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Housing regulator Bill Pulte has posted a video that sheds a little more light on the Great American Mortgage Corporation, an entity President Trump has hinted earlier could be headed toward a public offering this year.The video Pulte posted on X promotes President Trump's housing role and alludes to his criticism of other policymakers' reluctance to lower rates. It also connects two government-sponsored enterprises Pulte oversees with GAMC."They say that home is where the heart is, our safe place where we put down roots. But that dream has been devastated by a housing market in decline," a narrator says in the video, which starts with images of homes but then shifts to a view of an interest-rate chart and rent check.Further narration indicates President Trump plans to address affordability concerns through the "all new Fannie Mae and Freddie Mac" and "go down as the greatest housing president in history."A focus on building value around national branding"The Great American Mortgage Corporation" is listed under the two government-sponsored enterprises' names and the video closes with the narrator saying, "Together we're making homebuying great again," a variation on President Trump's political slogan.That confirms the common perception that the entity mentioned in Trump's earlier post about a public offering has something to do with reform plans for the two GSEs, which have been in conservatorship since a housing crash in 2008 but have since re-established solid profitability.The Great American Mortgage Corporation name is in line with the new branding assigned to the Federal Housing Finance Agency that Pulte heads and Fannie and Freddie's joint-venture common securitization platform this year.Pulte rebranded the FHFA he heads as "U.S. Federal Housing," and now calls the joint venture originally formed to facilitate common securitization for Freddie and Fannie "U.S. Financial Technology."The video suggests the Great American Mortgage Corporation could be umbrella branding for Fannie, Freddie and U.S. Fintech.It could also allude to a merger of Fannie and Freddie, which some support as potentially efficient, but detractors view as anti-competitive and potentially fraught with legal complexities.Some speculation holds that U.S. Financial Technology could be the entity that a Trump administration interested in retaining a government stake in the enterprises may want to publicly list on the New York Stock Exchange.Pulte recently revived a past plan to allow private companies to use the GSEs' joint-venture common securitization platform.The larger context around Pulte, Trump and the GSEsBoth Pulte and Trump have family ties to the housing market. Pulte is the grandson of a homebuilding executive. The Trump family has a history of real estate investing. Both frequently use social media to announce or provide updates on policy changes. Pulte has said that his use of social media to make informal policy announcements stems from his interest in getting the word out about new initiatives as quickly as possible, so they may be works in progress.It's possible that hints at how GSE reform will be incorporated in the public offering Trump envisions hasn't been determined yet. He has reportedly been fielding bank executive pitches on how it should be handled, according to Bloomberg.Policy initiatives Pulte has announced since confirmation as FHFA director include: GSE workforce cuts and a return to the office, a commitment to adding VantageScore, consideration of crypto holdings when qualifying borrowers, and a fraud crackdown with political overtones.

The director of the Federal Housing Finance Agency is urging Attorney General Pam Bondi to investigate Federal Reserve Governor Lisa Cook over a pair of mortgages, the latest in a series of moves by the Trump administration to increase legal scrutiny of Democratic figures and appointees.FHFA Director Bill Pulte, a staunch ally of President Donald Trump, wrote a letter to Bondi and DOJ official Ed Martin on Aug. 15 suggesting that Cook may have committed a criminal offense. The letter, a copy of which was seen by Bloomberg News, alleges that Cook "falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute."READ MORE: Pulte takes issue with Powell statement on Fed housing roleTrump's administration has pursued mortgage fraud allegations against high-profile Democrats, including California Senator Adam Schiff and New York Attorney General Letitia James. Both are longtime political foes of Trump. The Cook referral expands that effort to the Fed, as Trump allies — including Pulte — press the US central bank to lower rates and Federal Reserve Chair Jerome Powell to resign before his term as chair expires in May. No charges have been filed and it's not clear whether Bondi will investigate. The Justice Department declined comment. The Federal Reserve declined