- Mortgage Nuggets
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- VA temporarily allows buyer-paid broker fees
VA temporarily allows buyer-paid broker fees
Plus: Housing markets where prices have increased and fallen the most since their 2022 peak
👋 Wednesday’s here. Thanks for joining us. Today's newsletter is 611 words, a 3-minute read. Let’s dive in…
Disclaimer: Average mortgage rates as of June 11, 2024. © MND's Daily Rate Index.
1. VA temporarily allows buyer-paid broker fees
The Department of Veterans Affairs (VA) has issued a temporary fix allowing homebuyers using VA loans to pay their real estate agent's commission. This change follows the NAR commission lawsuit settlement.
Previously, VA policy prohibited veterans from being charged brokerage fees. The temporary fix ensures veterans remain competitive buyers by allowing them to pay reasonable and customary buyer-broker fees.
The policy is effective from August 10, 2024, until further notice. Trade groups welcomed the change, advocating for a permanent policy update.
2. loanDepot ‘buys time’ with plan to extend $498M debt
loanDepot is extending its $497.8 million in senior notes from 2025 to 2027 with a higher interest rate of 8.75%.
According to analysts, the transaction reflects a business under stress but brings temporary relief to the company’s financials.
The debt extension is expected to close on June 18 if 85% of the eligible bondholders agree with conditions.
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3. More Nuggets
🤝 NAMB and NAMMBA forge strategic alliance to advance diversity and inclusion within the mortgage industry. (NAMMBA)
🏢 This could be crazy day for better or worse. Fed meeting and inflation report both hit today, and the impact could be huge. (CNBC)
💰 The strange tale of a $457 million deposit, 100 million masks from China, and one tiny bank. (Semafor)
📈 Recap: Mortgage lenders bounce back to profits in Q1. (National Mortgage News)
4. Nationwide home equity surges, no state sees losses
Homeowners nationwide saw their equity increase by 9.6% for an average gain of $28,000 from Q1 2023 through Q1 2024. That is the biggest year-over-year increase since late 2022, according to CoreLogic. No state saw home equity losses.
Here are the states and metros with the highest increases in home equity:
States
| Metros
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5. Charted: Housing markets where prices have increased and fallen the most since their 2022 peak
Click here to view an interactive version of the map above, metro by metro
6. Mortgage application activity rebounds
Home loan applications surged, driven by a significant increase in refinancing due to lower interest rates. The MBA shows applications rose 15.6% for the week ending June 7, reversing a previous decline of 5.2%.
The average 30-year fixed-rate mortgage decreased by 5 basis points from 7.07% to 7.02%, encouraging more refinancing activity.
The Refinance Index jumped 28.4%, with VA loan volumes surging by 142.7%. This elevated refinance activity increased its share of total weekly volume to 35.2%. Purchase applications also rose by 8.6% from the previous week but were down 11.9% year-over-year.
☀️ Thanks for reading. See you on Friday!
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