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While it is increasingly likely the Fannie Mae and Freddie Mac conservatorships are nearing some sort of end, the question is whether their conforming product boxes will be expanded as a result.The demand for products that address unique borrower needs isn't going away anytime soon. In recent weeks, lenders have introduced a wide range of creative offerings designed to meet those needs.Some fall within categories are already in existence, like those that support down payment assistance, which enables government-sponsored enterprise lending. But elsewhere lenders are looking to serve a niche group not being addressed by current offerings.Recently, reverse mortgage lender Longbridge teamed up with Figure in order to enter the forward home equity line of credit business with an offering aimed at those 62 and older.The following is another roundup of unique financing announcements:  Driving business through mortgage promotionsChase Home Lending, which recently resumed HELOC lending, is running a refinance mortgage promotion from Sept. 8 through Sept. 21.The offer is coming out at a time when mortgage rates are at their lowest in 11 months, according to Freddie Mac.Customers nationwide can lock in their discounted refinancing rate during this period. Those discounts will vary by mortgage product and location, Chase said.In addition, this rate promotion is stackable with other discounts Chase Home Lending offers to consumers, such as its relationship pricing to deposit or wealth management account holders that offers up to 1% off their rate.Nontraditional property financingParanova Property Buyers, headquartered in Little Rock, Arkansas, has started an in-house finance program to help families unable to qualify for a mortgage."Our mission has always been to create win-win solutions," said Andrew Yu, the company's founder, in a press release. "By offering in-house financing on properties we own, we're helping families who feel shut out by banks move into quality homes while keeping the process simple and transparent."The consumer purchases a property owned by Paranova using a "manageable" down payment. It specializes in helping homeowners navigate difficult situations, running from foreclosure to probate."Everyone deserves a fair chance at homeownership," Yu said. "We see this as an opportunity to help families put down roots while maintaining a dependable, transparent path for sellers and buyers alike."Crypto assets in underwritingLendFriend Mortgage of Austin, Texas, is the latest to bring to market a crypto-backed product.Borrowers can use Bitcoin, Ethereum or other digital assets to qualify for a home loan and not have to sell or pledge their holdings.It does so through an asset depletion mortgage. The company gave an example of a borrower who has $3 million in Bitcoin held in a personal Coinbase account. The homebuyer may be able to qualify for a $1 million loan based on a standard asset depletion calculation, even without traditional income sources.This product is particularly relevant for early crypto adopters and investors who want to avoid triggering capital gains and the related taxes by having to liquidate their Bitcoin or Ethereum holdings.It is available in California, Colorado, Florida and Texas.The latest in non-qualified mortgage offeringsIn August, the company now known as AD Mortgage launched Prime Jumbo Blue, for borrowers seeking higher balance loans, including for investment properties."By adding investment properties, we're helping our partners close more loans and giving their clients the freedom to think bigger — whether it's buying a luxury home or expanding a real estate portfolio," said Max Slyusarchuk, its CEO, in a press release.Program features include:FICO scores starting at 660Up to an 89.99% combined loan-to-value ratioLoan amounts up to $3.5 millionA debt-to-income ratio up to 50%Unlimited ability to do a cash-out refinanceBesides investment properties, the product can be used for primary and second residences.Reserves are based on automated underwriting findingsPennymac is putting several non-QM offerings on its correspondent lender menu, effective Sept. 22.This includes a debt service coverage ratio mortgage. Another product is designed for creditworthy borrowers (A+, A, A-) who have non-traditional income profiles, such as self-employed professionals or entrepreneurs."Our non-QM offerings are about unlocking opportunities for our Pennymac Correspondent clients and the borrowers they serve," said Alex Boand, chief correspondent production officer. "The non-QM space continues to grow, and we're excited to offer a competitive, high-quality product line to meet demand among our clients."Pennymac