Washington state charges Newrez with mortgage servicing violations, seeks $4M fine

🍺 Friday. Here's the news we're closing out the week with — a quick 2-minute read.

1 great quote: "If you do not know which port you are seeking, no wind is favorable."

1. Washington state charges Newrez with mortgage servicing violations, seeks $4M fine

Washington's Department of Financial Institutions filed charges against Newrez following an investigation of more than 125 consumer complaints, alleging repeated servicing violations between 2021 and 2026.

• The charges include failing to mediate in good faith during foreclosure proceedings, incorrectly onboarding loans leading to PMI errors and inaccurate credit reporting, misapplying mortgage payments, improperly force-placing insurance on borrowers who already had coverage, and failing to respond timely to the state's complaint investigations.

DFI is seeking $4.175 million in fines and broad consumer remediation. Newrez said it received no prior notice, called the action a surprise, and said it intends to vigorously contest the charges.

2. Purchase demand falls year-over-year for the first time since January 2025

Mortgage rates dipped slightly to 6.51% last week but not enough to move the market. Purchase apps rose 1% week-over-week but fell 7% year-over-year — the first annual decline in over a year.

Refi apps dropped 3% for the week and are now also down 4% year-over-year, the first such decline since January 2025.

FHA purchase apps bucked the trend, up 5% for the week, helped by FHA rates running about 30 basis points below conventional. Rates are likely to move lower this week after Trump announced a two-week ceasefire Tuesday night, sending 10-year Treasury yields sharply lower.

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3. More Nuggets

👋 The workers opting to retire instead of taking on AI. (Axios)

🏡 Mortgage credit availability edges higher in March. (MBA)

👷 KB Home shifts HQ to Tempe as California exodus continues. (CoStar)

🏦 The Fed is putting rate hikes back on the table. (Reuters)

📊 Home builders' stocks are getting a big boost from the cease-fire. (MorningStar)

4. UWM launches 50-bps purchase incentive as pricing war with Rocket intensifies

UWM is offering brokers a 50-basis-point credit on purchase loan locks between April 8 and April 14, covering conventional and government loans on primary, second home, and investment properties for borrowers with 700+ FICO scores.

The five-day window is deliberate — designed to create urgency during peak purchase season. It follows a string of recent UWM promos including a 75-bps refi incentive and a $600 appraisal credit.

On the other side, Rocket Pro is running its own "Power Play" program with recurring monthly pricing incentives. The contrast: UWM goes with short, high-impact bursts; Rocket with a steady ongoing cadence. Both are chasing the same purchase business in a market where small pricing edges are often the deciding factor.

5. New Cheval Holdings acquires Surge

Surge, a partner intelligence platform used by wholesale lenders to manage broker onboarding, compliance monitoring, and production visibility, has been acquired by New Cheval Holdings.

Jimmy Gillespie, who comes from private equity and management consulting, takes over as CEO, replacing founder-led management. Co-founder Matt Hawkins is stepping back. COO David Casti stays on for continuity.

The platform supports more than 10,000 active broker relationships through two products — one handling counterparty risk and compliance, the other giving account executives live production data and job change alerts on brokers across their territory.

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

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