Stopgap budget pact averts shutdown but lifts mortgage rates
National Mortgage News
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A last-minute, temporary, budget agreement has headed off a potential interruption in public services that would have affected mortgage operations, but it didn't do much to alleviate upward pressure on rates that's been bedeviling lenders. The mortgage rate-indicative 10-year Treasury yield jumped to a high last seen in 2007 on Monday as uncertainty continued to swirl around negotiations over federal appropriations, which will resume when funding authorization ends next month. "This brinkmanship that goes on in Washington erodes the confidence of the investor," said Melissa Cohn, regional vice president at William Raveis Mortgage. That said, the averted government shutdown did relieve lenders from immediately having to contend with operational challenges in addition to higher rates.
A federal district court in Houston ruled in favor of a class-action plaintiff last week in a three-year-old case involving pay-to-pay fees , approving a summary judgment against two mortgage servicers. The case, originally filed in 2020, claimed Lakeview Loan Servicing and its subservicer LoanCare had unlawfully charged fees of up to $12 per month to borrowers of Federal Housing Administration-sponsored loans who paid their bills by phone. The collection of what some call junk fees amounted to violations of the Texas Debt Collection Act, according to the law firm Bailey & Glasser, who represented plaintiff for the class Ursula Williams.?
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Rithm Capital, already engaged in a takeover battle that could affect a potential mortgage spin-out, agreed to acquire Australian-based Computershare's servicing business in the midst of the first deal's uncertainty. The servicing unit, Computershare Mortgage Services, includes affiliates like Specialized Loan Servicing, for which Rithm agreed to purchase at a price of approximately $720 million. Rithm will use cash and other liquidity on its balance sheet as well as financing secured by mortgage servicing rights to pay for SLS. The company has a $136 billion servicing portfolio (of which $85 billion is for third parties), and the transaction includes SLS' mortgage origination services business. Meanwhile, as of June 30, Rithm had a $598 billion MSR portfolio.
One of most sizable wholesale lenders has begun accepting larger conforming loans at the anticipated 2024 limit, beating its biggest challengers to the punch for the second consecutive year. Rocket Pro TPO began offering the new loan limits Monday, ahead of the Federal Housing Finance Administration's expected move later this year. The wholesale arm of Rocket Cos. claims to be the first lender this year to raise the limits to give mortgage brokers and borrowers more leeway on increasingly expensive homes . The company is setting the limit for a single family unit at $750,000, up from the FHFA's current $726,200 cutoff.?
The Supreme Court is set to hear another challenge to the constitutionality of the Consumer Financial Protection Bureau, the watchdog agency envisioned by Sen. Elizabeth Warren after the 2008 financial crisis. The high court will hear oral arguments on Oct.? 3 on a topic central to the Constitution's separation of powers and one the court has typically avoided addressing: Should there be any parameters placed around Congress' authority over the government's pursestrings?? Congress created the CFPB through the 2010 Dodd-Frank Act and specified that the CFPB's director request money from the Federal Reserve Board, subject to specific limitations, to fund the bureau's operations. Last year, the CFPB received $642 million in funding.
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1 年Thanks for the updates on, The NMN.