Owner and Appraiser Opinions of Home Values Inch Closer To Equilibrium

– Quicken Loans’ National HPPI shows appraised values 0.53% lower than homeowners estimated in February

– Home values dipped 0.07% nationally in February, but posted a 6.37% year-over-year increase, according to the Quicken Loans HVI

Detroit, MI – March 13, 2018 (PRNewswire) The trend of home value opinions from appraisers and owners moving ever-closer together resumed in February, after taking a step back the previous month. The National Quicken Loans Home Price Perception Index (HPPI) showed appraisal values in February were an average of 0.53 percent below homeowner estimates. This is the fifth consecutive month the gap between the two values has been less than 1 percent.

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Home appraisal values were nearly flat in February, posting a 0.07 percent dip from January, according the National Quicken Loans Home Value Index (HVI). Appraisal values jumped 6.37 percent compared to February 2017, which is a smaller annual increase than in January, when values were 7.03 percent higher than the previous year.

Home Price Perception Index (HPPI)

Appraisals continue to fall short of owner expectations, however, the difference between the two data points is shrinking. The Quicken Loans HPPI reported appraiser opinions of home values were an average of 0.53 percent lower than what owners expected, at a national level. Bucking the national trend, more than three quarters of metro areas measured have appraisal values that are higher than owner estimates. The leader among them is Dallas, with appraisals an average of 2.72 percent higher than expected.

“The Home Price Perception Index is a perfect example of how localized housing is across the country,” said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. “The fact that appraisals are showing home values nearly three percent higher than expected in Dallas, but the average appraisal is lower than the owner estimates by almost 2 percent in Philadelphia, illustrates this to a tee. Dallas is an incredibly hot housing market right now and appraisers are seeing just how fast home values are climbing. When shopping for a home, or even refinancing a current mortgage, consumers should always keep the changes in their local market in mind before estimating a home’s value.”

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Home Value Index (HVI)

The Quicken Loans HVI reported that annual home equity continued its ascent in February, but the pace slowed slightly. Appraisal values increased 6.37 percent compared to February 2017, despite a monthly decrease of just 0.07 percent. The West was the only region with a monthly drop in home values, showing a 1.87 percent decrease from January to February. On the other hand, the Midwest had the largest gain in year-over-year home value growth, showing a 7.23 percent jump from February 2017.

“With little movement in the HVI data from January to February, it’s clear the same narrative from the beginning of the year remains,” said Banfield. “Low home inventory continues to be a drag on the housing market. As the economy grows and more consumers are in the right place financially to purchase a home, the high demand is driving prices up. As we move into the spring selling season, all eyes will be on whether today’s strong economy can support the higher prices.”

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About the HPPI & HVI

The Quicken Loans HPPI represents the difference between appraisers’ and homeowners’ opinions of home values. The index compares the estimate that the homeowner supplies on a refinance mortgage application to the appraisal that is performed later in the mortgage process. This is an unprecedented report that gives a never-before-seen analysis of how homeowners are viewing the housing market. The HPPI national composite is determined by analyzing appraisal and homeowner estimates throughout the entire country, including data points from both inside and outside the metro areas specifically called out in the above report.

The Quicken Loans HVI is the only view of home value trends based solely on appraisal data from home purchases and mortgage refinances. This produces a wide data set and is focused on appraisals, one of the most important pieces of information to the mortgage process.

The HPPI and HVI are released on the second Tuesday of every month. Both of the reports are created with Quicken Loans’ propriety mortgage data from the 50-state lenders’ mortgage activity across all 3,000+ counties. The indexes are examined nationally, in four geographic regions and the HPPI is reported for 27 major metropolitan areas. All indexes, along with downloadable tables and graphs can be found at QuickenLoans.com/Indexes.

About Quicken Loans

Detroit-based Quicken Loans Inc. is the nation’s largest mortgage lender. The company closed more than $400 billion of mortgage volume across all 50 states from 2013 through 2017. Quicken Loans moved its headquarters to downtown Detroit in 2010, and now more than 17,000 team members from Quicken Loans and its Family of Companies work in the city’s urban core. The company generates loan production from web centers located in Detroit, Cleveland and Scottsdale, Arizona. The company also operates a centralized loan processing facility in Detroit, as well as its San Diego-based One Reverse Mortgage unit.

