Fannie Mae investigates potential multifamily mortgage fraud

It's Monday — and thanks for starting your week with us. Today's newsletter is 623 words, a 2.5-minute read. Let’s dive in…

1. Fannie Mae investigates potential multifamily mortgage fraud

Fannie Mae reported that it had experienced financial losses due to mortgage fraud, and that it is currently investigating multifamily lending transactions where it suspects fraud may have occurred, in its recent third-quarter earnings filing with the Securities and Exchange Commission.

To mitigate the impact of fraud on its business, the government-sponsored enterprise intends to improve its processes for managing multifamily loan origination fraud risk and oversight of multifamily seller and servicer counterparties, it said.

2. Existing home sales spiked in October

According to Redfin, existing home sales rose 1.6 percent month over month in October—the biggest gain since January 2022—to a seasonally adjusted annual rate of 4,179,346.

Existing home sales jumped 1.7 percent year over year—the first annual increase since November 2021—and are on track to finish the year slightly higher than where they finished last year (4,093,102).

Overall home sales, which include sales of both existing and newly-built homes, also posted an increase, rising 1.6% month over month and 3.4% year over year to the highest level in over a year and a half on a seasonally adjusted basis.

A MESSAGE FROM THE RUNDOWN AI

Learn how to make AI work for you.

AI won’t take your job, but a person using AI might. That’s why 700,000+ professionals read The Rundown – the free newsletter that keeps you updated on the latest AI news and teaches you how to apply it in just 5 minutes a day.

Sign up.

3. More Nuggets

🏘️ What’s the most you should pay for housing? Here’s a breakdown by salary, from $30,000 a year to $120,000. (MakeIt)

💸 Annual inflation rate hit 2.6% in October, meeting expectations. (CNBC)

📊 Mortgage lenders will be more profitable in 2025, but there are headwinds, Fitch says. (HousingWire)

4. Mortgage rates hit 7% as Powell signals no urgency to lower Fed rates

Federal Reserve Chair Jerome Powell stated the economy shows no urgency for rate cuts, emphasizing a cautious approach as inflation nears the 2% target but remains elevated.

October’s core personal consumption expenditures rose 2.8% annually, and unemployment at 4.1% remains historically low. Powell’s comments reduced December rate-cut expectations, with FedWatch odds for a 25-basis-point cut dropping from 72% to 58.7%, while bets on stable rates rose to 41.2%.

Markets reacted swiftly: stocks fell, Treasury yields surged to 4.45%, and 30-year mortgage rates climbed to 7.05%. This halted a September refinancing rally, as analysts noted mortgage originations rose in Q3 when rates hit 6% but have since slowed.

5. Home prices growing, but at slower pace

Home prices nationwide are growing at a rate of 2.4% year-over-year, down from 3.6% as measured in January 2024. That’s according to the latest update to Zillow’s Home Value Index via ResiClub. All the major indices show a deceleration in price growth.

• Freddie Mac: +3.6% (decelerated from +6.7% in January 2024)

• FHFA: +4.2% (decelerated from +6.7% in January 2024)

• Case-Shiller: +4.3% (decelerated from +6.2% in January 2024)

Here’s other key data from Zillow that offers more perspective on home price growth:

• Year-to-date: +3.4%

• Month-over-month: -0.3%

• Since the 2022 peak: +2.6%

• Since March 2020: +44.6%

A MESSAGE FROM BRAD’S DEALS

From paper lists to Amazon Prime, times have changed.

While fast shipping and exclusive shows are well-known, these 10 hidden perks can take your membership to the next level.

Read more

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

🚀 Wanna help our newsletter grow? Forward it to a friend or colleague.

Would you like to receive a ready-to-send weekly marketing email for your realtors and/or clients? Start your 30-day free trial here.

Was this email forwarded to you? Subscribe here.

Interested in advertising to 40k+ loan officers? Get in touch.