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Mortgage application defect rates increased over 15% in the second quarter, but executives at Aces Quality Management described the change as nuanced, related to such areas as appraisal and borrower eligibility.It is the second consecutive quarter the rate has increased, coming off of a low of 1.16% in the fourth quarter last year."The rise was mainly in specific categories such as appraisals and eligibility-related areas," Nick Volpe, executive vice president at Aces. "Meanwhile, other key underwriting areas saw notable improvements. This mixed performance demonstrates the importance of continuous monitoring and targeted quality control efforts."Aces examines closed loan files. The second quarter defect rate of 1.51% compares with 1.31% in the first quarter and 1.81% one year prior.The increase was driven by higher defect findings covering collateral, loan eligibility and regulatory-related categories offsetting improvement in other areas.Aces uses the Fannie Mae loan defect taxonomy to categorize its findings.This report comes on the heels of two other studies. Cotality found that one in every 118 mortgage applications had indicators of misstatements in the second quarter. Its Mortgage Fraud Application Risk Index was at 132 for the third quarter. While this was down by 2.7% from the second quarter, it rose by over 8% on an annual basis.Meanwhile, a separate study from Transunion found that credit washing activity, the act of boosting one's score by falsely claiming tradelines contained inaccurate information, rose 700% in the last two years. While more commonly seen for auto loans, this activity has leached into the mortgage and home equity lending space, observers noted.Freddie Mac unveiled its Quality Control Advisor Plus on Nov. 17, as part of its program to cut down on misrepresentations in loan files.Even if they use this technology, lenders are still obligated to maintain a robust QC function prior to delivering loans to Freddie Mac, noted Phil McCall, Aces president and chief operating officer.What type of application defects is Aces findingIncome and employment defects, whose occurrence rate fell quarter-to-quarter to 18.45% from 22.99%, was still the leading finding by Aces in its QC loan file reviews.Legal, regulatory and compliance was the second most frequent finding, at 16.24%, up from 14.94% three months prior.Borrower and mortgage eligibility defects had one of the most significant increases, to 15.87% from 6.9% in the first quarter.Appraisal also had a large percentage gain, with the finding found in 5.9% of second quarter reviews, up from 2.3% in the first quarter.Purchases made up 82.7% of audits in the second quarter, with the defect share at just under 74%; in the first quarter this was 87.6% and 80.4% respectively.The refinance defect share, on the other hand, increased quarter-to-quarter to 26.04% from 19.57%."The rise in refinance defects corresponds with the growing prevalence of cash-out transactions, which typically involve more complex collateral valuations, equity calculations, and eligibility documentation," the Aces report noted. "These dynamics mirror the increases observed in collateral, eligibility, and compliance-related categories at the overall dataset level."This increase reflects increased loan complexity around refis rather than any systemic decline in performance, which underscores lenders' ability to manage their loan quality effectively as volumes and composition evolve, the report goes on to say.Which investor types have the highest defect shareBy investor type, conventional loans had a 61% share of reviews and 59.6% of defect findings in the second quarter. Both were down from 65.3% and 66% respectively three months earlier.Veterans Affairs mortgages were 11.5% of reviews, with 9.6% of defects, up from 10.5% and 9.6% for the first quarter. But the defect share remained less than the percentage of files reviewed, which Aces said is "a positive indicator of stable quality within this segment."But after two quarters of improvement, the Federal Housing Administration share of defects grew to 30.2% from 25.5%; this loan type made up 25.8% of reviews, a jump from 21.9%.

Key insight: Comerica worked fast to land its massive sale to Fifth Third after considering Regions' bid, according to two sources familiar with the matter.Supporting data: The 17-day timeline from when the bank CEOs began conversations to when the deal agreement was signed is the fastest among any of the top-20 largest bank deals announced this year.Forward look: If Comerica doesn't provide additional disclosure about how its agreement with Fifth Third came together, it could face legal action from an activist investor.Regions Financial tried to buy Comerica earlier this year, shortly before the Dallas-based company sold itself to Fifth Third Bancorp in the largest bank transaction announced in 2025, two sources familiar with the matter told American Banker.Comerica rejected Regions' offer, and then moved quickly to strike its $10.9 billion deal with Fifth Third, according to the sources, who spoke on condition of anonymity. The timeline in their account matches up with information that Comerica released in a recent regulatory filing.Comerica said in its recent filing that in September, it received a proposal for an all-stock deal from an unnamed financial institution. Comerica described the bid as "preliminary."Comerica declined to comment for this article. Regions spokesperson Jeremy King said in an email Monday: "We never discuss rumors about M&A."The sources familiar with the matter said that Comerica executives went into a panic during the summer after an activist investor group