OceanFirst to pay $15M in DOJ redlining settlement

Plus: Mortgage payments fall lower than rent in 22 of the 50 largest US metros

September 20, 2024

🎉 Friday is here! Today’s newsletter is 602 words, a 2.5-minute read. Let’s dive in…

Disclaimer: Average mortgage rates as of Sep 19, 2024. © MND Daily Rate Index.

1. OceanFirst to pay $15M in DOJ redlining settlement

New Jersey-based OceanFirst Bank has agreed to pay more than $15 million to resolve allegations that, between 2018 and at least 2022, it failed to provide mortgage lending services to predominantly Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean counties, the Justice Department announced Wednesday.

The Office of the Comptroller of the Currency flagged the bank to the DOJ in December 2022, after the regulator found OceanFirst violated the Federal Housing Act based on analysis from an October 2021 fair lending examination.

“Redlining is not only illegal, but it unfairly closes doors of economic opportunity for thousands of families of color in this country,” said HUD Acting Secretary Adrianne Todman.

2. Mortgage rates hit lowest level since Feb 2023

Mortgage rates dropped again this week, extending a monthslong decline fueled by expectations of a cut in interest rates by the Federal Reserve, which came into fruition on Wednesday.

The average rate on 30-year mortgages fell to 6.09 percent this week, Freddie Mac reported on Thursday. That was down from 6.2 percent a week earlier, reaching the lowest level since February 2023.

Rates have fallen about one percentage point over the past four months, and are significantly lower than their peak at nearly 7.8 percent late last year.

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3. More Nuggets

📰 Fed cuts rates by half percentage point, no paywall. (WSJ)

📈 Home prices rose 0.5% in August, the biggest increase in 4 months. (Redfin)

🏘️ AOC pushes $30B social housing housing bill. (HousingWire)

✍️ Atlas inks deal with A&D Mortgage to securitise mortgage loans. (Businesswire)

💸 UWM, Rate join the $802K conforming loan limit party. (Inman)

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4. Charted: Mortgage payments fall lower than rent in 22 of the 50 largest US metros

5. Existing home sales fell 2.5 percent in August

Sales of previously owned homes fell 2.5% in August from July, to a seasonally adjusted annualized rate of 3.86 million units, according to the NAR.

That is slightly lower than what analysts expected. Sales were 4.2% lower than August 2023. It marks three straight months of sales below the 4 million mark, annualized.

This count is based on closings — contracts that were likely signed in late June and July, when mortgage rates started coming down but were not as low as they are today.

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

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