Rocket wins $10 million dismissal in 2012 lawsuit

Plus: Markets with the highest ROI on home sales

January 27, 2025

👋 Welcome back to Mortgage Nuggets! We scour 100+ sources so you don’t have to. Today's newsletter is 779 words, a 3-minute read, let’s dive in…

Disclaimer: Average mortgage rates as of Jan 24, 2025. © MND Daily Rate Index.

1. Rocket wins $10 million dismissal in 2012 lawsuit

The Fourth Circuit Court of Appeals vacated a $10M judgment against Rocket Mortgage and its affiliate Amrock in a decade-old class-action lawsuit.

The case, involving 2,769 West Virginia borrowers, alleged the companies influenced home appraisals by sharing borrowers' property value estimates, undermining appraisal independence. Initially, plaintiffs were awarded damages, but the Supreme Court’s TransUnion LLC v. Ramirez decision in 2021 required proof of concrete harm, leading to the reversal of class certification and damages.

“We conclude that the plaintiffs have not established that the class members, as borrowers, suffered a concrete harm as a result of the defendants’ transmission to appraisers of their home-value estimates, and therefore we reverse the district court’s judgment to the extent that it certified the class and awarded its members damages.”

Court ruling

2. Existing home sales fall to a 30-year low in 2024

Existing home sales in 2024 were the lowest in nearly 30 years, as elevated mortgage rates, rising home prices and few properties on the market freeze prospective homebuyers out of the market.

The NAR said Friday that existing home sales totaled 4.06 million last year, a 0.7% decline from 2023. That is the weakest year for home sales since 1995. The median national home price for all of last year rose 4.7% to an all-time high $407,500.

“How is it possible that home sales can be this low, considering that the U.S. population has increased by more than 70 million over this time period from 1995 to today?” asked Lawrence Yun, the NAR’s chief economist. “One can partly answer that question because of the affordability issue. Record-high home prices, mortgage rates having risen, but also lack of inventory.”

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3. More Nuggets

📰 CFPB links cash-out refis to improved credit scores. (CFPB)

🏚️ Auction launches SmartSale to help distressed homeowners avoid foreclosure.(REI)

📈 How a new agent closed $17M in his second year. (HousingWire)

📊 What to know about Trump's ability to move interest rates. (Axios)

4. Markets with the highest ROI on home sales

Home sellers made a $122,500 profit on typical sales nationwide in 2024, generating a 53.8% return on investment. That’s according to ATTOM’s 2024 Home Sales Report.

Sellers in higher-priced markets generally enjoyed the greatest returns, with the Northeast, South, and West regions dominating the rankings. 29 of the 30 highest ROIs came from those regions. Here are the top 5 metros:

  1. San Jose, CA – 105.8%

  2. Knoxville, TN – 94.3%

  3. Ocala, FL – 87.1%

  4. Seattle, WA – 85.6%

  5. Scranton, PA – 85%

5. Lender sues CA Ventures over unpaid loan

New York-based Spring Tower LLC has sued Chicago-based CA Ventures in Cook County, alleging default on a $2.2M loan issued in January 2020.

CA Ventures failed to fully repay the loan, leaving a balance of approximately $600K after a partial payment of $2M in October 2023. The lender is now seeking $680K, including interest.

This lawsuit adds to CA Ventures' ongoing legal troubles, including allegations of misusing investor funds and foreclosure suits. The company also faces internal disputes over debt repayment priorities, further delaying its planned industrial arm spinoff.

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

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