VA urged to update commission rules for veterans

Plus: Father-son duo that managed a top branch nears settlement in $1M lawsuit

March 27, 2024

Happy Wednesday! Let's step on. Today's newsletter is 644 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of Mar 26, 2024. © MND's Daily Rate Index.

1. VA urged to update commission rules for veterans

Here’s an excerpt from the CHLA letter to the U.S. Department of Veterans Affairs (VA):

The Community Home Lenders of America (CHLA) writes to ask you to expedite a regulatory change allowing veterans and active-duty service members to fund Realtor “buyer’s broker” commission fees when purchasing a home with a Veterans Affairs (VA) mortgage loan.

We make this request in the wake of the settlement announced last week of nationwide commission lawsuits against the National Association of Realtors (NAR).

Due to unintended consequences arising from existing regulatory requirements regarding VA mortgage loans, veterans and active-duty personnel may find themselves at an unfair disadvantage when buying a home (or being forced to not utilize their VA mortgage earned benefit.)

2. Troubled mortgage broker Meridian names top former regulator as CEO

Mortgage broker Meridian Capital Group named former top banking regulator Brian Brooks as its new chairman and CEO on Tuesday.

Brooks, who was Acting Comptroller of the Currency from mid-2020 until early 2021, will replace Meridian co-founder Ralph Herzka in the role. Herzka will stay at the firm as senior chairman.

Meridian was recently effectively blacklisted by Fannie Mae and Freddie Mac amid allegations that some of its brokers falsified figures to help clients get bigger mortgages. That rare step from the government-backed lenders raised questions about its future in an industry in which Fannie and Freddie play an important role. Brooks also previously worked at Fannie Mae.

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3. Catch up quick

🔬 NAHB releases ‘What Home Buyers Really Want’, study shows buyers want smaller homes. (NAHB)

🏠 Home flipping activity and profits plummeted in 2023. (Attom)

🤔 Housing market data suggests the most optimistic buyers during the pandemic are more likely to stop paying their mortgages. (Fortune)

📱 These LOs are TikTok sensations. They call a potential ban “unfortunate”. (HousingWire)

4. Charted: Homeowners insurance cost burden by state

Led by a rise in mortgage rates, owning a home has become increasingly expensive. According to a new Freddie Mac report released Monday, while mortgage payments remain the primary pressure point for homeowners, insurance costs are emerging as a growing burden.

5. New home sales decline slightly, prices too

Sales of newly built, single-family homes in February edged 0.3% lower to a seasonally-adjusted annual rate of 662,000 units, according to newly released data by the HUD.

  • In addition to adjusting for seasonal effects, the February reading of 662,000 units is the number of homes that would sell if this pace continued for the next 12 months.

The median price of houses sold during the reporting period was $400,500 and the average price was $485,000. In February 2023 the relative prices were $433,300 and $499,100.

At the end of February, there were an estimated 451,000 new homes available for sale. This is a projected 8.4-month supply at the current sales pace and is unchanged from the inventory level one year earlier.

6. Father-son duo nears settlement in $1M lawsuit against hometown lenders

Anthony Perri Sr. and Jr., who managed a former top branch of Hometown Lenders in Illinois, are close to settling their $1 million lawsuit against the now-defunct company.

The lawsuit accuses Hometown of not reimbursing them for significant expenses and retaining the title to their office building, which they claim to have funded themselves.

A recent court filing suggests a settlement is in the works, with Hometown agreeing to return the office building and initiate the transfer of deferred compensation to the Perris. LINK

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

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