Jun 10, 2022

Fed delivers fuzzier rate message as it gauges impact of hikes The Federal Reserve is shifting its message from a destination on interest rate hikes to the impact the Fed policies will have on the economy. As a half-point interest-rate increase is expected in June and July, officials' statements were unclear as their term “financial conditions” is hard to define. Wildfire threat hasn’t deterred purchases in higher-risk areas Median sale prices of homes with high fire risk have increased greater compared to those with low fire risk. The tight housing market in the past year has driven homeownership as a priority above all else, despite concerts of climate risk factors cited. Mortgage statements may be subject to collection rules: 11th Circuit In a recent 11th Circuit Court of Appeals decision, judges ruled that monthly mortgage statements could be considered communications related to the collection of a debt. Attorneys have since warned that servicers need to be more careful about the wording in their billing statements. The ruling reversed a previous decision in the lower court, and could potentially make its way up to the Supreme Court. Home prices surged another 21% in April but experts say it’s not a bubble Home prices continued to increase in April, but the pace seems to be slowing down according to some economists. Most of the homes closed in April had their mortgage rate locked in by March, suggesting that the increase in interest rates will erode affordability, and slow down the increase in house prices. Figure Technologies, Homebridge end merger plans Figue Technologies and Homebridged have ended their planned merger announced last year. Figure’s CEO Mike Cagney cited delays in completing the transaction as the reason the merger will not go forwards. However, the firms remain a partnership in blockchain integration. VantageScore notches a win in FICO-dominated securitization market The credit card issuer Synchrony Financial used VantageScore on a recent $1 billion securitization deal. The deal might suggest a challenge to FICO, the most dominant player in the industry. While VantageScore has much ground to make up to rise to the level of FICO, the deal is significant as Synchrony is among the largest credit card issuers. Figure Technologies, Homebridge end merger plans Figure Technologies and Homebridged have ended their planned merger announced last year. Figure’s CEO Mike Cagney cited delays in completing the transaction as the reason the merger will not go forwards. However, the firms remain a partnership in blockchain integration. Equifax’s credit scoring snafu ensnares lenders An Equifax coding error that affected credit score calculations has led government-sponsored enterprises to remind mortgage companies of their obligation in ensuring accurate credit reports. Any mortgage and application in progress with an error must be resubmitted with an updated credit report. The Federal Housing Finance Agency is working with Fannie Mae and Freddie Mac to identify any impacts. Mortgage economist Frank Nothaft dies suddenly Frank Mothaft, chief economist for CoreLogic, died suddenly on June 5. Nothaft joined CoreLogic in January 2015 after spending 28 years at Freddie Mac rising to chief economist in 2001. Nothaft was held in high esteem, well respected and liked by his peers, even when he might be at odds with them. The cause of death is unknown.