How much did data breaches cost last year?
National Mortgage News
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Financial companies spent $6.08 million on average to respond to incidents, compared to $5.9 million last year, according to IBM's Cost of a Data Breach Report published this week. The analysis sheds light on what expenses impacted mortgage companies could be paying following attacks that have recently affected millions of borrowers. Most lenders are tight-lipped about the hacks they suffered, let alone how much they've cost, although some publicly traded players revealed major hits. Among affected businesses surveyed, 63% also said they're passing data breach costs onto consumers, more than the 57% that said they did last year.
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Mortgage applications for newly built homes jumped between June and July, marking a turnaround from the previous month's slowdown. New home loan volumes increased by approximately 9% in July from one month earlier, according to the Mortgage Bankers Association's Builder Application Survey. Compared to the July 2023 level, applications also accelerated by a similar 9.4%. Renewed interest in the new single-family residential market was "helped by sustained demand for new homes and declining mortgage rates," said Joel Kan, MBA vice president and deputy chief economist in a press release.?
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Institutional and mom-and-pop businesses accounted for 16.8% of home purchases in the second quarter, according to Redfin. That was the second-busiest spring for investors on record since 2000, behind a pandemic era peak of 20.8% in 2022. The $43 billion they spent was also up 13.7% from the same time last year, the largest annual rise in two years. Investors retained a strong appetite for low-priced homes, accounting for nearly 1 in every 4 such property purchases last quarter. Businesses used cash in 69% of their purchases, ignoring the impact of mortgage rates sitting around 6.5% that have kept borrowers sidelined.?
New-home construction in the U.S. fell in July to the lowest level since the aftermath of the pandemic as builders respond to weak demand that's keeping inventory levels high. Total housing starts decreased 6.8% to a 1.2 million annualized rate last month, dragging down the biggest decline in single-family units since April 2020, according to government data released Friday. A sizable decline in the South may have reflected the impact of Hurricane Beryl. The new-home industry has lost some of its luster in recent months after a strong start to the year.
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1 个月The rising costs of responding to data breaches, now averaging $6.08 million, underscore a growing financial burden for the financial industry. With 63% of companies passing these costs onto consumers, it's clear that the impact of cyberattacks is increasingly felt by borrowers through higher fees and interest rates. This trend highlights the urgent need for stronger cybersecurity measures to protect both companies and their clients from escalating financial repercussions. As data breaches become more expensive and frequent, both industry stakeholders and consumers must be prepared for the financial implications.