comment. Cook did not respond to requests for comment late Tuesday. READ MORE: Pulte urges Congress to investigate PowellPulte said Cook took a mortgage on a property in Ann Arbor, Michigan, signing a mortgage agreement that stipulated she would use the property as her primary residence for at least a year. Two weeks later, according to the letter, she took another mortgage on a Georgia property and also declared it would be her primary residence. Pulte also called on Bondi to look into whether Cook misrepresented her circumstances by later listing the Georgia property for rental. The letter includes copies of mortgage documents in Cook's name, as well as an apparent rental listing from 2022, a little over a year after she bought the Georgia property.Trump has put substantial pressure on Powell and the Fed to lower rates, tarnishing the chairman as "Too Late" in social media posts arguing the Fed should have started slashing rates months ago, while also heavily criticizing Powell and the Fed over its ongoing headquarters renovation project.READ MORE: Feds accuse Trump adversary Letitia James of loan fraudThe documents in the referral show that Cook took a $203,000, 15-year mortgage on a property in Ann Arbor, Michigan, in 2021. The document included a stipulation that she "shall occupy, establish and use the Property as Borrower's principal residence within 60 days" and "for at least one year," unless the lender, the University of Michigan Credit Union, agreed in writing. The document is dated June 18, 2021, and it's not clear whether the lender agreed to or was aware of her subsequent purchase. Then, on July 2, 2021, Cook took a separate, 30-year mortgage, for $540,000 on a property in Georgia, according to the referral. Her mortgage loan there, too, has an occupancy clause stating the borrower must make it a primary residence within 60 days and for at least one year. In his letter to Bondi, Pulte alleges that Cook "appears to have acquired mortgages that do not meet certain lending requirements and could have received favorable loan terms under fraudulent circumstances." Pulte cited four criminal statues for Bondi to investigate for potential charges.Pulte also sent Bondi what appears to be a rental listing for the same Georgia unit, "indicating that the property was intended to be used as an investment/rental property, and not in fact a primary residence," according to the letter.Cook was nominated to the Fed by President Joe Biden and took office in 2022, becoming the first Black woman to serve on the Fed's board of governors. She was later nominated by Biden for a full term, which expires in 2038. The surprise early resignation of former Fed Governor Adriana Kugler, another Biden pick, gives Trump an early opening to nominate someone to the central bank's board and steer its monetary policy trajectory more toward his preferred path. He has named one of his economic aides, Stephen Miran, to fill the slot on an interim basis.

US mortgage rates dropped last week by the most since February, enticing homeowners to step up refinancing.The contract rate on a 30-year mortgage declined 10 basis points to 6.67% in the week ended Aug. 8, according to Mortgage Bankers Association data released Wednesday. The rate on a 15-year mortgage retreated below 6% for the first time in four months — matching the lowest level since October.READ MORE: Fannie Mae cuts outlook for 2025–26 home salesMortgage rates tend to track moves in the Treasury market, and the yield on the 10-year note tumbled at the start of the month in the wake of weak employment data. That report, which included downward revisions to prior months, boosted the odds that the Federal Reserve will lower interest rates next month.MBA's measure of refinancing jumped 23% from the prior week to the second-highest level since early October. The index of home-purchase applications rose a more modest 1.4%.A sustained decline in home-financing costs would help breathe fresh life into a struggling housing market. However, stubbornly high mortgage rates and steadily rising home prices have buffeted a resale market where purchases are hovering near 15-year lows. For first-time homebuyers, the National Association of Realtors affordability index is near the lowest in records back to 1986.READ MORE: Half of largest housing markets record home price downturnsThere are, however, indications of modest relief in the housing market. According to real estate brokerage Redfin, the income needed to afford a home has declined in 11 of the 50 most populous US metropolitan areas compared to last year.Builders, meanwhile, are using a variety of incentives to help reduce a multiyear high in new-housing inventory.The MBA survey, which has been conducted weekly since 1990, uses responses from mortgage bankers, commercial banks and thrifts. The data cover more than 75% of all retail residential mortgage applications in the US.

