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.
-The Senate last week passed a bill that would ban so-called “trigger leads” in the mortgage industry, with the legislation receiving widespread support from the industry. Trigger leads, which allow consumer information to be sold after a credit inquiry, often result in misleading or annoying solicitations and raise privacy concerns. It was not clear at press time when or if the House would take up the bill.
-The Consumer Financial Protection Bureau (CFPB) issued a final rule on Property Assessed Clean Energy (PACE) loans meant to fund energy-efficient improvements to properties but had been abused by “unscrupulous” companies, according to the CFPB. The new rules require more disclosures from companies and are intended to prevent consumers from being saddled with “unaffordable” loans.
-Despite cutting the flagship federal funds rate by another 25 basis points, the Federal Reserve expressed some concerns about the progress of inflation and lowered its projections for future rate cuts. As recent inflation data has shown slight upticks in price increases, Fed Chair Jerome Powell said the central bank wants to see “further progress” after “sideways” movement in key metrics.
-A federal judge in California is allowing two out of three class-action claims against Wells Fargo to move forward, according to National Mortgage News, as a real estate agent alleges that the lender engaged in a scheme to force borrowers to pay excessive lock-in fees. According to the lawsuit, Wells Fargo engaged in the “systemic” practice of delaying applications and misleading customers to collect fees, resulting in billions of dollars collected by the bank.
-Michigan-based Flagstar Bank is required to pay a $3.6 million fine based on “misleading” the public about a 2021 cyber attack. According to Newsday, the bank settled with the SEC after making materially misleading statements and paying a $1 million ransom to hackers, also failing to disclose that customer information was posted on the “dark web.”
-California-based Cross Country Mortgage also resolved a significant legal action, reaching a preliminary settlement with rival American Mortgage Network over alleged loan officer poaching. Terms were not disclosed, according to National Mortgage News. Other large lenders, including LoanDepot, have sued Cross Country with similar claims.
-United Wholesale Mortgage CEO Mat Ishbia said in a video address that he expects credit score report costs to remain elevated, with scheduled royalty increases on track for 2025. According to National Mortgage News, Ishbia urged the industry to “understand the new world we live in” and assess how the new costs will impact mortgage businesses.
