Morning Roundup (1/16/2023) – City National Bank Redlining Settlement

Good Morning! Today is Monday, January 16, Martin Luther King Jr. Day. President Biden spoke at Ebenezer Baptist Church in Atlanta yesterday. The chairman of the Joint Chiefs of Staff says the U.S. military’s new, expanded combat training of Ukrainian forces has begun in Germany.

The Mortgage Note Reports

Redlining Settlement: Officials at the U.S. Department of Justice announced on Thursday that they have secured over $31 million from City National Bank to resolve allegations of redlining in Los Angeles County.

Buyers Perking Up: The typical home is taking longer to sell than in any period since April 2020, but online searches and tour requests are picking up.

Listen To Our Podcast: Editor Kimberley Haas has been interviewing some of the leaders in the country. This podcast highlights the successes and innovations taking place in the mortgage industry.

TMN Presents: The Mortgage Meltdown Meter, a collection of articles from the market correction, updated daily. Click here to stay on top of the changing landscape.

In other mortgage and housing news…

Earnings Reports: JPMorgan’s and Bank of America’s Q4 profit and revenue both beat expectations, boosted by higher interest rates.

Sellers Negotiating: Buyers are finally being protected by contingencies, like inspection and appraisal, during the home buying process.

Racial Bias: HUD announced that people seeking FHA financing can request a review of their appraisal if they believe it was skewed by racial bias.

CMBS Risk: Existing borrowers of fixed-rate debt will likely need to refinance at higher interest rates when that debt matures, but can they afford that costlier debt service?

CrossCountry Suit: A California lender alleges CrossCountry Mortgage used dedicated staff to poach one of its branch managers and divert loans to the competitor.

A “Parallel” Housing Crisis: To maintain their standard of living, people in middle-class housing are forced to fight the decay of buildings developed in the 20th century.