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- HUD finalizes rule to modernize engagement with borrowers in default
HUD finalizes rule to modernize engagement with borrowers in default
Plus: Top markets for buyer agent commissions
👋 Hello, Wednesday! Today’s newsletter is 650 words, a 2.5-minute read. Let’s go…
Disclaimer: Average mortgage rates as of August 6, 2024. © MND's Daily Rate Index.
1. HUD finalizes rule to modernize engagement with borrowers in default
The Department of Housing and Urban Development (HUD) has updated its regulations to allow for more flexible communication methods for mortgagees dealing with FHA-insured single-family mortgages in default.
The new rule, effective January 1, 2025, permits mortgagees to use remote communication methods to meet with borrowers in default, including those who do not reside in the mortgaged property or live more than 200 miles away.
2. Top markets for buyer agent commissions
The typical U.S. home seller is paying a 2.55% commission to the buyer's agent, down from an average of 2.62% in January, according to a report from Redfin.
In dollar terms, the typical buyer’s agent earns $15,377 per deal, up marginally from $15,124 in January due to rising home prices.
Here are the top markets with the highest and lowest average buyer commissions:
Highest Commissions
| Lowest Commissions
|
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3. More Nuggets
⛓️ Fannie, Freddie are poised to tighten real-estate lending rules. (WSJ)
📰 The financial markets are freaking out. That should be good for mortgage. (HousingWire)
💸 UWM posts a healthy $76 million second-quarter profit. (UWM)
👀 Consumer watchdog advises buyers to pay agents '2% or less'. (CFA)
4. Homeowners sitting on trillions in untapped equity
In Q2 2024, U.S. tappable home equity reached a record $11.5 trillion, fueled by rising home prices that outpaced the $13.8 trillion in mortgage debt.
According to ICE Mortgage Monitor, 32 million borrowers now have at least $100,000 in tappable equity, with 4.6 million having at least $500K, and nearly 1.2 million have $1M or more, with higher equity holders tending to have lower first lien rates as well
Despite the increase in mortgage debt, the loan-to-value ratio remains low at 44.1%. With potential Federal Reserve rate cuts on the horizon, the home equity lending market may see renewed activity, even as mortgage delinquencies tick up.
5. OceanFirst to acquire Garden State Home Loans
OceanFirst Bank has increased its mortgage loan officer headcount by more than 60% with the acquisition of Cherry Hill-based Garden State Home Loans.
Stephen Adamo, OceanFirst's president of residential and consumer lending, said the bank is investing in its residential mortgage business despite many of its competitors backing away due to the high interest rate environment. The theory is when rates do drop, OceanFirst will be able to take advantage of a spike in mortgage originations and refinancings.
“For us, it’s future positioning, I think we could agree that rates probably aren't going up. And if that's the case, then now is a good time to invest in this for when think rates will come down. Housing has a lot of pent-up demand, and we'll be able to harness much of that pent-up demand.”
☀️ You’re all caught up. See you on Friday!
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