Fintech
Regulators Issue Warning on FinTech — RISMedia
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-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 changemakers were originally championed by Vice President Kamala Harris in 2023, who said at the time that the agency’s new rule could help address racial bias and a deep racial gap in homeownership.
– Lender based in Texas Mr. Cooper announced the purchase of Flagstar Bank’s mortgage servicing business for $1.4 billion, according to the National Mortgage ProfessionalA statement from Mr. Cooper called the acquisition “a major step forward in scale,” as the company adds about $356 billion of unpaid principal to its portfolio.
-Mortgage rates remained unchanged this week, according to the latest Freddie Mac survey. At 6.77%, rates have fallen from their peak earlier this year, but remain higher than many housing economists had hoped. when the Federal Reserve was expected to make multiple rate cuts in 2024.
–PCE inflation, the Fed’s preferred gauge of rising prices, came in at or below expectationsreinforcing hopes of at least one rate cut by the end of the year. At least one real estate expert said the report “should seal the deal” for a rate cut at the Fed’s September meeting.
-A joint statement by three federal agencies: the Federal Deposit Insurance Corp. (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency—has released a public notice on partnerships between banks and fintech platforms for essential services, according to National Mortgage NewsWithout changing any regulations, the agencies warned that outsourcing operational services such as payment processing or transaction recording can confuse consumers and create compliance issues.