Combinatorial Geometrical "For potential homeowners who need more financial flexibility, a temporary buydown can help get these buyers into a home." —Greg Austin, EVP, Mortgage Lending, CMS