Flagstar shedding 1,900 workers, but many could land at Mr. Cooper

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1. Flagstar shedding 1,900 workers, but many could land at Mr. Cooper

Struggling New York Community Bancorp said Friday that it is cutting 700 jobs at its Flagstar subsidiary as it tries to return to profitability after being rescued by investors earlier this year.

The bank said the cuts amount to 8% of its head count. It’s also selling its mortgage-servicing business to mortgage company Mr. Cooper, which will mean trimming another 1,200 employees from its payroll. Most of those employees will be offered the chance to transfer to Mr. Cooper, NYCB said.

2. First-time home buyers delayed by election

23% of buyers who are likely to purchase their first home in the next year said they are waiting until after the election. That’s according to Redfin’s latest survey of 1,802 U.S. homeowners and renters aged 18-65. Here’s more data from their survey:

• 26.1% said they are waiting to see if the Harris housing affordability plan goes into effect

• 15.9% are waiting to see if the Trump housing affordability plan is enacted.

• 18.3% are waiting for the Federal Reserve to cut interest rates in 2025

• The election is actually the third-most common reason buyers are hesitating, behind saving for a home (30%) and waiting for the right timing (29%)

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3. More Nuggets

😕 Why workers feel lonely no matter where they work. (Axios)

🏘️ Floyd Mayweather Jr. to acquire 1,000 NYC apartments for $402M. (BisNow)

🥇 American productivity still leads the world. (The Economist)

4. FICO score prices are expected to increase once more

Investors and analysts expect Fair Isaac Corp. (FICO) to raise mortgage credit score prices in 2025. FICO’s price per mortgage credit score is forecast to increase from $3.50 to at least $5.

The expected price hike would mark the third consecutive year of increases. Meanwhile, regulatory scrutiny is growing, with Fannie Mae and Freddie Mac shifting to more inclusive credit score models.

• A coalition of 34 Democratic senators and representatives submitted a letter this week to President Joe Biden, urging him to direct the U.S. Department of Justice (DOJ) to investigate the pricing practices of Fair Isaac Corp. (FICO)’s credit reports.

5. The least / most affordable cities for homebuyers

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☀️ You’re all caught up. See you on Wednesday!

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