NAR Settlement: Agents adjust as homeowners show support

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1. Fintech Mesa promises 1% cash back on mortgages, up to 3x on other home needs

Mortgage fintech Mesa emerged from stealth on Tuesday with $9.2 million in seed capital and a novel idea for homeowners. It’s offering cash back and rewards on all spending done on the home, including the mortgage itself.

• Mesa is offering mortgage loans, original or refinancing, that include a credit-card-style 1% cash back on the loan.

In addition, Mesa is offering a points-rewards-type credit card geared toward homeowners. The card lets homeowners accrue points for paying their mortgage and for paying for homeowner-related services like HOA fees, utilities, repairs, home insurance, and day-to-day purchases like gas or groceries.

2. ICE: Mortgage delinquencies remain low

According to a report released by ICE, mortgage delinquencies remain low despite modest year-over-year rise. Here are the key highlights from the report:

• The national delinquency rate fell 3 basis points (bps) to 3.34% in August, dropping 0.9% for the month but up 5.1% from last year

• The number of borrowers a single payment past due dropped by -26K, while 60-day delinquencies rose marginally by 1K

• Serious delinquencies (loans 90+ days past due but not in active foreclosure) rose 14K (+3.3%) to a six-month high, but remain historically low

• Foreclosure starts fell by 9% from the month prior and remain 32% below their 2019 levels

A MESSAGE FROM MORTGAGE NUGGETS

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3. More Nuggets

🌊 A ‘perfect storm’ of problems pushes D.C. toward full-blown housing crisis. (WPost)

🗞️ Simplist launches mortgage origination platform. (Simplist)

📉 Key Fed inflation gauge at 2.2% in August, lower than expected. (CNBC)

4. NAR Settlement: Agents adjust as homeowners show support

A CleverReal Estate survey found that 64% of real estate agents still oppose commission changes from the National Association of Realtors' settlement, though this is down from 70% in April.

The settlement’s other major change was to require agents to have a signed buyer representation agreement prior to taking a client on a home tour. In contrast to removing offers of compensation from the MLS, 57% of the agents surveyed like having buyer agency agreements signed early on in their relationships with clients.

Among buyers, 53% support the changes, though many worry about paying agent commissions directly, with some reconsidering their homebuying plans. Homeowners are more positive, with 67% backing the changes.

5. Advocates press CFPB, FHFA for AI rules

The National Community Reinvestment Coalition and fintech firms Zest AI, Upstart, Stratyfy, and FairPlay are urging the CFPB and FHFA to issue guidance on using AI and machine learning in lending.

In a letter obtained by American Banker, they request recommendations on implementing the White House's AI executive order, suggesting AI could help create fairer, more inclusive credit models.

While highlighting AI's potential, they emphasize the need for transparency to avoid bias and propose pilot programs to explore AI's role in lending and boost oversight.

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

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