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Home equity deal shows VantageScore viable for RMBS ratings


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  • Key Insight: Find out how S&P Global assigned preliminary ratings to a fintech’s home equity transaction that used VantageScore 4.0.
  • What’s at Stake: Potential for use of more flexible credit measures and digital operations in the private secondary market for home loans.
  • Supporting Data: S&P mapped the 753 weighted average VantageScore for the loan pool, to 742 on the classic FICO scale. Subsequent adjustments in this particular deal lowered it to 737.

Overview bullets generated by AI with editorial review. 

A new transaction by Aven is the first deal fully composed of home equity products underwritten using VantageScore to receive ratings from S&P Global’s residential mortgage-backed securities team.

“What we tend to see is more adoption in the agency space, less in the non-agency,” Jeremy Schneider, managing director and sector lead, RMBS – structured finance told attendees at S&P Global’s Affordability Forum 2026 in New York. “But I will say we just issued preliminary ratings today on the securitization of home-equity line cards that uses VantageScore 4.0.”

Jeremy Schneider, RMBS sector lead, S&P Global Ratings

Bonnie Sinnock

The deal is the first to go through S&P’s preliminary rating process with VantageScore 4.0 used to underwrite 100% of the loans, according to the company’s report on the transaction, which also shows an alternative to the mortgage industry’s standard tri-merge was used.

Other rating agencies may treat transactions with VantageScore, potentially provided with the classic FICOs that have been the mortgage industry’s standard, but S&P was able to rate it based on VS4 alone using its methodology, Schneider said in an interview.

The collateral is a participation certificate representing a 100% beneficial interest in a pool of fixed-rate closed-end home equity receivables created under a pool of HELOC credit card accounts. HELOCs are typically considered exempt from ability-to-repay rules.

Home equity lines of credit share similarities with non-mortgage sectors where alternative credit metrics are used more freely. This makes HELOCs a natural way to introduce more use of VantageScore 4.0 as officials modernize credit in government-related mortgage markets.

The preliminary ratings S&P assigned to the Aven transaction, which range from a speculative grade B to the highest-end investment category of AAA, demonstrates the viability of VantageScore’s use for at least one type of transaction in the private residential market.

Both alternative credit metrics and how the preliminary ratings treat digital originations, which consumer finance fintechs are increasingly using to handle home equity, also could be significant in a mortgage market with new business opportunities constrained by higher rates.

Adjustments for credit alternatives, digital operations

S&P was able to assign preliminary ratings to the deal through a mapping it uses to correlate VS4 scores with the classic FICO measures that the home mortgage industry has exclusively used until recently. This removes the need to also provide the classic FICO metrics for ratings.

While S&P has said it may need to make rating adjustments in situations where a choice of credit metrics could involve cherry picking, the Aven deal was underwritten conservatively.

The lower of VantageScore 4.0 and FICO 9, a predecessor to the 10T risk model the government-related mortgage markets are moving toward, was used in the Aven deal.

The rating agency did make some other adjustments because trimerged credit reports that have been standard for the residential mortgage industry were not used in the transaction. 

While other consumer finance sectors have used single reports, the mortgage industry has historically had a tri-merge standard with the aim of ensuring decisions about loans used for relatively larger housing transactions are based on sufficient data.

More recently, the Mortgage Bankers Association has pushed for further exploration of whether single report use for higher credit borrowers could cut costs and result in more competition for the three bureaus that back VantageScore without introducing too much risk.

Studies on the matter of whether using fewer than three credit reports for residential loans incurs too much risk have varied, with S&P finding bi-merge outcomes not significantly different from three reports during the Biden administration, when this was favored over a single score.

S&P Global rating analysts applied a haircut of 5 points to each VantageScore before mapping to account for the use of a single credit report rather than a trimerged one.

On a weighted average basis, the VantageScore for the pool before the application of this haircut was 753, which mapped to 742 on the classic FICO scale or 737 with the 5 point haircut.

S&P analysts also included adjustments for its operational assessment of Aven’s digital platform, which does not allow for any underwriting exceptions, or physical documentation outside any that certain jurisdictions may require.

“In our analysis of the transaction, we performed an operational assessment of Aven, including a review of the underwriting guidelines which resulted in a loss coverage adjustment factor of 1.050x,” the analysts wrote in their preliminary rating report.



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20% of Homes See Price Cuts (Sellers Face Reality)


Seller desperation just hit a recent peak, creating a major buying opportunity in the housing market. Over 20% of properties saw a price cut in the past four weeks, and with mortgage rates only moving up, sellers are running out of options. Winter is coming, and with it, less demand—so what are sellers going to do? More price cuts could be in store.

We’re back with October’s housing market update! We’ve been saying for months that buying opportunities would get bigger, and we’re seeing it unfold in real time. Sellers are getting desperate and starting to cut prices at levels we haven’t seen in years. Fewer homes are changing hands, so buyers are getting their pick as deals sit on the market for months.

Dave is eyeing a specific set of homes as the biggest opportunity right now (and they’re on the market).

So what do you do if you’re ready to buy your next rental but don’t know if you’re catching a falling knife? Dave shares the properties he’s looking for, what he’s offering to get day-one equity, and whether the chances of a housing crash have gone up since our last report.

