Fannie, Freddie announce critical UCD Phase 3B transition

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• Thrilled to welcome David Krichmar to the Nuggets team as CEO. With 20+ years of experience as a Loan Officer, he is excited to bring even more value and content to you Mortgage Nuggets readers!

On to the news. Today's newsletter is 647 words, a 3-minute read.

1. Mortgage rates fall for a second week

Mortgage rates have declined for the second consecutive week, reaching their lowest level since mid-October. According to Freddie Mac, the average rate for a 30-year fixed mortgage has dropped to 7.5%.

Despite this decline offering some relief for homebuyers, it follows a period of rising rates since September, pushing borrowing costs to a 20-year peak. Many potential buyers are sidelined by rates above 7%, while sellers are reluctant to list properties because they have a low-interest rate locked in. LINK

2. Drop in rates revives mortgage demand

Mortgage applications increased last week as mortgage interest rates withdrew from their highest level in 23 years, according to a survey by the MBA. The survey covers more than 75% of US retail residential mortgage applications.

The Market Composite Index, a measure of mortgage loan application volume, increased 2.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1 percent compared with the previous week. The Refinance Index increased by 2 percent from the previous week. LINK

3. Catch up quick

🏠 Zeus Living, an Airbnb-backed property management startup that raised $150 million from tech investors, is “winding down operations,” the firm told landlords this week. (The Information)

⏰ Mother of All Commission Suits Filed In Illinois. (BAM)

💻 Mr. Cooper Group announced yesterday that certain systems it locked down in early November after a cyberattack have resumed operations. (Yahoo Finance)

🎨 CoreLogic has launched "ScanToSketch," an augmented reality tool designed to assist appraisers in creating property sketches for their valuation reports. (CoreLogic)

⚖️ Union Home Mortgage sues another rival for trade secrets theft. (NMN)

4. Fannie, Freddie announce critical UCD Phase 3B transition

Fannie Mae and Freddie Mac have entered a new critical edit phase for their Uniform Closing Dataset (UCD) as of November 6, 2023.

This phase, known as UCD Phase 3B, mandates lenders to address quality issues for specific "fatal data points" prior to delivering loans to these government-sponsored enterprises. The UCD is a key reference file used by lenders to convey essential mortgage loan information, particularly the Closing Disclosure details, to Fannie Mae and Freddie Mac.

This transition to critical edits is part of a multi-year plan, initiated in August 2020, to enhance data quality and consistency in single-family loans purchased by these entities. Phase 3B primarily deals with information related to loan costs, other costs, total closing costs, and lender credits. LINK

5. Better unveils mortgage-as-a-service platform

Better Home & Finance Holding Company, in collaboration with Infosys, has introduced a white-labeled Mortgage as a Service (MaaS) platform.

This platform, aimed at mortgage banks and independent banks, seeks to simplify the mortgage process by consolidating various stages like point of sale, pricing, underwriting, and loan origination into a single digital solution.

Garg, the CEO of Better, said, “We're taking what we've built for ourselves and hoping to make it the standard across the industry.”

6. Single-family rental inventory is at historical highs

In Q3 2023, on average, median prices for rental properties witnessed a 0.7% upswing compared to the corresponding period in 2022.

Correspondingly, median inventory experienced a substantial 31.5% increase year-over-year, while median days on market and median inventory demonstrated a significant surge of 28.4% compared to Q3 2022. LINK

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