Broker commissions changes: what you need to know

Looming changes to real estate commissions are already causing ripple effects in mortgage lending. The National Association of Realtors will implement new rules this summer, following a $418 million settlement to end lawsuits challenging broker commissions. Four major real estate players also agreed to massive settlements in the past year, paving the way for a new landscape for homebuyers, home sellers and their representatives. Housing finance stakeholders, who held their breath through the legal proceedings, are beginning to respond to the changes affecting borrowers. While the government has already amended one rule to protect certain consumers, other concerns regarding affordability and blurred lines between Realtors and loan officers remain. Read on for the latest on what you need to know about real estate agent commissions.

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Former Rocket Mortgage exec partners with UWM, launching brokerage

A veteran Rocket Mortgage executive announced the launch of his own Michigan-based brokerage, dubbed Zoom Home Lending, Thursday. In this new venture, Michael Saleh, former senior vice president at Rocket, is moving away from the retail channel and is opening the door to wholesale partners, including United Wholesale Mortgage, a press release said. "This new chapter gives me the freedom and flexibility to run my business without any red tape," said Saleh. "The wholesale channel and partners such as United Wholesale Mortgage, have embraced us warmly and the support has been overwhelmingly positive." By partnering with the mega wholesale lender, Saleh has likely closed the doors on his former employer's TPO channel.?

Automated appraisal valuation rules finalized

Federal regulators announced the approval of rules intended to provide quality control and eliminate potential discriminatory practices in the use of automated valuation models in appraisals. The rules were originally proposed a year ago by a group of federal agencies involved in their design. The regulations will require mortgage originators and secondary market issuers to have procedures in place to ensure confidence in AVM estimates, protect against data manipulation and provide a backstop against conflicts of interest. They also mandate ongoing random sample testing and compliance with nondiscrimination laws.?

Lower rates will not drive higher origination volume, Fannie says

Fannie Mae economists have reduced their projections for where rates for the 30-year mortgage will end this year, bringing their outlook back below the 7% mark. However, that will not translate to increased originations, as they also cut their volume forecast for both 2024 and 2025 from what they predicted last month. Fannie's June forecast is also predicated on weaker gross domestic product growth than previously anticipated, as well as only a single December short-term rate cut from the Federal Open Market Committee; past expectations were for two reductions.

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