Dave:
I’m seeing a huge buying opportunity in the housing market right now. Home sellers are cutting their prices at a higher seasonal rate than we’ve seen in years. In the most recent set of data, more than 20% of properties on the market had a price cut in just the last four weeks. So what does that mean? It means sellers are finally getting realistic. They’ve accepted that they can’t get 2020 prices anymore, and you can take advantage of that and start picking off premium properties at a discount. Buy below market price, collect the instant equity, and set up your portfolio for years to come. That’s what I’m doing, and I’ll explain all the data behind my thesis in this October BiggerPockets housing market update.
Hey everyone. Welcome to the BiggerPockets Podcast. I’m Dave Meyer, real estate investor, CIO at BiggerPockets, and a housing market analyst. And today on the show, we are doing our October 2026 housing market update. As you all know, a lot is changing in the housing market all the time. I know I say that every month, but it is true. In the world we live in, in 2026, things are changing in the housing market more than they normally do. And so in today’s episode, we’re going to do the three things we always do, which is first look at market update. We’re going to go through the data, what’s happening with prices, with inventory, with mortgage rates and all of that. Then I’m going to share an opportunity that I am seeing in the market that is supported by data and evidence that I think all of you should be paying attention to.
And then third, we’ll do what we always do, which is go through our risk report because you can’t turn on any media channel these days and not hear someone claiming that the housing market’s going to crash or some economic disaster is coming. And since those things are always possible, it is worth spending some time talking about if it’s coming. And we’re going to have an honest conversation about what risks exist in the housing market and for real estate investors. So we’ll talk about that at the end of the episode. So that’s the plan. Let’s get to it. We’re going to start with our market update. We’re going to go into prices first. It’s what everyone always wants to know is the big picture, what’s going on with home prices? And surprisingly, or you might be shocked if you go on any news site these days, home prices are still up nominally, not inflation adjusted.
The price you see on Realtor, Redfin or whatever, that is up two and a half percent year over year. That’s just about the historical average, just so you know, is about 2.5% appreciation per year. So from a price perspective, we are actually having, despite everything going on, we’re having quite a normal year in terms of pricing in the housing market. If you look at Case Schiller, which is a great data set, you look at Redfin, you look at Zillow, they’re all kind of in the same space. So no, we’re not in a market crash at all. It is important to know though that the data that I’m talking about is what is called nominal. It’s not inflation adjusted. And that’s what most people care about. That’s what you see on your contract when you go and buy a house or you sell a house. But I do want to call out the important caveat that if you do inflation adjust home prices right now, they are down.
It is not keeping up with the pace of inflation. And as investors, that’s normally what we want. We want our investments to keep up with the pace of inflation and that is not happening from a price perspective right now. But I think the real story in the housing market is looking at some of the forward-looking stuff, the stuff that helps us predict what is going to happen in the next couple of months. So let’s get into that. And for that, we really want to look at demand and we want to look at supply. What is happening with new listings and inventory? And the story with new listings are that for most of the data we have, it’s flat. If you look at the July data, the last couple months of really good data that we have, it’s actually flat. So the amount of people who are choosing to put their homes on the market, basically the same year over year.
This is again as of July. If you look at active listings, which is the number of homes for sale at any given point, that is also flat. And so if you look at the monthly data that we had in July, the last monthly data that we have, it looks pretty stable, right? Prices are up nominally. They’re a little less than inflation. Pending sales, they’re down a little. New listings are flat, inventory is flat, days on market is flat, the sale to list ratio is flat. So by and large, we have the same market today that we had a year ago, and that is happening even with higher mortgage rates. They are at 7.6 as of this recording. They were 6.3 a year ago. But again, I want to call out that they were a little lower. They were closer to about seven or 7.1% when all of this data came in.
So I think we need to ask the question as investors and people who care about the housing market, we need to ask the question, is it going to last? Is this stable market that we have that is very similar on paper to what we saw a year ago going to stay for the rest of the year? And what about into 2027? Of course, no one knows, but I will give you my opinion. No, it is probably not going to last. Now don’t freak out. We’re going to talk about the risk report later and what risks exist, but my base case, as it has been for years, is that the housing market is going to get weaker. And again, this is kind of nerdy, but we’re looking at monthly data. If you look at the weekly data, that’s the most recent stuff, you start to see the housing market moving in a weaker direction.
Pending sales, which is the number of people who literally go out, sign a contract to buy a property, that’s down 9% year over year. That’s a lot. Roughly 10% drop in contracts being signed is a lot when we’re already at a low level. So that signals lower demand. That means less people want to buy homes, right? The second thing is new listings are low and they’re probably going to stay low because fewer people want to sell their homes in this environment. If you think about the lock-in effect and what’s keeping people in their homes right now, these people are trapped with great mortgages. It’s a good problem to have, but it’s still a problem for the housing market. But all these people have three, 4% mortgages, when mortgage rates go up to six, 7.5% like they’re now, that’s going to get locked in even more.
That means that we’re going to see less new listings, but active listings are starting to climb. Now, if you remember back to what I said before, how does that happen? Well, maybe there’s less new homes coming onto the market, but the ones that are sitting there are sitting for longer. They’re not selling. Remember, there’s less pending sales. And so if you look at all these things together, what you’re seeing is a weaker market. And that means, in my opinion, the number of transactions can go down. They already are starting to. And I also think it means that prices are going to soften, especially as we head into winter. It’s already a time when prices go down. It’s actually why, personally, my favorite time to buy a home is in the winter. That’s where you get the best deals. There are not a lot of home buyers in December, Thanksgiving, Christmas, January.
Great time to make offers because those people are not getting a lot of offers, especially in this kind of market. So this caveat, but great time to make offers. Sort of my hypothesis going into next year is that prices are going to weaken. I already predicted I thought they will be down by the end of this year. I think they’re going to weaken more. And so this is sort of the information. The reason we do this housing market update every month and why it’s one of our most popular formats is because this is the stuff that really tells you how you should be planning your own investing. If you look at what’s going on here, you see a market with declining prices, which will scare some people, but as an investor, that shouldn’t scare you. That means discounts. That means better deals are coming, right?
And so you need to just think about how do you adjust your tactics for a declining market? And the answer is to buy it for cheaper. It’s kind of pretty simple. If prices are falling, if they’re going to fall 2% next year, 3% next year, then you need to buy that property for 10 or 15% less than what it’s worth today. Not what it’s listed for today, what it is worth today. You need to comp that out or use an investor-friendly agent. You can find one on biggerpockets.com to figure out what that property is truly worth today and don’t buy anything unless it’s 15 to 20% below that price. That’s how you get equity without market appreciation, right? We’ll talk about whether this could get worse, and I will tell you there are always risks that it can get worse, and we’re going to talk about it at the end of the show.
But the data that today that we are looking at suggests this is a classic correction. We are not seeing new listings flood the market like we did in 2008. We don’t have bad credit like we did in 2008. People have a massive equity cushion, and so this should be seen mostly as a buying opportunity. And I think the winter is a really good time to start making offers because people are going to be nervous. Sellers are going to be nervous. Their property has been sitting on the market for a while, now rates have gone up, buyers are drying up. Then you go into the winter, even more buyers dry up. People are going to be willing to negotiate. And that actually brings us to our second segment for today, which is this big opportunity that I’m seeing in the market right now. And I’m going to share it with you, but we have to take a quick break.
