How applications moved during the Fed's rate cut

Mortgage applications last week rose to their highest level since July 2022, the Mortgage Bankers Association said Wednesday. As mortgage rates fade, the association's Refinance Index jumped 20% weekly and was up 175% from the same time last year. "While the level of refinance activity is still modest compared to prior refi waves, they now account for the majority of applications, given the seasonal slowdown in purchase activity," said Joel Kan, vice president and deputy chief economist at the MBA, in a press release. On the whole, the MBA's Market Composite Index measure of applications climbed 11% from the week ending Sept. 13.

READ MORE: How applications moved during the Fed's rate cut

Prepayments hit two-year high as incentivized borrowers act

The rate at which consumers prepaid their home loans soared to heights not seen in 24 months in August, suggesting most of those identified as having incentives to refinance did so. The prepayment rate of 0.62% was nearly 5% higher than July and up 18% from a year earlier, in line with previous estimates suggesting roughly that many borrowers had a rate incentive of at least 75 basis points, according to ICE Mortgage Technology's latest First Look report. That borrower responsiveness suggests that refinance prospects may continue to be quick to act if rates do move any lower.

DOJ, Nutter agree to $2.4M HECM settlement

James B. Nutter & Co., which ceased mortgage banking operations because of the overhang of alleged False Claims Act violations, has settled with the Justice Department for $2.4 million. "This Settlement Agreement is neither an admission of liability by Nutter nor a concession by the United States that its claims are not well founded," the legal filing states. The agreement follows a July ruling that barred the government from recovering damages under the Act, stating the government could not prove Nutter's behavior was responsible for damage to the U.S. Department of Housing and Urban Development.?

Real estate agents predict what fallout from NAR settlement will be

Real estate salespeople have softened their views on the impact of the National Association of Realtors settlement on broker commission payments in the weeks since it went into effect. But the prevailing sentiment remains that, as a group, they hate the changes and 86% of them believe it will push people out of the business, a Clever Real Estate survey found. Even the sentiment about the exodus of real estate professionals was an improvement over the results from an April survey when 95% responded that the settlement, announced in March, would force people out.

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