called HoldCo Asset Management demanded that the $78 billion-asset company pursue a transaction due to underperformance and financial strain.HoldCo now has questions about the deal's timeline, and about Comerica's process for getting there. In a new report Monday, HoldCo asked Comerica to disclose additional information about how the deal with Fifth Third came together, including whether Comerica solicited other offers, how conversations between the two banks evolved and how Comerica CEO Curt Farmer's post-merger compensation was decided.Farmer will become Fifth Third's vice chair after the companies merge, and will earn $8.75 million in annual compensation, per public filings. He will eventually serve as a senior advisor to the bank and receive the same pay in that role.If Farmer's employment agreement falls through, or he loses his position in the next roughly two years, Fifth Third will pay him $42 million. At his current compensation, he will earn that amount in about five years, though he's eligible to sit on Fifth Third's board until a decade from now.If Comerica doesn't answer the activist investor's questions, HoldCo said in its report that it will consider legal action. The firm said it may seek expedited relief in the Delaware Court of the Chancery to gather the disclosures it's after, and would consider bringing fiduciary-duty claims in the court.Farmer said in an interview back when the Fifth Third deal was announced that HoldCo's July report wasn't a factor in its decision to sell.Comerica had been weighing a sale since the regional banking crisis of 2023, Farmer told American Banker last month. During that mini-crisis, a string of bank failures put a spotlight on liquidity — and Comerica's relative shortfall of stable, low-cost deposits. Over the years, Comerica's commercial business had become its bread and butter, and the bank didn't have a similar stronghold in retail products.The bank lost $3.7 billion of deposits in a few weeks amid the upheaval, and its stock price fell some 50% between mid-March and mid-May 2023.Financial regulators also ramped up scrutiny of Comerica around the same time, sources familiar with the matter said. The bank was hit with confidential supervisory notices that cited dozens of concerns, including risk technology, risk governance and controls, the sources said.Comerica has been "rebuilding" since the regional banking crisis, Farmer said on Comerica's earnings call in July. Weeks later, HoldCo published its initial report.Regions' bid came shortly thereafter, according to the sources, despite the bank's long-standing avoidance of M&A. Regions Chief Financial Officer David Turner said earlier this month that deals aren't part of the bank's strategic plan."That being said, we have to be cognizant of what's going on around us," he said at an industry conference. "We've talked a little bit about taking advantage of disruption that is occurring in our market. And so it's just not part of where we want to focus our time and attention. And we understand things can change, but that's just not where we are today." In September, as Comerica determined that the initial bank's bid wouldn't be able to beat out another party's, per the public filing, it set its sights on selling itself to Fifth Third. The sale of Comerica will solve a major problem for the beleaguered bank: a lack of low-cost deposits. Meanwhile, the addition of Comerica will propel the Cincinnati bank's market share in fast-growing geographies it has been targeting, like Texas.The deal that Comerica inked with Fifth Third came together faster than any other of the top-20 bank deals announced this year, per an American Banker analysis of public filings. Just 17 days passed from when Farmer and Fifth Third CEO Tim Spence first made contact about a deal to when they signed the merger agreement.According to the companies' public filing, Farmer called Spence on Sept. 18, and less than three weeks later a deal was signed. The process was faster than most other recent bank deals of similar sizes by several weeks, and in some cases months.The two banks' CEOs have known each other for several years, and have periodically met, but the public filing said that "prior discussions did not involve the possibility of Fifth Third acquiring or combining with Comerica."Spence and Farmer had been in contact prior to Sept. 18, according to sources familiar with the matter. One source said that the CEOs had started having conversations about "possibilities" last year, but that those didn't yet entail serious negotiations about an acquisition.A Fifth Third spokesperson said it's not accurate to say that acquisition conversations began last year, and pointed to the two banks' public securities filing for an account of the timeline. The leaders of Fifth Third and Comerica did confirm the nature of one conversation they had before the deal was hatched. Farmer said in an interview last month that he rang Spence in early September to congratulate him on Fifth Third taking over a government contract from Comerica. Fifth Third was chosen by the U.S. Treasury Department as the financial agent for a government prepaid debit card program, after Comerica lost the agreement following regulatory concerns. "I had actually called [Spence] to congratulate him, and literally did not know that I'd be talking to him, you know, in the week or so after that, about the possibility of an acquisition," Farmer told American Banker in early October. "We certainly were thinking about a potential acquisition partner or merger partner, but had not reached that conclusion."Fifth Third and Comerica will hold special shareholder meetings on Jan. 6 to vote on the adoption of the merger agreement.