We’ll be right back.
Welcome back to the BiggerPockets Podcast. I’m Dave Meyer doing our October housing market update. Before the break, we talked about how we’re largely in the same market as we were last year, but things are starting to soften, which makes perfect sense to me given where we are in the economic cycle, where we are with mortgage rates, where we are with housing market affordability. It’s all pointing to a market that is going to soften. And I should have mentioned this before the break, but it’s true. Of course, this is all regional. What happens in your market is going to depend on local factors. I’m talking about broad national housing market trends, which do matter, by the way, because even if you’re in a market that’s up 7%, a softening market might mean that it’s up 4% next year. It doesn’t mean it’s going to crash, but I think the general trend is going to be softening across all markets just because of how low affordability is.
And we’re seeing that in a lot of regions, even some of the stronger Midwest and Northeast markets are starting to slow down as well. So that’s my expectation, but it’s also an opportunity. Lower prices, this is what people have been wanting for a long time, right? People are saying housing is too unaffordable. Well, prices are starting to come down. And this brings us to our opportunity this month that I want to call out, which is that right now we are seeing more than 20% of home sellers cut price. That’s just in a four-week period. They might cut price more than once. That’s just within four weeks. And it’s the highest share on record for Redfin who tracks this, that’s where the data’s coming from. So it only goes back a couple of years. It’s not super old data, but just the last couple years, rates have been high for a while, but we weren’t seeing sellers cutting price.
They were being very stubborn. And I mean, if they could get their price, why not? That’s in their best interest. Even in 2023, for example, when rates went up and affordability was at one of the lowest it’s been, we only saw about 18% of sellers cut price. Now we’re at 21% home sellers cutting prices. So I know this isn’t a lot. It’s not some record thing where we’re seeing 30 or 50% of sellers cutting price. But to me, this is a sign that the stubbornness is fading and that sellers are getting realistic about pricing because you have to remember with price cuts, two things are happening here. Price cuts on their own, I don’t think are as useful as a lot of people say. People are always like, “Oh, there’s so many price cuts. That’s sign that the market’s crashing.” Not really. The price cut is actually a reflection of how well that home is priced.
So in a lot of markets, what we’re seeing for many years is that yeah, there are price cuts because people are pricing it like 2022. Whereas in markets where sellers are being more realistic, prices might actually be down in those markets, but there aren’t price cuts because they’re going into it with a realistic price given where the market is today. So I think this is a good sign because it tells us two things are happening. One, the fact that it’s not exploding does not mean that prices aren’t falling. I think that a lot of markets are probably just going in at lower asking prices. You actually see this. You can see this in the data. The average home price is up 2.5%, but the average list price is not up. It’s about flat for the year. So you can see that in the data as well.
And then the fact that it’s going up, I know it’s not a huge going from 18% to 21%, but this has been a very, very stubborn metric, and I think people are finally accepting that prices are not what they were. And this is the opportunity for investors. Like I said before, we’re entering a slow season. Anyone who’s selling their home right now knows what’s going on with mortgage rates, at least I hope so. If they have an even mildly competent real estate agent, they should know that mortgage rates are going up and that’s going to pull demand out of the market. It’s going to make their home less affordable and they’re going to have to list it at a price that is lower in order to attract a buyer. And I think a lot of sellers have just been waiting for years under the assumption, like a lot of buyers are doing, that interest rates were going to come down.
And now that we’ve been on this seesaw for so long and there is no end in sight to higher mortgage rates, and that is a hill I’m going to die on this year. I have said many times, I don’t think mortgage rates are coming down and I stick by that. Maybe it’ll come down to like six and a half percent next year. I don’t know, but they’re unlikely to come down meaningfully. And I think sellers for them finally get it. If they’re going to sell their house, it doesn’t benefit them anymore to wait six months. I think sellers are saying, “What if it gets worse? What if mortgage rates don’t get below 7% for the next year or two? What if inflation stays high? I got to sell my house now while the stock market’s still good.” I’ll be honest, I was talking about this on the market, my other podcast the other day.
I’m thinking about selling my house, not out of panic, but I’m thinking about moving anyway. And now is maybe a time to do it because mortgage rates probably not going to get better. And I think while the stock market is still high, it’s probably a relatively good time to sell a house. If the stock market tanks, sure, mortgage rates could come down a little bit, but that is not going to be a good environment to sell your home. So I think a lot of sellers like me are having this realization, and that means they are more open to negotiation. And I know this winter right now feels like an incredibly uncertain time in the economy and in the housing market, and it is. I’m not going to sugarcoat it and pretend that we know what’s going to happen. But remember that if you are a buyer, sellers are having that same emotion.
And I’m not saying this to take advantage of it, but it might mean that they’re going to be reasonable or they might be willing to say, “Hey, I know I’m not getting top dollar, but I want to get out of this home. I’m ready to move or I need liquidity for other parts of my life or I’m concerned about my job.” A lot of those things are happening. And so if you want to be a homeowner, if you want to be a rental property investor, there are going to be opportunities right now. And it’s going to take you putting yourself out there and making offers. The things I’ve been doing recently is I am glued to on-market deals that have been sitting on the market for 60 days or more. Those people are probably likely to cut a deal. If you go in Redfin, you can actually filter for how long they’ve been on the market.
So like 60 days, you can do 90 days, you can do 180 days, whatever, how long they’ve been on the market and people have dropped price in the last couple of weeks. Those are going to be motivated sellers. And when I look in the markets I invest in, they’re not crappy homes. They’re good homes in these categories. A lot of times what happens is these people listed and price too high in the first place and then it sits and then the home just becomes kind of tainted for whatever reason. It’s not really logical. The value is what it is. If it’s been sitting for 90 days and they’ve dropped the price by 10%, that might be worth paying for, but a lot of home sellers aren’t going to look at it again because they already went and looked at it or they saw the listing and they’re not going to do it again.
Those are the kind of things that you should be looking for. There’s absolutely going to be stuff that’s out there on the market. The other opportunity I’ve been seeing, this is not true in every market, but a lot of flippers I know are looking to get rid of inventory. And so if you can create something that’s mutually beneficial, those are another group to target if you want to buy rentals. I live in Seattle. A flipped home still doesn’t work as a rental here, but in a lot of less expensive parts of the country, flipped homes that are done in a good way are going to be really nice. They’re going to command a lot of demand from renters. They’re going to command a higher rent from renters and could be a way for you to get a recently renovated home for a good price and to help a flipper out of a tough situation.
So those are the two things outside of direct to seller marketing that I would look for as we enter the winter because everyone’s feeling the lack of buyers. And if you are a buyer, you have a lot of leverage and remember that and use that in your investing strategy. All right, so that’s the opportunity. Now to end the show, let’s talk about the big risks because they’re out there. There are always risks in the housing market and we are in a very uncertain economy. So let’s talk about the specific risks that exist and how you can mitigate them. But first we got to take a quick break. We’ll be right back.
