Editor’s Note: The Mortgage Mix is RISMedia’s weekly highlight reel of need-to-know mortgage-industry happenings. Watch for it each Friday afternoon.
-A rule to create more standards and quality controls for automated value models (AVMs) that are used in mortgages was finalized earlier this month. The changers were originally championed by Vice President Kamala Harris in 2023, who at the time said the new agency rule could help address racial bias and a deep racial homeownership gap.
-Texas-based lender Mr. Cooper announced that it is buying Flagstar Bank’s mortgage servicing business for $1.4 billion, according to the National Mortgage Professional. A release by Mr. Cooper called the acquisition “a major step-up in scale,” as the company adds roughly $356 billion in unpaid principal balance to its portfolio.
-Mortgage rates this week came in flat, according to the latest survey from Freddie Mac. At 6.77%, rates have declined from their peak earlier this year, but remain higher than many housing economists hoped for back when the Federal Reserve was expected to make multiple rate cuts in 2024.
–PCE inflation, the Fed’s preferred gauge of price increases, came in at or below expectations, boosting hope for at least one rate cut by the end of the year. At least one housing industry expert said the report “should seal the deal” for a decrease in rates at the Fed’s September meeting.
-A joint statement from three federal agencies—Federal Deposit Insurance Corp. (FDIC), the Federal Reserve Board and the Office of the Comptroller of the Currency—put out a public warning about banks partnering with fintech platforms for essential services, according to National Mortgage News. Without changing any regulations, the agencies warned that outsourcing operational services like payment processing or transaction records can confuse consumers and create compliance issues.