intends to retain servicing on all non-QM products. These will also be made available through Pennymac TPO in the fourth quarter.American Pride Bank's APB Wholesale is bringing out APB Solutions, a suite of non-QM products which includes offerings for investors and foreign nations.Loan amounts range from $125,000 to $3 million with LTVs up to 90%. It offers flexible documentation requirements."Whether it's a DSCR loan for a first-time investor, a P&L-only option for an entrepreneur, or a foreign national loan for a second home, we've designed this product suite to help brokers win deals that other lenders won't even look at," said Jessica Bluj, president of the Atlanta-based bank's mortgage division.Easy Street Capital increased its residential transition loan program to $5 million per unit from the prior $2 million. This product can be used for both single-family and multifamily loans.Besides the larger loan size, a no appraisal option for qualifying mortgages is available. Interest rates start at 8.9%.Separately, Easy Street Capital announced increased leverage terms for experienced builders. Effective immediately, qualified borrowers with three or more deals of experience can access up to 90% loan-to-cost and 75% LTV through their EasyBuild loan program. This is an increase from the previous limits of 85% LTC and 70% LTV.Products that help with down payment assistanceClick n' Close, an Addison, Texas-based wholesale and correspondent lender, which specializes in down payment assistance products, has rolled out an adjustable rate mortgage looking to help home builders address buyers affordability issues.The new offering is called SmartBuy 5/1 ARM Down Payment Assistance. It combines an ARM first with a repayable second lien product which can be applied to the down payment, closing costs, prepaids (which are any upfront payments a borrower might make towards homeowners' insurance, property taxes, interest and/or escrow deposits) or rate buydowns.It permits builders and their lending partners to give buyers more approachable monthly payments and lower upfront barriers, Click n' Close said.Total Mortgage has brought its closing cost assistance program, Lease to Keys, to market. It provides up to $2,500 to first-time buyers."The Lease to Keys initiative reflects our focus on making homeownership more accessible for those buying a home for the first time by easing the financial transition for renters," Christopher Affinito, chief revenue officer, said.Once the buyer obtains a mortgage pre-approval, the next step is to provide records of their current rent obligation. If approved, they receive a credit equal to one month's rent, up to the $2,500 limit.Texas lender SWBC Mortgage, provided an update on its Homeownership Expansion Loan Program, or HELP. Since its launch, it has done $2.3 million in DPA for 487 home loans nationwide.HELP provides a grant of up to 2% of purchase price up to $5,000; but the buyer must contribute at least 1% toward the down payment. First-time buyers meeting a 50% area median income test may also qualify for an additional $2,500.But because it is a grant, the borrower does not need to repay the funds; for tax purposes, they get a Form 1099.Meanwhile, the Federal Home Loan Bank of San Francisco has given out $10 million to 200 first-time home buyers in 2025 Middle-Income Downpayment Assistance Program grants via 55 members who are located in Arizona, California and Nevada.This is the third year of the program. This year's grants were fully reserved in the two weeks after it launched in March.Eligible buyers can over 80% and up to 140% of the AMI; they need to complete a counseling course and contribute a minimum of $10,000 towards the down payment.So far the program has provided $40 million in DPA to 818 first-time buyers.

Key Insight: Banks have long favored less frequent earnings reports, but investors fear losing valuable information.Expert Quote: Reducing reports from four per year to two "could create selective disclosure around more favorable announcements," said Stephens analyst Terry McEvoy.Forward Look: The Securities and Exchange Commission may take action on President Trump's demand for twice-yearly disclosures.Some bankers have long sought relief from the time-consuming ritual of providing quarterly updates to investors. Now President Trump appears poised to deliver the six-month schedule that industry voices have advocated.Trump wrote in a social media post Monday that, subject to the approval of the Securities and Exchange Commission, corporations should no longer be forced to report their earnings on a quarterly basis. "This will save money, and allow managers to focus on properly running their companies," he wrote in a Truth Social