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MBA emphasizes urgent need for RESPA Section 8 reforms and modernizations

Plus: The most affordable markets according to the WSJ

October 28, 2024

🌅 Rise and shine — it's Monday. Today's newsletter is 538 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of Oct 25, 2024. © MND Daily Rate Index.

1. MBA emphasizes urgent need for RESPA Section 8 reforms and modernizations

The MBA is calling for reforms to Section 8 of the Real Estate Settlement Procedures Act (RESPA), citing the provision as outdated and misaligned with modern mortgage practices.

Section 8, originally intended to prevent kickbacks and control fees in mortgage settlement services, now restricts digital marketing and limits competitive options for lenders.

  • The MBA’s white paper suggests clarifying rules on marketing service agreements, adjusting guidelines on rental agreements, and revising affiliate business arrangements to reflect current technology and business models.

“At 50 years old, there appears to be little evidence that the law’s intention of lowering settlement costs has ever occurred, and new marketing technologies and reforms since the passage of the Dodd-Frank Act have rendered it obsolete and costly with few consumer benefits”

MBA president and CEO Bob Broeksmit

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2. More Nuggets

🏘️ The hidden 'double whammy' facing owners who hand buildings over to lenders. (BisNow)

⬆️ Apartment completions jump 42% YOY. (MultifamilyDive)

📋 These 16 fintechs capture state of housing tech & mortgage AI. (The Basis Point)

🤝 Dream Finders Homes to acquire Alliant National Title. (Alliant)

3. The most affordable markets

The Wall Street Journal and Realtor’com ranked 200 U.S. housing markets based on their housing affordability and whether their local economies offered a low cost of living without sacrificing amenities. Using a variety of “buyer-friendly” metrics, their goal was to find markets attractive for both cost-conscious homebuyers and rental property investors.

Here are the top 10 metros for the fall of 2024:

  1. Canton, OH

  2. Akron, OH

  3. Milwaukee, WI

  4. Manchester, NH

  5. Kalamazoo, MI

  1. Springfield, MA

  2. Rockford, IL

  3. Worcester, MA

  4. Ann Arbor, MI

  5. Lancaster, PA

4. Share of mortgage-free homeowners by congressional districts

As of 2023, nearly 40% of homeowners in the United States are mortgage-free, the highest level seen in the past 13 years.

Southern districts with affordable housing, such as Texas and West Virginia, have the highest rates of mortgage-free households, while urban districts with younger populations and higher housing costs, like those in Maryland and California, show much lower rates.

Click here to view an interactive version of the map below.

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

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