FHFA releases fair lending final rule

🌅 Morning folks, happy Wednesday. Today's newsletter is 596 words, 2.5 minutes.

1. FHFA releases fair lending final rule

On Monday, the Federal Housing Finance Agency (FHFA) released its fair lending final rule, following up on a proposal made last year in alignment with plans first laid out in 2022 by Fannie Mae and Freddie Mac.

The rule “addresses barriers to sustainable housing opportunities for underserved communities by codifying existing FHFA practices in regulation and adding new requirements related to fair lending, fair housing, unfair or deceptive acts or practices, and Equitable Housing Finance Plans,” according to the rule’s entry in the Federal Register.

The rule itself goes into effect 60 days after its publication in the Federal Register, except for subpart D, which will become effective on February 15, 2026. LINK

2. Ocwen settles a class action lawsuit alleging it overcharged borrowers for appraisals

Ocwen Financial Corp. has settled a class action lawsuit alleging it overcharged borrowers for appraisals. The case began in 2017 when a California homeowner, David Weiner, claimed Ocwen added undisclosed fees to appraisal valuations after taking over his loan servicing.

Despite denying wrongdoing, Ocwen agreed to the settlement to avoid further litigation costs and delays. The settlement includes U.S. mortgage holders who paid for BPOs or hybrid appraisals from November 2010 to September 2017, reimbursing them $60 for each BPO and $70 for each hybrid appraisal paid.

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3. Catch up quick

💰 Soaring insurance costs could force house prices to fall—and some homeowners to forgo coverage. (Realtor)

⏪ Reverse mortgages seen as a path forward for lenders. (AHA)

🏘️ Wall Street went on a home-buying spree. Now, more lawmakers want to stop it from ever happening again. (FOX Business)

4. Home prices apparently don't care about high rates

On a year-over-year basis, home prices, as measured by the Case-Shiller National Home Price Index, are up +6.4% between February 2023 and February 2024.

Despite mortgage rates hovering around 7% and national active listings on the rise, national home price growth this spring is slightly warmer than normal seasonality.

5. Consumer confidence drops to 21-month low

Americans’ confidence in the economy fell in April for the third straight month and touched a 21-month low, a new survey showed, due to the high cost of food and gas and fresh worries about the jobs market.

The consumer confidence index sank to 97.0 this month from a revised 103.1 in March, the Conference Board said Tuesday. That's the lowest level since July 2022.

Consumer confidence tends to signal whether the economy is getting better or worse. Confidence has retreated since the start of the year and sits well below the pre-pandemic high.

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

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