The National Flood Insurance Program gets extended

Good morning. This is Mortgage Nuggets, where we trim the fat from the mortgage news – leaving you with lean, prime cuts of information.

Today’s newsletter is 601 words, a 2.5-minute read.

1. CHLA protests employment verification costs

The Community Home Lenders of America sent a letter to housing officials challenging verification of employment report charges by Equifax, raising questions about whether they are excessive fees in the mortgage process.

The CHLA represented the current cost of each verification done through Equifax's The Work Number product as ranging from $55 to $70. Since it is required during the underwriting process as well as just prior to closing, the cost for a mortgage with two applicants as borrowers can reach $280. Those expenses are passed along to the consumer, the letter sent to FHFA Director and FHA Commissioner said.

2. Mortgage delinquencies fell in February

The national delinquency rate eased to 3.34% in February, down from 3.38% in January, according to an Intercontinental Exchange (ICE) mortgage performance report. February’s rate was also 11 basis points lower than it was a year ago.

Serious delinquencies (loans 90 or more days past due) were down month over month, with 11,000 fewer loans in that category and a total of 459,000 loans affected.

Meanwhile, early-stage delinquencies (30 to 60 days past due) decreased month over month. In February, roughly 1.782 million loans were at least 30 days overdue.

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3. Catch up quick

📉 Mortgage rates are at their lowest level in nearly 2 weeks. (MND)

📱 Zillow finds homes featuring TikTok trends, like plant ledges and rounded corners, sell nearly a week faster. (Zillow)

⏳ Why did a billionaire snap up homes on a Sandbar in Duluth? (WSJ)

💰 Consumers expecting big savings from a NAR class-action settlement over agent commissions may instead be in for a letdown. (Bloomberg)

4. The National Flood Insurance Program gets extended

A $1.2 trillion funding bill passed by the House of Representatives on Friday will extend the National Flood Insurance Program through the end of September.

MBA President Bob Broeksmit said the trade group “commends congressional leaders and appropriators for including an extension of the program” in the bill.

Since 2017, the National Flood Insurance Program has been extended 29 times and allowed to lapse on several occasions briefly. Short-term extensions and lapses exacerbate uncertainty in real estate markets.

5. Charted: Where forecasters expect mortgage rates through 2025

Mortgage rate forecasters expect mortgage rates to gradually decrease over the next 18 months. One reason being that as the Fed begins to cut rates, the bond market is expected to become less volatile, leading to a slight decline in mortgage rates.

Note: Mortgage rate forecasters have been wrong time and again over the past year, so take these forecasts with a grain of salt

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

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