The Mortgage Mix: Industry Updates and Trends
Editor’s Note: This article serves as a biweekly overview of crucial mortgage industry developments. Stay informed with our insights every other Friday.
March Mortgage Rates See Fluctuations
As March commenced, mortgage rates experienced a notable decline, hitting a low of 6.63% for the 30-year fixed mortgage, the most favorable figure since September 2024. However, by the second week of the month, rates slightly increased to 6.65%. Joel Kan, Vice President and Deputy Chief Economist at the Mortgage Bankers Association (MBA), indicated that this rate drop was influenced by decreasing consumer confidence and uncertainties stemming from the Trump administration’s proposed tariffs.
Increased Activity in Mortgage Applications
The decline in mortgage rates has spurred a rise in both purchase and refinance applications. “As we enter the spring home-buying season, the purchase index was over 4% higher than one year ago, with activity surging across all loan categories,” Kan stated.
Regulatory Changes on the Horizon
Michelle Bowman, a Fed board member, is anticipated to be appointed as the new vice chair for supervision at the central bank, a role crucial for overseeing regulations. Reports from National Mortgage News and other sources suggest that Bowman’s non-traditional background may lead to a more lenient approach to regulation and heightened caution regarding interest rate cuts.
Major Acquisitions in the Industry
Rocket Acquires Redfin
In significant news, Rocket, the parent company of Rocket Mortgage, has agreed to acquire Redfin for an impressive $1.75 billion. Redfin’s CEO, Glenn Kelman, will continue in his role. Rocket CEO Varun Krishna expressed support for Redfin’s recent collaboration with Zillow, a major competitor. This acquisition follows a strong performance for Rocket, which reported a net income of $456 million and closed loan originations totaling $23.6 billion in its Q4 2024 earnings call.
Pulte Appointed as FHFA Director
Bill Pulte, a private equity executive, has been confirmed by the Senate as the new Director of the Federal Housing Finance Agency (FHFA), receiving support from organizations such as the National Association of REALTORS® (NAR) and the MBA. Pulte has shown backing for the administration’s efforts to release Fannie Mae and Freddie Mac from government conservatorship.
Guild Holdings Reports Strong Performance
Guild Holdings Company, the parent entity of Guild Mortgage Company, announced a successful fourth quarter and a strong overall performance for 2024, achieving net revenue of $1 billion. The company documented $24 billion in originations throughout the year, with a 57% year-over-year increase in the fourth quarter. CEO Terry Schmidt credited the success to their strategic execution and growth in market share.
Company Innovations and Initiatives
Mr. Cooper Expands AI Capabilities
Mr. Cooper, a mortgage servicer, reported a net income of $204 million in 2024 during its Q4 earnings call. The firm is shifting focus towards AI and automation, highlighting its AI-powered coaching platform, Agent IQ, which is currently analyzing 400,000 calls monthly.
Union Home Mortgage Acquires NRL
Union Home Mortgage has completed the acquisition of Houston-based Nations Reliable Lending (NRL) Mortgage, which closed over $1 billion in lending during 2024. NRL’s CEO, Mewael Ghebremichael, expressed excitement about the merger, emphasizing a shared commitment to enhancing borrower experiences.
Legal Challenges for Union Home Mortgage
Additionally, Union Home Mortgage has filed a lawsuit against nine former employees for allegedly breaching non-compete agreements by moving to competitor American Pacific Mortgage. The accusations include soliciting fellow employees and misappropriating company information, with the company seeking damages exceeding $75,000 from each individual.
Leadership Changes at loanDepot
In leadership news, loanDepot’s CEO Frank Martell is set to transition to an advisory role in June 2025, with a search for his successor already underway. Concurrently, loanDepot’s founder, Anthony Hsieh, will shift his focus to the role of executive chairman of mortgage originations.