It’s time to take a look at the top mortgage refinance companies in the country, based on total loan volume.As you may have guessed, United Wholesale Mortgage (UWM) led the way, though not by much over its crosstown rival Rocket Mortgage.And if we consider the total number of refinance loans closed, Rocket actually beat out UWM with 147,000 total loans funded versus just 108,000 for UWM.It wasn’t a big surprise seeing that they were the top mortgage lender overall in 2024 as well.Read on to see which other mortgage companies made the top 10 refinance list.Top Mortgage Refinance Companies (Overall)RankingCompany Name2024 Loan Volume1.UWM$41.6 billion2.Rocket Mortgage$39.8 billion3.Freedom Mortgage$11.7 billion4.Pennymac$8.8 billion5.loanDepot$6.6 billion6.Chase$6.6 billion7.U.S. Bank$5.8 billion8.Newrez$5.4 billion9.Mr. Cooper$5.0 billion10.CrossCountry$5.0 billionNearly 5,000 banks, credit unions, and mortgage companies funded about $370 billion in refis during the year.As mentioned, Pontiac, Michigan-based mega wholesale lender UWM took first place in the mortgage refinance category with $41.6 billion funded in 2024 (latest complete year), per Richey May’s HMDA data.While that sounds pretty good, consider that UWM funded $140 billion in refinance loans in 2021 when mortgage rates hit record lows!There are two main types of mortgage refinances: the rate and term refinance (used to lower your rate and/or change your loan type/term) and the cash out refinance, utilized to tap equity.UWM shined in both categories as a decent number of homeowners sought both lower mortgage rates after the 2023 rate shock and cash via their mounds of home equity.As mentioned, their total refi volume edged out Detroit-based Rocket Mortgage, but their total number of loans was lower. In other words, UWM managed to close bigger loans, despite funding fewer of them.And they did so as a company that works exclusively with mortgage brokers, which is pretty impressive.By the way, Rocket funded $275 billion in refis during 2021…wild days those were.In third was Freedom Mortgage with $11.7 billion in refinance loans, quite a bit better than fourth place Pennymac’s $8.8 billion.Completing the top five was direct lender and MLB sponsor loanDepot with $6.6 billion funded during the year.Others in the top 10 included Chase, U.S. Bank, Newrez, Mr. Cooper (now owned by Rocket!), and Cleveland-based CrossCountry Mortgage.No huge surprises as these are all either big commercial banks or household names in the mortgage industry.Top Mortgage Refinance Companies (Conventional Loans)RankingCompany Name2024 Loan Volume1.Rocket Mortgage$23.0 billion2.UWM$21.2 billion3.Chase$6.5 billion4.U.S. Bank$5.7 billion5.Bank of America$4.8 billion6.Wells Fargo$3.2 billion7.CrossCountry$3.0 billion8.loanDepot$3.0 billion9.Mr. Cooper$2.9 billion10.Citizens Bank$2.9 billionIf we filter out government-backed home loans, including FHA loans, VA loans, and USDA loans, the list changes a bit.Banks and mortgage lenders primarily originate conventional loans, which includes conforming loans backed by Fannie Mae and Freddie Mac, along with jumbo loans.Rocket took #1 in this category $23 billion in conventional mortgage refinance loans, followed by UWM with $21.2 billion, and NYC-based Chase with $6.5 billion.Clearly it’s a two-horse race here between the two nonbanks from Michigan, with everyone else far, far behind.Chase and U.S. Bank climbed the leaderboard since they tend to do more conventional than government-backed lending, and Bank of America entered the fray as well.The bottom half of the top 10 was different as well, with Wells Fargo, CrossCountry Mortgage, loanDepot, Mr. Cooper, and Citizens Bank included.There were five banks and five nonbanks in this list as depositories are generally focused on conventional lending.Top VA Refinance Loan CompaniesRankingCompany Name2024 Loan Volume1.UWM$13.4 billion2.Rocket Mortgage$7.0 billion3.Freedom Mortgage$6.7 billion4.Veterans United$4.3 billion5.Pennymac$3.9 billion6.Village Capital$2.9 billion7.Newrez$1.8 billion8.New Day Financial$1.8 billion9.loanDepot$1.6 billion10.The Federal SB$1.3 billionIf we focus solely on VA refinance loans, UWM was tops again and with room to spare, funding $13.4 billion during the year.That was more than enough to beat out #2 Rocket’s $7.0 billion and third place Boca Raton-based Freedom Mortgage’s $6.7 billion.It then dropped off quite a bit with Veterans United Home Loans in fourth and CA-based Pennymac in fifth with about $4 billion funded each.The rest of the best included Village Capital, Newrez, New Day Financial, loanDepot, and The Federal Savings Bank.Most VA loans that are refinanced are done so via the streamlined IRRRL program, which requires less documentation than typical mortgage loans.Also be sure to check out my post for the top VA lenders for all loan types.Top FHA Refinance Loan CompaniesRankingCompany Name2024 Loan Volume1.Rocket Mortgage$9.7 billion2.UWM$7.0 billion3.Freedom Mortgage$4.0 billion4.Pennymac$2.7 billion5.loanDepot$2.0 billion6.Mutual of Omaha$1.7 billion7.Mr. Cooper$1.4 billion8.Newrez$1.2 billion9.Lakeview$1.2 billion10.CrossCountry$1.2 billionWhen it came to FHA refinances, Rocket Mortgage blew away the competition with $9.7 billion funded last year.You knew they were going to win one of the categories since they’re known as a refinancing machine. And so here it is.They will get even bigger in 2025 and beyond thanks to their acquisition of Mr. Cooper.Meanwhile, UWM snagged second with $7.0 billion, followed by Freedom Mortgage with $4.0 billion funded.Pennymac took fourth with $2.7 billion, and Irvine, CA-based loanDepot grabbed fifth with $2.0 billion