post.The idea, which historically has not gotten a warm reception from investors, is not new. Trump floated the proposal in 2018, asking the SEC to study the possibility. And American businesses have only been reporting their earnings every quarter since 1970, when the SEC first started requiring it. Earlier, the cadence was every six months, as Trump has suggested is more appropriate."Getting rid of quarterly reporting has been a debate for decades," said Jaret Seiberg, who follows financial services policy for TD Cowen's Washington Research Group. "What's different this time is we have a president and an SEC chair who appear open to acting."Business leaders, including major bank CEOs, have long advocated a return to the semiannual schedule, complaining that the frequent reports take up valuable time and lock companies into short-term thinking. James Gorman, who led Morgan Stanley for 13 years, has called quarterly filings "asinine.""Why wouldn't that power and information in an organization go into what's best for clients, rather than having to report again in another nine weeks?" Gorman said at a conference hosted by Bloomberg in 2016.JPMorganChase Chairman and CEO Jamie Dimon and Berkshire Hathaway Chairman and CEO Warren Buffett have both called for an end to providing guidance every quarter — with Buffett calling the custom "corporate malpractice" — though they have both stopped short of denouncing quarterly reports altogether.But others say frequent filings provide important transparency for investors. Terry McEvoy, an analyst at Stephens, acknowledged that semiannual reporting could save banks "time, energy and resources." But it might also limit the information released to the public, he said — especially if the news is bad."How would a bank make investors aware of material events that occur … if it happened shortly into a six-month window?" McEvoy asked. "It could create selective disclosure around more favorable announcements."As he pointed out, however, other sources of information would still be available. The banking industry is one of the more highly regulated sectors of the U.S. economy, and bank holding companies  are separately required to file quarterly financial reports, called call reports, for their banking subsidiaries.Additionally, reducing the amount of quarterly reporting to the SEC wouldn't eliminate companies' responsibility to file Form 8-Ks to notify investors of material events, although the grounds for filing such a disclosure is somewhat subjective."From the banking regulators' perspective, there's not much information that's going away," Matthew Bisanz, a partner at the law firm Mayer Brown who focuses on banking regulation, said in reference to Trump's idea.One thing that could potentially go away, however, is earnings calls — at least for the quarters in between semiannual reports."One of the things people point to is, 'If we lose quarterly reporting, will we also lose quarterly analyst meetings and times when investors can really ask questions and get feedback from the company?'" said Liz Walsh, a counsel at Mayer Brown who previously worked for the SEC. "Right now, those things go hand in hand."In Trump's view, the cadence of earnings reports affects not just the competition between businesses, but also between nations."Did you ever hear the statement that, 'China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis???'" the president wrote in his social media post. "Not good!!!"In fact, companies in mainland China are required to report their earnings every quarter, just like their U.S. competitors. In Hong Kong, however, businesses report every six months.Disclosure requirements in other parts of the world vary. In the European Union, Great Britain and Australia, most companies report semiannually. But in India and Japan, quarterly earnings are the standard. In Africa and South America, the rules are different from country to country.Proponents of the six-month calendar argue that quarterly reporting, which is a major item on public companies' to-do lists, distracts management from other initiatives and forces companies to think in "small bursts," as opposed to taking a longer-term view, Walsh said. On the flip side, some investors worry that with less material information, it's more difficult to make investment decisions.Even without quarterly earnings reports, Seiberg said, there's still information that can be used to assess the banking industry."In the grand scheme of things, this is a helpful step, but it's not a seismic change," Seiberg said. "It's more just questioning, 'Is this quarterly ritual that we go through still what's best for the market?' And I think the administration is telling us that it wants to see change."

