Incestuous Investigation?

As the chess game between Trump officials, the Democratic party, district judges, and DOGE efforts continues, one development should be interesting to watch: HW reports the Federal Reserve Office of the Inspector General (OIG) has opened an investigation into what Senators Elizabeth Warren and Andy Kim describe as the “dismantling of the Consumer Financial Protection Bureau.” Moves at the bureau include mass personnel reductions and contract cancellations. Opposing party-driven investigations are commonplace; but the appointment of the guy who heads the CFPB - Michael Horowitz - to lead the body investigating it adds an intriguing wrinkle.  

Points to ponder: Chief Economist Lawrence Yun offered some upbeat thoughts at NAR’s recent Residential Economic Issues & Trends Forum. Yun made the following assertions in his speech:  

• "Only the tariffs' impact is being discussed. What about other forces that are less discussed? There are other forces out there; for example, the shelter component is the biggest weight to the price component. The shelter cost is already coming down from its recent cyclical peak, and it's trending downward.”

• "There's a light at the end of the tunnel based on recent rises in mortgage applications to buy a home. Moreover, a solid majority of renters expressed desire to own a home."

Keep the faith and fire up your CRMs.

CHATTER

MBA lauds the Senate's passing of trigger leads bill; President & CEO Broeksmit said, “MBA looks forward to working with the sponsors and House and Senate leadership to reconcile the slight differences in the two bills so that one bill can be passed in both chambers and signed into law as quickly as possible.” 

Judge Blocks CFPB (NMN): The bureau vacated a redlining settlement with Townstone Financial that was based on comments the mortgage lender's CEO made on a radio talk show.

Fairway acquired the assets of Hallmark Home Mortgage.

OpenDoor shrinking again (HW): The iBuyer laid off 40 employees, plans reverse stock split to avoid delisting.

They Said "I Do": Redfin shareholders approved the merger with Rocket on June 4.

Lower Settles Poaching Suit Over Thrive Employees (NMN).

Xpert Lending Gets $185K Fine (NMN): The company must also follow the Washington state regulator's consent order to satisfy violations and continue doing business.

REIT Chimera Investment Corp announced plans to acquire Non-QM lender HomeXpress.

Truliant FCU registered first-ever electronic Home Equity Line of Credit (eHELOC) using DocMagic.

Figure Tech Solutions announced its latest securitization of mortgage assets totaling $355M. The transaction is a landmark achievement as the first of its kind to receive ratings from S&P Global Ratings across all six bond classes, ranging from AAA to B-.

UWM "1-Percenter": Wholesaler brings back 1% down conventional product.

Sox & 77: Ishbias Getting Sportier

Mat Ishbia's brother Justin may be the next majority owner of the Chicago White Sox. He's also building what's thought to be the most expensive home in Illinois history: a $77M lakefront estate in Winnetka.

MOVING & SHAKING

National Mortgage News published executive compensation for publicly-traded IMBs for 2024. Links to compare 2023 comp are provided in article.

Welcome & Congrats: Newrez hired former Rocket tech head Brian Woodring as Chief Info Officer and promoted Felicia Grumet to CFO.

Better hired Leah Price to lead its Tinman™ AI Platform.

Nationwide Mortgage Bankers brought Chris Allen on as Chief Culture Officer.

Evergreen Home Loansexpands into TX, hires Walter Gallipeau as Area Manager.

MARKET/INDUSTRY 

Mortgage Rates Remain Essentially Flat: Freddie 6-12-25  

Mortgage rates have moved within a narrow range for the past few months and this week is no different. Rate stability, improving inventory and slower house price growth are an encouraging combination this National Homeownership Month.

Mortgage Applications Increased 12.5% From One Week Earlier: MBA Weekly Survey for the week ending 6-6-25.  

What's up with energy prices? Bill Bodnar is looking for this week's release of the Fed's updated summary of economic projections and notes that inflation is heading in the right direction - beneath expectations even.  But Israel's latest actions add a layer of uncertainty. Find out in his latest Master the Markets segment.

Whole Lotta Insight: ICE 2025 Borrower Survey

• Finding the lowest interest rate is by far the most important driver for borrowers (72%) followed by low lender fees (50%) when choosing a lender.

• 84% of borrowers say it’s highly important to have personalized communication when working with a lender – this increases to 94% among the highest interest borrowers (6%+ interest rate).

• 59% of borrowers are not definitely sure of how much equity they have accumulated on their property –providing marketing opportunities for lenders.

• Only 35% of respondents said they plan to sell their homes in the next year.

Don’t Go There?  ATTOM Data’s latest Special Housing Risk Report

• California and New Jersey had the highest concentrations of at-risk counties.

• In 109 counties, typical buyers must spend over 50% of their income on home-purchase expenses.

• Southern states dominate the 50 least at-risk counties, led by Tennessee and Virginia.

Starts Down, Finishes Up: ATTOM Data’s Latest Foreclosure Report

• Overall foreclosures fell 1% from April.

• Foreclosure starts declined 4% from April.

• Completed foreclosures rose 7% month-over-month and 34% from May 2024.

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