in FHA refinances.In case you weren’t aware, Irvine is basically the mortgage epicenter on the West Coast.Others in the top 10 included Mutual of Omaha Mortgage, Mr. Cooper, Newrez, Lakeview Loan Servicing, and CrossCountry Mortgage.I would add a category for the top USDA refinance companies, but loan volumes are just too low. It’d be mostly pointless.The majority of homeowners with USDA loans probably either refinance out of the program, keep their loan to maturity, or sell their home before refinancing. Though it is an option…Check out my post with the top FHA loan lenders across all transaction types for more.Who Are the Best Refinance Companies Out There?If you want to change the terms of your existing home loan, you might be wondering who the best refinance companies are.After all, “best” generally equates to excellent service and perhaps the lowest mortgage rates and lender fees.The lists above feature the largest refinance companies in the country based on loan volume, not necessarily the best lenders out there.Some large companies might have mediocre ratings while smaller companies could have 5-star reviews across multiple ratings websites.Take the time to read reviews/complaints and research the companies you’ve got your eye on before you proceed to apply.While large companies have proven the ability to close lots of refinance loans (which is a good thing if you want to get to the finish line), they may not be the cheapest option, or the best choice for you.Consider refinance companies large and small, whether it’s a local credit union, large commercial bank, direct lender, or an independent mortgage broker. Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.Latest posts by Colin Robertson (see all)

Bloomberg News Key Insight: Fed Gov. Christopher Waller said quantitative and qualitative market indicators continue to point to a distressed labor market, justifying a near-term interest rate cut as a means to boost labor and consumer demand. Expert Quote: "This reading of the data leads me, at this moment, to support a cut in the [Fed's] policy rate at our next meeting on Dec. 9 and 10 as a matter of risk management." — Fed Gov. Christopher Waller.What's at stake: Opinions among FOMC members on the appropriate path for monetary policy are highly divided, creating uncertainty on whether the Fed's rate-setting committee will move to cut rates in December.Federal Reserve Gov. Christopher Waller said he intends to support a 25-basis-point cut to short-term interest rates at the Federal Open Market Committee's December meeting.Speaking at an annual dinner hosted by the Society of Professional Economists in London, Waller said the labor market continues to show signs of distress, requiring the Fed's rate-setting committee to move monetary policy toward a more neutral stance.Waller said that despite a lack of official labor market data, forecasts from both the public and private sectors show that economic activity is slowing and consumer sentiment is weakening."This reading of the data leads me, at this moment, to support a cut in the FOMC's policy rate at our next meeting on Dec. 9 and 10 as a matter of risk management," said Waller.The Fed governor pointed to payroll figures from ADP, which show only 6,500 net jobs were created in September and October. That figure stands in contrast to the 22,000 jobs added to the economy in August, according to the Bureau of Labor Statistics. "The latest weekly data are even weaker," Waller stressed.He also cited a decline in job postings on job search site Indeed in October, and noted that a recent survey of large employers found they expect 2026 to be the "worst job market for new college graduates since the pandemic year of 2021, when the unemployment rate was around 6% at graduation time."Waller added that in the past four weeks, his conversations with CEOs have suggested companies are starting to plan for future layoffs."It could be AI related. It could be a lot of other things," he said. "I've heard a lot more of this in the last four weeks and that's what got me more concerned. We should be paying more attention to the labor market."Waller said arguments from some of his FOMC counterparts that the economy is performing well are short-sighted, because conditions are currently difficult for lower- and middle-income households."That's kind of where some of the disagreement comes in on the committee," he said. "People point to the financial markets and say, 'How can you say we're restrictive? Look at this stock market. Look at these bond markets,'" he said. "OK, it's loose for corporate America."He specifically pointed to the financial squeeze of housing and cars on consumers, calling it "an ongoing challenge for consumers, especially lower- and middle-income consumers.""When I go talk to households … they can't get a house, they can't afford to buy a car anymore," Waller said. "This doesn't tell me financial conditions are loose for the American household."Regarding inflation, Waller said he is not concerned, noting that tariffs will have a one-time impact and one that is not significant."Inflation through September continued to show relatively small effects from tariffs and support the hypothesis that tariffs are having a one-off effect raising price levels in the U.S. and are not a persistent source of inflation," he said.Waller added that if anyone is worried about "groupthink" among Fed officials, the upcoming FOMC meeting will demonstrate how divided the committee is."Now on the groupthink thing, people who are accusing us of this: Get ready, you might see the least groupthink you've seen from the FOMC in a long time," he said. "That's apparently a good thing."

