CFPB launches public registry of nonbank repeat offenders

Hey there. Happy Wednesday. Today's newsletter is 543 words, a 2.5-minute read.

1. CFPB launches registry of nonbank repeat offenders

Beginning October 16, the Consumer Financial Protection Bureau (CFPB) is launching a public database to identify nonbank financial companies that violate consumer laws, aiming to prevent repeat offenses.

Critics, like the Mortgage Bankers Association, argue the rule is redundant and costly. The CFPB, however, asserts that it ensures accountability, especially for nonbank lenders with inconsistent oversight.

“Too often, financial firms treat penalties for illegal activity as the cost of doing business,” CFPB Director Rohit Chopra said in prepared remarks. “The CFPB’s new rule will help law enforcement across the country detect and stop repeat offenders.”

2. Mortgage activity slows for second straight week

The MBA's Market Composite Index, a measure of weekly application activity based on surveys of the trade group's members, fell a seasonally adjusted 5.2% for the period ending May 31.

One week earlier, the index registered a similar 5.7% decline to fall to its lowest mark since early March. Compared to the same seven days in 2023, volumes were also 7.3% lower.

"After adjusting for the Memorial Day holiday, both purchase and refinance application volumes were down," said Mike Fratantoni, MBA senior vice president and chief economist, in a press release.

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3. Catch up quick

📰 Mortgage fintech Loansnap is in deep trouble amid an eviction, nonpayment lawsuits, a consent order and dismal origination figures. (Techtimes)

🏡 The No. 1 issue for young Americans this election? Not student loans, abortion or guns - it's housing. (MorningStar)

💸 Attempted Graceland sale exposes mortgage fraud tactics. (FarOutMag)

📂 Hometown Lenders files for bankruptcy, blames interest rates. (Yahoo)

4. Charted: One-year change in active housing inventory for sale, May 2023 and May 2024

National active listings rose +35% between May 2023 and May 2024; however, we’re still well below pre-pandemic levels (-33% below May 2019).

Regionally speaking, the year-over-year state shift varies a lot. Below is a breakdown. Click here for an interactive version.

5. Homebuyer tries to derail commission settlement

James Mullis, a plaintiff in both Batton cases, filed an appeal of home sellers' big legal settlement with major real estate brokerages over agent commissions, the buyers' second attempt in less than a month to derail it.

His Attorneys say the sellers' settlement, if it's approved, could be misconstrued to also close down claims made by buyers in their own separate suits. They made the same argument in an early May request for an injunction against the settlement, which a judge rejected.

You’re all caught up. See you on Friday!

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