Welcome back to the BiggerPockets Podcast. I’m Dave Meyer and on today’s October housing market update, we’ve talked about market trends. We’ve talked about opportunities heading into the winter, and now let’s go into our risk report. This is something we do every single month because as I shared with you earlier, the market is somewhat stable right now, but I think people want to know what risks exist out there for a crash. It is very hard to go on any media platform right now and not hear someone calling for a crash. And maybe that’s just my algorithm. I don’t know about you guys, but I get a lot of that. And so I want to address what risks exist. And upfront, is the market going to crash? Can it crash? The answer to can it crash is yes, it always can. There is always a chance that the market is going to crash.
Real estate, just like any asset class, is not without risk. And I think personally it has less risk than things like the stock market right now or crypto right now. These things ebb and flow, risks change, but to me, the valuations in crypto and the stock market are crazy. I think in residential, we’ll probably see a correction, but I think the relative risk of a crash is low. And I’ll explain to you why. I think a lot of the people who go out there and call for a crash are basing that on emotion or they’re maybe just trying to sell you something, I don’t know, but they’re just saying, prices are too high, there has to be a crash. That’s not really how it works. Prices can stay high for a very long time. We’ve had unaffordable periods in the housing market. The 1980s were less affordable than they were today, early 1980s.
Market didn’t crash, right? That is not a good way to evaluate whether the market’s going to crash. The best way to look at it, in my opinion, is to look at distress and demand. You need to look at how many people want to buy homes and how much supply is there. And we’ve already talked that the market is relatively stable in that regard, but the one thing that can cause the market to go from a correction, like the one we’re in, into a crash where prices really drop 10, 20, 30%, maybe in a year, something like that, it takes something called forced selling. If the selling conditions are bad, not many people are going to choose to sell their home. And that’s kind of the situation we’re in and have been in for three years. That’s the lock and effect. But if people stop being able to pay their mortgage, that whole formula changes, right?
Because then if you stop paying your mortgage and you go into delinquency or you go into pre-foreclosure, if you go into foreclosure, then you can become forced to sell. That’s a really bad situation we don’t hope on anyone, but it is a situation that can happen and was a large factor in the 2007, 2008 crash of the real estate market is that people were not able to pay their mortgages largely because the mortgages that were given out were predatory and people were given mortgages that they could not afford. They had adjustable rate mortgages, and when they adjusted, people could not afford them. And so all of a sudden, all of this inventory flooded the market that created an excess of supply during a time when there was already low demand that caused the market to crash. Generally speaking, when we look at delinquencies and foreclosures, I just call that distress.
How much distress is there in the market? And the answer to that for today, how much distress in the market is not a lot. It’s not tiny, but it is pretty close to the long-term average. And if you look at the top of the funnel, delinquencies right now, they’re really not bad. They’re actually 0.35% or 35 basis points below where they were this time of year in 2019. And I say this on every show, but just as a reminder, in 2019, no one was worried about a foreclosure crisis and we are below that level. So keep that in mind. That is the big picture here is that delinquencies are relatively low. Have they gone up from COVID? Yes, they have. But it’s up from this artificial low, right? It’s up from COVID period when there were forbearance programs in place and basically no one was getting foreclosed on.
And so if you’re asking, does it come up from there? Yes, of course it comes up from there. But even though it’s up, foreclosures are still below the 2019 level. And can this change? Yes. And I’ll talk about that in a second, but the thing to know is that right now, despite the scary headlines, delinquencies are below where they were in 2019. Distress is below where it was in 2019. And that means that the housing market, in my opinion, is still at a lower risk of crash. There are definitely pockets that aren’t looking great. And actually I flagged earlier this year FHA loans. These are designed for low income folks, so it always has a higher degree of distress than a conventional mortgage. But just want to call out, I flagged that three, four, five months ago. I was like, I’m going to keep an eye on this because it’s starting to go up.
Great news. It is going down. The delinquency rate on FHA loans has declined over the past three months. That is really positive news. Happy to see that. On the other end of the spectrum though, VA loans, veteran affairs loans, this is for active duty and veterans, that is where defaults are actually concerning to me. I think that is one of the areas that is worth keeping an eye on. We are seeing, unfortunately, again, not rooting for any of these things, I’m just reporting what I see. VA delinquencies have risen about 25% year over year. That’s a lot. And so hopefully that turns around. FHA, we saw it spike last year and then it flattened up. I think that was likely what we will see with VA loans as well, but it is something I do want to call out because this is a risk report.
That is a risk that we should look at. Now again, similar to what we talked about in the pricing part where we’re talking about things as they stand today, but what we really want to know is what’s going to happen into the future. And the question is, is distress going to get worse in the market? As of today, there is no evidence that it is going to. If you look at the unemployment rate, if you look at the jobs numbers, they’re up and down, but they’re really pretty historically low. That said, I think there are some reasons to think that there could be a rise in unemployment. Everyone and their mom is talking about how AI is taking everyone’s jobs, right? Inflation is eating away at people’s spending power. And so I do think there’s a decent chance that distress goes up in the next couple of months and maybe approaches that 2019 level, maybe it goes a little bit higher.
But I am sticking with my call as of now that I don’t think, let’s call it the next year that a crash is likely because I think it will go up modestly. Unless there is some massive financial crisis, which is possible, I’ve done a lot of shows on the market. I’m very worried about an AI bubble popping, right? That’s an example of something that I can see. I think the valuations in the stock market are very speculative. I think AI is an incredible technology, but I think that the betting on it and speculation on it is running rampant. And if that bubble pops, could unemployment go up? Could there be more distress in the housing market? Yeah, I think that is possible, but not to the effect of 2006, 2007 levels, at least in the housing market. In your most sober moments, you need to say what evidence is out there and the evidence does not support a crash.
I feel very strongly about that. And that’s why we do this every month is because these things can change, and that’s why I update you every month is because I want you to know what’s happening. But another month, I don’t think this has changed. I do not see any evidence of a crash. And that’s why I think the opportunities we talked about earlier in this episode remain true. Yes, you need to protect yourself against falling prices. You don’t want to “catch a falling knife.” You don’t want to buy a property only to see it lose value. So you need to buy below market price. You need to do value adds. You need to find ways to build equity in your properties that don’t rely on the broader economy and on macroeconomic conditions to help you out. That’s also just called real estate investing, right? That has been what we’ve always done for years.
Outside of the years from 2013 to 2022, that was just normal real estate investing. That’s what you always did. You did not bank on appreciation. You’re grateful for when you have it, but you don’t count on it. You have to be skilled at it, and that’s the environment we’re in today. So hopefully this is helpful to you because I know a lot of people are going to be scared and are going to see this data and see rising mortgages and think this is a terrible time to invest in real estate. If you’re trying to make money by next year, it is a terrible time. But if you’re at a long-term buy and hold investor, you see this as a buying opportunity. Prices are coming down, better assets are going to be for sale, adjust your strategy, protect yourself, but keep your eyes out for the opportunities that absolutely will be there.
That’s our housing market update for October 2026. Thank you all so much for listening to this episode. If you enjoyed it, or if you’re arguing with your friend or uncle over Thanksgiving about the housing market, send them this episode. Let them know what the data actually suggests and turn them on to the BiggerPockets Podcast. We would really appreciate it. Thanks again. We’ll see you next time.