Fraud and misrepresentation remain persistent challenges in the mortgage industry and Freddie Mac is responding by bringing Quality Control Advisor Plus to the market, a tool which automates this compliance function.The tool is currently in a phased onboarding process with plans to make it available to all lenders by year-end, including the participants in Freddie Mac's performing loan repurchase alternative pilot.Participants in this pilot have a 26% lower non-acceptable quality loan rate compared with those sellers who are not a part of it, Freddie Mac said.What is Quality Control Advisor Plus?Quality Control Advisor Plus is an integrated system that brings together previously separate pieces of technology, which will cut months off of the current QC process for most users, according to Sonu Mittal, executive vice president and head of single-family in a press release."This new platform doubles down on our transparent and proactive approach to modernizing our QC processes," Mittal continued in a press release. "It provides considerable efficiencies for lenders so they can quickly identify and remediate issues as early as possible to minimize reoccurring defects and improve loan quality."Lenders are able to upload as many as 250 files at one time for analysis. It also allows for more consistent decision making and standardized communications.The Freddie press release points to income-related problems as being the primary driver of loan defects. The government-sponsored enterprise recently came out with a new calculator to help with borrowers who have a variety of income sources.In a blog post issued on Nov. 17, Mittal also pointed to Loan Product Advisor's asset and income modeler, AIM for short."Our recent analysis shows increased use of AIM correlates with lower overall defect rates, which reflects loans that carry significant issues," Mittal said. "In fact, mortgages originated by lenders who leverage our digital tools are on average four times less likely to have loan defects than those originated without them."The current share of misrepresentations in mortgage filesAs of the second quarter, Freddie Mac repurchase demands are down 56% from their peak in 2023 because of the pilot program, with industry feedback being overwhelmingly positive," Mittal added.A recent study from Cotality found that one in every 118 mortgage applications had indicators of misstatements in the second quarter. Its Mortgage Fraud Application Risk Index was at 132 for the third quarter. While this was down by 2.7% from the second quarter, it rose by over 8% on an annual basis.Meanwhile, a separate study from Transunion found that credit washing activity, the act of boosting one's score by falsely claiming tradelines contained inaccurate information, rose 700% in the last two years. While more commonly seen for auto loans, this activity has leached into the mortgage and home equity lending space, observers noted.In August, Aces Quality Management's first quarter critical defect rate index was at 1.31%, up 15 basis points from the all-time low of 1.16%, with income and employment as the most cited errors.At the time, the report speculated that the change in where defects were being found may reflect lagging adoption of tools such as Freddie Mac's Loan Product Advisor Choice and Fannie Mae's self-employment income calculator.Fannie Mae does offer Loan Quality Connect, which allows lenders to work in a single system for loan file submissions, status updates and document management.It allows for instant communication and document sharing as well as loan quality feedback with real-time reporting.Mortgage industry response to Quality Control Advisor PlusThis new product is an encouraging step by Freddie Mac to strengthen manufacturing quality across the mortgage industry, said Phil McCall, president and chief operating officer at Aces.The exception data produced through this platform contains important indicators which, when combined with lenders' internal pre- and post-funding reviews, can lead to more accurate assessments of loan quality and risk," McCall said. "Advancements that create earlier, more actionable feedback loops help lenders address potential issues before they become costly, an outcome that benefits both originators and the secondary market."These updates from Freddie Mac relate to the post-delivery audits which are conducted as part of the government-sponsored enterprise's mortgage purchase process, McCall pointed out."They do not lessen lenders' obligations to maintain robust quality control prior to loan delivery," he warned. "Continued progress toward greater data transparency and the ability to securely share QC insights would further enhance overall loan quality and strengthen the mortgage ecosystem."Freddie Mac providing lenders with better tools and faster feedback about their loan files is a good thing, said Lance Ludman, senior vice president of Certainty Home Lending."What's not to like about technology that speeds the process and improves quality?" Ludman asked rhetorically. "As an industry, we've spent decades struggling to streamline so many of the behind-the-scenes processes that borrowers rarely understand, resulting in days or weeks of delay to their transactions."Certainty supports Freddie's efforts "to return the focus where it matters most — delivering for the consumer," he said.The product addresses an item Citywide Home Mortgage talks about in its operations, which is getting actionable feedback to its loan officers while issues with the loan file can still be fixed effectively, said John Cady, CEO and president."The real value here comes from compressing the timeline between origination and quality review so our teams can adjust before defects become patterns," Cady said. "Anything that helps us identify and resolve problems in real time rather than months later is going to improve both loan quality and the originator experience."