Following the financial crisis, the conforming secondary market created new rules for delivering data, starting with the Uniform Mortgage Data Program and the Uniform Collateral Data Portal. The UCDP rolled out in June 2011, soon followed by the Uniform Appraisal Dataset.This fall, Fannie Mae and Freddie Mac will begin testing the next big change: UAD 3.6. In September, a limited production phase will launch with a small group of lenders. On Jan. 26, 2026, it will be open for optional use across the industry. Mandatory adoption of the new Uniform Residential Appraisal Report (URAR) begins Nov. 2, 2026. That may sound far off, but those involved in the appraisal process need to prepare now.The UMDP update requires redesigned forms and a new UAD built on the MISMO 3.6 standard. The question is whether the industry will be ready, given its track record with major transitions.How UAD 3.6 changes the way appraisals are producedThe UAD standard had been crafted around Mortgage Industry Maintenance Standard Organization's Property and Valuation Services version 2.6, said Elizabeth Green, senior vice president, valuation solutions at ServiceLink, who is also also the chair of MISMO's Property and Valuation Services Community, which put together the new Appraisal Procurement Dataset Specification."This particular approach for UAD 3.6 introduces a redesign of the uniform residential appraisal report," Green said, the report more commonly known as Fannie Mae Form 1004. "The first UAD did not; the first UAD was just adding a dataset to the existing published boilerplate forms used for appraisal by the GSEs."Most other forms in the UCDP already use MISMO 3.0 or higher, Green noted. MISMO 2.6 lacked the functionality of newer versions, but the GSEs used it at the time.The current process is cumbersome, said Rebecca Clapham, COO of Citywide Home Mortgage, who welcomes the shift. "It changes the amount of back and forth on data that you have to go back and get from the appraisers when you're underwriting a file," Clapham said. "It streamlines the process so that everything is in the file using one form rather than several outdated forms."Clapham added that lenders will see more consistent data, reducing variation between appraisers.Introducing the new Uniform Residential Appraisal ReportTo design the URAR, the GSEs tapped the same creator behind the Loan Estimate and Closing Disclosure forms, which are part of the TILA-RESPA Integrated Disclosures (TRID), "Now the appraisal report that the consumer is entitled to have a copy of will look very much complimentary to the other consumer-facing documents," Green said.The update also consolidates three decades of appraisal templates. Form numbers like 1004 are being retired. "The data template is all consolidated onto one truly universal uniform appraisal structure," Green said.How the appraisal community contributed to the processThe GSEs sought feedback from groups like the Appraisal Institute, a move welcomed by Bill Garber, its director of communications and marketing. "Most appraisers are eager to dive into this process," he said.The redesign removes irrelevant fields and lets appraisers complete more data in the field rather than back at the office.But it is a heavier data request on the appraiser than before, and concerns remain over how that data will be used.Garber noted that Fannie Mae and Freddie Mac have become more conservative, reducing use of appraisal waivers, though it is hard to say if that will continue..What the change means for appraisers"Lenders need to be able to ensure that they can request the correct type of appraisal for the type of property that's underlying the loan that they're doing," Green said. Training and policy updates will also be critical, since the URAR is "much more expansive" than the six-page static form now in use.Anywhere the appraisal touches origination — procurement, review, transmission, or archiving — could be affected, Green added.For appraisers, the shift is big. "The way appraisers have been working for at least the last 20 years has been static when it comes to writing reports for conforming mortgages," said Shawn Telford, chief appraiser at Cotality. The new URAR allows them to "report their observations and their analysis in a much more standardized manner."What won't change, Telford said, are expectations for independent, objective analysis.With the new format, much of what used to be long narrative text will be broken into standardized data fields. That makes it easier for lenders to find key information and for automation to process it.It also means all of the touch points in the origination process which deal with property valuations need to be addressed. Steps lenders can take to ease adoptionCotality believes lenders, no matter if they are large, mid-sized or small, need to have "an active, engaged approach" to bringing UAD 3.6 on board.Lenders need to map every system that touches the valuation process, from appraisal ordering to borrower payments. Each should be assigned an owner to determine what changes are needed for UAD 3.6.After the list is created, the lender needs to see if that system is internally based or from a vendor, and