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- FHFA to allow alternative appraisal methods on purchases up to 97% LTV
FHFA to allow alternative appraisal methods on purchases up to 97% LTV
Plus: Okavage Group appeals UWM suit dismissal
👋 Welcome to the first Wednesday of the rest of your life. Today's newsletter is 644 words, a 2.5-minute read. Let’s dive in…
Disclaimer: Average mortgage rates as of Oct 29, 2024. © MND Daily Rate Index.
1. FHFA to allow alternative appraisal methods on purchases up to 97% LTV
The Federal Housing Finance Agency has expanded the eligibility for alternative appraisal methods on purchase loans by increasing the maximum loan-to-value (LTV) requirement.
The maximum LTV ratio will increase from 80% to 90% for appraisal waivers and from 80% to 97% for inspection-based appraisal waivers, consistent with standard guide eligibility guidelines.
“To be clear, the expanded eligibility of appraisal waivers does not constitute an expansion of a credit box, but rather it will allow more first-time home buyers, and particularly low- and moderate-income first-time homebuyers, to recognize the benefits associated with appraisal waivers”
2. Okavage Group appeals UWM suit dismissal
The Okavage Group has filed an appeal with the Eleventh Circuit Court after a Florida federal judge dismissed its lawsuit against UWM. The brokerage challenges UWM's All-In initiative, alleging antitrust violations, tortious interference, and deceptive practices.
The dismissal, with prejudice, came after Judge Wendy W. Berger ruled Okavage’s claims lacked sufficient legal support.
Okavage’s 2021 lawsuit was the first of its kind, with America's Moneyline (AML) and other brokerages following suit. UWM has cited the Okavage dismissal in its defense against AML, which it sued for alleged breaches of its broker ultimatum.
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3. More Nuggets
💪 Consumer confidence surges in October to the highest level in nine months. (CNBC)
📈 Home prices hit a new record high, but the pace of growth is slowing significantly and 'showing signs of strain'. (MarketWatch)
🏠 Factory-made homes headed to Lockhart. (Axios)
👀 An inside look at a $55 million mansion in America’s wealthiest zip code that demonstrates the new style of living. (Fortune)
📝 After feedback, ICE revises Encompass SDK transition timeline. (HousingWire)
4. Freddie Mac repurchase pilot opening to all
Following the launch of a targeted pilot program to offer lenders a fee-based alternative to repurchase requests for performing loans with defects, Freddie Mac will expand this pilot to all approved lenders.
Under this expansion, lenders will be able to opt in to the fee-based repurchase alternative annually. Additionally, for lenders that do not participate in the pilot, Freddie Mac will offer a “Fee Only” option, for which the fee is charged on the defective loan only, in lieu of a repurchase. This offering will better align the repurchase alternative offerings across the Enterprises.
MBA President Bob Broeksmit praised the expansion, calling it “another important step toward encouraging high-quality underwriting and eliminating performing loan repurchases.”
5. JPMorgan Chase sues customers who exploited viral ‘infinite money glitch’
JPMorgan Chase is taking legal action against customers who exploited a viral technical glitch that the bank says resulted in check fraud, court documents show.
The glitch, discovered and promoted by TikTok users in late August, allowed customers to deposit outsize checks in ATMs and promptly withdraw funds before the checks cleared.
Customers accessed thousands of dollars they didn’t actually have through the error — and Monday, Chase filed four nearly identical lawsuits against customers who cumulatively kept more than $660,000 from the scheme.
P.S. Oh hell naw 😂
☀️ You’re all caught up. See you on Wednesday!
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