Takeaways:Large insurers would have to assess and disclose climate risksProposal requires risk projections for next three decadesAdvocates want more risk mitigation efforts and disclosuresCalifornia insurance commissioner Ricardo Lara's proposed Long-Term Solvency Regulation, announced October 28, has insurers criticizing its provisions while consumer advocacy groups call for more disclosures and climate mandates.Speaking in a hearing hosted by the Department of Insurance (CDI) on November 14, Seren Taylor, vice president of the Personal Insurance Federation of California, said the regulatory proposal lacks measurable outcomes, and is too prescriptive. The proposal would add a section numbered 2319.7 to existing California Title 10 regulation for insurers' investments, and is meant to stabilize the state's insurance market.  Seren Taylor, vice president, Personal Insurance Federation of California. "[It] appears to require insurers to identify and plan for development of new insurance products. This provision could be interpreted to mandate product innovation rather than risk evaluation which falls outside the scope of solvency regulation," Taylor said. "Product development decisions are appropriately driven by market demand, actuarial soundness and competitive strategy, not regulatory directives."According to Taylor, the ORSA framework for insurers' solvency, authored by the National Association of Insurance Commissioners and adopted by California in 2015, is sufficient.Solvency projections extended to 2040 or 2050 are too speculative, according to Bruce Byrnes, chief compliance officer at Berkshire Hathaway Insurance Companies.Furthermore, the regulation's proposed data reporting requirements duplicate what is already required and wouldn't prevent events like the 2018 liquidation of Merced Property & Casualty after losses from the Camp wildfire, according to Stacey Jackson, executive director of the Pacific Association of Domestic Insurance Companies. On the other hand, advocates want the regulation to require more disclosures by insurers, more credit for homeowners' risk mitigation efforts and more action on climate risk. Elyse Schupak, policy advocate, climate program, Public CitizenLinkedIn California's regulator should not rely only on insurers' risk materiality assessments, stated Elyse Schupak, policy advocate in the climate program at Public Citizen. She also called for stricter requirements for insurers' investments, and their impact on climate change."The department should ensure the long term investment strategy targets created by insurers are comprehensive, trackable, and facilitate meaningful climate risk reduction," she said. CDI, she added, should be "mandating insurers set science-aligned emissions reduction targets, inclusive of the insurers underwriting investing in operations and requiring the disclosure of progress towards emissions reduction targets, consistent with meeting target setting and transition plans."Schupak also called for public disclosure of such risk assessments and risk mitigation efforts as a model for other states.Similarly, Steven Rothstein, chief program officer of Ceres, a sustainability advocacy non-profit, said CDI should publicly disclose the results of its climate stress test for insurance company investments.Elizabeth Derbes, director of financial regulation and climate risk at Natural Resources Defense Council (NRDC), said the regulation should also extend its climate risk assessment of insurers' investments to insurers' underwriting. While Derbes agreed that risk projections through 2040 and 2050 will decline in usefulness, she added that regulation should require these projections to be updated annually.In addition, Derbes called for insurers with premiums below $50 million to also be subject to the proposed new rules. The proposed regulation would apply to insurers above that figure.Related stories:Governor approves public wildfire catastrophe modelNewsom explores public insurance subsidy, litigation limits

New-home mortgage applications fell again in October, but the seasonally adjusted annual sales pace climbed to its highest level this year, according to the Mortgage Bankers Association.New-home purchases fell 2.6% year over year and 1% month over month in October, according to the Mortgage Bankers Association's Builder Application Survey. The MBA also estimated that new single-family home sales ran at a seasonally adjusted annual rate of 771,000 units last month, a 13.4% increase from September.The significant jump in the annual sales estimate comes after particularly poor performance in September, which saw a 6.8% decrease from August to 680,000 units. The MBA's estimate has been a leading indicator of the U.S. Census Bureau's New Residential Sales report, which has not been published since the August data release due to the government shutdown. On an unadjusted monthly basis, the MBA estimated there were 55,000 new-home sales last month, a 1.9% rise from 54,000 in September. "Lower mortgage rates, ongoing usage of builder concessions, and growing levels of for-sale inventory drove an increase in new home sales for October," said Joel Kan, the MBA's vice president and deputy chief economist, in a press release Monday. "The increased use of [adjustable-rate mortgage] loans, for which rates were averaging almost 80 basis points lower than fixed-rate loans, also contributed to the jump in sales and a slightly higher average loan size, the third monthly increase."ARM loans accounted for 25% of applications in October, up from 16% a year ago.By product type, conventional loans, Department of Veterans Affairs-guaranteed loans and U.S. Department of Agriculture-backed loans all lost a sliver of their share of applications last month, dropping to 51.9%, 12.3% and 0.7%, respectively.The Federal Housing Administration insured 35.1% of loan applications for new homes, an increase from 33.8% in September.The average loan size for new homes also increased to $381,404 in October from $379,107 in September.While total new-home applications declined monthly and annually for the first time in seven months, they remained at a healthy pace compared to the last three years, Kan said.What features drive home value?Unit size and extra amenities can be the difference in whether a new home sells at its asking price in a tighter market.Home size is one the strongest value drivers in the housing market, as homes between 1,000 and 2,000 square feet add 17% more value than homes under 1,000 square feet, according to the National Association of Home Builders' latest American Housing Survey. Homes with 3,000 square feet or more adds 55% to the market value.Extra bathrooms and bedrooms, fireplaces and garages each noticeably improve the value of a home as well, but bathrooms have the largest impact as each additional full bathroom increases home value by 32%, the study showed. An additional bedroom adds 5% to the home's value, while a fireplace and garage raise the value by 11% and 10%, respectively.