then assign "an owner" in charge of determining what, if anything, needs to be done with that piece of technology for the lender to be ready for the new UAD."That's the starting point, because once you have that inventory, you can then allocate additional resources and whatnot to figure out what you need," Telford said.But do lenders even know they have to change?The industry needs to be prepared to commit a lot of resources in order to be ready for UAD 3.6, said Vladimir Bien-Aime, president and CEO of appraisal technology company Global DMS. "Some people are not really even aware, especially on the lending side, of the ramifications of some of these changes," he said.Global DMS itself must update its review technology to handle MISMO 3.6. "Our entire process for the last several decades is going away, and I think that's really hard to get your head around," Bien-Aime said.He warned that the long runway to November 2026 may give the industry "a false sense of security."As a result they say, "I got plenty of time, and our industry is notorious for having plenty of time," Bien-Aime said, referring to the mortgage industry's propensity for putting things off to the last minute as it did with the initial UCDP adoption and for TRID.For the appraisers themselves, the change presents a completely different way of doing business. But it could also have a devastating impact on the ranks.As many have noted, the median age of appraisers keeps rising; in 2022, it was 50. Between 2008 and 2015, a decade ago, the number of active appraisers slipped 28%. The various entry requirements, including apprenticeship requirements, are holding back younger generations from entering the profession.Some appraisers currently in the business are likely to be reluctant to change, electing to leave, Bien-Aime said.How tech vendors are preparingOther vendors are already adapting. ICE Mortgage Technology updated the Uniform Loan Delivery Dataset to align with UAD 3.6 and is working with AMCs and lenders on the transition.The company, which operates the Encompass loan origination system, said it is working with its appraisal partners, appraisal management companies and lenders to provide them with the support they need to adapt to these changes and ensure a friction-free transition.Restb.ai partnered with True Footage to apply its AI-based property condition scoring to appraisals. The product works with both UAD 2.6 and 3.6.Tony Pistilli, Restb.ai's president of valuation, compared the rollout to untangling a string of Christmas lights: "If one bulb on the string goes out, the entirety goes dark."By November 2026, he expects most participants to be live on 3.6, though the early adoption period may see delays.Training tools for mortgage lendersThe GSEs have released 17 training modules to support the rollout. Donna Merritt, SVP of quality control and collateral risk at Atlantic Bay Mortgage Group, is reviewing them to update policies, vendor integrations, and fee schedules. Atlantic Bay is not part of the limited production period and expects to run dual processes until late 2026.Citywide, also sitting out the pilot, hopes to be among the first fully ready lenders but is cautious about implementation.She is "identifying what policies and procedures need to be updated, working with our vendor to determine what API needs to be adjusted, and looking at the fee schedule, [which] will be slightly different," Merritt said. It has a lot to look at and Atlantic Bay may or may not be ready by January, she said. Its appraisal vendor won't be until then anyhow.Atlantic Bay is not participating in the limited production period.Running dual processes much of 2026Between January and November, she anticipates the company would probably be split 50-50 as to the percentage of new versus old appraisal forms which come in for underwriting.This means Atlantic Bay will have to run dual processes for much of next year.Citywide is also not a part of the limited production period, Clapham noted.Still, Citywide, which is a Rate company, anticipates being one of the first lenders ready to completely roll out the process and use it prior to the mandatory date. But it also plans to be cautious."We want to make sure everything's ready so there'll be less impact to the borrower and less glitchiness, if I can use that word, for the borrowers," Clapham said.Even the AMCs are excited about the changes because it should eliminate the inconsistencies they get from their appraisal panel as well, Clapham added.If anything, borrowers should be getting a better experience with less confusion about the valuation process, an area which has been contentious in recent years over allegations of racial bias.A "better mousetrap"UAD 3.6 and the URAR are "a better mousetrap, but it's dramatically different than what they have today," Green said. Whether it spreads beyond the GSEs to government and private-label channels is still uncertain.Still, Green argued the benefits are clear: the report is easier to read, better organized, and more consumer-friendly. "It will be a benefit to the mortgage industry, simply because it's going to do a better service to our customer, the consumer," she said.

