Amazon's $1.4 billion housing pledge

Plus: CFPB proposes to ban medical debt from credit reports

June 14, 2024

🕺 Friday, at last! We hope everyone has a nice Father's Day weekend.

Today's newsletter is 568 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of June 13, 2024. © MND's Daily Rate Index.

1. Amazon to build thousands of affordable houses

Amazon committed US$1.4 billion to its Housing Equity Fund, extending a push to back affordable housing in the Seattle, Nashville and Washington metro areas.

The funds will be used to create 14,000 affordable units in those locales, the company said on Tuesday (Jun 11), and brings Amazon’s total housing pledge to US$3.6 billion.

The company in 2021 earmarked some US$2 billion for low-interest loans and grants, joining tech industry peers in an effort to help make housing more affordable, particularly in the expensive West Coast cities where they are based.

2. VA loans have contributed $3.9T to the economy

Data released Wednesday by Missouri-based lender Veterans United Home Loans revealed that the VA loan program has contributed $3.9 trillion to the national economy since its inception.

The VA loan program — which was established in 1944 through the GI Bill — will celebrate its 80th anniversary on June 22. The program was designed to help military service members successfully transition to civilian status by becoming homeowners and building the wealth they missed out on during the war.

In conjunction with University of Missouri economics professor Joseph Haslag, Veterans United analyzed the historic benefits of the VA loan program. It also surveyed 500 veterans and service members for their insights.

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3. More Nuggets

⛓️ Figure launches blockchain-based marketplace for private credit loans. (PYMTS)

🏘️ New American Funding announces NAF Black Impact to increase lending among black communities. (NAF)

🏢 Fannie Mae transfers $284.8mn of mortgage credit risk to re/insurers. (Re-insurance News)

👏 CFPB proposes to ban medical debt from credit reports. (CFPB)

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— Dave Krichmar CEO

4. Fed holds rates steady, indicates only one cut coming this year

The Federal Reserve on Wednesday kept its key interest rate unchanged and signaled that just one cut is expected before the end of the year.

With markets hoping for a more accommodative central bank, Federal Open Market Committee policymakers following their two-day meeting took two rate reductions off the table from the three indicated in March.

New forecasts released after this week’s two-day meeting indicated slight optimism that inflation remains on track to head back to the Fed’s 2% goal, allowing for some policy loosening later this year.

5. Mortgage rates ease for second straight week

Mortgage rates eased again this week, though the latest pullback leaves the average rate on a 30-year home loan at close to 7%, where it's been much of this year.

The rate fell to 6.95% from 6.99% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.69%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased this week, lowering the average rate to 6.17% from 6.29% last week. A year ago, it averaged 6.10%, Freddie Mac said.

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