FHA could loosen its branch registration requirements

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1. Home prices fall year over year for the first time since 2012

US home prices fell from a year ago for the first time since 2012, with the median price for a typical home at $350,246, down 0.6% from the same period a year earlier, according to new data from Redfin out Thursday.

"Mortgage rates rising to the 7% range was the straw that broke the camel’s back, dampening homebuying demand and leading to sellers asking less for their home," said Redfin's deputy chief economist, Taylor Marr.

The biggest price drops are in Austin (-11%), followed by San Jose, California (-10.9%), Oakland (-10.4%), Sacramento (-7.7%), and Phoenix (-7.3%).

While price declines could bring some relief to consumers, higher mortgage rates are squeezing affordability, and a lack of homes for sale could limit how far prices will fall.

2. FHA could loosen its branch registration requirements

The FHA is proposing to reduce the registration requirements for branch offices of mortgage companies that make loans it insures.

The proposed rule would remove the requirement that lenders and mortgagees register with HUD each branch office where they conduct FHA business.

The proposal is out for comment through May 1, and the initial lender reaction is that the streamlining could be helpful regarding remote work and budgeting.

Two upcoming dates to watch in relation to mortgage rates

• February jobs report: March 10

• February CPI reading: March 14

3. More Nuggets

⚠️ Aurora extended the deadline for its merger with Better.com for the third time until September 30, 2023. The decision was made during Aurora’s shareholder’s meeting held on February 24. (SEC)

📄 Title industry revenue dropped 19% YoY in 2022 due to economic headwinds and reduced demand for purchase orders, resulting in lower operating margins. (Fitch Ratings)

🏦 LBC Mortgage is launching a Non-QM program in California and a Debt Service Coverage Ratio (DSCR) program in 38 states, designed to help borrowers and investors with unique financial situations. (NMP)

4. Charted: Typical U.S. home changes hands every 12 years

The typical U.S. homeowner has spent 12.3 years in their home. That’s down from the peak of 13.4 years hit in 2020 and 12.9 years in 2021.

But the typical American is still living in their home much longer than before, with median homeowner tenure sitting at about 10 years in 2012 and 6.5 years in 2005.

5. Celebrity Home Loans ex-employees sue

Celebrity Home Loans is facing a class action lawsuit filed in Illinois for laying off 92% of its employees without providing the required 60 days' notice.

The lawsuit alleges that the employees were not paid their outstanding salaries, wages, and commissions earned in January and the first half of February.

The lawsuit also claims that the company knew for weeks or months about the impending layoff but misrepresented the reason for the layoffs as "unanticipated events."

☀️ See you on Wednesday!

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