MBA: Mortgage credit availability increased in June

Plus: Nutter Home Loans secures win against DOJ

♻️ Here's Monday. Thanks for kicking your week off with us. Today's newsletter is 618 words — a 2.5-minute read.

Disclaimer: Average mortgage rates as of July 12, 2024. © MND's Daily Rate Index.

1. FHFA announces new tenant protection policies

FHFA will require landlords with federally backed mortgages to provide 30 days’ notice to tenants before they increase rents or terminate a lease, under a new policy that will apply to millions of renters going forward.

Starting in February 2025, apartment owners who receive financing backed by Fannie Mae or Freddie Mac will be required to enact a number of tenant protections, including a mandatory five-day grace period on late rents.

The directive from the Federal Housing Finance Agency will apply only to newly originated or refinanced mortgages.

2. MBA: Mortgage credit availability increased in June

The Mortgage Credit Availability Index (MCAI) rose by 1.0 percent to 95.0 in June. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.

The Conventional MCAI increased 2.0 percent, while the Government MCAI decreased by 0.1 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 3.1 percent, and the Conforming MCAI fell by 0.3 percent.

“Mortgage credit availability increased in June for the sixth consecutive month, as lenders expanded their offerings of cash-out refinance loan programs,” said Joel Kan, MBA’s Vice President

Crush your Q3 goals with wemlo®. Your reliable processing support in an unpredictable market.

Regardless of how the summer market unfolds, flexible processing support from wemlo can help you when business is booming or during a downturn.

Best of all, there is no subscription fee or minimum loan requirement to work with wemlo. Our processing team works in a pod set-up (one manager and two go-to processors) to help ensure consistent service and results for every loan submitted.

NMLS ID #1853218

3. More Nuggets

🗣️ Home sellers can save some cash, if they speak up. (Axios)

🏚️ Foreclosure activity is down in the first half of 2024. (NMP)

⬇️ Mortgage rates shrug off threatening inflation data to hit 5-month lows. (MND)

💰 Laurene Powell makes record-breaking $70M mansion purchase in SF. (MSN)

4. New bill targets bulk homebuyers

A new Senate bill - The Housing Acquisitions Review and Transparency Act - targets institutional investors buying homes in bulk, requiring them to report large purchases to federal regulators.

Introduced by Senator Amy Klobuchar and eight other Senate Democrats, the legislation aims to increase transparency and subject corporate landlords to antitrust oversight by the FTC and Justice Department.

The bill focuses on corporate investors, such as private equity firms and real estate investment trusts, that heavily invest in rental housing.

5. Nutter Home Loans secures win against DOJ

A Missouri district court ruled against the U.S. Department of Justice (DOJ) in a case involving Nutter Home Loans, limiting the DOJ to seeking civil penalties for alleged underwriting violations of Home Equity Conversion Mortgages (HECMs).

The court found no evidence that these violations caused harm to the Department of Housing and Urban Development (HUD). The DOJ's claims included the use of unqualified underwriters and forged signatures, leading to ineligible loans. Nutter Home Loans, which shut down in late 2022, had previously paid penalties for other infractions. LINK

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

Would you like to receive a done-for-you weekly marketing email that you can send to your realtors and/or clients? Start your 30-day free trial here.

Did someone forward you this newsletter? Subscribe here.

Interested in advertising to mortgage professionals like you? Get in touch.