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- Two mortgage lenders are headed to trial
Two mortgage lenders are headed to trial
Plus: GO Mortgage and PacRes announce merger, Equifax sued
🌅 GM. Happy New Week! Today’s newsletter is 564 words, a 2.5-minute read.
Disclaimer: Average mortgage rates as of May 31, 2024. © MND's Daily Rate Index.
1. Lenders file a class-action lawsuit against Equifax
Equifax has been hit with a proposed class action lawsuit accusing it of monopolizing the market for electronic income and employment verification services.
The suit, filed by home mortgage lenders Greystone Mortgage and First Financial Lending, was brought before the federal court in Philadelphia on Tuesday.
The lawsuit alleges that Equifax, through its Equifax Workforce Solutions unit, has created a “stranglehold” on a critical verification process used widely in consumer finance, per Reuters. LINK
2. Mortgage payments increased 6.8% annually to $2,256 in April
The Mortgage Bankers Association (MBA) released the latest results of its Purchase Applications Payment Index (PAPI) on Thursday, here are the key findings:
The national median mortgage payment was $2,256 in April—up $55 from March. It is up $144 from one year ago, equal to a 6.8% increase.
The national median mortgage payment for FHA loan applicants was $1,955 in April, up from $1,898 in March and up from $1,750 in April 2023.
The national median mortgage payment for conventional loan applicants was $2,271, up from $2,222 in March and up from $2,170 in April 2023.
“Homebuyer affordability conditions declined further as mortgage rates remained above 7 percent in April, sidelining many prospective buyers from entering the housing market,” said Edward Seiler, MBA’s Associate Vice President
3. More Nuggets
💸 Home sellers are cutting asking prices at the highest rate since 2022. (Redfin)
😬 Starter homes are turning into forever homes. (Axios)
🇺🇸 Charted: Where home prices are rising in the U.S. (Axios Visuals)
4. GO Mortgage and PacRes announce merger
Ohio-based GO Mortgage and Oregon-based Pacific Residential (PacRes) Mortgage have announced a merger, expected to close in the third quarter of 2024.
"By uniting our unique capabilities and resources, we will achieve significant operational improvements and foster innovation," said Michael Isaacs, CEO of GO Mortgage, in a press release.
According to the merger agreement, Stashin, CEO of PacRes will join the GO Mortgage board of directors, Isaacs, CEO of GO Mortgage will be the combined company CEO, and Melissa Stashin, the president and co-founder of PacRes, will become president of the merged business. LINK
5. Two mortgage lenders are headed to trial
Mutual of Omaha Mortgage is taking Waterstone Mortgage to trial over claims of employee poaching and trade secret theft.
Waterstone lured Mutual of Omaha branch managers with payments of $250,000 and $500,000 to switch firms and solicit team members, according to case filings. Employees allegedly took with them customer information, and their departures forced the closing of branches in Daytona and Tampa in Florida, and Paramus, New Jersey.
"The court will allow damages regarding the loan volume attributable to branch managers to be considered if the evidence establishes the managers were unlawfully solicited by other employees," wrote Anthony E. Porcelli, a magistrate judge for the U.S. District Court of Florida's Middle District.
☀️ You’re all caught up. See you on Wednesday!
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