Federal Reserve Governor Lisa Cook's legal team offered a detailed rebuttal to mortgage fraud allegations made by President Donald Trump and other US officials, arguing in a new letter to Attorney General Pam Bondi that the claims "fail on even the most cursory look at the facts."Cook's attorney Abbe Lowell sent a letter on Monday to Bondi and Ed Martin, a senior Justice Department official tapped as a "special attorney" to investigate mortgage fraud, as she presses a legal fight to keep her job. The US Supreme Court is set to hear arguments on Jan. 21 on Cook's challenge to Trump's move to fire her.READ MORE: Trump appeals ruling allowing Fed Gov. Cook to remainLowell wrote that criminal referrals by a senior administration official were "baseless.""The full record makes clear that what he claims to be contradictions in loan applications were not contradictions at all but were cherry-picked, incomplete snippets of the full documents submitted at the time and in subsequent filings by Governor Cook consistent with her applications," Lowell wrote.Cook has not been charged to date.Trump said on Aug. 25 that he had fired Cook "for cause" after she refused his demand to resign over a claim by Bill Pulte, director of the Federal Housing Finance Agency, that she lied on mortgage applications. Cook, in turn, filed a lawsuit against Trump, arguing his attempt to remove her from the Federal Reserve Board was unlawful and violated the central bank's independence.READ MORE: Cook allegations suggest new mortgage fraud prioritiesThe Supreme Court declined to allow Trump to immediately oust Cook, ruling she can remain in her position at least until the justices hear arguments in the case in January.The ultimate outcome of the legal battle will help determine the extent to which the White House is able to exert control over the Fed as Trump pressures its leaders to significantly cut interest rates.

Key insight: JPMorganChase is launching its largest-ever anti-scam initiative, adding "trusted contacts" and dedicated intervention teams to fight record-high fraud.What's at stake: Consumer advocates say the plan lacks a critical component: better reimbursement for scammed consumers, who rarely recover money from "authorized" payments.Supporting data: Americans lost an estimated $158.3 billion to fraud in 2023, according to a Federal Trade Commission report cited by consumer watchdogs.Overview bullets generated by AI with editorial reviewJPMorganChase announced on Monday the launch of what it called the largest fraud and scam prevention initiative in the firm's history, including continuing investments in operational enhancements, technology and staff specially trained to combat increasingly sophisticated financial crimes.In the announcement, the bank also called out tech companies, social media companies and law enforcement as needing to form "a unified front" with banks to stop scams and fraud.Among the key developments, the bank said customers will be able to designate a trusted contact person who may be notified of certain transactions on the customer's account to help guard against fraud or financial abuse.A growing number of states have passed laws designed to enable customers — particularly those who are elderly — to designate a so-called trusted contact. The bank can then contact this person if it believes the customer is being targeted by a scam or fraud.Scam warnings and alerts from a bank can stop some potential victims of scams from following through on a transaction. However, potential victims can also ignore these alerts.Proponents of the trusted contacts approach argue that a friend or family member is better positioned to effectively intervene against a scam.As part of the initiative, Chase also said it has deployed a dedicated scam interruption team, developed by behavioral psychologists, investigators and global scam prevention research, to connect with clients and work to stop scams in real time.The bank also has a specialized team focused on assisting older and vulnerable adults who may be victims of financial abuse. To support these efforts, Chase said it partnered with AARP to provide the nonprofit's BankSafe training to branch employees. The training focuses on preventing financial exploitation, empowering family caregivers, helping those with dementia, and making banking tools and environments easier to access.Finally, Chase said it uses technology to detect suspicious activity and deploy an in-app warning or stop a payment, particularly for transactions linked to social media or other high-risk sources.Banking leaders say tech platforms, law enforcement must join the fightPaul Benda, executive vice president of risk, fraud and cybersecurity for the American Bankers Association, applauded the news and underscored the necessity of collaborating across sectors and with law enforcement."The banking industry is leading the way in the fight against fraud thanks to the efforts of banks of all sizes across the country including JPMorganChase, but we cannot win this fight alone," Benda said.In the Monday announcement, Chase Bank CEO Jennifer Roberts issued a challenge, saying "banks, technology companies, social media platforms and law enforcement all have a role to play" in protecting consumers from fraud and scams. Doing so, she said, would require "a united front.""At JPMorganChase, we're leading by example by continuously investing in new solutions, but we call on the entire industry to join us in making it harder for criminals to exploit our communities," Roberts said.Consumer groups highlight reimbursement gapsWhile supporting detection and education efforts, consumer advocates emphasized that prevention alone is insufficient as long as authorized payment scam victims shoulder the burden of losses.According to an annual report from JPMorganChase, the bank lost $500 million to fraud in 2024, including $300 million against the bank directly and $200 in reimbursements to defrauded customers.The bank also said in the annual report that it processes "thousands of scam claims where customers authorized transactions but should not have done so (for example, buying nonexistent products or sending money to fake websites), often because they were misled by bad actors." It did not disclose the total dollar amount associated with these claims.In its Monday announcement about the anti-scam initiative, Chase said it safeguarded customers from losing $12 billion in fraud and scam attempts last year.Lauren Saunders, associate director and director of federal advocacy at the National Consumer Law Center pointed out