CrossCountry sends cease-and-desist letters to at least 25 former LOs

💪 Welcome to the first Monday of November. Today’s issue is a 2.5-minute read.

1. CrossCountry sends cease-and-desist letters to at least 25 former LOs

CrossCountry Mortgage sent letters dated Oct. 29 to at least 25 former loan officers, accusing them of refinancing CCM borrowers after leaving.

CCM cites a two-year non-solicitation window and says any loan to a past, present or future CCM customer is presumed to violate the agreement. It is demanding 75 bps on each refinanced loan, with amounts ranging from several thousand dollars to nearly $20,000.

Each letter gives recipients 10 business days to respond and warns that “litigation over these matters is reasonably likely.” They also order recipients to preserve records, including texts, CRM data and AI chat history.

2. Zillow will cover the full FHA down payment for eligible borrowers

Zillow Home Loans will cover the full minimum FHA down payment, up to 3.5% of the home price, for eligible buyers. On a $400,000 home, that is up to $14,000.

The money comes as a second mortgage with no interest and no monthly payments. If the borrower stays in the home and keeps paying the main mortgage on time for five years, the loan is forgiven. If they sell, refinance, or move out before then, they have to pay it back in full.

• To qualify, buyers need a 640 credit score, an FHA loan, and must finance through Zillow Home Loans. There is no income limit and no first-time buyer rule. It is available in 43 states and D.C. It is not available in Arizona, Delaware, Florida, Massachusetts, New York, Vermont, or Virginia.

For brokers and LOs, this changes the competition. A good rate may not be enough against an offer that removes the down payment.

Mortgage Recruiting Is Still Stuck in 1996!

Some virtual assistant calls me… "Todd is REALLY impressed with your production and wants to talk to you!"

Really? If Todd is so impressed, why the hell didn't Todd call me himself? Sound familiar?

Us Loan Officers are stuck dealing with headhunters, cheesy recruiting tactics, and companies promising us the world.

And how are we supposed to know which mortgage company is actually a good fit?

Well, it's time to TAKE BACK THE POWER!

mLOOP lets Loan Officers anonymously research lenders, compare what they offer, and do their homework BEFORE talking to anyone.

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Check out mLOOP.co

3. More Nuggets

🚜 Ex-Palantir execs launch Dream with $17M from a16z to build AI world models for construction. (TechCrunch)

🥯 ION: The unlikely queen of the bagel business. (theHustle)

📈 Rocket posts $709M profit in Q3 despite tougher mortgage market. (HousingWire)

🏦 Commission settlement accounts hold $711M as claim payouts await. (Inman)

4. Charted: Nearly two-thirds of mortgages have a rate below 5%

65.6% of U.S. mortgages carry a rate below 5%, according to Realtor.com’s latest report on outstanding mortgages. With rates now hovering around 7.4%, many homeowners are reluctant to give up their low-rate loans, keeping inventory tight and buyers’ purchasing power squeezed.

5. States with the highest and lowest property taxes

Property tax rates swing widely by state, and the elections put the issue in front of voters. The Tax Foundation’s data shows effective rates on owner-occupied homes ranging from 0.29% in Hawaii to 1.88% in New Jersey and Illinois.

Based on the Tax Foundation's rankings, here are the five states with the lowest and highest effective property tax rates.

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

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