More choices for homebuyers

Good morning! Let's check in on what’s happening in the mortgage world, shall we? Today's newsletter is 707 words, a 2.5-minute read.

1. The average IMB lost $2,109 per loan in Q4 2023

Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks, reported a pre-tax net loss of $2,109 on each loan they originated in the fourth quarter of 2023, an increase from the reported loss of $1,015 per loan in the third quarter of 2023, according to the MBA’s mortgage bankers performance report.

2. NAR settles commission lawsuits for $418 million

In an announcement Friday, NAR said the settlement “would resolve claims against NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned MLSs, and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below.”

As part of the settlement, NAR will pay $418 million over four years and has agreed to amend its compensation regulations. The changes:

• NAR will prohibit offers of broker compensation or commission on the MLS. Broker compensation still can be negotiated and discussed, but it cannot be done through the MLS, NAR said.

• MLS participants working with buyers will be required to enter into written agreements with those buyers. NAR has encouraged these agreements for years as a way to help clients understand what services and value will be provided and for how much.

These changes will go into effect in mid-July 2024, NAR said.

3. Freddie Mac appoints Michael Hutchins as CEO

Freddie Mac on Friday announced that its president Michael Hutchins has been appointed interim CEO, effective March 16, but the company continues its search for a permanent appointment. He will replace Michael DeVito, who is retiring after three years in the job.

Hutchins, who is a member of the company’s senior operating committee, was also appointed a member of the board on Friday.

A veteran with 30 years of experience in the industry, Hutchins joined Freddie Mac in 2013 as senior VP and then executive VP of investments and capital markets. In 2020, he was appointed Freddie Mac president, overseeing single-family and multifamily investments, capital markets, operations, and technology.

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4. Catch up quick

✍️ The New Rules of Home Buying in a Changed Market. (WSJ)

💰 MCS buys Five Brothers, and adds reverse mortgage services. (MiddleMarket)

🚨 Nations Direct Mortgage notifies over 83k of recent data breach. (JDSupra)

⬆️ Strong rebound in single-family permits at the start of 2024. (NAHB)

5. More choices for homebuyers

Additional inventory is coming to the housing market, especially in the South, and an increasing number of sellers are lowering their asking prices.

Listings of existing homes rose 12% in February compared with a year earlier, and one in five of them are seeing price cuts, according to Zillow Group Inc.

Even though the supply remains tight and the few available houses typically get under contract in just 17 days, the rise in listings is a welcome sign for potential buyers.

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

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