Quicken Loans ranked “Highest in Customer Satisfaction for Primary Mortgage Origination” in the United States by J.D. Power for the past eight consecutive years, 2010 – 2017, and highest in customer satisfaction among all mortgage servicers the past four years, 2014 – 2017.

Quicken Loans was ranked No. 10 on FORTUNE magazine’s annual “100 Best Companies to Work For” list in 2017, and has been among the top 30 companies for the past 14 consecutive years. The company has been recognized as one of Computerworld magazine’s “100 Best Places to Work in IT” the past 13 years, ranking No. 1 for eight of the past 12 years, including 2017. The company is a wholly-owned subsidiary of Rock Holdings, Inc., the parent company of several FinTech and related businesses. Quicken Loans is also the flagship business of Dan Gilbert’s Family of Companies comprising nearly 100 affiliated businesses spanning multiple industries. For more information and company news visit QuickenLoans.com/press-room.

Quicken Loans Becomes Largest Home Lender in America

The nation’s leading home lender will debut a new campaign touting its Rocket Mortgage technology in Super Bowl LII

Detroit, MI – Feb. 1, 2018 (PRNewswire) Detroit-based Quicken Loans today announced it has become the nation’s largest residential mortgage lender in the 4th quarter of 2017– surpassing close to 30,000 lenders (commercial banks, savings and loans, credit unions, mortgage bankers, mortgage brokers) across the country.

The company, founded in 1985, was originally launched as a brick-and-mortar branch operation, with locations primarily based in the Midwest.

Quicken Loans Logo

In 2000, Quicken Loans shifted its fundamental business model to an online platform. This strategy was pivotal in catapulting the lender into a 50-state, centralized, consumer-direct mortgage lender with capacity to close large volumes of mortgage loans in all 3,000 counties across America. In essence, it was the defining moment that would eventually lead to Quicken Loans becoming the leader in the FinTech lending industry.

Quicken Loans’ philosophy of an obsessive focus on team member and client satisfaction, combined with its game-changing technology, was the formula that allowed the lender to make consistent market share gains nearly each year over the past two decades. This unique model finally culminated with Quicken Loans emerging as the largest overall home lender in the United States in the 4th quarter of last year.*

“I could not be more proud of each and every one of our 17,474 team members, who each day bring incredible passion and determination to deliver our clients the best possible experience, during the single biggest financial transaction in most of their lifetimes,” said Dan Gilbert, Founder and Chairman of Quicken Loans. “Achieving the #1 market share of all mortgage lenders is an exciting accomplishment, but we are even more inspired that we reached this significant milestone, while at the same time delivering the best client experience in the nation for the last 8 consecutive years and running.”

Quicken Loans’ success can be attributed to the company’s strong culture, built on an uncompromised dedication to putting clients first. As a result, the company has earned an unprecedented 12 J.D. Power awards including an unprecedented eight consecutive years Quicken Loans was ranked #1 in client satisfaction in the country – a recognition based entirely on client feedback collected by the independent research firm.

The company’s investment of capital along with its culture of encouraging team member innovation has created a steady stream of disruptive technologies that simplify and speed up the lending process.

In early 2016, Quicken Loans launched Rocket Mortgage, via its first ever Super Bowl commercial. Rocket Mortgage is the first completely online and fully personalized mortgage experience and was built with proprietary technology created by the national home lender. Rocket Mortgage, which gives customers the power to get approved for a mortgage in as few as 8 minutes, forever changed the lending landscape.

Quicken Loans’ Rocket Mortgage will again bring its message to more than 100 million Americans during Super Bowl LII, on February 4, 2018. Now that millions of Americans have accessed Rocket Mortgage technology, Quicken Loans will coincide this year’s Super Bowl spot by releasing an even better, and deeper, version of Rocket Mortgage with numerous additional features and further enhanced visibility.

Contrary to the historic trend, the company will not release its ad prior to its airing scheduled for the second quarter of Super Bowl LII.

In addition to its mission of leading the home financing world in both market share and client satisfaction, QL has also taken on the revitalization of downtown Detroit and the city’s neighborhoods as an additional company mission as important as its business goals.