Key insight: A federal appeals court denied the Trump administration's effort to remove Federal Reserve Gov. Lisa Cook from the central bank's board of governors.Expert quote: "Here, the plain purpose of providing for-cause protection was to assure members of the Board of Governors — and national and global markets — that they do not serve at will and thus enjoy a measure of policy independence from the President." — DC Circuit rulingWhat's at stake: Separately, the Senate confirmed White House Council of Economic Advisers Chair Stephen Miran to the Fed board. Both Cook and Miran will attend the Federal Open Market Committee's September interest rate meeting, which begins Tuesday.A federal appeals court has rejected a bid by the White House to block an injunction allowing Federal Reserve Gov. Lisa Cook to remain at her post pending the outcome of her lawsuit challenging her dismissal by President Trump last month. The opinion, released late Monday, centered on the president's argument that Cook has no property right in her continued employment as a member of the Federal Reserve Board of Governors. The president's appeal also argued that the president's judgment of whether an offense amounts to "cause" for removal under the relevant statute is not judicially reviewable, but the panel did not rule on that point. The opinion was published just as the Senate voted 48-47 to confirm White House Council of Economic Advisers Chair Stephen Miran to an unexpired term on the Fed board that expires in January. Miran said he would take a leave of absence from his position at the CEA during his Fed term. Both Cook and Miran are expected to participate at the Federal Open Market Committee's September meeting, which begins Tuesday. Writing for the majority of the three-judge panel, Judge Brad Garcia — appointed to the court by President Biden — said judicial precedent broadly understands that the "for cause" protections were written into the statute to serve a purpose, and that the purpose is to assure the public that the management and direction of the agency in question will not change from administration to administration. "The reason a statute providing 'for cause' protection from removal creates a property interest is that it supports an objective basis for believing that the employee will remain employed unless they do something warranting their termination," Garcia said. "Here, the plain purpose of providing for-cause protection was to assure members of the Board of Governors — and national and global markets — that they do not serve at will and thus enjoy a measure of policy independence from the President."Trump's motion to stay the lower court injunction had argued that leaving Cook on the Fed board would create a greater harm than removing her pending the outcome of her legal challenge. But the appeals court's opinion counters that argument, stating that the president's interest in pursuing his policy objectives is not greater than Cook's constitutional right to not be deprived of property without due process."Cook's constitutional claim suggests only that the President cannot remove her without providing a constitutionally adequate opportunity to respond. The harm to the government in this case is better viewed as the inability to remove a for-cause-protected official without following the Due Process Clause's basic dictates," Garcia's opinion reads. "In balancing the equities, we have held — in terms that squarely apply here — that the government may not prioritize any policy goal over the Due Process Clause."Notably, the majority opinion does not address the question of whether Trump's reasons for removing Cook amount to legitimate "cause" for her removal, finding instead that the abridgement of Cook's due process rights alone is sufficient reason to deny the motion to stay.In a dissenting opinion, DC Circuit Judge Greg Katsas — appointed by President Trump in 2017 — said that the president's motion to stay should be granted precisely because the cause that gave rise to Cook's termination fit squarely within the broad understanding of misconduct, and thus allowing her to remain on the Fed board constitutes an abridgement of the president's authority to remove officials who do not invite public trust."The President plainly invoked a cause relating to Cook's conduct, ability, fitness, or competence," Katsas argued. "The allegations against Cook could constitute mortgage fraud if she acted knowingly, and that is a felony offense. Moreover, even absent intentional misconduct, any misstatements in formal applications for six-figure loans are at least concerning. And the President specifically concluded that the allegations cast doubt on Cook's 'competence and trustworthiness as a financial regulator.' That is plainly a permissible 'cause' under section 242" of the Federal Reserve Act.The lawsuit originated in August, after Federal Housing Finance Agency Director Bill Pulte published on social media a screenshot of a criminal referral to the Department of Justice alleging that Cook — who was first appointed to serve on the Fed Board by President Biden in 2022 — had claimed primary residence on two separate mortgages taken out in 2021. Trump later said he would "fire" Cook if she didn't resign, and Cook replied that she had no intention of doing so. Trump then published on social media a screenshot of a letter to Cook informing her that he was removing her from the Fed board because of the allegations, "effective immediately."Cook filed suit against Trump and the Fed, arguing that the reasons for her removal fall outside of the commonly understood definition of "cause" and deprived her of a material property interest, given that she had no formal recourse to rebut the