Lending

Housing discrimination lawsuit against Bank of America gets green light

Judge denies motion to dismiss
A federal judge in Maryland denied a motion Thursday to dismiss a lawsuit brought against Bank of America and Safeguard Properties Management by the National Fair Housing Alliance, 19 fair housing organizations and two homeowners for alleged fair housing violations. According to the judge, the facts presented allow for a “reasonable inference that the defendants violated anti-discrimination provisions of the Fair Housing Act.”
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Chris Heller leaves loanDepot and mellohome for AI real estate company OJO Labs

Former Keller Williams CEO moves on after less than two years
Chris Heller shocked the housing world last year when he stepped down as CEO of Keller Williams to become the CEO of mellohome, loanDepot’s attempt to serve as a true one-stop-shop for “buying, financing, and improving homes.” But now, less than 18 months later, Heller is leaving mellohome and loanDepot behind for OJO Labs, a real estate technology start-up whose flagship product is an AI-based conversational assistant that is currently being used in the real estate industry.
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Liberty Home Equity unveils proprietary reverse mortgage

Becomes the 6th lender to bring non-agency offering to market
Five months ago, word circulated that Liberty Home Equity was on the brink of releasing a proprietary reverse mortgage product, looking to take part in the explosive growth this market has seen in the last year. And now the talk appears to be true, as the reverse mortgage division of Ocwen Financial announced the launch of EquityIQ on Friday, making it the sixth HECM lender to bring a non-agency reverse mortgage to market in the last 18 months.
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Here's why a cut in FHA's insurance premiums won't boost its market share

Capital Economics calls the step "too small to halt the downward trend"
Earlier this month, the U.S. House of Representatives passed a bill that slashed the cost of upfront mortgage insurance for first-time homebuyers who underwent counseling before taking an FHA loan. But while the push for greater financial literacy is a worthy cause, it’s unlikely to boost FHA’s share of the mortgage market, Capital Economics said in a recent report, calling the premium cuts “too small to halt the downward trend in the FHA market share.”
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Fannie Mae, Freddie Mac still in conservatorship in 2024? Calabria says it’s possible

Tells Reuters that he hopes to have GSEs out of conservatorship by 2024
Recent reporting by Bloomberg suggested that the Trump administration may be wavering on pursuing widespread reforms of Fannie Mae and Freddie Mac in advance of the 2020 election due to the potential economic impact of those reforms on voters. Now, Federal Housing Finance Agency Director Mark Calabria now says it’s possible that the GSEs may remain in conservatorship until 2024, at least.
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State Farm, Quicken Loans announce massive mortgage partnership

State Farm agents who are licensed LOs will be able to originate Quicken mortgages
For years, State Farm agents could offer mortgages to their customers through State Farm Bank, the company’s banking arm that offers home loans, auto loans, checking accounts, savings accounts, credit cards and other traditional banking services to State Farm customers. But that won’t be the case for much longer. Soon, State Farm will begin using Quicken Loans to originate mortgages for its customers thanks to a significant new partnership between the two companies.
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SoFi appoints Aaron Webster as chief risk officer

Webster comes from a long background in risk management
Almost immediately following the departure of former chief risk officer Kevin Moss in June, Aaron Webster has been named the chief risk officer at online lender SoFi. Webster will be responsible for risk, fraud, and credit management frameworks, as well as leading its credit risk and underwriting activities.
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Freddie Mac: An uptick in consumer spending spurs growth in this week’s mortgage rates

This week, the 30-year, fixed-rate mortgage averaged 3.81%
This week, the 30-year, fixed-rate mortgage averaged 3.81%, moderately rising from last week’s 3.75%, according to the Freddie Mac Primary Mortgage Market Survey. Freddie Mac Chief Economist Sam Khater said the rise in rates was driven by continued improvement in consumer spending and partly due to optimism around a forthcoming cut in short term interest rates.
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