Ex-employees sue Direct Mortgage and CEO for fraud and unpaid wages

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1. Mortgage demand surges 11%

Mortgage applications jumped 11% last week as rates remained at their lowest level since 2022, driving strong gains in both refinance and purchase activity, according to the Mortgage Bankers Association.

Key numbers:

• 30-year fixed rate unchanged at 6.09% — lowest since 2022

• Refinance applications up 14.3% for the week, 109% higher year-over-year

• Purchase applications up 6.1% for the week, 10% higher year-over-year

Refinance boom continues: Refinance applications increased for the fourth straight week to their strongest pace since 2022. Rising average loan sizes indicate more borrowers with larger mortgages are seeking payment relief.

2. Ex-employees sue Direct Mortgage and CEO for fraud and unpaid wages

Two former employees sued Direct Mortgage and CEO James “Jim” Beech in federal court in Utah on February 20, 2026. They seek over $750,000 for alleged fraud, unpaid wages, unpaid commissions and bonuses, and a $200,000 unpaid loan.

The plaintiffs say Beech recruited them with claims of $3.2 million in working capital and effective proprietary technology. They allege the technology failed and the company lacked the represented financial stability.

They claim they loaned the company $200,000 that was never repaid. They also allege violations of federal and Texas wage laws for unpaid minimum wage, overtime, commissions, and bonuses.

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4. Charted: The share of each state’s single-family housing stock used as rentals

According to BatchData, nearly 18% of America’s single-family housing stock is now rental—though levels vary widely by state.

5. Experian raises mortgage credit report fees again

Experian is imposing another price increase on mortgage credit reports, according to resellers, marking a rare mid-cycle hike. Executives estimate the increase at about 3%, or roughly $3 per borrower on a tri-merge report. They say overall mortgage credit report costs have risen as much as 50% in 2026.

The change comes as the Federal Housing Finance Agency allows Fannie Mae and Freddie Mac to purchase loans scored with VantageScore 4.0, increasing competition with FICO. A national ban on abusive trigger leads is also taking effect.

Resellers contend mortgage lenders are uniquely affected because they must obtain reports from all three bureaus. The Community Home Lenders of America and the Mortgage Bankers Association criticized the increase and renewed calls for more competition and reform of the mandatory tri-merge requirement.

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

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