accusations made against her. She included the Fed in her lawsuit to ensure that the central bank would allow her to retain her position and responsibilities pending the outcome of the suit. The Fed has stated that it will abide by any court ruling.The DC District Court last week issued an injunction against the president and the Fed, finding that Cook's arguments on the meaning of "for cause" protections and her right to due process favor her interest in remaining on the Fed board in the interim.Trump's attorneys quickly filed a motion to the DC Circuit Court seeking a stay of the lower court's injunction before the beginning of this week's Federal Open Market Committee meeting, arguing that the lower court erred in determining that the Federal Reserve Act's "for cause" protections imply dereliction of official duties and that Cook's property rights are infringed by her termination. The appeal also argued that the president's Article II power to faithfully execute the laws includes discretion to determine what constitutes "cause" for removal, and that those discretionary choices are not reviewable by the judiciary.Cook's attorneys replied in their motion opposing an emergency stay that the government is not challenging the constitutionality of the "for cause" protection in the Federal Reserve Act, but is nonetheless asking a court to "render that protection meaningless" by asserting that the president is unencumbered by the courts or Congress in deciding what offenses constitute cause for removal. "Worse still, the government asks the Court to abdicate its role in a case in which the attempted removal was announced without affording any notice or opportunity to be heard — contrary to both the statute and constitutional due process," Cook's reply reads. "That would transform the Federal Reserve from a historically independent institution into an at-will body, leaving the nation's central bank (and its monetary policy) at the mercy of the White House and its political whims. That is the opposite of what Congress intended."Cook's brief also cites news reports from over the weekend that mortgage documents related to one of the two homes for which Cook is alleged to have claimed as primary residence on her mortgage application indicate that the property was intended to be used as a second home, undermining the president's argument that Cook is guilty of impropriety. The motion argued that the president's actions gave Cook no meaningful opportunity to challenge the accusations made against her, and that procedural abridgement amounts to a deprivation of her rights. Cook has not been charged with any crime."Governor Cook was deprived of a forum in which to offer any evidence," Cook's attorney, Abbe Lowell, said in his brief challenging the motion for a stay. "The government seems to blame her for that shortcoming, stating she never 'sought to offer any evidence . . . that would explain her actions.' It cannot be the case that deprivation of due process is harmless unless the person informally raises her arguments ahead of the proceeding to which she is entitled." 

Forward look: Miran is expected to take part in the Fed's rate setting committee meeting. Key insight: Miran breaks years of precedent by becoming the first Fed official to also retain his White House position. What's at stake: The Fed will decide this week whether to cut interest rates, and Miran will likely be a voice in favor of steeper cuts due to his advocacy of the Trump administration's tariff policy. WASHINGTON — The Senate has confirmed Stephen Miran to the Federal Reserve Board, placing one of President Donald Trump's most loyal economists on one of the most influential seats in global finance. The Senate voted mostly along party lines 48-47 to confirm his nomination. Sen. Lisa Murkowski, a Republican from Alaska, broke ranks to vote against Miran. Miran's confirmation means he will join the central bank while continuing to hold a White House appointment at the same time. It's a significant break of precedent and one that Congressional Democrats said amounted to an open disregard for the Fed's political independence. Miran — one of the chief architects of the Trump administration's trade policy — said repeatedly during his confirmation hearing that White House attorneys determined that he could take an unpaid leave of absence from his position as chair of the Council of Economic Advisers. Nonetheless, he said he would likely resign if he were appointed to a longer term than the several month stint he's been nominated to serve. "I have received advice from counsel that what is required is an unpaid leave of office," Miran said in response to a question from Sen. Jack Reed, D-R.I. "The term being nominated is a little more than 4 months. As long as that is the advice of counsel, I will follow the law." Miran's nomination already comes amid big questions about the independence of the Fed, and on how and whether Miran would operate as a close ally of Trump. His position on the CEA is an additional wrinkle in his nomination, but not a significant obstacle. Miran's nomination needed only a simple majority to pass, and Republicans hold 53 seats in the Senate. "You're going to be an employee of the president of the United States on leave … that is absolutely ridiculous," Reed said.The term Miran is nominated to fill — formerly held by Adriana Kugler, who resigned unexpectedly in August — expires in January. The law allows Miran to remain on the board, however, until a new member is confirmed by the Senate. His role on the Fed board and his presumed return to the CEA, the powerful economic advisory board at the White House, is in direct conflict with one of Miran's most public arguments about the Fed. In a