“We view Quicken Loans as a ‘for-more-than-profit’ company. Our successes have allowed us to invest in every aspect of our hometown community, including education, housing stability and mentoring budding entrepreneurs,” said Jay Farner, Quicken Loans CEO. “By reinvesting our resources into the neighborhoods where we live, work and play, we ensure everyone has the chance to unlock their fullest potential. This approach attracts the best and brightest in today’s world to work for our company. It creates an environment that allows each and every team member to feel they are contributing to both the business and the betterment of the communities where we are located. It’s an equation that works for the advancement of both of our primary missions.”

Since 2010, Quicken Loans team members have volunteered 375,000 hours with community organizations, and the company has directly contributed nearly $130 million to numerous charities and community groups in its hometown of Detroit. Quicken Loans’ persistent, powerful voice for the future of Detroit is matched only by its actions and initiatives to continue transforming the city – from company-funded blight removal and tax foreclosure mitigation, to creating productive business and civic partnerships to funding experiential learning programs for public school students and more.

“I want to extend a heartfelt ‘thank you’ to everyone who helped us achieve this incredible milestone. While this is exciting, it is nothing more than a landmark which will motivate us to continue innovating and executing, urgently. We still have so much to achieve, both with our business and our hometowns of Detroit, Cleveland and everywhere our team members call home,” Farner added.

*4th quarter 2017 lender volumes and market share were acquired from information gathered from public company disclosures, industry publications, and other highly-credible sources known to Rock Holdings, Inc., the parent company of Quicken Loans. Calculations of closed loan volume and market share do not include closed loans purchased from other lenders who originated, handled all consumer communication and interaction, processed, closed and funded the loan. The originating lender would include that loan in its market share. Including that same loan and double counting it by also including it in the company’s market share who is purchasing the loan would be misleading and inaccurate.

About Quicken Loans

Detroit-based Quicken Loans Inc. is the nation’s largest home mortgage lender. The company closed more than $400 billion of mortgage volume across all 50 states from 2013 through 2017. Quicken Loans moved its headquarters to downtown Detroit in 2010, and now more than 17,000 team members from Quicken Loans and its Family of Companies work in the city’s urban core. The company generates loan production from web centers located in Detroit, Cleveland and Scottsdale, Arizona. The company also operates a centralized loan processing facility in Detroit, as well as its San Diego-based One Reverse Mortgage unit. Quicken Loans ranked “Highest in Customer Satisfaction for Primary Mortgage Origination” in the United States by J.D. Power for the past eight consecutive years, 2010 – 2017, and highest in customer satisfaction among all mortgage servicers the past four years, 2014 – 2017.

Quicken Loans was ranked No. 10 on FORTUNE magazine’s annual “100 Best Companies to Work For” list in 2017, and has been among the top 30 companies for the past 14 consecutive years. The company has been recognized as one of Computerworld magazine’s “100 Best Places to Work in IT” the past 13 years, ranking No. 1 for eight of the past 12 years, including 2017. The company is a wholly-owned subsidiary of Rock Holdings, Inc., the parent company of several FinTech and related businesses. Quicken Loans is also the flagship business of Dan Gilbert’s Family of Companies comprising nearly 100 affiliated businesses spanning multiple industries. For more information and company news visit QuickenLoans.com/press-room.

End of 2017 Sees Homeowners and Appraisers More In Agreeance than in the Past Two Years

– Quicken Loans’ National HPPI shows appraised values 0.50% lower than homeowners estimated in December

– Home values rose 0.65% nationally in December, with a 6.17% year-over-year increase, according to the Quicken Loans HVI

Detroit, MI – Jan. 9, 2018 (PRNewswire) The views of homeowners, and those who appraise their properties, are continuing to move closer together. Home appraisals were an average of 0.5 percent lower than what owners expected in December, according to the National Quicken Loans Home Price Perception Index (HPPI). These two data points have moved closer together since November, when appraised values were 0.67 percent lower than homeowners’ estimates, and far improved from one year ago when there was a full 1 percent difference in valuation.

Quicken Loans Logo

Increasing equity continues to be another source of good news for homeowners. The National Quicken Loans Home Value Index (HVI) reported the average appraisal value climbed 0.65 percent higher from November to December, and jolted ahead 6.17 percent compared to the previous December.

