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THEMREPORT.COM Hot Headlines As temperatures soar around the country, MReport's online stories covering the national and global economic picture are feeling the heat. 1. Wells Fargo Settles Suit, Dumps Wholesale Lending Wells Fargo has written a check for $175 million to settle claims that inde- pendent brokers drove a disproportionate number of otherwise creditwor- thy minority borrowers to higher-priced variable mortgages in the lead-up to the financial crisis. Under the settlement, Wells Fargo will pay $125 million to wholesale borrowers believed to have been adversely affected by the alleged practices. Wells Fargo denied all of the claims and immediately took action to stop originating loans with independent mortgage bro- kers, a move that it billed as separate from the settlement and ensuing controversy. 2. Hamptons Reaches a New Real Estate Record A stunning Long Island estate may be set to make history in the Hamptons. A 33-acre listing in Sagaponack, New York, was recently put on the market for $65 million, making it the most expensive property for sale in the area. The complex is currently owned by Robert Hurst, who is famous for his role with Goldman Sachs. The 11,000-square-foot home includes surrounding grounds that feature tennis facilities and a large-scale waterslide. Previously, Two Trees Farm held the top spot as the Hamptons' priciest listing; however, the asking 8 | THE M REPORT price for the Bridgehampton estate was recently reduced to $55 million. 3. Barclays Releases Terms of CEO's Departure One week after announc- ing that CEO Bob Diamond stepped down in the wake of a rates manipulation scandal, Barclays has announced that the bank reached an agree- ment with Diamond regarding the terms of his resignation. According to a release from Barclays, Diamond volun- tarily offered to waive all of his deferred bonus awards and long-term incentive share awards. He had also previously agreed to forgo his yearly bonus. According to testimony from outgoing chairman Marcus Agius to the House of Commons Treasury Committee, Diamond has agreed to waive £20 million ($31 million) in bonuses and awards. 4. Record Lows for Interest Rates Continue as Europe Wobbles Mortgage rates are continu- ing to drop, and the average 30-year fixed mortgage rate slammed into a new record low of 3.87 percent, according to analysis from Freddie Mac. The GSE found that inter- est rates for the 15-year loan fell to 3.13 percent, while the jumbo 30-year fixed mortgage declined to 4.47 percent, each setting record lows. Adjustable-mortgage rates were mixed, with the average three-year and one-year ARMs inching higher to 3.07 percent. Instability in the European and global landscapes continues to play a major role in historically low mortgage rates. 5. WFG Title Announces West Coast Expansion WFG Title Insurance Company is expanding its industry foot- print. The organization, which is part of the Williston Financial Group family of companies, recently announced plans to open a retail title office in Irvine, California. To facilitate the opening and growth of its latest branch, WFG Title has hired David Noble as SVP for the Orange County area. Noble will be responsible for leading the company's expan- sion efforts in the region, as well as overseeing strategic development and day-to-day operations. 6. Initial Jobless Claims Clock in Higher than Expected Though economists had ex- pected an estimated 386,000 initial claims, first-time claims for unemployment insurance fell to 387,000 for the week ended June 23. The prior week's tally of 392,000 was revised from the originally reported figure of 387,000, according to the Labor Department's release. The drop in claims was first in three weeks, but more significant was the increase in the prior week's report—matching the 392,000 claims recorded for the week ended April 21, which had been the highest since last November. The claims report continues to show labor market struggles. First-time unem- ployment claims have topped 380,000 for five straight weeks for the first time since last fall when they were generally declining. 7. Economic Study Reveals the High Cost of Household Net Worth The middle class seemed to take another drubbing with news that U.S. median household net worth fell 35 percent between 2005 and 2010. Excluding home equity, the Census Bureau found that median household net worth ticked up by 8 percent during the financial crisis. Who got hit the hardest? Of the many age groups, heads of households from 35 to 44 accounted for nearly 60 percent of the decline in net worth during the five-year period. But they weren't alone. Median net worth also declined for all age groups between 2005 and 2010, with householders 65 years and older feeling the brunt of it, as theirs slid from $195,890 to $170,128. Are you an origination news junkie? Go to TheMReport.com and sign up to receive MReport news daily! We feature the top headlines and stories breaking daily via the MReport Daily newsletter, webcasts, and social media. If you need more, follow us on Facebook, LinkedIn, and Twitter.