Charted: Homebuyer assistance programs in 2023

Plus: UWM sues broker shop over ‘the ultimatum’

January 31, 2024

👋 Welcome back. Today's newsletter is 639 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of Jan 30, 2024. © MND's Daily Rate Index.

1. Freddie Mac asks sellers and servicers to keep up with cybersecurity threats

Freddie Mac has issued a letter emphasizing the urgency for sellers and servicers to enhance cybersecurity measures in response to increasing threats.

  • Sellers and servicers are urged to regularly update their security programs and incorporate industry best practices and they must report incidents within 48 hours and cooperate with Freddie Mac's inquiries.

Freddie Mac is also reviewing its own security requirements and operational risk evaluations in light of these challenges.

This action follows several significant cybersecurity breaches in the housing industry, affecting companies like First American, Fidelity National Financial, loanDepot, and Mr. Cooper.

2. UWM sues broker shop over ‘the ultimatum’

United Wholesale Mortgage (UWM) has filed a lawsuit against Atlantic Trust Mortgage Corporation, accusing the Florida-based broker of breaching their agreement.

The conflict stems from UWM's "All-In Initiative," which required partners to stop doing business with certain competitors, namely Rocket Mortgage and Fairway Independent Mortgage Corp.

Despite agreeing to this initiative, Atlantic Trust is alleged to have submitted 71 mortgage loans to these competitors since December 2022. UWM claims this action violated their contract and resulted in significant damages, for which they are seeking at least $335,000.

Atlantic Trust has yet to respond publicly to the lawsuit.

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3. Catch up quick

🔏 Two plead guilty in scheme to steal more than $850,000 in COVID-19 housing assistance funds. (DOJ)

📈 Mr. Cooper's stock hits all-time high on $1B debt issuance. (Inman)

🏡 Homebuyers on a $3,000 monthly budget have gained nearly $40,000 in purchasing power since mortgage rates peaked last fall. (Redfin)

📰 Two Harbors to launch a mortgage origination unit channel in Q2. (NMN)

🏦 Government attorneys seek to delay evidence gathering in a Texas Capital Bank case against Ginnie Mae. (Housing Wire)

4. Charted: Homebuyer assistance programs in 2023

A total of 135 new homebuyer assistance programs were introduced in 2023, a 6% increase over the previous year. This brought the nationwide tally up to 2,294, according to Down Payment Resource.

Below Is a breakdown of the programs by type.

5. Mortgage applications decline by 7.2%

Mortgage applications decreased by 7.2% in the week ending Jan. 26 compared to one week earlier on a seasonally adjusted basis, according to the Mortgage Bankers Association‘s (MBA) weekly mortgage applications survey.

“Applications decreased compared to a holiday-adjusted week, driven by a decline in purchase applications that offset a slight increase in refinance activity,” Joel Kan, MBA’s vice president and deputy chief economist, said in a statement. “Low existing housing supply is limiting options for prospective buyers and is keeping home-price growth elevated, resulting in a one-two punch that continues to constrain home purchase activity.”

The average loan size for purchase applications has risen in recent weeks to $444,100, the largest average loan size since May 2022, Kan added. On the strength of lower mortgage rates, homebuyers are reclaiming some purchasing power.

👋 See you on Friday!

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