Americans want community, but barely know their neighbors

👋 Happy Wednesday and welcome back! Today's newsletter is a 2-minute read.

1. First American sues Novad, seeks to freeze assets over $1.6M reverse mortgage dispute

First American is asking a federal court to freeze Novad's bank accounts while arbitration proceeds over $1.6 million in unpaid reverse mortgage lien release services dating back to 2022.

The core allegation: Novad had been telling First American it couldn't pay because of a dispute with HUD over its lost servicing contract. It quietly settled that dispute in September 2025, collected the money by early 2026, and never said a word — going silent instead.

The suit alleges Novad "fraudulently induced" First American to hold off on collecting while hiding its financial condition — raising concerns the money could be moved before any judgment can be collected.

2. 1 in 3 homeowners with a sub-6% rate won't sell at any price

A survey of 1,000 mortgage holders by Best Interest Financial and Clever Real Estate found that 33% of homeowners with rates below 6% wouldn't give up their rate for any reason — rising to 52% among those with sub-3% rates.

Almost 45% said they'll stay in their home longer than they originally planned, and 51% won't sell unless rates drop below 5%. More than 75% of homeowners still carry a rate below 6%, with 41% below 4%.

The lock-in effect is cutting both ways — keeping supply tight while also straining borrowers on the other end. Among homeowners paying 6% or more, 63% have cut spending or taken side gigs to keep up, and 33% still struggle with payments.

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3. More Nuggets

🤖 AI hallucinations: A mortgage lenders bad dream. (NMP)

👥 Mike Detwiler is once again the head of Mortgage Cadence. (HousingWire)

🏦 Community West completes United Security merger. (Globe and Mail)

⚖️ TCPA lawsuits hit nine more mortgage lenders. (NMN)

4. Better and HighTechLending launch HELOC targeting equity-rich, income-challenged borrowers

The two companies are teaming up to offer EquitySelect, a HELOC that qualifies borrowers based on equity and payment capacity rather than traditional DTI guidelines — targeting self-employed and variable-income borrowers who are equity-rich but locked into low first mortgage rates they won't refinance.

HighTechLending estimates up to 20% of previously declined HELOC applicants through Better's channel could now qualify. Better originates the loans; HighTechLending buys them.

5. Americans want community, but barely know their neighbors

A Rocket Mortgage survey found that 79% of Americans say strong neighborhoods improve their quality of life, yet only 30% say they actually know their neighbors. Just 17% actively seek interaction with them.

The disconnect runs deep. 41% say knocking on a neighbor's door feels too bold. 42% say people in their neighborhoods tend to keep to themselves. Yet 68% received support from a neighbor in the past year and 58% would turn to one in an emergency.

The survey ties into Rocket and Redfin's broader "America Needs Neighbors Like You" campaign, which launched during the Super Bowl. Full results here.

☀️ You’re all caught up. See you on Friday!

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