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32 MILLENNIALS VS. INTEREST RATES Even with interest rates going up, millennials are still taking out loans for new homes, according to Ellie Mae. e Ellie Mae Millennial Tracker found that 83 percent of mortgage loans made to millennial buyers were for new home purchases, a 2 percent increase month-over-month, but a 3 percent decrease year-over-year. Meanwhile, interest rates have been on the rise. In February, interest rates went up from 4.24 percent to 4.39 percent month-over- month. While this seems to have pushed some buyers away, with non-millennial purchase loans declining from 57 percent of total closed purchase loans in December to 55 percent in February, millennials have been taking out more mortgage loans. According to February's data, these loans average around $199,352 for male millennial borrowers and $189,084 for female millennial borrowers. According to Ellie Mae, these millennials prefer conventional loans over FHA loans, as 68 percent of loans to millennials in February were conventional loans. e report notes that this is the highest percentage of conventional loans since 2016, while FHA loans were at their lowest of 28 percent. e high interest rates haven't stalled closing times either: millennial homebuyers have been closing in the fastest times in two months. Purchase loans have been closing in an average of 41 days while refinance loans closed in an average of 43 days. "According to the U.S. Census, Millennials are now officially the largest group of homebuyers in the U.S.," said Joe Tyrrell, EVP of Corporate Strategy for Ellie Mae. "Despite rising interest rates, we're continuing to see Millennials exercise their purchase power across the United States as they represent 45 percent of total closed purchase loans in February. And with the spring homebuying season now underway, we'll see if the activity increases for this growing group of homebuyers." BARCLAYS SETTLES RMBS SUIT e British bank Barclays has reached a settlement with U.S. authorities over financial crisis-era transactions involving toxic residential mortgage-backed securities (RMBS) sold between 2005 and 2007. Under the terms of the settlement, Barclay's agreed to pay $2 billion in civil penalties. e U.S. Justice Department also fined two individual Barclay's bankers for their role in the transactions and the larger financial crisis. e settlement is just the latest in a string of settlements between various U.S. governmental authorities and banks charged with defrauding or misleading investors as to the quality of toxic RMBS during the years of the financial crisis. In a statement, Barclays CEO Jes Staley called the terms of the settlement "fair and proportionate." U.S. Attorney Richard Donoghue for the Eastern District of New York said, "is settlement reflects the ongoing commitment of the Department of Justice, and this Office, to hold banks and other entities and individuals accountable for their fraudulent conduct. e substantial penalty Barclays and its executives have agreed to pay is an important step in recognizing the harm that was caused to the national economy and to investors in RMBS." e two bankers involved in the settlement are Paul K. Menefee of Austin, Texas, who the Justice Department describes as "Barclays' head banker on its subprime RMBS securitizations," and John T. Carroll, of Port Washington, New York, who served as "Barclays' head trader for subprime loan acquisitions." In exchange for their payment of a combined $2 million in civil penalties, the Justice Department has agreed to drop the claims against the pair. e firm of Kramer Levin Naftalis & Frankel LLP represented Menefee during the case. Barry Berke and Dani James, two attorneys from the firm who worked on the case, told AP, "Solely to put this matter behind him, Mr. Menefee has agreed to a settlement in which he has not admitted any wrongdoing." Carroll was represented by Crowell & Moring. In a statement, attorney Glen McGorty, a partner at Crowell & Moring, said, "John Carroll is pleased that the government has relented in its efforts to prove wrongdoing where none exists, and consistent with that position, we have agreed to settle this case without an admission to these meritless allegations." "e actions of Barclays and the two individual defendants resulted in enormous losses to the investors who purchased the Residential Mortgage-Backed Securities backed by defective loans," said Laura S. Wertheimer, Inspector General of the Federal Housing Finance Agency Office of the Inspector General (FHFA-OIG). "Today's settlement holds accountable those who waste, steal or abuse funds in connection with FHFA or any of the entities it regulates."

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