Housing starts in the US climbed in July to five-month high, led by the strongest pace of multifamily construction in more than two years.New residential construction increased 5.2% last month to an annualized rate of 1.43 million homes, according to government figures released Tuesday. That was above all forecasts in a Bloomberg survey of economists.Multifamily starts, which tend to be volatile, increased nearly 10% to the strongest pace since mid-2023. Starts of single-family homes, which make up the largest share of home construction, rose 2.8% in July to an annualized 939,000.READ MORE: Fresh tariffs from Trump target homebuilding costsDespite the July pickup in starts, the nation's homebuilders have grown more cautious in the past couple of years as a doubling of mortgage rates kept many homeowners locked in place. That's restrained demand and contributed to the biggest supply of new homes since 2007. While builders have cut prices and offered generous incentives, residential construction has been a drag on the economy in four of the last five quarters.The number of one-family homes under construction fell in July to the slowest pace since February 2021, the report showed. Builders have signaled a slowdown in spec homes in particular, or those built without a signed contract."Builders are trying to thin the construction pipeline to get those inventories down," Stephen Stanley, chief economist at Santander US Capital Markets, said in a note. "So far, it is not working. This is why I expect that residential construction activity is likely to remain relatively soft for the next quarter or two."READ MORE: What's behind the increase in housing inventory?The home construction figures will help economists shape their estimates for third-quarter gross domestic product. Prior to the starts report, the Federal Reserve Bank of Atlanta's GDPNow forecast had penciled in essentially no contribution from residential investment.Building permits, an indicator of future construction, decreased 2.8% to an annual rate of 1.35 million — the weakest since June 2020. Single-family authorizations climbed for the first time since February. Permits for new multifamily projects declined.In addition to many Americans putting off buying a new home, many have also refrained from taking on big home-improvement projects. On Tuesday Home Depot Inc. — the world's largest home-improvement retailer — reported comparable sales that were less than analysts had expected.New construction in the South rose 19.2%, the most this year, while starts in the Midwest climbed more than 33% on multifamily projects.The new residential construction data are volatile, and the government report showed 90% confidence that the monthly change ranged from a 9.5% drop to a 19.9% gain.The National Association of Realtors will provide a look at the resale market on Thursday with its release of July existing-home sales. 

Home Depot Inc. sales returned to growth in the second quarter as shoppers invested in smaller projects, such as lighting and gardening.The world's largest home-improvement retailer said comparable sales grew 1% in the quarter, modestly below what analysts had estimated but an improvement from a 3.3% slump a year ago."These may be shallow gains, but they show a material strengthening over the last quarter and provide confidence that the slump in home improvement is finally over," GlobalData analyst Neil Saunders wrote in a note.READ MORE: Aging market drives outlook for home renovation spendingHome Depot and its competitors have seen sales slow over the past two years as Americans put off buying a new home or taking on larger fixer-upper projects that required financing. The bigger work remains on pause, but consumers are taking on smaller home projects in the meantime, Chief Financial Officer Richard McPhail said in an interview."Our customers are telling us they are putting projects on hold," he said. "They are not canceling them."The shares rose as much as 5% in New York trading on Tuesday, touching their highest since Feb. 14. The stock has been trailing the S&P 500 Index this year.Comparable sales in the US accelerated throughout the quarter with more than a 3% rise in July. Most of Home Depot's 16 merchandising departments saw sales gains. READ MORE: Rithm buys $1B in home reno loans from UpgradeTransactions over $1,000 grew during the quarter and both "do-it-yourself" and professional spending rose, executives said on a call with analysts. Lower mortgage rates could further drive demand, though the top reason for consumers deferring large projects is how they perceive the health of the economy. Online sales also increased, as technology investments helped the company to deliver products more quickly. Executives said they believe Home Depot is taking market share.McPhail said Home Depot was able to maintain pricing levels because most of its imported goods arrived before new tariffs imposed by President Donald Trump. Later in the year, some items will get more expensive, he said. Home Depot sources more than 50% of its items in the US and said it plans to keep prices competitive. It also reiterated its guidance for the full year. Executives said the guidance does not assume an improvement in outlook for larger projects or a turn in the housing market.Competitor Floor & Decor Holdings Inc. recently said price changes it put in place weren't material last quarter, but that it expects to take more action later this year.Home Depot is the first big-box retailer to report earnings, and investors and analysts are looking closely for clues on price changes and shopping behaviors. Among their main questions are how much cost retailers are absorbing and what that means for consumers. Walmart Inc. and Target Corp. are expected to report later this week.

