Technology Update

This week I want to share a couple of technology stories.  One will scare the hell out of you – as it affects you regardless of selling or buying real estate.  The other is a great example of the mindset divide in this country – how one side can see things one way, while the other half sees it completely opposite.  Sounds like fun reading to me!

 

 

GEOSPY.ai

Geospy is an artificial intelligence search engine that is currently only available to law enforcement and government entities, but who knows how long it will take for this technology to become available to those wanting to use its power for nefarious activity.  The stuff this AI does is pretty amazing.  The user will upload a generic photo into their AI system, and it will return a specific address anywhere in the US.

 

From this photo below that doesn’t have an address showing or any other “supposed” geographical clues…

 

 

The system, in a manner of seconds, came back with the probable location of the home being in Las Vegas.  When the AI was instructed to look further into homes in the Las Vegas area, it found the house…

 

 

This is not the same photo with the girl removed.  This picture of the home was from an MLS listing.  The AI system was able to scan a database of homes in the Las Vegas area and matched the original photo with photos from the MLS system.

 

 

 

Here’s another example.  From a screenshot from a TikTok video…

 

 

The GEOSPY.ai was able to easily find the home…

 

 

Because the AI database includes millions of photos of the interior and exterior of millions of homes, a picture from inside a home can also yield a precise location.  That’s scary.  And the photo database isn’t just MLS data.  Social media photo uploads with geographic information are also captured.

 

How does this affect you?  Have you ever posted something for sale on Facebook Marketplace, or eBay, or another site.  Does that photo show any portion of the interior or exterior of your home?  If it does, the GEOSPY.ai may just find your exact address.  I went on to Craigslist and did a search for furniture.  The first ad was this picture:

 

This picture is enough detail for GEOSPY.ai to find the address to this property.  Scary!

 

Property rentals will almost always leave the address out of the listing to avoid criminals from going to a vacant property.  When listing an item for sale on social media you’ll never want to give your address for the same reason – criminal activity.  In our near future that safeguard of keeping the address out of the listing won’t be enough of a safeguard.

 

As this technology becomes more widely accessible, our thin layer of anonymity will vanish.  With greater technology privacy will no longer be possible.  Right now, the technology is only available to the “good guys”.  But I am sure it won’t be long until the criminals have access to it too.  Now’s the time to be mindful.  While there’s not much we can do to shield ourselves from systems like GEOSPY.ai, knowing the capabilities of today’s technology is something I thought you should know about.

 

 

 

Optimal Blue Lawsuit

This next story demonstrates that on any given issue, some will see the glass half full, while others will see the glass half empty.

 

Optimal Blue is a company that has software I use daily when obtaining rates for my client’s rate requests.  It is also the system my website uses when you go there to obtain rates using our automated rate quote system.  It is the only way I can easily compare rates from over 100 lenders quickly and efficiently.

 

In the “old days” lenders would fax us (ha ha, how 1990’s that sounds) their daily rate sheets.  Sometimes with a volatile market, we would get 2-3 rate sheets a day from each lender we broker loans to.  From that daily rate sheet, one would have to do the math for the adjustments to the final rate based on credit score, loan-to-value, occupancy, loan type, etc.  To find which lender had the lowest rate, you had to go to each rate sheet and do the calculations for each lender.  Not only did each lender have different “base rates” to work from, but the adjustments for credit score, etc. were different from lender to lender.  You can imagine that obtaining rate quotes from 10 lenders would take some time to compile.  You also hoped that you didn’t make any errors with your math.  If a mid-day rate change occurred, throw that work out and start again.

 

That all changed with the system from Optimal Blue.  Here’s how the system works.  Lenders provide Optimal Blue their daily internal rates for all the loans that lender offers.  Optimal Blue’s software plugs that data into a master database.  All I need to do to get rates from over 100 lenders is to input my client’s information about the loan they want to obtain.  This is the same process when you get rates from our website directly.

 

 

Here is what my results look like (with some editing for confidentiality reasons):

 

 

My results came back within seconds.  Keep that in mind the next time you contact a lender and ask them what rate they can offer you and they say they’ll let you know in the next day or two.

 

The above allows me to quickly see that lender #1 has a rate at 6.125% with a rebate of $540 and lender fees of $1,195.  That in contrast to lender #11 which for the same rate charges $2,178 in points and has lender fees of $1,297.  For this client, I would place their loan with lender #1.

