In November's news roundup in the mortgage industry, dive into a behind-the-scenes look at the troubles facing USAA, Rocket Cos.' $481 million third quarter net losses, executive changes commingle with legal challenges at Movement Mortgage and more.
'Fundamental breakdown': How USAA landed in regulators' hot seat
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Few companies can match USAA's stellar reputation, gained over a century of offering financial products to military members. But behind the scenes, the San Antonio bank and insurer is navigating a minefield of its own making.
USAA's banking arm has grown its customer base for years, all while failing to make the investments needed to keep both its regulators and some decades-long customers happy, according to a joint investigation by American Banker and the San Antonio Current.
A series of regulatory penalties hasn't sparked enough internal change. Neither has the reshuffling of key leaders, the latest move being the upcoming retirement of CEO Wayne Peacock. Another problem: nonexistent profits at USAA's bank, which has turned to layoffs to cut costs.
'Be nimble': Mortgage lenders, experts mull the Trump effect
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Donald Trump's
Mortgage players generally tight-lipped before the election's results are now reacting with uncertainty around
Rocket Cos. posts $481 million net loss in Q3
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Rocket Cos. reported a $481 million net loss in the third quarter, driven by a massive decline in the valuation of mortgage servicing rights.
The stark figure comes after profits of $178 million and $114.9 million in
Rocket's adjusted net income of $166 million was an improvement from the $121 million mark in the second quarter, and just $7 million in the year ago period.
HELOCs with expanded criteria are trending among lenders
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More mortgage companies have moved into expanded-parameter home equity line of credit programs recently as rated securitizations have grown and volumes are set to expand further in 2025.
Direct-to-consumer lender Achieve announced earlier in November that it increased the limit for its program to $300,000 from $150,000 while adding 20- and 30-year term loans to its lineup. Previously, only 10- and 15-year terms were available.
Deephaven Mortgage launched a new HELOC program available to brokers and correspondents at the Mortgage Bankers Association's annual convention last month.
Elon Musk wants to 'delete' the CFPB. Could he?
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WASHINGTON — Elon Musk said the Consumer Financial Protection Bureau should be eliminated, calling the bureau an example of "too many duplicative regulatory agencies."
The call comes after Marc Andreeson, the Silicon Valley venture capitalist, said on a Joe Rogan podcast that the bureau was "terrorizing financial institutions."
Andreeson has a long history with the bureau. The CFPB said earlier this year that it had returned nearly $40 million to consumers from a fintech company called LendUp Loans, which was backed by Andreeson's firm Andreeson Horowitz.
Mortgage defect growth points to emerging concern
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As both origination volume and interest rates increased during the second quarter, mortgage defect rates rose too, increasing by nearly 15% compared with the first quarter, Aces Quality Management said.
This marks the second consecutive quarter where defect rates were higher. That, along with the fact they are inching up back to the 2% level, is troubling, the accompanying report said.
Defects were over 2% for six of the eight quarters between the third quarter of 2020 and third quarter of 2022. These are potential red flag indicators for, but not necessarily proof of, mortgage fraud.
Bipartisan group asks FHFA to stop title waiver pilot
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As the federal government prepares for a change in administrations, a bipartisan group from the House of Representatives sent a letter to the Federal Housing Finance Agency asking for the title waiver pilot to be put on hold.
The letter disparages FHFA's insinuation, as well as statements from the Consumer Financial Protection Bureau, that
"We ask that the pilot be halted until FHFA solicits public input and thoroughly vets the pilot, as called for in the FHFA's
Voters passed these property tax changes in local elections
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Citizens in several states voted for initiatives that aim to make it a little (or a lot) cheaper to own a home next year.
Residents in two southern states
"Every movement towards a little bit more affordability is a good move," said Eddie Blanco, a Realtor with Stratwell and chairman of the board-elect for the Miami Association of Realtors. "It just hedges the concern that people have about inflation, and the impact that has on taxes."
Southern Trust sues Movement Mortgage for "abetting" ex LO
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Southern Trust Mortgage is suing one of its former loan officers and her current employer, Movement Mortgage, for pocketing customers and a massive amount of data prior to leaving.
Southern Trust accuses Grace White, currently an LO at Movement, of flouting her noncompete agreement and stealing company trade secrets. Movement, also included as a defendant in the suit, is being accused of aiding and abetting the breach of White's fiduciary duty for its own benefit.
Per the complaint, White, who worked at Southern Trust from 2022 to 2024, copied 5,109 files containing confidential documents, including customer leads, onto a thumb drive before leaving for Movement Mortgage on Oct. 16, 2024. In addition to the USB drive, Southern Trust's investigation found that White encouraged her borrowers to switch to Movement before her departure.
Movement Mortgage hires new president, CFO
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Movement Mortgage hired Steve Smith to fill the role of president and chief financial officer.
Smith, who previously served as an executive advisor at Movement, will now be in charge of overseeing all sales, operations, finance and corporate functions at the company.
Movement's new C-suite executive has three decades of leadership experience in the mortgage industry, previously holding senior positions at Stearns Lending, Caliber Home Loans, Bank of America and Countrywide.