 

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Current price of oil as of Oct. 16, 2026



At 7:45 a.m. Eastern Time today, oil was priced at $108.51 per barrel with Brent serving as the benchmark (we’ll explain different benchmarks later in this article). That’s a rise of $1.84 compared with yesterday morning and around $47 higher than the price one year ago.

Oil price per barrel % Change
Price of oil yesterday $106.67 +1.72%
Price of oil 1 month ago $109.73 -1.11%
Price of oil 1 year ago $61.23 +77.21%
Price of oil yesterday
Oil price per barrel $106.67
% Change +1.72%
Price of oil 1 month ago
Oil price per barrel $109.73
% Change -1.11%
Price of oil 1 year ago
Oil price per barrel $61.23
% Change +77.21%

Will oil prices go up?

It’s impossible to forecast oil prices with detailed precision. Many different elements affect the market, but ultimately it boils down to supply and demand. When worries about economic recession, war, and other large-scale disruptions increase, oil’s path can shift fast.

How oil prices translate to gas pump prices

Gas prices at the pump don’t only track crude oil. They also include what it takes to refine and move that fuel, the taxes layered on top, and the extra markup your local station adds to stay in business.

Since crude oil generally makes up a majority of the per-gallon cost, changes in its price have an outsized impact. When oil surges, gas prices typically rise in tandem. But when oil retreats, gas prices often lag on the way down, a trend sometimes described as “rockets and feathers.”

