How mortgage brokers can tap into underserved VA markets

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1. How banks are competing for borrowers at 7%

With originations slowing and affordability stretched, major banks are rolling out incentives to keep mortgage activity alive.

• Chase is running a limited-time rate sale through October 4 offering up to 0.25% off purchase and refi rates

• Bank of America is offering grants of up to $17,500 toward down payment and closing costs, with $15 billion in affordable loans delivered to 57,000+ buyers since launch

• Wells Fargo is rewarding existing customers with rate discounts and closing cost credits based on combined account balances

• Citizens Bank expanded its nonagency product suite and added state-specific affordable housing programs

• Navy Federal launched a no-refi rate drop letting borrowers lower their rate after six on-time payments for $250, and will match a competitor's locked rate or pay $1,000 if the member closes elsewhere

2. NFM Lending hit with lawsuit after ransomware group claims 2.5TB data theft

Ransomware group Interlock claims it stole more than 2.5 terabytes of data from NFM Lending around September 7, including customer Social Security numbers and financial account information.

A proposed class action was filed September 16 in Maryland federal court, alleging NFM had not notified affected customers as of the filing date — leaving them unable to freeze credit or flag accounts.

NFM confirmed unauthorized access to its systems and said it has brought in a third-party forensics team. The company did not confirm how many customers were affected and called the lawsuit an attempt to "revictimize organizations."

Simplify non-QM deposit-based income calculations

If you’re doing non-QM loans, handling the calculations for deposit-based income is a time-consuming process that can be a breeding ground for errors. Cotality’s Cash Flow Analysis solution can help you automate many steps of the deposit-based income process:

• Replace spreadsheet heavy processes with automated data ingestion.

• Use rules-driven framework to standardize how transactions are included or excluded, driving consistency across your organization.

• Automatically identify missing statements or potential document alterations

• Get a clear, audit-ready record of your results.

Schedule a demo today and see how you can save hours on your income calculations and take the hassle out of the process.

3. More Nuggets

🆕 Guaranteed Rate, MBA, Movement Mortgage name new VPs. (NMN)

📝 How mortgage brokers can tap into underserved VA markets. (HousingWire)

📊 Thinking about buying stocks instead of a home as mortgage rates top 7%? (Fortune)

📈 Key data this week seen bolstering case for October rate hike. (Yahoo)

4. Experian integrates income verification platform with Workday

Experian has connected its Verify income and employment verification platform with Workday, giving lenders real-time access to payroll data from one of the largest HR software providers.

The integration supports mortgage, auto, rental, and other financial product verifications and reduces the need for manual documentation that typically slows loan decisions.

Experian says its Verify network now has a path to cover more than 80 million U.S. payroll records — more than half of all U.S. payroll employees. The Workday integration launches as part of Workday Total Benefits in late October.

5. Judge dismisses UWM 401(k) lawsuit

Former UWM employees sued the company for using forfeited 401(k) funds — the unvested portions left behind by employees who quit early — to reduce UWM's own employer contributions rather than cover plan expenses. The plaintiffs argued this cost participants up to $1.86 million and created a conflict of interest.

Judge DeClercq found the plan's language permits — but does not require — forfeitures to be used for administrative expenses, meaning UWM was within its rights to apply them toward reducing contributions instead.

The court also rejected claims of conflict of interest and prohibited transactions, finding ERISA allows an employer to serve as both plan sponsor and administrator. The dismissal relied in part on a 1984 Sixth Circuit precedent that limited the plaintiffs' ERISA claims.

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

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