Wells Fargo Escapes

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💔 The industry mourns the loss of Regina Lowrie, the first female chair of the MBA 

 Regina M. Lowrie, the first woman to chair the Mortgage Bankers Association's board of directors, passed away suddenly on Sunday, January 1.

The Mortgage Bankers Association of New Jersey announced the news to its members in a letter signed by MBA of New Jersey Executive Director and Counsel E. Robert Levy, who described Lowrie as "not only a dear friend for many years but was an integral part of our industry, both on a national and state level." May she rest in peace.

 🔔 Wells Fargo escapes $300M fair-housing suit, but win is lost amid CFPB payout

A federal judge in Illinois has ruled in favor of Wells Fargo in a case where Cook County accused the bank of discriminating against nonwhite mortgage borrowers during the financial crisis of 2007-08.

This ruling allows Wells Fargo to avoid being involved in a lawsuit seeking a minimum payout of $300 million.

This decision came just a day before the Consumer Financial Protection Bureau (CFPB) announced a record $3.7 billion settlement with Wells Fargo over various problematic practices.

👀 Goldman Sachs' January job cuts could set the trend for the industry in 2023

Headcount reduction is coming in the first half of the month, CEO David Solomon told staff. The bank’s second-in-command, John Waldron, defended the strategy in an interview.

“Everyone I know in my job or David’s job is doing the same thing,” Waldron told the publication. “The forecast is more challenging. We may be wrong, we may get a soft landing and we’ll staff up again.”

🏡 Homes Linger on the Market as Buyers Take Their Time

The supply of homes for sale posted a record year-over-year increase this week as homes linger on the market.

But some buyers are making their way back, with Redfin’s Homebuyer Demand Index showing an uptick in early-stage demand.At its June 2022 peak, the Pandemic Housing Boom saw U.S. home prices rise 41.4%.

 👩‍⚖️ UWM achieves partial victory in broker ultimatum lawsuit.

United Wholesale Mortgage (UWM) announced in March 2021 that brokers who did business with Rocket Mortgage or Fairway Independent Mortgage could not also send loans to UWM, a policy known as the "All In" initiative.

Brokers who violated this policy could face fines of up to $5,000 per loan or $50,000, whichever sum was greater.

In February 2022, UWM filed a lawsuit in Michigan federal court against America's MoneyLine (AML), alleging that AML breached their amended wholesale broker agreement by continuing to do business with both Fairway and Rocket Mortgage.

AML counter-sued UWM, arguing that UWM's assurances were fraudulent, promissory estoppel should apply to enforce those assurances, the ultimatum is invalid and unenforceable, and it is entitled to a declaratory judgment.

UWM asked the court to dismiss AML's counter-complaints, and Judge Laurie Michelson ultimately granted UWM's motion to dismiss AML's fraud and promissory estoppel claims, but allowed AML's antitrust law claim to survive.

UWM has also faced legal challenges from other broker shops, including Kevron Investments Inc. and Mid Valley Funding & Inv. Inc. in California, and Dan O'Kavage in Florida, over the controversial "ultimatum" it imposed two years ago.

Chart Corner

📈 Does it pay to stay?

Hourly wages are growing at some of the fastest rates in history, partly due to the high inflation rate.

This trend is being driven by a competitive labor market, with 10.3 million job openings and only 6.1 million unemployed Americans.

According to a survey by employment agency Robert Half, 40% of workers would consider switching jobs for a 10% pay increase.

Data from the Federal Reserve Bank of Atlanta shows that those who switch jobs have seen larger wage gains in the past year compared to those who have stayed at their current jobs.

To cover the cost of wage increases, companies may raise prices, which can affect consumers' cost of living and lead them to demand higher wages.

Despite this wage growth, private sector wages actually decreased by 1.9% in the 12 months ending in November, while inflation was at 7.1%.

Meme Cleanser

☀️ See y'all on Friday!

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