Editor’s Note: The Mortgage Mix is RISMedia’s biweekly highlight reel of need-to-know mortgage-industry happenings. Watch for it every other Friday afternoon.
-In its lawsuit against Better Home & Finance, Luminate Home Loans filed last week to request a temporary restraining order to prevent Better from building its retail business with Luminate’s former employees and data, according to National Mortgage Professional. The lawsuit, originally filed in early December, alleges Better poached employees to steal trade secrets by hiring former Luminate employees from its NEO division that it began the process of closing back in October. Better filed in response, requesting expedited discovery.
–The Economic Times reported that Incumbent President Trump’s plan to privatize Fannie Mae and Freddie Mac looks to be materializing as his entrance into office approaches. The FHFA and the Treasury Department recently amended their agreements with Fannie and Freddie, an initial step toward privatizing the GSEs. The move comes after Trump backer and hedge fund tycoon Bill Ackman said that ending the conservatorship of the GSes could provide an estimated additional federal profit of $300 billion.
-Former Fannie Mae Vice President of Single-Family Mortgage Andrew Bon Salle has been appointed to Mr. Cooper’s board of directors, as reported by MortgagePoint. Bon Salle is an industry veteran with over 30 years of experience, including recently as the chairman of Home Point Capital Inc.’s Board of Directors. “I am thrilled to join the Mr. Cooper Group board and contribute to the ongoing evolution of the homeownership journey while supporting and mentoring the next generation of industry leaders,” Bon Salle said.
-Customers suing Mr. Cooper over a data breach revealed in a court filing that the lender paid an eight-figure sum to hackers who breached the company’s systems in 2023, according to National Mortgage News. The plaintiffs are arguing this large payment proves the attack was more significant than Mr. Cooper has represented, also alleging hackers probably didn’t delete customer data even after the payment.
-The CFPB is suing Rocket and real estate brokerage The Jason Mitchell Group over an alleged kickback scheme. Rocket Homes allegedly provided real estate brokerages with referrals and preferential treatment in exchange for client leads to Rocket Mortgage for home loans and to Amrock for title and closing Services, though both Rocket and the Jason Mitchell Group have strenuously denied wrongdoing.