Home Price Perception Index (HPPI)

Appraisals in December were an average of 0.5 percent lower than what homeowners estimated at the beginning of the mortgage process. Although the average appraisal continues to lag homeowner estimates, the gap between the two numbers was narrower in December than it has been since March 2015. The current narrowing trend is in its seventh-straight month. While perceptions vary between metro areas, they are improving at the metro level. A negative value, which indicates that appraiser opinions are lower than homeowner perceptions, was only indicated in a quarter of metro areas measured by the HPPI.

“Appraisers and real estate professionals evaluate their local housing markets daily. Homeowners, on the other hand, may only think about their housing market when they see ‘for sale’ signs hit front yards in the spring or when they think about accessing their equity,” said Bill Banfield, Quicken Loans Executive Vice President of Capital Markets. “This is reflected in the HPPI. The housing markets that are rising quickly, like those in the West, are having appraisal values increasing above owner estimates because owners don’t realize just how quickly those markets are advancing.”

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Home Value Index (HVI)

The HVI, the only measure of home value change based solely on appraisal data, showed promising growth. Values rose 0.5 percent from November to December, and 2017 ended on a strong note with the HVI rising 6.54 percent from January to December. The Northeast is the only region to show a monthly dip in value, but all regions reported annual growth – topping out with a 7.42 percent jump in the West.

“Homeowners received the gift of added equity this holiday season,” said Banfield. “With several years of growth, owners may have more equity than they realize. Many consumers use the tax season at the beginning of the year to reevaluate their entire financial life. It also provides a good opportunity for them to consider how best to take advantage of their equity while mortgage interest rates and borrowing costs are still near record lows.”

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*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

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*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

Chart 3

*A positive value represents appraiser opinions that are higher than homeowner perceptions. A negative value represents appraiser opinions that are lower than homeowner perceptions.

About the HPPI & HVI

The Quicken Loans HPPI represents the difference between appraisers’ and homeowners’ opinions of home values. The index compares the estimate that the homeowner supplies on a refinance mortgage application to the appraisal that is performed later in the mortgage process. This is an unprecedented report that gives a never-before-seen analysis of how homeowners are viewing the housing market. The HPPI national composite is determined by analyzing appraisal and homeowner estimates throughout the entire country, including data points from both inside and outside the metro areas specifically called out in the above report.

The Quicken Loans HVI is the only view of home value trends based solely on appraisal data from home purchases and mortgage refinances. This produces a wide data set and is focused on appraisals, one of the most important pieces of information to the mortgage process.

The HPPI and HVI are released on the second Tuesday of every month. Both of the reports are created with Quicken Loans’ propriety mortgage data from the 50-state lenders’ mortgage activity across all 3,000+ counties. The indexes are examined nationally, in four geographic regions and the HPPI is reported for 27 major metropolitan areas. All indexes, along with downloadable tables and graphs can be found at QuickenLoans.com/Indexes.

About Quicken Loans

Detroit-based Quicken Loans Inc. is the nation’s second largest retail home mortgage lender. The company closed more than $400 billion of mortgage volume across all 50 states from 2013 through 2017. Quicken Loans moved its headquarters to downtown Detroit in 2010, and now more than 17,000 team members from Quicken Loans and its Family of Companies work in the city’s urban core. The company generates loan production from web centers located in Detroit, Cleveland and Scottsdale, Arizona. The company also operates a centralized loan processing facility in Detroit, as well as its San Diego-based One Reverse Mortgage unit.

Quicken Loans ranked “Highest in Customer Satisfaction for Primary Mortgage Origination” in the United States by J.D. Power for the past eight consecutive years, 2010 – 2017, and highest in customer satisfaction among all mortgage servicers the past four years, 2014 – 2017.

Quicken Loans was ranked No. 10 on FORTUNE magazine’s annual “100 Best Companies to Work For” list in 2017, and has been among the top 30 companies for the past 14 consecutive years. The company has been recognized as one of Computerworld magazine’s “100 Best Places to Work in IT” the past 13 years, ranking No. 1 for eight of the past 12 years, including 2017. The company is a wholly-owned subsidiary of Rock Holdings, Inc., the parent company of several FinTech and related businesses. Quicken Loans is also the flagship business of Dan Gilbert’s Family of Companies comprising nearly 100 affiliated businesses spanning multiple industries. For more information and company news visit QuickenLoans.com/press-room.