Fannie Mae's August mortgage origination forecast predicts lower volume in 2025 and 2026 compared with July as the government-sponsored enterprise moved its rate expectations higher.It now expects total home sales to decline year-over-year. Fannie Mae is still looking for existing home sales to rise, but not by as much previously expected. The drop off in new home sales is deeper than in the July forecast.The forecast was compiled prior to the July housing starts release on Aug. 19 from the U.S. Census Bureau. The month had 1.428 million housing starts and 1.415 million completions.Housing starts were 5.2% above the revised June estimate and 12.9% over the July 2024 rate. But single-family starts were just 2.8% higher than the revised June data."Despite a modest uptick after four-month streak of declines, single-family permits — a leading indicator of future construction — remain near their lowest level since March 2023, signaling continued weakness in the sector," Odeta Kushi, deputy chief economist at First American Financial, said in a commentary. "The housing market remains structurally undersupplied, and we need more hammers at work to build the homes that are still in short supply."What Fannie Mae predicts for home salesThose issues likely underpin the August Fannie Mae forecast for 4.74 million seasonally adjusted total home sales, down 0.1% from 2024.New home sales of 654,000 units on a seasonally adjusted annual rate, is 4.7% lower compared with last year.In the July forecast, Fannie Mae looked for 4.85 million SAAR total home sales this year, a 2.2% gain and 676,000 SAAR new home sales, a 1.5% decline from 2024.The home sales projection for next year is for 5.23 million SAAR units, compared with the previous forecast of 5.35 million.How mortgage rates will move through the end of 2026The 30-year fixed rate mortgage is now predicted to average 6.7% for the current quarter and 6.5% by the end of the year; the July forecast called for 6.5% and 6.4% respectively.In the first quarter of next year, the rate is expected to be 6.4% (compared with 6.2% in the July outlook) and fall to 6.1% by the fourth quarter (compared with 6%).Last Thursday's Freddie Mac Primary Mortgage Market Survey found the 30-year FRM at 6.58%, the lowest since October. But based on movements in the 10-year Treasury in the interim, which closed on Monday 10 basis points higher than on Aug. 13, mortgage rates could pick back up.This year is now expected to end with $1.852 trillion of volume, of which $1.386 trillion is for home purchases and $466 billion consists of refinancings. In July, the forecast was for $1.921 trillion total volume, with $1.409 trillion of purchase loans and $511 billion refis.How Fannie Mae views economic growth going forwardAmong the other items Fannie Mae revised downward is gross domestic product. For this year's fourth quarter, the growth outlook now calls for a 1.1% increase, compared with 1.3% in the July forecast; for 2026, GDP is expected to end the year now at 2.2%, versus 2.3% one month ago.Inflation, as measured by the Consumer Price Index, will be hotter in 2025 than previously expected. Fannie Mae expects it to rise 3.3% year-over-year in the fourth quarter, up from 3% in the July forecast.But for 2026, its CPI outlook calls for 2.6%, down from 2.7%.

