Lenders One sues Plaza over unpaid fees

Plus: Mortgage rates continue to drop, survey shows

December 16, 2024

☕️ Good morning. This is Mortgage Nuggets. The newsletter that pairs perfectly with your morning coffee. Let’s dive into what we’ve got for you today—a 2.5-minute read.

Disclaimer: Average mortgage rates as of Dec 13, 2024. © MND Daily Rate Index.

1. Lenders One sues Plaza over unpaid fees

Lenders One is suing Plaza Home Mortgage (PHM) for at least $415,611, alleging PHM stopped paying agreed-upon marketing fees in October 2023 for loans it purchased from Lenders One members. The lawsuit, filed in July, also claims PHM stopped providing required monthly purchase reports in January 2024, violating a three-year agreement.

In response, PHM filed a countersuit against Lenders One affiliates, including parent company Altisource, over the sudden cancellation of a loan repurchase insurance policy. PHM argues the policy’s termination was financially motivated by distress at Altisource and its subsidiary, Castleline Risk, leaving PHM without coverage for 21 defective loan claims since 2020.

2. Mortgage rates continue to drop, survey shows

The national average 30-year-fixed mortgage rate dropped for the third consecutive week, according to Freddie Mac’s latest Primary Mortgage Market Survey (PMMS).

The 30-year fixed-rate mortgage averaged 6.60% as of Dec. 12, down from 6.69% the week prior. Meanwhile, the 15-year-fixed mortgage rate averaged 5.84%, down from 5.96% a week ago.

“This drop, combined with steady consumer income growth and a strong stock market, has boosted homebuyer demand in recent weeks. While the housing market’s outlook is improving, challenges persist, as homebuyers continue to struggle with affordability”

Sam Khater, Chief Economist at Freddie Mac.

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3. More Nuggets

🏦 The Fed is expected to cut interest rates by 25 basis points later this week. (WSJ)

💸 Planet Financial Group, the parent company of Planet Home Lending, raises $475M in unsecured debt offering. (HousingWire)

💻 Mike Yu on the problem of building a One-Click mortgage. (Bloomberg Podcast)

🏘️ DOJ ends criminal probe of multifamily pricing practices. (BankingDive)

⚖️ Trump reportedly explores overhaul of banking regulators. (PYMNTS)

4. Charted: American homes have doubled in size

Source and more data: The Hustle.

5. NAR releases list of 2025's hottest housing markets

The National Association of Realtors® (NAR) has unveiled its top 10 housing markets to watch in 2025, predicting strong performances across these regions.

According to NAR chief economist Lawrence Yun, factors driving success in these markets include increased inventory at affordable price points, stronger income growth for young adults, and significant net migration.

Here are the top 10 housing hot spots for 2025, listed alphabetically:

  • Boston-Cambridge-Newton, MA-NH

  • Charlotte-Concord-Gastonia, NC-SC

  • Grand Rapids-Kentwood, MI

  • Greenville-Anderson, SC

  • Hartford-East-Hartford-Middletown, CT

  • Indianapolis-Carmel-Anderson, IN

  • Kansas City, MO-KS

  • Knoxville, TN

  • Phoenix-Mesa-Chandler, AZ

  • San Antonio-New Braunfels, TX

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

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