The role of the U.S. Strategic Petroleum Reserve

In case of emergency, the U.S. has a store of crude oil known as the Strategic Petroleum Reserve. Its primary purpose is energy security in case of disaster (think sanctions, severe storm damage, even war). But it can also go a long way toward softening crippling price hikes during supply shocks.

It’s not a long-term answer and is more meant to provide temporary relief, assisting consumers and keeping critical parts of the economy running, like key industries, emergency services, public transportation, etc.

How oil and natural gas prices are linked

Both oil and natural gas are key sources of the energy we use every day. Because of this, a big change in oil prices can affect natural gas. For example, if oil prices increase, some industries may swap natural gas for some segments of their operations where possible, which increases demand for natural gas.

Historical performance of oil

To gauge oil’s performance, we often turn to two benchmarks:

  • Brent crude oil, the main global oil benchmark.
  • West Texas Intermediate (WTI), the main benchmark of North America

Between these two, Brent better represents global oil performance because it prices much of the world’s traded crude. And, it’s often the best way to track historical oil performance. In fact, even the U.S. Energy Information Administration now uses Brent as its primary reference in its Annual Energy Outlook.

Looking at the Brent benchmark across several decades, oil has been anything but steady. It’s seen spikes due to factors such as wars and supply cuts, and it’s also seen crashes from global recessions and an oversupply (called a “glut”). For example:

  • The early 1970s brought the first big oil shock when the Middle East cut exports and imposed an embargo on the U.S. and others during the Yom Kippur War.
  • Prices dropped in the mid-1980s for reasons such as lower demand and more non-OPEC oil producers entering the industry.
  • Prices spiked again in 2008 with increased global demand, but it soon plummeted alongside the global financial crisis.
  • During the 2020 COVID lockdown, oil demand collapsed like never before—bringing prices below $20 per barrel.

All to say, oil’s historical performance has been anything but smooth. Again, it’s hugely affected by wars, recessions, OPEC whims, evolving energy initiatives and policies, and much more.

Energy coverage from Fortune

Looking to stay up-to-date regarding the latest energy developments? Check out our recent coverage:

Frequently asked questions

How is the current price of oil per barrel actually determined?

The current price of oil per barrel depends largely on supply and demand, including news about potential future supply and demand (geopolitics, decisions made by OPEC+, etc.). In the U.S., prices also move based on how friendly an administration is to drilling, as it can affect future supply. For example, 2025 saw the Trump administration move to reopen more than 1.5 million acres in the Coastal Plain of the Arctic National Wildlife Refuge for oil and gas leasing, reversing the Biden administration’s policy of limiting oil drilling in the Arctic.

How often does the price of oil change during the day?

The price of oil updates constantly when the “futures” markets are open. A futures market is effectively an auction where people agree to buy or sell oil in the future. As long as people and companies are trading contracts, the oil price is changing.

How does U.S. shale oil production affect the current price of oil?

In short, shale is rock that contains oil and natural gas. Think of shale as energy yet to be tapped. The more shale the U.S. accesses, the more energy we’ll have—and the more easily oil prices can keep from spiking as much thanks to a greater supply.

How does the current price of oil impact inflation and the broader economy?

When oil is expensive, it tends to make everyday items cost more. This can be related to energy (your heating, gas utilities, etc.), but it’s also due to the logistics involved with making those items accessible to you. Shipping, for example, can affect the price of things at the grocery store, as it’s more expensive to get those products from warehouses and farms onto the shelf.

7 Financial Moves Every Physician Entrepreneur Should Make in 2026



Tell me if this sounds familiar.

You’ve had a business idea rattling around for months. Maybe it’s a course, a consulting gig, a real estate fund, or something AI-related that didn’t even exist two years ago.

The idea part feels exciting. The money part feels like a black box.

Here’s the thing. Medicine isn’t the guaranteed path to financial security it used to be, and more doctors are building something on the side. That’s awesome. But the first year of any business is bumpy, and most of the bumps are financial.

This isn’t a monthly money to-do list. It’s the big-picture checklist to work through before you launch, and to keep coming back to while you do.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial, legal, or investment advice. Any investment involves risk, and you should consult your financial advisor, attorney, or CPA before making any investment decisions. Past performance is not indicative of future results. The author and associated entities disclaim any liability for loss incurred as a result of the use of this material or its content.

Some doctors join with a business already running. Others join with nothing but questions.

That’s what makes the Leverage & Growth Accelerator Community work; it meets you where you are and helps you move forward.

If you’re unsure but curious, try now for free.

CLAIM MY 30-DAY FREE TRIAL

1. Tie Every Goal to a Timeline

A goal without a date is just a wish.

Write down what you want this business to do for you. Replace a shift? Fund your kids’ college? Give you the option to go part-time in five years?

Then put a timeline on each one. Short-term goals shape what you do this quarter. Long-term goals shape the bigger decisions, like how much to reinvest and how much to pay yourself.

If you need a starting point, here’s a guide on how to set and course-correct your financial goals.

2. Write a Real Business Plan

Not a napkin sketch. A real one.

It should cover:

  • What you’re building and who it’s for
  • How you’ll reach those people
  • Projected sales and expenses for at least the first year
  • How much runway you have before the business needs to pay for itself
  • Your exit plan, even if it feels way too early

That last one trips people up. You don’t have to sell the business someday. But knowing what “done” looks like changes how you build it.

A solid plan does double duty, too. It’s the first thing a lender or investor will ask to see.

Not sure where to start? Talking to physicians who’ve already done it saves a ton of guesswork. That’s a big part of what happens inside the LGA community.

3. Register Your Business the Right Way

Make it official before you take a single dollar.

