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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 40 June 2025 J O U R N A L Lending/Originations HOME INSURANCE PREMIUMS CLIMB IN 2025 R ate Insurance LLC has released its 2025 Home Insurance Trends Report, offering a detailed look into the home insurance market. Draw- ing from nearly 70,000 active policies across all 50 states and more than 70 carriers, the report highlights premium increases, shifting deductible preferenc- es, and state-specific developments that are driving up costs for homeowners. "Insurance costs are climbing, but that doesn't mean customers are power- less," said Jeff Wingate, President of Rate Insurance. "This report is designed to demystify what's driving those increases and give homeowners practical ways to keep their policies both affordable and effective—whether adjusting deduct- ibles, bundling coverage, or shopping across carriers." The report provides a comprehensive analysis of customer data collected over the past six years, painting a clear picture of current cost pressures. In addition to premium trends, the report delves into claims data, identifying areas where coverage is becoming more expensive or difficult to obtain, particularly in disas- ter-prone states. It also outlines strategies for homeowners to save on premiums without sacrificing essential coverage. Key Report Findings • The 2024 home insurance market ex- perienced sharp premium increases. Internal policyholder data compar- ing January through August 2024 to the same period in 2023, showed a national average annual premium rise to $2,072, a significant 20% increase from $1,723 in 2023. Over the past six years, premiums have increased by 78%, placing persistent financial strain on homeowners. • The combined ratio for homeowners insurance was estimated at 105.7% in 2024, down from 110.9% in 2023 as noted in AM Best's 2024 Market Segment Report. • Factoring in personal auto, the per- sonal lines combined ratio improved to 101.2% in 2024, down from 106.7% in 2023, showing a near return to profitability. • While the personal lines industry's year- over-year improvement in underwriting losses was an important development, homeowners insurance carriers are still operating at a loss. Pricing is expect- ed to remain high and continue to increase until profitability is restored. Notably, the 2025 report identifies a trend toward higher deductibles, as more homeowners look to offset premium hikes by assuming greater upfront risk. Mean- while, state-specific variations continue to grow. Factors like increased storm activity, wildfire exposure, and regulatory shifts are contributing to dramatically different experiences for homeowners depending on where they live. Q1 2025 EXPERIENCES SURGE IN COMMERCIAL LENDING ACTIVITY A ccording to the Mortgage Bankers Association's (MBA) Quarterly Survey of Commer- cial/Multifamily Mortgage Bankers Orig- inations, originations of commercial and multifamily mortgage loans fell 40% from Q4 2024. They increased 42% from Q1 2025 compared to the same period last year. "Commercial and multifamily mort- gage originations posted a strong rebound in the first three months of the year, increasing 42% compared to year-ago lev- els," said Reggie Booker, MBA's Associate VP of Commercial Research. "The first quarter of the year is typically the slowest,