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  • FHA extends cybersecurity reporting requirement timeline from 12 to 36 hours

FHA extends cybersecurity reporting requirement timeline from 12 to 36 hours

Plus: CFPB targets data brokers with stricter rules

December 04, 2024

Happy Wednesday! Today's newsletter is 706 words, a 2.5-minute read. Let’s go…

Disclaimer: Average mortgage rates as of Dec 03, 2024. © MND Daily Rate Index.

1. FHA extends cybersecurity reporting requirement timeline from 12 to 36 hours

The Federal Housing Administration (FHA) has issued final Mortgagee Letter 2024-23, requiring lenders to report cybersecurity breaches within 36 hours of detection. This extends the previous 12-hour reporting window outlined in ML 2024-10 from May.

“Effective immediately, FHA-approved mortgagees must notify the HUD as soon as possible — but no later than 36 hours — after determining that a reportable cyber incident has occurred via the FHA Resource Center, as well as HUD’s Security Operations Center”

The ML is effective immediately and applies to all FHA-insured loan programs.

2. CFPB targets data brokers with stricter rules

The CFPB proposed a rule requiring data brokers to comply with the Fair Credit Reporting Act (FCRA), restricting the sale of sensitive financial data.

The rule would limit the sale of personal identifiers like Social Security Numbers and phone numbers collected by certain companies and make sure that people’s financial data such as income is only shared for legitimate purposes, like facilitating a mortgage approval, and not sold to scammers targeting those in financial distress.

The proposal would make clear that when data brokers sell certain sensitive consumer information they are "consumer reporting agencies" under the Fair Credit Reporting Act (FCRA), requiring them to comply with accuracy requirements, provide consumers access to their information, and maintain safeguards against misuse.

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3. More Nuggets

🛠️ Home builders follow buyers out of big cities. (NMP)

🏘️ Construction industry braces for one-two punch: Tariffs and Deportations. (WSJ)

📈 Rocket offers higher home equity loan limit, longer terms. (NMN)

💬 Trump 2.0 could privatize Fannie Mae and Freddie Mac. (CNBC)

4. Wells Fargo expands $10K down payment grant program

Wells Fargo expanded its $10,000 Homebuyer Access down payment grant program to 12 new metro areas, including Anaheim, Los Angeles, Oxnard, San Diego, Salinas, Buffalo, Denver, Kansas City, Memphis, Oklahoma City, Omaha, and Pittsburgh.

This builds on its 2023 launch in eight markets: Minneapolis, Philadelphia, Dallas, Washington, D.C., Baltimore, Atlanta, Charlotte, and New York City.

The program supports borrowers earning 120% or less of the area median income (AMI) and requires the use of a fixed-rate Wells Fargo loan for a primary residence. Buyers can combine the grant with other programs.

5. Homebuyer demand for mortgages jumped 6%

Mortgage application volume rose 2.8% last week, driven by a 6% surge in purchase applications, the highest level since January, according to the MBA.

  • This increase reflects buyers responding to lower mortgage rates, which fell to an average of 6.69% for 30-year fixed-rate loans—the lowest in over a month—and a higher supply of homes.

However, refinance applications declined 1%, as most homeowners have loans with rates below current offerings. FHA and VA refinance activity did see a slight rebound. Joel Kan, an MBA economist, noted that lower rates and improved inventory are providing buyers with more options, sustaining recent strength in purchase activity.

This week, mortgage rates have continued to decline slightly, with economic data like the ADP Employment Report and commentary from Federal Reserve Chair Powell expected to influence market conditions further.

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

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