Pick a name that’s unique in your state and choose your entity. An LLC is the most common starting point for physicians. Then get an EIN from the IRS. You’ll use it for taxes, your business bank account, and any licenses.

Next, open a separate business checking account. Mixing personal and business money is one of the fastest ways to make your CPA’s life miserable. Yours too.

One 2026 update: the federal beneficial ownership (BOI) reporting that had everyone scrambling a couple of years ago no longer applies to U.S.-formed companies. FinCEN made that exemption final in August 2026. Some states have their own disclosure rules, though, so double-check yours.

4. Figure Out How You’ll Fund It

Most physician businesses start out self-funded. That’s often the smartest move, because you keep control.

If you need outside money, it’s usually gonna come from loans or investors.

Lenders want your business plan and a clear picture of your personal finances. Physician income helps, but it’s not a blank check. Borrowing isn’t as cheap as it was a few years ago, so run the numbers on what that debt actually costs you every month.

Investors can be friends, family, or angel investors. Just know that every dollar of investor money comes with expectations attached.

Either way, ask yourself this: how long could you keep going if revenue took twice as long as you planned?

5. Get a CPA Before You Need One

Poor accounting sinks a lot of new businesses. Often the idea was fine and nobody knew where the money was going.

Finding a good CPA is one of the best moves you can make as a new business owner. Look for one who works with physicians or small business owners specifically.

Bookkeeping software makes tracking expenses way easier than it used to be, and so do the AI tools built into most of it now. That’s great. It still doesn’t replace someone who knows the tax code and can tell you what you’re missing.

A good CPA should also bring knowledge of tax advantages that will save your business money, like how your entity structure changes what you owe.

6. Watch Your Cash Flow Like a Hawk

Profitable on paper. Broke in the bank account. It happens more than you’d think.

Running out of cash is one of the most common reasons new businesses don’t make it through year one. Revenue comes in late. Expenses come in early. Suddenly you’re covering bills from your personal account.

Check your business account at least weekly, or daily if things are tight.

Keep a cash cushion, ideally a few months of expenses. And know your numbers well enough that a slow month doesn’t catch you off guard.

7. Don’t Let Taxes Sneak Up on You

When you’re an employee, taxes come out of your paycheck. When you own a business, paying them is on you.

Most business owners pay quarterly estimated taxes. For the 2026 tax year, the dates are:

  • April 15, 2026
  • June 15, 2026
  • September 15, 2026
  • January 15, 2027

Miss them and you’re looking at penalties.

A few other 2026 changes to ask your CPA about:

  • The QBI deduction is now permanent. The One Big Beautiful Bill Act made the 20% pass-through deduction permanent. But health counts as a “specified service” business, so the deduction phases out at higher incomes. For 2026 the phase-out starts around $201,750 for single filers and $403,500 for married filing jointly.
  • The 1099-NEC threshold went up. If you pay contractors, the reporting threshold rose from $600 to $2,000 for payments made in 2026.
  • Your entity choice matters a lot. LLC or S corp election, salary or distributions. Each choice changes your tax bill.

None of this is tax advice. It’s a list of questions to bring to someone who does this for a living.


Subscribe to receive the 7 Steps you can follow to achieve Financial Freedom

If financial freedom is your goal, there’s no better time to get started than right now.

Unlock actionable steps that you can take every day to fine-tune your goals, discover your interests, and avoid costly mistakes on your financial freedom journey.


Start Before You Feel Ready

You don’t need everything figured out on day one.

But the physicians whose businesses last usually handle this stuff early, before it turns into a crisis.

If you want to be in a room with doctors who’ve done exactly this, the Physician Real Estate and Entrepreneurship Conference is a great place to start.

And if you want more of this in your inbox, subscribe to the newsletter.


Were these helpful in any way? Make sure to sign up for the newsletter and join the Passive Income Docs Facebook Group for more physician-tailored content.

Peter Kim, MD is the founder of Passive Income MD, the creator of Passive Real Estate Academy, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the Passive Income Doc Facebook Group.


Disclaimer: I am not a CPA, attorney, or financial advisor. The information in this post is for educational purposes only and should not be construed as tax, legal, or financial advice. Please consult a qualified professional about your specific situation before making any decisions.

Further Reading



Workday and LinkedIn Finally Fixed 2 Problems That Have Frustrated Job Seekers and Employers for Years



The updates will streamline applications for job seekers and help employers remove impostors from their company pages.

Walmart.com Amex Offer: Spend $50, Get $10 Back


Walmart.com Amex Offer

American Express cardholders can take advantage of a new Amex Offer to save $10 on their next order on Walmart.com or through the app. As with most Amex Offers, this is targeted, so you’ll want to check all of your cards to see where the deal landed. The offer is popping up on consumer and business credit cards. Let’s see the details.

Offer Details

Earn a one-time $10 statement credit after using your enrolled eligible Card to spend a minimum of $50 in one or more qualifying purchases online at Walmart.com by 11/15/2026.

Offer details and availability may vary by cardholder. Just login to your American Express account(s) to see if you are eligible to add this offer to your card(s).

Important Terms

  • Offer valid online only at US website Walmart.com or through the Walmart mobile app.
  • Valid on Walmart pickup and delivery purchases made online at Walmart.com.
  • Excludes Walmart+ membership purchases.
  • Not valid on purchases shipped outside of the US.
  • Excludes in-store purchases, bulk gift cards & e-gift cards, layaway purchases, insurance services, auto services, pharmacy, protection plans, home services, and recurring subscription services (for example, Beauty Box and Baby Box).
  • Excludes purchases made on third party and affiliate websites associated with Walmart.com (such as, but not limited to, Walmart Contacts, Walmart Checks, Walmart Photo Services, Walmart Stationary, and Walmart Moneygram). 