The Federal Reserve's top banking regulator is promoting a pro-technology approach, urging a shift away from what she called "an overly cautious mindset" toward banks adopting innovative tools such as blockchain and artificial intelligence.In a speech Tuesday, Federal Reserve Vice Chair for Supervision Michelle Bowman said regulators must understand new products and services used in the financial sector, rather than focusing solely on the risks they pose."Bank regulators approach technology and periods of change with caution and skepticism, concerned about rapid growth, new business models, greater interconnectedness and interdependence, often focusing only on the risks," she said speaking at the Wyoming Blockchain Symposium. "But risks may be offset or at least determined to be manageable when we recognize and consider the potentially extensive benefits of new technology."Bowman outlined several technological innovations gaining traction in the financial sector, including tokenization, blockchain and artificial intelligence. She warned that if regulators are not open-minded about technology adoption, "banks will play a diminished role in the financial system more broadly."Regarding tokenization, Bowman said she believes it is poised to expand access to capital markets and facilitate near real-time payments, while also lowering costs. She also mentioned that the GENIUS Act, signed into law by President Donald Trump in July, has pushed stablecoins "to the forefront." Banking agencies, including the Fed, are currently creating a regulatory framework for the cryptocurrency, she said."[Stablecoins] are now positioned to become a fixture in the financial system, with implications and opportunities for the traditional banking system, including the potential to disrupt traditional payment rails," Bowman noted.In reaction to changing attitudes to cryptocurrency, Bowman said Fed employees could benefit from "hold[ing] de minimus amount of crypto" to better understand how digital assets work."I certainly wouldn't trust someone to teach me to ski if they'd never put on skis, regardless of how many books and articles they have read," she said during her speech. "We should consider whether limits on staff investment activities may be a barrier to recruiting and retaining examiners with the necessary expertise and for existing staff to better understand the technology."The Fed governor urged regulators and the financial services industry to have ongoing conversations with one another regarding technology adoption."Banks should be encouraged to explore new technology, to engage in discussions with their regulators about how they can be deployed, and what reasonable supervisory expectations should apply," Bowman added. "In this context, a healthy dialogue and a commitment to learning ensures the bank and examiner relationship can be collaborative rather than antagonistic in tone."Bowman's commentary comes after the Federal Reserve Board announced the end of a program created in 2023 to supervise how banks use emerging technologies, along with the rollback of several policies related to crypto use.Its decision to end the Novel Activities Supervision Program, launched two years earlier primarily to monitor banks' crypto adoption, reflects the central bank's improved understanding of the use cases and risks associated with developing technologies, the Federal Reserve said previously."We stand at a crossroads: we can either seize the opportunity to shape the future or risk being left behind," Bowman said, closing out her speech Tuesday. "By embracing innovation with a principled approach, we can define the course of history and fulfill our responsibility to promote the safety and soundness of the banking system and financial stability."

Sen. Tim Scott, R-S.C. Bloomberg News WASHINGTON — Senate Banking Committee Chairman Tim Scott, R-S.C. publicly acknowledged the role that the crypto industry had in unseating former chairman Sherrod Brown, a longtime banking progressive, from the Senate. Scott's comments, made at the Wyoming Blockchain Symposium just ahead of the Federal Reserve's Jackson Hole Summit, were a stunning acknowledgement of the role that crypto money has played in policymaking in Washington as Congress has made some of the most consequential laws regarding payments and banking since Dodd-Frank. Banks took some large losses in the stablecoin bill, and are currently pushing back against certain provisions in an upcoming market structure bill concerning how stablecoin issuers and special purpose depository institutions can take up traditional banking activities without the oversight that comes with being an actual bank. Kraken, one of the cosponsors of Tuesday's crypto symposium, has a Special Purpose Depository Institution affiliate headquartered in Wyoming."Thank you, to all of y'all, for getting rid of Sherrod Brown," Scott said to the audience. "Literally, the industry put Bernie Moreno in the Senate, and he's on the banking committee," Scott said later. Brown is Scott's predecessor as chairman of the Senate Banking Committee, and Bernie Moreno, his opponent in Ohio, drew support from the crypto industry in part because of Brown's ability to hold up legislation that would be favorable to the industry in the Senate. Brown has already said he will run for the Senate again in 2026, this time seeking now-Vice President JD Vance's old Senate seat in the midterms, a special election that could decide control of the Senate but for a term that would last only two years. It's not clear if the crypto industry will ramp up their campaign spending against Brown again in the 2026 Ohio Senate race."Fire the legislators that are in your way," Scott said. "You guys did a really good job of that this last election cycle. You elected some Democrats who are good on the issues, you elected a lot of Republicans who are leading on the issue." He connected the election spending and the crypto industry's powerful role in 2024 races directly to the kind of bills that Scott has ushered through the banking committee. "That kind of agnostic approach to getting the job done is incredibly helpful," Scott said. "I would recommend you elect more Republicans and Democrats at the end of the day, getting people who care enough about the future and not just the present makes America the crypto capital of the world." 

