Finance of America hit with layoffs

😅 Finally Friday. Today’s newsletter is 633 words, a 2.5-minute read. Let’s dive in…

1. Mortgage applications last week fell by 5.2%

Mortgage application volumes fell last week as rates on 30-year loans climbed to their highest level in nearly a month.

The MBA’s weekly survey showed applications for the week ending May 31 decreased 5.2% on a seasonally adjusted basis from the prior week after adjusting for the Memorial Day holiday. On an unadjusted basis, applications plunged 16%.

2. Finance of America hit with layoffs

Reverse mortgage lender Finance of America handed out pink slips this week in an ongoing effort to shore up finances and rightsize to meet the demands of its current business model.

The number of eliminated positions was not disclosed, but cuts were spread across departments, the company confirmed.

"Finance of America continually evaluates all aspects of our business to improve operating performance and execute against our strategic plan for long-term growth," Finance of America Cos. President Kristen Sieffert said.

3. Freddie Mac outpaces Fannie Mae in reducing loan repurchases

Loan repurchases at both Fannie Mae and Freddie Mac are declining, with Freddie Mac reducing buybacks at a faster rate than Fannie Mae.

Between Q2 2023 and Q4 2023, Freddie’s loan-repurchase volume declined by 54% (from $594 million to $276 million), compared to a 21% decline for Fannie (from $444 million to $349 million).

🚨 Coach’s Corner

The Listing Agent is a HUGE Opportunity! Here is how I work to get the listing agent’s business… (Youtube)

— Dave Krichmar CEO

4. More Nuggets

⏬ Europe beats Powell to rate cuts. (AP News)

🤖 Will AI replace mortgage jobs? Not exactly, execs say. (Yahoo Finance)

👌 Zero percent down mortgages might help more first-time homebuyers break into the housing market—but there are caveats. (Fortune)

💼 ‘We just want something simple that works’ – Montlake on BTL technology. (MS)

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5. Realtor.com Report: Active inventory up 35.5% YoY

Here are the key takeaways from the report:

• Active inventory increased, with for-sale homes 35.5% above year-ago levels

For the 30th straight week, there were more homes listed for sale versus the prior year, giving homebuyers more options. This past week, the inventory of homes for sale grew by 35.5% compared with last year. This growth in inventory is primarily driven by housing markets in the South, which saw a 47.2% year-over-year increase in inventory in May.

• New listings—a measure of sellers putting homes up for sale—were up this week, by 2.1% from one year ago

Seller activity continued to climb annually last week but decelerated relative to the previous week’s growth. Newly listed homes grew by 2.1% compared with a year ago, a slowdown from the 3.6% growth rate in the previous week.

6. HUD launches FHA-backed loan program to support manufactured housing communities

HUD has introduced a new program to enable the purchase, refinance, or renovation of manufactured housing through FHA-insured loans. The program aims to revitalize affordable housing communities.

Eligible entities, including resident-owned cooperatives, nonprofits, and local governments, can use these loans to maintain rent affordability and improve infrastructure.

HUD anticipates benefiting approximately 5,000 individuals and families over five years.

🙏 Thanks for reading! If you have any feedback, story ideas, or tips, you can reach me at [email protected]. See you on Monday!

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