PrimeLending sues Prime Home Lending over trademark infringement

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Programming note: We will be off Friday for Juneteenth. We will be back in your inbox Monday.

1. PrimeLending sues Prime Home Lending over trademark infringement

PrimeLending has filed suit in Texas federal court against Michigan-based Prime Home Lending, alleging the similarly named competitor has caused consumer confusion and reputational harm through aggressive telemarketing tactics.

The company says it fielded numerous complaints from people who mistakenly attributed unwanted calls to PrimeLending, only to discover Prime Home Lending was behind them.

The lawsuit seeks monetary damages and a permanent injunction. It's the latest in a string of mortgage-industry trademark disputes — Fannie Mae and a national insurer have both filed similar suits recently.

2. FHFA pushes for direct power to sue for mortgage fraud

The FHFA wants the power to file civil lawsuits against suspected mortgage fraud directly, the same authority Fannie Mae, Freddie Mac, and the FHLBanks already have.

Alternatively, the agency suggested Congress create a new federal mortgage fraud law it could enforce — modeled on the SEC's direct authority over insider trading. Currently, the FHFA can only refer suspected fraud to other agencies and has limited enforcement power of its own.

Director Bill Pulte, recently named acting director of national intelligence, has been aggressive on this front, filing criminal referrals against Fed Governor Lisa Cook, NY AG Letitia James, and Sen. Adam Schiff, and partnering with Palantir on an AI fraud detection unit at Fannie Mae.

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3. More Nuggets

📊 Mortgage rates are now falling but demand is still weaker. Apps down 3.8%. (CNBC)

⏯️ Mortgage brokers ask FHFA for 12-month delay of Fannie, Freddie condo rules. (HousingWire)

📉 US homebuilder sentiment falls, driven by large drop in South. (NAHB)

🧑‍⚖️ Judge tosses industry challenge to California's zombie second mortgage law. (CalLawyer)

🏘️ A record 242 US cities now have starter homes that cost $1M. (Zillow)

🤖 PennyMac expands AWS partnership to launch borrower-facing voice AI. (AmazonNews)

4. Congress reaches deal on sweeping housing bill after months-long standoff

House and Senate leaders announced a compromise Tuesday on what's being called the largest housing legislation in a generation, ending months of disagreement between the chambers.

• The deal restricts institutional investors from purchasing single-family homes — a provision key to winning White House support — but drops a more controversial measure that would have forced investors to sell off built-to-rent properties within seven years.

The package also includes banking deregulation measures House Republicans insisted on, lets a HUD disaster recovery program expire in three years instead of seven, and bans the Fed from developing a central bank digital currency through 2030.

5. Guild's poaching lawsuit against CrossCountry gets revived on appeal

A California appellate court revived Guild Mortgage's years-old lawsuit accusing CrossCountry of conspiring with one of its branch managers to raid a Kirkland, Washington branch in 2021, sparking a mass employee exodus.

Three justices ruled that Guild's trade secrets claims didn't preempt its other interference claims, and that the departing employees owed Guild fiduciary duties.

• The original case began in 2020, when CrossCountry allegedly worked with Guild's branch employees over 18 months to divert loan pipelines and recruit colleagues. A federal version of the suit was dismissed in 2023, but Guild kept the fight alive in San Diego Superior Court.

Separately, an arbitrator already ordered three former Guild employees to pay $9.8 million combined for the scheme — though it's unclear if that's been resolved, since Guild dropped its enforcement suit last December.

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

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