Increasing loan balances, reduced head count and higher seasonal volume led nonbanks to report the highest loan production profits in years last quarter, according to the Mortgage Bankers Association. The pre-tax net production profit of $950 per originated reversed a two-quarter slide into the red, with improvement surging from a loss of $28 per transaction three months earlier, MBA said in its quarterly mortgage bankers performance report. The report covers IMBs and home lending subsidiaries of chartered banks.  The latest positive number also increased by 37% from $693 in net income during the same quarter in 2024 and more than doubled last calendar year's average of $443. "IMB net production income reached its highest level since the fourth quarter of 2021," said Marina Walsh, CMB, MBA's vice president of industry analysis, in a press release. Viewed on a basis point level, second quarter pre-tax production profit came in at a gain of 25 bps per loan, compared to a loss of 7 bps over the first quarter. On a historical basis, though, the latest profit is still running below the post-2008 average of 40 bps. While current mortgage rate levels and a limited number of affordable homes in many markets still present ongoing challenges to lenders, MBA had previously estimated total production across the industry to finish close to $549 billion in the second quarter, well ahead of the $429 billion posted over the same three months of 2024. The traditional spring buying season, accompanied by periodic drops in mortgage rates that led to spikes in refinancing and ongoing home price growth, contributed to better bottom lines for production, Walsh said. "The seasonal pickup in purchase volume and the average number of production employees decreasing from last quarter, led to production costs dropping by more than $1,600 per loan. At the same time, average loan balances reached a study-high, resulting in an increase in gross production revenue," Walsh continued. Production revenue comprising fees, net secondary marketing income and warehouse spread rose to $12,551 per loan, up from $11,190 in the first quarter. Production employee headcount  per company narrowed to an average of 315 in the second quarter, a drop from 322 employees in the first three months of 2025. Meanwhile, the average loan balance for new first mortgages climbed 2.7% on a quarterly basis to $374,151 from $364,339. Taking into account all types of loans, including second mortgages and home equity liens, the average balance similarly increased 2.6% to $355,558, up from $346,714. The second-quarter turnaround also came off an average of $636 million in volume per lender, increasing from $488 million three months prior and $492 million a year ago. Production momentum buoyed the IMB segment, with four out of five companies reporting pre-tax second-quarter financial profit across their businesses after also factoring in servicing. The 80% majority increased from just 58% in the first quarter and nudged past 78% reported one year earlier. How servicing helped fuel profitsWhile production numbers outshined servicing performance, the latter also posted favorable net income growth last quarter, with an average of $30 per loan. The mean profit increased from first quarter's $22. Operating income, excluding amortization of mortgage servicing rights and gains or losses in  market valuations, remained unchanged on a quarterly basis at $90 per loan.How the largest lenders performedMBA's numbers also largely corresponded to positive trends seen in a separate report that exclusively looked at mortgage performance of 18 of the largest banks and publicly traded IMBs published by Boston Consulting Group. BCG found origination volumes up 35% on a quarterly basis and 24% higher year over year at the end of June. Among the nine companies reporting gain on sale numbers, five saw decreases with a median drop of 12 basis points compared to the previous quarter and 77 bps versus one year ago. The report noted nonbanks continue to gain origination and servicing market share versus their depository peers, with a boost in home equity lending. While growth trends remain on the upside, the companies "highlighted the rate dependent nature of the market anticipating slight origination growth under current rates while preparing for refinance opportunities once rates shift lower," BCG said.