loanDepot hack leaked 16.6 million customers' SSNs

Plus: New home sales increase 1.5% in January

February 28, 2024

👋 Hi, and welcome back to Mortgage Nuggets. Today’s newsletter is 612 words, a 3-minute read. Let’s dive in!

Disclaimer: Average mortgage rates as of Feb 27, 2024. © MND's Daily Rate Index.

1. loanDepot hack leaked 16.6 million customers' SSNs

16.6 million former and current loanDepot customers had their Social Security numbers compromised during a data breach, the lender disclosed in a filing shared with the Office of the Maine Attorney General.

The attack, which the lender says took place from Jan. 3 to Jan. 5, also may have exposed the names, addresses, financial account numbers, phone numbers, and date of birth information of customers.

Previously, loanDepot had reported that the customers had their personal identifiable information compromised, but it wouldn't confirm whether Social Security numbers were exposed.

2. New-home sales increase 1.5% in January

New-home sales in the US increased in January as builders and buyers capitalized on lower mortgage rates at the start of the year.

  • Purchases of new single-family homes increased 1.5% to a 661,000 annual pace after the prior three months were revised lower.

"The new side of the housing market continues to greatly outperform when measured against the market for existing homes," said Daniel Vielhaber, an economist at Nationwide. "As the existing home inventory shortage persists, buyers continue to be pushed into the market for new homes."

The median sales price of a home decreased to $420,700 in January from a year ago, marking the fifth-straight decline, as more homes became available for sale. New-home supply increased to 456,000 from the prior month, the most in over a year, according to the report issued by the Census Bureau.

More on inventory: Here’s a chart showing the inventory shift in America's 300 largest metro area housing markets. Sort it using the 1-year change column.

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3. Catch up quick

🔏 Newrez sues former employee for soliciting senior executives to join competing lender. (Housing Wire)

🏠 Home-price growth in the US accelerates as buyer demand picks up. (Bloomberg)

📈 Loan processing powerhouse wemlo® celebrates a year of record growth, expands service offerings with addition of five new supported lenders. (Press Release)

👏 A jobs record to cheer: Employment rate for Americans with disabilities reached record high in 2023. (Axios)

4. Delinquencies drop, but foreclosures go up

According to recent data analysis by ICE, in January, the national mortgage delinquency rate fell to 3.38%, a significant drop of 5.48% from December, marking its lowest level since October.

The improvements in delinquency were widespread, with reductions observed in both new delinquencies and loans progressing to later stages of delinquency, known as roll rates.

Despite these positive trends, foreclosure starts experienced a notable month-on-month increase, rising by 43% to 34,000, the highest figure seen since April 2022. However, analysts attribute this jump primarily to seasonal pressures rather than any fundamental increase in foreclosure activity.

5. Charted: Metros where the spread between renting and owning a home with a mortgage is the widest

The cost difference between owning a home with a mortgage and renting varies significantly across cities. In San Jose, San Francisco, and New York, the gaps are wide at $1,341, $1,303, and $1,289, respectively.

Meanwhile, in Phoenix, Orlando, Jacksonville, and Atlanta, the differences are narrower, at $87, $145, $216, and $216, showing a stark contrast in the affordability of owning versus renting across different metros. Source.

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

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