the critical need for financial recourse when consumers fall for scams."We support the efforts by JPMorganChase and other industry players to detect and prevent fraud and to educate their customers, but reimbursement of defrauded consumers is also critical, both to address the devastating impact of fraud on families and to incentivize payment systems to take responsibility for keeping fraudsters out," Saunders said.This concern about reimbursement centers on the industry's distinction between fraud (unauthorized transactions, typically reimbursed) and scams (authorized transactions induced by deception, typically not reimbursed).John Breyault, vice president of public policy, telecommunications and fraud for the National Consumers League, addressed this key policy distinction directly."Until Chase and other major institutions treat reimbursement for scams the same way they treat reimbursement for fraud, consumers will continue to bear the brunt of these losses," Breyault said.He noted that fraud is a historically underreported crime for a variety of reasons, including the stigma of shame associated with falling victim to a scam. Accounting for underreporting, Americans lost between $24 billion and $158 billion to fraud in 2023, according to an estimate published in a Federal Trade Commission report last year.Announcement follows federal initiative against scams, fraudJPMorganChase's new commitment to fraud defense aligns with a major new federal law enforcement initiative. The Justice Department's Scam Center Strike Force, announced last week, is set to crack down on cryptocurrency-related fraud, specifically targeting Southeast Asian scam centers.The new initiative, which combines the resources of the U.S. Attorney's Office, DOJ's Criminal Division, the FBI and the U.S. Secret Service, is focused on disrupting transnational criminal organizations. Law enforcement aims to identify leaders, seize stolen cryptocurrency and disable U.S.-based infrastructure used by scammers.The initiative is already producing results, according to the announcement last week by the Department of Justice; the Strike Force Crypto Seizure team has seized and forfeited over $400 million in cryptocurrency from these schemes, the office said.U.S. Attorney Jeanine Ferris Pirro, in announcing the creation of the Strike Force, called on U.S. corporations to participate."Working together in public-private partnership, we must secure the U.S. infrastructure, which is being used as an instrument to defraud Americans in these scams," Pirro said.As institutions look to emulate JPMorganChase's measures, they face the wider ecosystem challenge: sophisticated social engineering scams rely on communication platforms like social media to gain trust.Jamie Dimon noted in his letter to shareholders as part of the 2024 annual report from his company: "Fraud and scams are a societal problem, and we need law enforcement, retailers, social media, telecom companies and others to work together to stop these crimes at the source."

I feel like I haven’t written a word about mortgage rates since the government shutdown began.Part of that is because once the government closed shop, we stopped receiving key economic data.And without any new data, mortgage rates were kind of stuck. The good news is they were stuck near three-year lows.But now that the shutdown is over, it’s time to start paying attention again.This Thursday we’ve got what could be a big market mover in the delayed jobs report from September.Watch Out for a Big Mortgage Rate Move on ThursdayMark your calendars for this Thursday morning when the Bureau of Labor Statistics (BLS) releases the much-anticipated and much-delayed September jobs report.It’s typically released on the first Friday of the month, but thanks to the government shutdown, it got pushed back quite a bit.Now we’re going to get the key report on a Thursday, exactly one week before Thanksgiving.Kind of strange, but given the massive delay and lack of other data lately, it’s going to be an important one.This is especially true since labor has been top of mind lately for both the Fed, economists, and the bond market.If the report comes in cold again, as it has been lately, there could be a rush to bonds, which would increase bond prices and lower corresponding bond yields.That would be good news for mortgage rates, which as I’ve said have been stuck for over a month thanks to the shutdown that began on October 1st.Mortgage Rates Came Full Circle During the ShutdownThe 30-year fixed did come down in the middle of the shutdown, but basically came full circle since it began, as seen in this chart from MND.Historically, mortgage rates tend to fall during shutdowns, which they did, but they popped back up after the Fed cut its own rate.That too seems to be a thing, as whenever the Fed cuts, mortgage rates seem to bounce higher.It might boil down to a sell the news thing where everyone knows the Fed is going to cut, bakes it into rates, then once they cut, we see a little reversal.But it was also driven by words from Fed Chair Jerome Powell, who indicated that future cuts, including one in December, weren’t a sure thing.Will Another Fed Cut in December Derail Mortgage Rates Again?The chances of that cut will likely be driven in some part by this jobs report, which seems to be one of the bigger pieces of data that was delayed.We’ve been told the October jobs report may never be released, though we might get the November jobs report in early December before the next Fed meeting on the 10th.As it stands now, the chance of another quarter-point cut in December is just 41%, per CME, down markedly from a month ago when it was 94%.So there are certainly some headwinds and with lots of unknowns regarding data releases, mortgage lenders might be defensive with pricing.However, if we get more ugly jobs reports between now and then, along with cooler-than-expected CPI, or simply neutral inflation data, mortgage rates could rally lower and push below 6%.I’ve long thought a sub-6% 30-year fixed mortgage rate was possible by the fourth quarter of 2025.And while we’re running out of time, we’ve still got another 45 days or so to make it happen!It wouldn’t be a huge surprise given the 30-year is already priced at 6.375%, meaning it doesn’t have much more ground to make up.Rates have already come down about one full percentage point since January, so it’s safe to say 2025 has actually been a good year for mortgage rates.Read on: 2025 Mortgage Rate Predictions Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.Latest posts by Colin Robertson (see all)