NAR, MBA ask for clarification on underwriting rules

Welcome back. We hope everyone celebrating holidays has a happy and healthy Easter, Passover, and Ramadan. Today's a quick one, let’s dive in…

1. NAR, MBA ask for clarification on underwriting rules

NAR and MBA are asking FHFA, Fannie Mae, Freddie Mac, and FHA to clarify how interested party contributions (IPCs) work post-NAR lawsuit settlement, specifically regarding buyer agent fees.

They argue these fees should continue being excluded from IPCs to avoid disrupting home buying.

“Consequently, once the settlement is in effect, we believe that FHA and GSE policy should continue to exclude seller or listing agent payment of buyer agents’ commission from IPCs,” the NAR and MBA wrote. “Confirming your policies and maintaining this practice will sustain the current flow of mortgage capital to home buyers without change or delay.”

2. NEXA terminates co-founder after buyout disagreement

NEXA Mortgage announced the termination of co-founder and President Mat Grella's employment during their weekly Town Hall.

Grella had previously sought a buyout of his ownership interest in November 2023, leading CEO and Co-Founder Mike Kortas to retain him during ongoing negotiations, which have since become "unworkable," prompting the termination.

“Unfortunately that arrangement became unworkable, and NEXA made the decision to terminate Mr. Grella’s employment,” Kortas wrote. “The negotiations regarding the buyout of Mr. Grella’s ownership interest shall continue.”

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3. Catch up quick

🏡 Buying a home using retirement savings? Financial expert weighs in. (FOXBusiness)

📉 Mortgage applications decreased by 0.7% on a seasonally adjusted basis during the week ending March 22. (MBA)

⚖️ Department of Labor holds PrimeLending vice president, and managers liable after employees were fired for reporting consumer fraud concerns. (DOL)

💰 It’s a ‘nepo’ housing market. More than a third of Gen Zers and millennials expect their parents to help with a down payment, survey finds. (Fortune)

🚨 Coach’s Corner

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4. California's mortgage relief program nears end of funding

The California Mortgage Relief Program, a crucial aid for homeowners hit by COVID-19, is reaching its final phase after distributing more than $800 million in grants.

According to the California Housing Finance Agency (CalHFA), which administers the program, remaining federal funds are expected to be depleted in the coming months.

"As we draw nearer to the full disbursement of California's allocation of Homeowner Assistance Funds, eligible homeowners that act quickly can still take advantage of these resources," CalHFA president said in a press release.

5. Mortgage rates tick down slightly

Mortgage rates fell slightly this week, with the 30-year fixed-rate mortgage averaging 6.79%, down from 6.87% last week, according to Freddie Mac’s Primary Mortgage Market Survey, released yesterday.

“Mortgage rates moved slightly lower this week, providing a bit more room in the budgets of some prospective homebuyers,” Freddie Mac’s Chief Economist Sam Khater said

The 15-year FRM averaged 6.11%, down from last week’s 6.21% and up significantly over last year’s 5.56%.

6. Pending home sales rise, marking ‘steady progress’

A key housing market indicator is looking up: Buyers nationwide signed more contracts on existing homes in February.

The National Association of Realtors Pending Home Sales index climbed 1.6% to 75.6 last month. The growth comes after the index fell 4.9% to 74.3 in January.

Contract signings surged in the Midwest and the South while declining in the Northeast and West.

P.S. Encompass is not your friend! 😂

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

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