Home price surge likely to follow construction freeze in Phoenix

Government models say Phoenix's groundwater supply is drying up. Homebuyers will have to pay the price to fix it. The Arizona Department of Water Resources announced June 2 that the state will no longer authorize developers to build outside municipal water sources with a supply of only groundwater. Developers and real estate agents alike say this will hike up already high home prices. "We'll have significant supply issues post this announcement," Spencer Kamps, vice president of legislative affairs for the Home Builders Association of Arizona, said. "And that will significantly impact affordability."

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Planet Home Lending's $10B MSR buy increases portfolio by over 10%

Planet Home Lending significantly increased the size of its mortgage servicing rights portfolio with a $10 billion bulk acquisition from Village Capital & Investment. Village is a Henderson, Nevada-based Federal Housing Administration and Veterans Affairs originator. The portfolio Planet Home bought consists of 45,000 loans securitized through Ginnie Mae. Blue Water Financial Technologies served as the broker. Additional details about the acquired MSRs were not provided. Bringing these rights on board increased Planet's portfolio by 10.6% to $94 billion.

California promotes expanded availability of mortgage relief

California housing officials are urging households to take advantage of Homeowner Assistance Fund resources following recent changes to eligibility, including updated area median-income levels. The new income thresholds will qualify more mortgage borrowers for up to $80,000 in financial assistance. Funding was originally made available in late 2021 under provisions of the American Rescue Plan Act in order to help households encountering economic distress due to economic impacts of COVID-19. "Even now, too many homeowners are still struggling to recover from the financial toll of the pandemic. This adjustment could mean that more families will not only save their house, but their home," said Rebecca Franklin, president of the CalHFA Homeowner Relief Corporation, in a press release.

California-based CDFI accused of mischaracterizing its borrowers

A former employee of nonbank mortgage lender The Change Company, has filed a lawsuit alleging the company founded by former banker Steve Sugarman has mischaracterized home loans in certifications to the Treasury Department. The lawsuit, filed Tuesday in Superior Court in Orange County, California, was brought by Adam Levine, CEO Sugarman's former chief of staff. Levine is a former vice president at Goldman Sachs and former assistant White House press secretary in the George W. Bush administration. Before his stint in the White House, he had been a senior aide to Sen. Daniel Patrick Moynihan. The lawsuit seeks damages for alleged wrongful termination, whistleblower retaliation and breach of contract.?

J.P. Morgan Mortgage Trust prepares to issue $186.3 million in HELOC-backed notes

J.P. Morgan Mortgage Trust is preparing to offer $186.3 million in notes to investors, where a second-lien, prime home equity line of credit (HELOC) funding 2,269 loans ultimately provides collateral for the notes. J.P. Morgan Mortgage Acquisition and Blue River Mortgaged IV are sponsoring the transaction, where United Wholesale Mortgage and loandepot.com originated the loans, which is seasoned for just four months, according to ratings analysts at Fitch Ratings and Kroll Bond Rating Agency. The entire underlying loan pool is comprised of adjustable-rate mortgages—based on the prime rate—with 10-year, interest-only terms.?

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