Mr. Cooper settles suit over unauthorized ACH debits

😄 Welcome back, it's Wednesday already. Hope you had a lovely, languorous Labor Day. Today’s newsletter is 619 words, a 2.5-minute read.

1. Mr. Cooper settles suit over unauthorized payments

Nationstar Mortgage, operating as Mr. Cooper, is set to settle a lawsuit with electronic payment vendor ACI Payments over unauthorized mortgage payments imposed on Mr. Cooper’s customers in 2021.

The settlement notice, filed on August 30 in a Texas U.S. district court, indicates that both parties have reached an agreement in principle, with the final settlement expected by September 30.

Mr. Cooper filed the lawsuit in 2023, alleging ACI breached their contract and misused customer information, leading to widespread unauthorized ACH debits. This incident led to significant legal and reputational damage for Mr. Cooper.

2. Mortgage originations were up by 23% in Q2

In Q2 2024, residential mortgage originations in the U.S. surged by 23.2% from the previous quarter, totaling 1.62 million loans, marking the first quarterly increase in a year. This growth was driven by the spring homebuying season and a decline in mortgage interest rates, according to a report by ATTOM.

Purchase loans dominated the market, making up 48.5% of all mortgages, with 783,000 originations, a 32.7% increase from Q1 2024. Refinance activity also rose by 10.3%, while home equity lending increased by 26.5%. FHA-backed loans saw a decrease, accounting for 13.9% of all loans, while VA loans represented 5.1%.

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3. More Nuggets

💼 Goldman Sachs to lay off over 1,300 employees. (BankingDive)

🏘️ Fewer people are purchasing homes, despite high demand—buyers are in ‘wait and see’ mode. (CNBC)

🚫 This town hasn’t charged property taxes in 37 years! (Realtor)

💸 Home equity agreement firm Unlock secures $280M capital commitment. (Yahoo)

4. Charted: Who’s in control?

Home sellers in the Northeast, Midwest, and Southern California, have the most power, while home buyers in Florida and Texas have the most power.

That’s according to a survey of resale real estate agents in July 2024 by John Burns Research and Consulting.

5. Sitzer, from the NAR lawsuit, launches flat-fee real estate startup

Josh Sitzer, a key figure in a successful lawsuit against the National Association of Realtors (NAR) that led to significant changes in real estate commission practices, has co-founded a new real estate startup named Landian.

The startup, which is launching with a beta offering, provides flat-fee real estate services that allow homebuyers to book tours and prepare offers without paying traditional commission fees. This move comes in the wake of a $418 million settlement with NAR and changes to rules that are expected to transform the market.

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

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