What home insurance hikes can mean for servicing values

The recent rise in property insurance costs has had implications for many aspects of housing finance, including servicing valuations, and there are some important nuances for stakeholders to consider in that context. At a high level, the impact on valuations of servicing rights can be put in two categories: What escrowed tax and insurance funds either cost or earn for servicers, and how those obligations affect borrower behavior. That has mixed implications in the current market. "It might look good on the surface to a servicer, because you might earn a greater float on your larger escrow balance," said Mike Carnes, a managing director at the Mortgage Industry Advisory Corp. "But the question is: How does it impact a borrower's ability to afford a home?"?

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Mr. Cooper data breach victims reveal how they've been affected

Customers impacted by Mr. Cooper's data breach late last year continue to feel the aftermath nine months later. Following the cyber attack, which leaked the Social Security numbers of 14.7 million customers, some have reported being hit by a wave of spam and seeing credit cards opened in their names, a July filing in Texas federal court shows. In one instance, a customer had $25,000 withdrawn from her Charles Schwab account.? An amended complaint for a consolidated class action suit, which now has 22 members, outlines in detail how each customer fared after their information was exposed in late October 2023.?

Kamala Harris' VP pick Tim Walz on housing

Minnesota Governor Tim Walz may not have been a household name before this week, but the former social studies teacher's career in politics spans nearly 20 years. He's known for a progressive agenda that has included large investments in affordable housing in Minnesota.? The governor emphasized that housing should be a bipartisan issue in his State of the State address back in March. Throughout his career, Walz has been involved in initiatives aiming to provide resources to low-income families and create affordable housing, protect tenants' rights and maintain infrastructure.?

What real estate brokerages can do to survive post-NAR settlement

As the start date for rule changes resulting from the NAR settlement approaches, a study shows that real estate brokerages need to be revising their operations ahead of time to stay afloat. A vast majority of America's brokerages, about 79%, will become unprofitable if they fail to transform their operations when commission rates drop to 2%, a study from AccountTech found.? The National Association of Realtors agreed to change some of its commission rules as part of a March settlement of $418 million to address sellers' litigation claims.?

Subprime borrowers help drive mortgage growth

Mortgage origination volumes in early 2024 increased annually for the first time in three years, even while purchases slowed, according to a new report from Transunion. That was in part due to borrowers on opposite ends of the credit score range. Subprime borrowers saw a 15% year-over-year increase. At the same time, the super prime segment, comprising consumers with the highest scores grew by 12.1% over the past year. In its previous credit report, Transunion reported business rising for FHA-backed mortgages, often attractive to first-time buyers as well as borrowers with lower credit scores.?

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