Guru’s Wrap-up

This is a good offer that seems to be widely available for most cardholders. Check your accounts and add it now so you can save $10 on your next Walmart order.

Where AI can help brokers find revenue when new deals are scarce


Anthony Georgiades (pictured top right), board director and advisory committee chair at Pentiv, spoke to the worry that technology will cut brokers out.

“There are so many components of the puzzle here in the process that actually really require a human and human interaction, whether it’s having certain compliance guardrails, whether it’s effectively reaching out to a prospective borrower,” Georgiades said. “You can’t just come in and replace everything with AI. But what you can do is empower those humans to have that information in front of them at the right time, at the right moment.

“Giving people the tools and the processes to really push these things forward versus completely displacing it, which I think is a misconception.”

What Pentiv is launching

Pineapple Financial, which is based in Toronto and trades on the NYSE American, announced the Pentiv launch Thursday. Georgiades said the company is targeting customers across North America, and that he and Maher are based in New York.

The company also named Maher, a former senior director of strategic finance at SoFi, as its chief financial officer and chief strategy officer. Its shares will move from the PAPL ticker to PTIV on or about Oct. 26, and the corporate renaming is subject to a shareholder vote.

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source

Report: Federal Student Aid Could Become Independent Agency By October 2027


Key Points

  • The Washington Sun reported the Education Department wants to make Federal Student Aid an independent agency by Oct. 1, 2027.
  • A spokesperson for the department called the report “fake news,” and the White House budget office called it “inaccurate.”
  • Federal law keeps FSA inside the Education Department, so a spin-off would require an act of Congress.

According to a report in the Washington Sun, the Education Department is planning to spin off the Office of Federal Student Aid into an independent agency by Oct. 1, 2027. The Sun cited three sources and internal documents. FSA chief operating officer Richard Lucas is reportedly leading the effort with the White House Office of Management and Budget.

If this happens, it would be the largest step yet in the administration’s push to dismantle the Education Department.

The Department of Education denies the report. Spokesperson Ellen Keast told the Sun the story is “fake news“. She said the department “is engaged in an effort to restore FSA as a performance-based organization — not a political tool.” OMB called the reporting “inaccurate” without elaborating, and nothing has changed for borrowers leaving the SAVE forbearance.

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Why It Matters

Federal Student Aid cannot be its own independent department outside of the Department of Education without an act of Congress.

The federal law that made FSA a performance-based organization places the office under the direction of the Secretary of Education. The Sun reported that the department has acknowledged this internally, but it hasn’t approached Capitol Hill.

The stakes are large for the millions of Americans who interact with the agency. FSA manages $1.6 trillion in student debt owed by 45 million borrowers and allocates $120 billion in loans and grants each year. The office now has 800 employees after shedding 43% of its staff since Trump took office.

The department’s inspector general has already found that staff cuts weakened student loan oversight.

The Pushback

The pushback to the idea was swift.

Melanie Storey, who leads the National Association of Student Financial Aid Administrators and once ran policy implementation at FSA, doubts the timeline. “October of 2027, I mean come on,” Storey told The Sun. “This is extraordinarily complex work.”

NASFAA has found that 60% of college aid offices report slower federal processing since the layoffs. Three former Education secretaries have already asked the inspector general to investigate the cost of the department’s layoffs.

Borrower advocates say the reorganization ignores the bigger problem. “Changing the name on the agency letterhead will do nothing to lower costs for working-class families,” Protect Borrowers Executive Director Mike Pierce said in a statement. His group says more than 3 million borrowers went into student loan default last year, with 3 million more on track to do so this year.

American Federation of Teachers President Randi Weingarten joined that statement. She said the union “had to sue McMahon once to force her to follow the law and respect borrowers’ rights to lower student loan payments.” That refers to the AFT lawsuit over income-driven repayment. Weingarten said the reorganization “will only make things worse.“

How This Connects

An independent FSA would be a logical next step in the administration’s 18-month effort to move work out of the Education Department. President Trump proposed in March 2025 that the Small Business Administration “will handle all of the student loan portfolio.” No formal transfer followed, and federal student loans stayed at the Education Department under the Higher Education Act.

The department turned to interagency agreements instead. In November 2025, it shifted most Higher Education Act grant programs to the Labor Department, with Education keeping oversight. In march 2026, another agreement then gave Treasury control of defaulted student loan collections. That plan runs in three phases and could expand to the full loan portfolio and the FAFSA.

Those moves already face challenges. In April 2026, five Senate Democrats called the Treasury transfer an “illegal scheme” and argued the 2026 spending law bars the department from handing its statutory duties to other agencies.

Staffing is another critical issue. FSA had about 1,440 full-time staff before the layoffs, and it was forced to try to re-hire roughly 380 workers this spring to rebuild. Education Secretary Linda McMahon has conceded the cuts went too far.

What’s Next

The Department of Education and OMB are allegedly scheduled to meet on this topic next week. Watch for a formal request to Congress, where House Republicans have already proposed a series of bills to dismantle the department.

Another scenario we’re watching is a rebrand, where what’s left of the department gets a new name built around student aid. Congress created the Department of Education by statute, so a new name wouldn’t change the law or how your student loans work. However, it could give the administration a “win” in that there is no longer an agency named the Department of Education.

For borrowers, none of this changes what you owe or who services your loans today. Borrowers in default should keep working on getting out of default through rehabilitation, whatever happens to the org chart. And borrowers in the SAVE forbearance need to take action when they receive their notices.

Editor: Colin Graves

The post Report: Federal Student Aid Could Become Independent Agency By October 2027 appeared first on The College Investor.