Where Americans moved in 2024

Plus: Ally to end mortgage originations, lays off hundreds

👋 Good morning! This is Mortgage Nuggets, the newsletter that keeps you up-to-date on the latest mortgage news—every Monday, Wednesday, and Friday.

Today’s newsletter is 557 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of Jan 09, 2025. Š MND Daily Rate Index.

1. Ally to end mortgage originations, lays off hundreds

Ally Financial has laid off approximately 550 employees, or about 5% of its workforce. The job cuts, which are not specific to any department or location, are part of a broader “right-sizing” strategy.

Affected employees will receive career placement support, severance packages, and the opportunity to apply for internal positions.

In addition to the layoffs, Ally announced it will exit its mortgage business, ceasing loan originations in the first quarter of 2025 and gradually winding down its remaining assets.

2. The Mortgage Firm to invest $1.75M to settle DOJ redlining case

The Justice Department announced yesterday that The Mortgage Firm agreed to pay $1.75 million to resolve allegations that it engaged in a pattern of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in the Miami-Fort Lauderdale-West Palm Beach Area.

  • Redlining is an illegal practice by which lenders avoid providing credit services to individuals living in some communities because of their race, color, or national origin.

“Non-depository institutions, including mortgage companies, are now originating a higher share of loans to homebuyers than banks and credit unions,” said Assistant Attorney General Kristen Clarke. “With this trend comes the obligation to ensure full compliance with our federal laws that prohibit redlining”

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3. More Nuggets

🤝 Lower acquires Neat Labs and launches mortgage platform. (PRNewswire)

🎧 Varun Krishna shares Rocket’s plan to “become the Apple of homeownership”. (HW)

⤵️ Banks expected to shed 200,000 jobs as AI erodes roles. (Bloomberg)

🏚️ Nate Paul pushes to dismiss fraud charges in $172M real estate case. (KXAN)

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4. Charted: Where Americans moved in 2024

This month, the U.S. Census Bureau released its 2024 net domestic migration data, showing the states Americans are moving to and from. Let’s take a look at the shifts.

Biggest Increases:

  1. Texas: +85,267

  2. North Carolina: +82,288

  3. South Carolina: +68,043

  4. Florida: +64,017

  5. Tennessee: +48,476

Biggest Decreases:

  1. California: -239,575

  2. New York: -120,917

  3. Illinois: -56,235

  4. New Jersey: -35,554

  5. Massachusetts: -27,480

5. CFPB sues Experian for sham investigations of credit report errors

The CFPB has sued Experian, accusing the credit agency of mishandling consumer credit report disputes.

Alleged issues include failing to properly investigate errors, accepting unreliable data from furnishers, sending unclear consumer notifications, and reinstating inaccurate information.

The agency is seeking to stop Experian’s unlawful practices, provide compensation to affected consumers, and impose penalties on the company. This lawsuit highlights the need for credit agencies to follow the law to protect consumers' rights.

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