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- CFPB fines NewDay $2.25 million for misleading veterans on loan costs
CFPB fines NewDay $2.25 million for misleading veterans on loan costs
Plus: Homebuyer down payment hits record high
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Disclaimer: Average mortgage rates as of August 29, 2024. © MND Daily Rate Index.
1. CFPB fines NewDay $2.25 million for misleading veterans on loan costs
The Consumer Financial Protection Bureau (CFPB) has penalized New Day Financial (NewDay USA) $2.25 million for misleading active-duty servicemembers and veterans about the costs of cash-out refinance loans.
NewDay USA provided deceptive cost comparisons, making their loans appear cheaper than existing mortgages. The CFPB's order also prohibits NewDay USA from misrepresenting loan costs. This marks the second action against the company, which previously faced penalties in 2015 for similar practices.
2. Charted: Homebuyer down payment hits record high
In June, the typical U.S. homebuyer down payment reached a record $67,500, up 15% from last year, driven by buyers opting for higher down payments to lower monthly mortgage costs.
Despite slower home price growth, more expensive homes sold, and the average down payment rose to 18.6% of the purchase price, the highest in over a decade.
Source: Redfin
🚨 Coach’s Corner
Those who are crushing it right now, did this!! Tune in for what it is. And don’t worry if you are not crushing it, you can still do this! (Youtube)
— Dave Krichmar CEO
3. More Nuggets
📝 GSEs announce new tenant protection plans for multifamily properties. (FannieMae)
📰 A woman clocked in for work at Wells Fargo on Friday at 7 a.m. 4 days later, she was found dead at her desk. (12News)
⚖️ How one company transformed the apartment rental market. (Axios)
📉 How low do mortgage rates need to go before borrowers appear? (HousingWire)
🚀 AD: Boost your mortgage business today. (Done-for-you email marketing)
4. Pending home sales drop 5.5% to all-time low in July
Pending home sales hit a fresh record low in July as declining mortgage rates failed to spark increased activity, in part because of the uncertainty over the election.
Pending home sales fell 5.5% in July from the previous month, according to the monthly index released yesterday by the NAR. That pushed the index down to an all-time low. The index had hit an all-time low in May but bounced back in June.
"A sales recovery did not occur in midsummer," said NAR Chief Economist Lawrence Yun. "The positive impact of job growth and higher inventory could not overcome affordability challenges and some degree of wait-and-see related to the upcoming U.S. presidential election."
5. Homebuyers must earn nearly $80,000 to afford the typical U.S. starter home
The monthly housing payment for the typical U.S. starter home that sold in July was $1,981, up 4.4% from a year earlier, according to a new report from Redfin.
That means homebuyers must earn $79,252 annually to afford the typical starter home, also up 4.4% year over year and just a few hundred dollars shy of last October’s all-time high.
“Americans need to earn more than a year ago—and much more than before the pandemic—to afford a starter home because mortgage rates are elevated and home prices are near record highs.”
☀️ You’re all caught up. See you on Monday!
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