-Hallelujah! After almost a full year of rising rates, the 30-year fixed fell more than 25 basis points, according to Freddie Mac. Mortgage applications saw a corresponding bump, with hopes that further rate relief could boost the market through the winter season.
-Texas-based mortgage loan servicer and originator Mr. Cooper sustained a major data breach, admitting yesterday that customer data was compromised during an ongoing cyberattack. Many of the company’s systems have been offline since Oct. 31, though some are being restored as of today, Mr. Cooper said on its website.
-Detroit-based United Wholesale Mortgage, one of the largest lenders in the country, reported its Q3 earnings this week, pulling in $301 million in net income despite overall headwinds across the industry. CEO Mat Ishbia called profitability “the true barometer of our success” as many other lenders continue to struggle.
–California-based Guild Mortgage was not one of those struggling companies, as it also reported an increase in net income on a Q3 earnings report. Raking in $54.2 million, Guild plans to focus on retail purchase loans as a more stable source of revenue.
-Another major lender and servicer, LoanDepot, did not manage to defy market pressure this quarter, reporting $34 million in losses and foreshadowing potential layoffs and cutbacks. CEO David Hayes cited the continued challenges of high rates combined with low housing inventory, but claimed most cuts would not be headcount-related.
–A new report from the Urban Institute on AI in mortgage lending found that most big lenders are already using artificial intelligence in their businesses. The qualitative study, undertaken in partnership with the Federal Home Loan Bank of San Francisco, urges increased federal guidance and a focus on bias and equity in the further implementation of AI.
