FHA introduces new payment supplement to aid struggling homeowners

🎊 Happy Friday! Today's newsletter is 569 words, a 2.5-minute read.

1. FHA introduces new payment supplement to aid struggling homeowners

The FHA on Wednesday published a Mortgagee Letter establishing a new Payment Supplement loss mitigation home retention solution.

The FHA said the new policy is designed to help borrowers avoid foreclosure, and retain their homes when other FHA home-retention options cannot generate a sustainable monthly mortgage payment reduction.

The new initiative offers mortgage servicers an additional tool to alleviate the burden on borrowers by temporarily reducing their monthly mortgage payments by up to 25%, without altering the current interest rate on their mortgage.

2. RE/MAX CEO Nick Bailey exits as company revenue falls again in Q4

RE/MAX President and CEO Nick Bailey has been replaced as the CEO/President of franchisees, the company announced Thursday as it reported its sixth consecutive quarter of revenue decline.

Bailey served as president for nearly three years. Earlier in his career, he held various positions at RE/MAX World Holdings. RE/MAX announced that Amy Lessinger will succeed Bailey as president.

The top executive changes came on the same day RE/MAX announced that fourth-quarter 2023 revenue fell 5.2% from a year earlier. RE/MAX earned $76.6 million in the quarter and had a full-year net loss of $69 million.

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3. Catch up quick

💸 Sprout Mortgage CEO accused of siphoning millions. (NMP)

🗺️ Could a big map solve affordable housing? (theHustle)

✍️ Realtors are in crisis—and home buyers could be the winners. (WSJ)

🏦 CrossCountry Mortgage unveils cash-offer loan product. (PR Newswire)

4. Spring season will see a significant increase in real estate inventory: Compass CEO

Like clockwork every year, the number of new listings hitting the national housing market rises consistently every month from January to June.

That’s the seasonal window when buyers can find the most new selection on the market. Even last year—a market where new listings were suppressed by a mortgage rate shock induced lock-in effect—new listings still saw a mild seasonal uptick.

5. Broker Action Coalition unveils board of directors

The Broker Action Coalition (BAC), an independent, non-profit organization created to advocate for legislative reform and educational advancement within the independent mortgage broker community, has taken its first step by appointing its inaugural board of directors and leadership council.

The newly formed board has 10 voting member seats consisting of four lenders, four brokers, BAC chief advocacy officer and co-founder Brendan McKay, and CEO and co-founder Katie Sweeney.

“As the market improves, there will be expanded opportunities for independent brokers and homebuyers and our job at BAC will be to ensure that government policies at the state and federal level are in line with the best interests of our industry,” Sweeney said.

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

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