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- Finding $40B
Finding $40B
By Jeff Walton & Kelly Guest
Move over personally identifiable information, there may be a new PII in town: Principal, interest, taxes, and insurance may drop the “T” if Florida Governor Ron DeSantis gets his way. Sunshine state lawmakers are considering legislation to begin the process of ending property taxes and the governor is on board: “Is it your property or not? You’re basically paying rent to the government to live on your own property,” Ron DeSantis noted. Fines, fees and sales taxes are among the ways the state may fund schools and public safety in lieu of the approximately $40B it collects annually in property taxes.
Many don’t consider elimination of property taxes to fall in the “doom and gloom” category, but there were some dark undertones in Washington D.C. last week: The day before the Ukrainian president was shown the door at the White House, Democrat Senator Jack Reed told Consumer Financial Protection Bureau Director nominee Jonathan McKernan that he had a “sinking feeling you’re departing Liverpool on the Titanic.”
CHATTER
DISMISSED: CFPB Dropping Several Complaints
The bureau dropped “kickback” claim against Rocket and the Jason Mitchell Group (HW), the lawsuit against Vanderbilt Mortgage (NMN), and a suit against Capitol One (AP).
AGs FIGHT FOR CFPB: 23 State Attorneys General File Suit to Save Bureau (NMP)
The states argue that dismantling the CFPB would harm consumers and make consumer protection laws harder to enforce.
CFPB Employees' Union Sues Over Shutdown: The National Treasury Employees Union said, "By ordering employees of the Consumer Financial Protection Bureau to stop work, the administration has unlawfully trampled the power of Congress to create a federal agency that it deemed necessary to protecting American consumers [ ]."
Scott Turner Terminates AFFH Rule
The HUD Secretary announced they are ending the Biden-era 2021 Affirmatively Furthering Fair Housing (AFFH) rule. HUD's release called the rule a “zoning tax, which fueled an increase in the cost and a decrease in the supply of affordable housing due to restrictions on local land."
UWM Releases Q424 Earnings, Ishbia Praises Trump Agenda During Call: Total loan origination volume was $38.7 billion for the fourth quarter 2024 and $139.4 billion for the full year 2024. The Company reported 4Q24 net income of $40.6 million and full year 2024 net income of $329.4 million.
Rocket Released Q424 & Full Year Earnings
Generated total revenue, net of $5.1B and GAAP income of $636M, or $0.21 earnings per diluted share. Generated total adjusted revenue of $4.9B and adjusted net income of $456M, or adjusted earnings of $0.23 per diluted share.
Rocket Mortgage generated $100.8B in net rate lock volume, up 28% YoY
Rocket Mortgage generated $101.2B in closed loan origination volume, up 29% YoY
Mr. Cooper Cutting 400 Flagstar Employees: NMN
Hundreds of former Flagstar employees will not transition to Mr. Cooper after the $1.4B purchase of their servicing and TPO operations is completed early this year.
$200M JV: Figure Tech Solutions announced a new joint venture vehicle in which Sixth Street’s Asset Based Finance platform has committed to invest $200M of equity.
Suspicious Minds:Lisa Jeanine Findley pleaded guilty to trying to stealElvis Presley's Gracelandusing a fake company, forged documents, and false court filings claiming Lisa Marie Presley took out and defaulted on a loan before her death.
MOVING & SHAKING
Zillow announced the promotion of two executive leaders: Michael Sherman to senior vice president of Zillow Rentals and Cynthia Taylor to senior vice president of Agent Software and Advertising.
US Mortgage welcomed Lindsi Flynn as Chief Marketing Officer.
Regions Bank named Drew Chuba SVP of its Home Loan Direct Team.
MARKET/INDUSTRY
Nice little ride to a Laborious Week: In his latest Master the Markets segment, Bill Bodnar notes that while rates have come down, inflation is still up and the markets are looking forward wondering about tariffs and all the jobs and labor news to be released this week.
Mortgage Rates Continue to Drop: Freddie 2-27-25
This week, mortgage rates decreased to their lowest level in over two months. The drop in mortgage rates, combined with modestly improving inventory, is an encouraging sign for consumers in the market to buy a home.
Mortgage Applications Decreased 1.2% From One Week Earlier: MBA Weekly Survey for the week ending 2-21-25. Notable highlights:
Though the Refinance Index decreased 4% from the previous week, it was up 45% YoY
Homebuyer affordability declined in January, with the national median payment applied for by purchase applicants increasing to $2,205 from $2,127 in December. This is according to the MBA’S Purchase Applications Payment Index (PAPI)·
No-Go: Redfin Says 1 in 7 Pending Sales Falling Out
41,000 U.S. home-purchase agreements fell through in January, equal to 14.3% of homes that went under contract that month. That’s up from 13.4% a year earlier, and the highest cancellation rate for this time of year since at least 2017.
Nearly 1/2 of Homeowners Freaked About Taxes & Insurance Costs: Maxwell Survey
46% said rising insurance and tax rates have caused them to question their ability to afford their homes
44% said their homeowners’ insurance rose increased their monthly payments by 10-20%, while 13% said their monthly payments rose 20-30%
49% are somewhat concerned that homeowners’ insurance rates will rise within 2 years, 44% are extremely concerned
POOR PENDINGS – BLAME THE WEATHER? NAR January PHS
The Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on contract signings – fell 4.6% to 70.6 in January, an all-time low. (Last year's cyclical low point in July 2024 was revised from 70.2 to 71.2.) Year-over-year, pending transactions declined 5.2%. An index of 100 is equal to the level of contract activity in 2001.
Pending home sales in January dropped 4.6%.
Compared to one month ago, pending home sales retreated in the Midwest, South and West, while the Northeast underwent a slight increase.
Year-over-year, contract signings declined in all four U.S. regions, with the South showing the largest reduction.
"It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months. However, it's evident that elevated home prices and higher mortgage rates strained affordability." - NAR Chief Economist Lawrence Yun
INFLATION SUCKS, PEOPLE WANT MONEY HELP: Wells Fargo
76% of Americans are cutting back on spending, up from 67% in 2024, according to findings from the second annual Wells Fargo Money Study.
People want money advice: Last year, 24% said they were seeking more advice from others; this year it’s 36%. Looking across generations, the desire for more advice is higher with teens (54%), Gen Z adults (61%) and Millennials (46%).
LATE BLOOMERS: Young People Hold Less Than 5% of Mortgages in Top U.S. Metros (LendingTree)
Only 3.1% of adults younger than 30 have a mortgage in the 50 largest U.S. metros.
People younger than 30 make up 4.7% of mortgage holders in the 50 largest metros, despite comprising 20.3% of the adult population in those same metros.
Younger buyers on the LendingTree platform looked for mortgages to purchase homes in the 50 largest metros costing an average of $92,332 in 2024. That’s 74.9% lower than the average of $367,681 from older buyers.
Overall, people 18 to 29 owe a total of $527 billion in mortgage debt, or 4.2% of all mortgage debt.
DELINQUENCIES HIGHEST IN 5 YEARS: VantageScore CreditGauge 1-25
Auto Loan Delinquencies Rose
New Credit Card Account Growth Declined
Credit Balances Rose Sharply: In January 2025, overall credit balances increased to $105,700, up $1,049 (+1.0%) from December 2024, representing a four-year high. Mortgages largely drove the increase. Credit balances also ticked up by $1,350 (+1.3%) compared to January 2024. Elevated housing costs and high interest rates are making it more challenging for consumers to pay down mortgage debt.