Treasury warns financial institutions about deepfakes

Plus: Lenders post $701 pre-tax profit per loan in Q3

November 15, 2024

🎁 A big congrats to us all: We made it to Friday. Today's newsletter is 639 words, a 2.5-minute read. Let’s dive in…

Disclaimer: Average mortgage rates as of Nov 14, 2024. Š MND Daily Rate Index.

1. Treasury warns financial institutions about deepfakes

FinCEN says it has seen an uptick in suspicious activity reporting by financial institutions describing the suspected use of deepfake media, particularly the use of fraudulent identity documents to circumvent ID verification and authentication methods.

The alert explains typologies associated with these schemes, provides red flag indicators to assist with identifying and reporting related suspicious activity, and reminds financial institutions of their reporting requirements under the Bank Secrecy Act.

“Vigilance by financial institutions to the use of deepfakes, and reporting of related suspicious activity, will help safeguard the U.S. financial system and protect innocent Americans from the abuse of these tools.”

FinCEN director Andrea Gacki

2. Lenders post $701 pre-tax profit per loan in Q3

Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks saw a recovery in production profits during the third quarter of 2024.

According to the MBA latest Quarterly Mortgage Bankers Performance Report, lenders achieved a pre-tax net profit of $701 on each loan they originated in the third quarter, an increase from $693 per loan in the previous quarter.

“Mortgage companies reported net production profits for the second consecutive quarter after an unprecedented period of net production losses that spanned two years, net production profits increased to 18 basis points last quarter – far improved from the average loss of 43 basis points the past two years – with a drop in secondary marketing income offset by a decrease in production expenses.”

Marina Walsh, CMB, MBA’s Vice President of Industry Analysis.

🎉 Breaking: AI Guideline Search is Now Free for All Mortgage Pros

Stop spending hours digging through guidelines. Guideline Buddy's AI-powered chatbot is now available at no cost for individual mortgage professionals.

  • Get instant, accurate answers about FHA, VA, USDA, Fannie & Freddie guidelines

  • Ask questions in plain English and receive clear, source-cited responses

  • Built by mortgage pros who’ve walked in your shoes

  • Verify underwriting eligibility in seconds instead of hours

Join the community of LOs already using Guideline Buddy to close more loans, faster.

Sign up here for FREE. Get instant access!

3. More Nuggets

📉 Zillow Pres Susan Daimler steps down, Jun Choo becomes COO. (PRNewswire)

🎯 Fannie and Freddie ‘met or exceeded’ almost all single-family housing goals over four years. (CBO)

⏯️ Powell says the Fed doesn’t need to be ‘in a hurry’ to reduce interest rates. (CNBC)

💸 Rocket Mortgage pays $14M+ for rocket’com domain name. (DNW)

🚨 Coach’s Corner

What is your Brand? You need to think on this. Tune in for my breakdown on mine and how to build yours! (Video)

— Dave Krichmar CEO

4. Foreclosures rise 4% in October

Home foreclosures rose on a monthly basis in October, with the highest rates recorded in Florida, Nevada, and New Jersey, according to ATTOM’s monthly foreclosure market report.

One in every 4,578 housing units nationwide had a foreclosure filing in October, for a total of 30,784 U.S. properties with default notices, scheduled auctions, or bank repossessions, marking a 4% increase from September, but an 11% decrease from Oct. 2023.

"Foreclosure activity remains challenging for U.S. homeowners, with starts and completed foreclosures up in October. As we approach 2025, the recent Fed rate cut, and the new administration could impact mortgage rates and market stability."

Rob Barber, CEO of ATTOM

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

🚀 Wanna help our newsletter grow? Forward it to a friend or colleague.

Would you like to receive a ready-to-send weekly marketing email for your realtors and/or clients? Start your 30-day free trial here.

Was this email forwarded to you? Subscribe here.

Interested in advertising to 40k+ loan officers? Get in touch.