Editor’s Note: The Mortgage Mix is RISMedia’s biweekly highlight reel of need-to-know mortgage-industry happenings. Watch for it every other Friday afternoon.
- The upward trajectory of mortgage rates leveled off during the second week of November, coming in at 6.78% as of November 14 (slightly lower than the previous week’s 6.79%). In a press release, Freddie Mac attributed the stall to the conclusion of the 2024 U.S. presidential election and the Federal Reserve again cutting interest rates on November 7.
- Annual inflation (a key driver in mortgage rates) as measured by the Bureau of Labor Statistics’ Consumer Price Index (CPI) was up in October for the first time since February 2024. Dr. Lisa Sturtevant, chief economist of Bright MLS, noted that continuing inflation could make mortgage rates resume their climb higher.
- At NAR’s NXT conference earlier this month, Lawrence Yun (the association’s chief economist) maintained that the 4% mortgage rates seen during the late 2010s are unlikely to come back, and that REALTORS® should stress to their clients that 6% mortgage rates are likely to be “the new normal.”
- Rocket Companies reported its Q3 2024 earning results on November 12. Rocket posted its best EBITDA (earnings before interest, taxes, depreciation and amortization) in two years: $286 million, up from $225 million in Q2. “These achievements highlight the strength and resilience of the Rocket Superstack,” said CEO Varun Krishna when highlighting the company’s successes in Q3. Rocket Mortgage, a subsidiary of Rocket Companies, is also under pressure from the Department of Justice due to alleged discriminatory practices.
- The latest report from ATTOM found that foreclosures were up month-over-month by 4%, but down 11% year-over-year. States with the highest foreclosure rates included Nevada, New Jersey, California, Florida and South Carolina. In a release, ATTOM CEO Rob Barber said that the company is watching both seasonal factors and changes such as mortgage rates, a new presidential administration and more to chart changes in foreclosures.
- In a report breaking down the cost of a home in 2024, Clever Real Estate found that homeowners pay an average of $387 in private mortgage insurance annually—a cost needed when homebuyers finance with a mortgage more than 80% above sale price.
- In September 2024, the Wall Street Journal reported that allies of President-elect Donald Trump had discussed the possibility of releasing Fannie Mae and Freddie Mac from government conservatorship (which they’ve been under since the 2008 financial crisis). This potential major change, which was also floated during Trump’s first term in office, has an uncertain path to actual implementation. However, following Trump’s election, stock shares in Fannie and Freddie increased—suggesting investors want to get in early should the mortgage lenders be reprivatized.
- Fannie Mae has appointed former homebuilding executive Scott D. Stowell to its board of directors. A 40-year veteran of the homebuilding industry, Stowell is the founder of investment company Capital Thirteen LLC and sits on the board of Toll Brothers, Pacific Mutual Holding company and the anti-homelessness nonprofit HomeAid America.
- On November 7, Fannie Mae announced a new initiative to boost mortgage lending to Native Americans. The Mortgage Partnership Finance Program, to be administered by the Federal Home Loan Bank of Chicago, will allow conventional mortgages to be loaned on tribal trust lands.
- myCUmortgage, a credit union service organization (CUSO), has announced partnerships with six other credit unions across the nation to assist credit union members in securing mortgages and homeownership. muCUmortgage’s partners include: AdelFi Credit Union, Campus Federal Credit Union, Glass City Federal Credit Union, Northwest Christian Credit Union, ValleyStar Credit Union and Victoria Federal Credit Union.
- A class-action lawsuit naming Texas-based Mr. Cooper that claimed the lender had improperly denied FHFA borrowers Covid relief money has been thrown out, according to Scotsman Guide. Judge John Gallagher ruled that a HUD policy did not actually require the lender use particular funds when offering foreclosure relief, and that “a disagreement over the correct interpretation of regulations was not sufficient to establish a knowing misrepresentation” by Mr. Cooper.
- Mr. Cooper has itself sued American International Group Inc. and Berkshire Hathaway Inc. The company’s denied a $30 million insurance claim by Mr. Cooper following its October 31, 2023 cyberattack, which the mortgage lender claims resulted in lost revenue and repair costs to be compensated by the insurance payout.
