HUD sued over alleged failure to refund mortgage insurance premiums

👋 Happy Friday! Today’s newsletter is 621 words, a 2.5-minute read.

1. HUD sued over alleged failure to refund mortgage insurance premiums

HUD is being sued for not refunding $385 million in mortgage insurance premiums to borrowers over two decades. The lawsuit alleges delays and complexity in the refund process for FHA-backed mortgages.

The plaintiff, Tricia Sarmiento, terminated her FHA loan in 2001 and is owed over $1,000 but has faced challenges in obtaining documentation for a refund. The lawsuit aims to address transparency issues and seeks repayment of overdue amounts while calling for a reform of HUD's refund procedures.

2. Guild reports net loss in 2023 amid acquisition spree

Guild Mortgage ended up in the red in 2023 as rising mortgage rates put a damper on lending but helped the company pursue a strategy of growing its market share through acquisitions.

Guild’s parent company, Guild Holdings, reported a $39.1 million 2023 net loss Tuesday, with mortgage originations dropping by 21 percent from the year before, to $15.3 billion. While 2023 revenue declined by 44 percent, to $655 million, Guild shaved expenses by just 6 percent to $701 million.

But having generated $329 million in profits in 2022, the San Diego-based lender said its balance sheet and liquidity remained healthy as it pursued its growth strategy.

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3. Catch up quick

💰 Non-bank mortgage lenders surge amid industry consolidation, Fitch Ratings reports. (NMP)

🔎 LoanDepot trims 2023 net loss by 37%, retains 'strong liquidity profile'. (FT)

📝 Fannie Mae will charge lenders a fee to cover risk under a proposed title waiver pilot program announced by the Biden administration. (ALTA)

✍️ The housing market’s pivotal spring selling season is more like a shopping window: A trickle of new listings collides with sky-high prices and mortgage rates. (Fortune)

4. Redfin: New listings up 13% YOY

A new report released by Redfin shows that new listings rose by 13% over the past year, the biggest annual increase in almost three years.

“Buyers who can afford to may want to get serious about their home search now, as housing costs are unlikely to fall anytime soon. The uptick in listings should be another motivator for buyers: there’s more to choose from, and improving inventory may bring out more competition from other buyers as we get further into spring. Some buyers have already gotten the memo, with mortgage applications finally increasing after weeks of declines,” Redfin Economic Research Lead Chen Zhao said.

5. Homeowners insurance rates rose nearly 19% in 2023

The average price borrowers pay to insure their homes is up by almost 19% in the past year and over 55% since 2019, according to a study by Guaranteed Rate Insurance LLC.

That cost rose 18.85% in 2023 alone and 55.47% more than it did in 2019, according to the report from the homeowners insurance subsidiary of mortgage lender Guaranteed Rate, which spans five years of data, including almost 50,000 policies and more than 70 carriers in 2023.

You’re all caught up. See you on Monday!

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