 

Any licensed subscriber has access to this technology.  Every lender that participates and provides data also has the ability to see what their competitors are offering.  To me, having this data available forces lenders to be as competitive as they financially can.  Some lenders must charge more for their loans, because their internal costs are higher than other lenders.  Some just want to make more profit.

 

That’s not how everyone sees it.  A lawsuit was filed this week naming Optimal Blue and 26 of the nation’s largest lenders who all participate in providing data to Optimal Blue.  The suit claims when competitors can easily see what their competition is offering, the group as a whole can fix prices to charge more.

 

To me, this seems like ambulance chasing lawyers looking to make money out of a non-issue.  But maybe I am too deep in the forest to see the light?  I am sure this is another issue where half of you think one way, and the other half, the other.

 

 

I found both these stories interesting, and I wanted to share them with you.  Now you know your home can be found when you don’t want it to be, and you’ve also learned the dark art of how lenders obtain mortgage rate quotes.  Have a great week ahead.

 

 

 

 

 

 

And now the week’s economic news…….

 

Shutdown Continues

Given the lack of major economic data due to the government shutdown, there was very little movement in mortgage rates this week, and depressed volatility is likely to continue until the shutdown ends.  Mortgage rates remain near their lowest levels of the year.

 

The latest survey on consumer sentiment published by the University of Michigan revealed that consumers remain concerned about the impact of higher tariffs and the government shutdown.  The index dropped to 55, a little above the consensus forecast of 54, but the lowest level since May.  The component of the report on inflation expectations showed that the five-year average outlook was unchanged at 3.7% per year.

 

The detailed minutes from the September 17 Fed meeting released on Wednesday confirmed that nearly all officials supported the 25 basis point reduction in the federal funds rate due to labor market weakness.  The main source of disagreement came from their forecasts for further monetary policy easing, with officials split almost evenly between one or two additional 25 basis point reductions before the end of the year.  Investors are similarly divided, anticipating one more rate cut this year but not necessarily two.  According to the minutes, inflation concerns were the primary reason that officials remain cautious about the pace of easing.

 

Even though rates remain near the lowest levels of the year, mortgage applications weakened this week, according to the Mortgage Bankers Association (MBA).  Applications to refinance fell 8% from last week but still were 18% higher than one year ago.  The share of adjustable-rate mortgages (ARM) for refinances climbed to 9.5% of total applications from 8.4% last week.  Purchase applications dropped 1% from the prior week but were up 14% from last year at this time.

 

 

 

 

Next Week

Looking ahead, investors will continue to watch for additional information about tariffs and monitor comments from Fed officials for hints about monetary policy later in the year.  With the government shutdown, there may not be any major economic data released next week.  As originally scheduled, The Consumer Price Index (CPI), a widely followed monthly inflation indicator that looks at the price changes for a broad range of goods and services, would come out on Wednesday.  Retail Sales would be released on Thursday.  Since consumer spending accounts for over two-thirds of U.S. economic activity, the retail sales data is a key measure of the health of the economy.  Housing Starts and Import Prices would be released on Friday.  Mortgage markets will be closed on Monday for Columbus Day.

 

 

 

Until next week….

 

*** Please note that Freddie Mac publishes their weekly rate report on Wednesday mornings from data received Monday and Tuesday. 

The graph above is intended to shown rate trends, and not “today’s current rate”. ***

 

 

Reviews From Our Past Clients

With every client, we promise to provide you with a comprehensive analysis of your mortgage needs, the best service possible, and the best rates we can find.  We make it our mission to have every transaction close with our clients happy with the service we provided.  Browse through the hundreds of reviews we’ve received from our clients posted on both Google and Zillow.com, and read what they thought of their experience using Hawaii Mortgage Company.

 

 

Google Link:

Hawaii Mortgage Company Review on Google.com

 

 

Zillow.com Link:

Hawaii Mortgage Company Reviews on Zillow.com

 

 

 

Our Rate Quote System is Available to You

Our automated rate quoting system is live.  Now you can check rates and try different scenarios 24-hours a day.  Remember, it’s just a computer.  For non-standard rate quotes, such as construction, vacant land, and other specialty programs, you’ll still need to give a call.

 

Here’s the link:      https://www.hawaiimortgage.net/todays-rates/

 

 

Do you think all lenders are the same?

There is a difference when you use Hawaii Mortgage Company for your financing.  Here’s a short video telling you why:

 

https://youtu.be/c7AKQ5wa2_U

 

 

 

Broker vs. Banker?

Click the link below to get a quick lesson on why working with a Mortgage Broker will benefit you on your next transaction.

 

https://youtu.be/iH3igW5v2jE