AI mortgage startup LoanSnap loses license to operate in Connecticut

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📭 Programming note: We'll be off Monday for Indigenous Peoples Day

1. AI mortgage startup LoanSnap loses license to operate in Connecticut

LoanSnap, an AI-powered mortgage startup, has had its license to operate revoked in Connecticut, according to the state’s Banking Commissioner. This occurred after LoanSnap violated a consent order it had entered into with the Department of Banking in May.

The department revealed Tuesday that its consumer credit division opened an investigation that found multiple violations of state law following that prior consent order. As a result, the Department and LoanSnap entered into a new consent order on October 2 that resulted in revoking LoanSnap’s license.

2. Mortgage applications drop 5.1 percent

Recent data from the Mortgage Bankers Association’s (MBA) Weekly Applications Survey showed mortgage applications saw a 5.1 percent drop in the first week of October.

• The Refinance Index decreased 9 percent from the previous week and was 159 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 0.1 percent from one week earlier.

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3. More Nuggets

🏘️ Homeowners haven't drained cash out of their houses this fast since 2008. (MarketWatch)

🔏 Foreclosure starts down 10 percent from last year; bank repossessions down 12 percent from last year. (AttomData)

📉 Why mortgage rates may not continue to drop. (BizJournals)

🌪️ Severe storm fallout could destabilize the intersection of mortgage and insurance. (HousingWire)

4. NAR asks Supreme Court to weigh in on DOJ fight

The National Association of Realtors is asking the Supreme Court to review and reverse an appeals court ruling that allowed the Justice Department to reopen its probe into the trade group’s practices.

NAR on Thursday filed a petition to the high court challenging a decision by the US Court of Appeals for the D.C. Circuit, which held that a closing letter related to a settlement the trade group made with DOJ doesn’t bar it from reopening an investigation.

The arguments have largely come down to the wording of the 2020 agreement, which stated that the case was "closed," and judges have been wrestling with whether that implies it could never be reopened.

5. Charted: America's fastest-selling housing markets

6. Inflation cools slightly in September

Consumer Price Index inflation data released on Thursday showed that price increases did not moderate as much as expected in September, although they have still cooled significantly over the past two years.

The report showed that overall inflation was 2.4 percent on an annual basis, down slightly from 2.5 percent previously. That was somewhat higher than economists had forecast, as monthly inflation came in warmer than expected.

The release comes as the Federal Reserve has begun to lower benchmark interest rates. After a half percentage point reduction in September, the central bank is expected to continue cutting, though the pace and degree remain in question.

☀️ You’re all caught up. See you on Monday!

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