Realtors file suit against Move, NAR over 'fake leads' scheme

☀️ It's Wednesday, folks. Today’s newsletter is 611 words, a 2.5-minute read.

1. New scam targets mortgage brokers

California regulators have issued a warning about a scam targeting mortgage brokers through fake warehouse lending schemes.

Unlicensed businesses posing as lenders recruit licensed brokers as "account executives," offering large commissions and warehouse lines of credit ranging from $1 million to $5 million. Brokers are then asked to wire 1% of the credit amount, only for the fraudulent company to vanish after collecting funds and borrowers' personal information.

The scam not only results in financial loss for brokers but also jeopardizes their reputation and puts consumers' data at risk. Regulators urge brokers to verify the legitimacy of lenders before engaging in such agreements.

2. FHA updates portal to accommodate expansion of 203(k) loan program

The FHA is updating its FHA Connection (FHAC) portal to support expansions to the 203(k) Rehabilitation Mortgage Insurance Program.

Effective November 4, 2024, these changes will include higher rehab cost limits, extended financing options, and longer rehabilitation periods for both standard and limited 203(k) loans.

The updates aim to modernize the program, making it more effective in revitalizing affordable housing. Housing industry groups have welcomed the improvements.

New Rules, New Strategy: How to Drive Mortgage Leads in the Aftermath of NAR & FCC Rule Changes

The way home buyers interact with loan officers and real estate agents is changing. NAR practice changes just took effect, and the new FCC rule, set for 1/27/25, shifts the way lenders can purchase and pursue mortgage leads.

Now is the time to get ahead of rule changes with a well-crafted lead generation strategy.

Click here to download Maxwell’s new eBook to learn how NAR and FCC rule changes will impact lenders (hint: LOs will take on a new, bigger role), challenges and opportunities to expect, and 3 tips for building a strong mortgage lead funnel in today's market.

3. More Nuggets

↩️ FTC refunds $222,000 to 322 borrowers targeted by loan modification scam. (FTC)

📝 EPO fees are back. How mortgage lenders can avoid them. (HousingWire)

⚖️ Realtors file suit against Move, NAR over 'fake leads' scheme. (RealEstateNews)

💸 Rocket rolls out temporary rate buydown for lower-income households. (Rocket)

4. Home prices reach new record high in June

Home prices reached the highest level ever on the S&P CoreLogic Case-Shiller U.S. National Home Price Index in June.

The index’s 10-city composite rose 7.4% annually, down from 7.8% in the previous month. The 20-city composite was 6.5% higher year over year, down from a 6.9% increase in May.

New York saw the highest annual gain among the 20 cities, with prices climbing 9% in June, followed by San Diego and Las Vegas with annual increases of 8.7% and 8.5%, respectively. Portland, Oregon, saw just a 0.8% annual rise in June, the smallest gain of the top cities.

5. Sales of starter homes up double digits

In July, pending sales of starter homes increased by 10.2% YOY, reaching their highest level since October 2022. That's in stark contrast to pending sales for all other tiers, which fell between 6% and 10% over the same period, according to the latest market update from Redfin. The median price for a starter home climbed to $250,000.

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

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