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- Freedom Mortgage slapped with a multi-million dollar fine by the CFPB over false data accusations
Freedom Mortgage slapped with a multi-million dollar fine by the CFPB over false data accusations
Plus: Mortgage rates fall to their lowest level in almost three months
Friday is here! If you're in a heat-wave-afflicted region, we hope you're staying cool. Today's newsletter is 730 words, a 3-minute read.
Disclaimer: Average mortgage rates as of June 20, 2024. © MND's Daily Rate Index.
1. Freedom Mortgage slapped with a multi-million dollar fine by the CFPB over false data accusations
The CFPB proposed a $3.95 million penalty against Freedom Mortgage Corporation for repeatedly submitting inaccurate mortgage loan data.
Despite previous violations of the Home Mortgage Disclosure Act and a 2019 CFPB order, Freedom Mortgage continued to report flawed data due to systemic compliance issues. The CFPB’s proposal includes regular audits and corrections of the company's data.
This action is part of the CFPB's increased focus on repeat offenders, including the creation of a registry and a Repeat Offenders Unit.
2. Mortgage rates fall to their lowest level in almost three months
Mortgage rates fell this week to their lowest level since early April, taking some pressure off America’s unaffordable housing market.
The 30-year fixed-rate mortgage averaged 6.87% in the week ending June 20, Freddie Mac reported. That’s down from last week’s 6.95% average and marks the third consecutive weekly decline. Rates are down from a 2024 peak of 7.22%.
The 15-year fixed rate also fell, dipping to an average of 6.13%. That's down from last week's average of 6.17%
“Mortgage rates fell for the third straight week following signs of cooling inflation and market expectations of a future Federal Reserve rate cut,” said Sam Khater, Freddie Mac’s chief economist, in a release. “These lower mortgage rates coupled with the gradually improving housing supply bodes well for the housing market.”
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3. More Nuggets
🏡 No, boomers didn’t have it easier than millennials when buying their first homes. (Realtor.com)
📊 Many borrowers overpay for mortgages due to lack financial knowledge, especially those with lower FICO scores and higher loan-to-value ratios. (Philadephia Fed)
💸 Wells Fargo extends $5,000 closing cost credit. (WF Newsroom)
🏖️ The government has taken a permanent intellectual vacation—this new plan is evidence of that. (BiggerPockets)
📺 Netflix to open massive entertainment, dining, and shopping complexes in two cities in 2025. (Variety)
👷 Home flipping activity and profits both rise across the U.S. in Q1 2024. (ATTOM)
🚨 Coach’s corner
6580 vs 18?? Which number is more important when it comes to your marketing….. Tune in. (Video)
— Dave Krichmar CEO
4. Homebuilder confidence dips to six-month low
Homebuyers aren’t the only people feeling a lack of hope about the housing market—homebuilders share that sentiment, too, according to a new report.
The National Association of Home Builders/Wells Fargo Housing Market Index, released on Wednesday, decreased by 2 points in May, dropping from 45 to 43, indicating a continued lack of confidence among homebuilders about the market.
"Persistently high mortgage rates are keeping many prospective buyers on the sidelines," said NAHB Chairman Carl Harris. "Home builders are also dealing with higher rates for construction and development loans, chronic labor shortages and a dearth of buildable lots."
5. Cities gaining population the fastest and those losing
ResiClub examined the latest Census data, including estimates for July 2023, for U.S. cities with populations of more than 20,000. Among all 1,875 U.S. cities in the Census dataset:
The 5 cities that saw the biggest year-over-year population gain
| The 5 cities that saw the biggest year-over-year population decline
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Click here to view a searchable version featuring data for 1,875 U.S. cities
"You never know what worse luck your bad luck has saved you from."
You’re all caught up. See you on Monday!
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