Manhattan Institute paper last year, Miran said that Fed officials should be barred from serving in the executive branch for four years after the conclusion of their Fed experience. Miran's confirmation means that he is expected to take part in the next Federal Open Market Committee meeting, which is slated to begin Tuesday. FOMC members, including Fed Chair Jerome Powell, have hinted that interest rate cuts are on the table for the September meeting, spurred by signs of a deteriorating  labor market. Fed Chairman Jerome Powell and other FOMC members have held interest rates steady since January out of concern that the president's tariff regime and immigration policies could drive up inflation while also putting pressure on the labor market, and have waited to see which of those opposing pressures emerge as the more urgent concern. Miran has promised to act independently on monetary policy, although he would still listen to the advice of Trump, a statement that many Democratic members of the Senate Banking Committee questioned given his decision to remain a White House official. "If I'm confirmed to this role, I will act … based on my own personal analysis of economic data, my own personal analysis of the effects of economic policies on the economy, and act based on my judgement of the best economic policy possible,"  he said. "That said, I'm always happy to hear views from every source possible. It's important to me to hear a variety of views to make sure that I really do think that."On bank policy, however, Miran has made no such promise. "Do you think the Federal Reserve Board and reserve banks have been independent from politics in the last several years?" Sen. Cynthia Lummis, R-Wyo., asked during Miran's hearing. "I don't believe that it was a set of non-partisan, non-political objective technocrats that decided … that the Federal Reserve should be a solution to face climate change," Miran answered. "I don't believe that operation choke point was a non-political act, either. And so if confirmed [to] Federal Reserve, I intend to fully respect independence, respect the monetary policy, as you say. On regulatory work, there's a lot of work to be done, and I applaud the work this committee has done on operation choke points and other matters that you mentioned."

Allowing President Donald Trump to remove independent agency members undermines the legal basis for the independence of the Federal Reserve, lawyers for the Federal Trade Commission's sole remaining Democrat told the US Supreme Court Monday.Attorneys for FTC Commissioner Rebecca Kelly Slaughter made that argument in a filing that seeks to allow her to remain in her post while the high court hears an appeal by the Trump administration. The president is seeking to overturn a 90-year-old Supreme Court decision that let Congress set up independent agencies and shield their leaders from being fired.The federal law that created the FTC says commissioners can be removed only for "inefficiency, neglect of duty, or malfeasance in office," which the Supreme Court upheld as constitutional in a 1935 ruling known as Humphrey's Executor. Congress used that same ruling to create the Fed's modern structure and insulate Federal Reserve governors from removal, except for cause. "The foundational 'principle that every right, when withheld, must have a remedy,' applies regardless of whether the illegally removed officer is a federal judge, the chairman of the Federal Reserve, a justice of the peace, or a Commissioner of the FTC," the lawyers said. "Because lower courts have (correctly) understood Humphrey's Executor to squarely control questions pertaining to the for-cause removal provision of the FTC Act, only this court can provide further authoritative guidance."The dispute comes amid months of criticism by the Trump administration of the Fed's reluctance to lower interest rates. It also coincides with Trump's effort to push out Federal Reserve Governor Lisa Cook for alleged mortgage fraud, which the president maintains creates sufficient cause for her dismissal. In the FTC case, Trump contends he has the constitutional right to fire Slaughter for any reason.Slaughter's attempted removal represents the most direct challenge yet to the Humphrey's Executor ruling, which stemmed from Democratic President Franklin Delano Roosevelt's firing of a Republican FTC commissioner. Conservatives have long opposed Humphrey's Executor as undermining the Constitution's separation of powers, and they've gained traction in recent years. The Supreme Court ruled in 2020 that the president could fire the director of the Consumer Financial Protection Bureau, saying such a powerful executive branch figure has to be accountable to the president.More recently, the Supreme Court has let Trump remove members of the National Labor Relations Board, Merit Systems Protection Board and the Consumer Product Safety Commission. The court suggested along the way that Trump's power wouldn't extend to firing Federal Reserve Chair Jerome Powell — at least in the absence of a legitimate reason like misconduct.The Trump administration told the Supreme Court in the FTC case that the US Court of Appeals for the District of Columbia had flouted the high court's earlier rulings. Defenders of Humphrey's Executor say the Constitution gives Congress the flexibility to create agencies that rely on expert leadership and are independent from the White House.The case is Trump v. Slaughter, 25A264.

U.S. property owners saw home equity pull back in the second quarter as housing cost growth moderated, but while accrued amounts still sit near recent highs, the rise in underwater loans is raising concerns.Homeowners lost an average of approximately $9,200 in equity on a year-over-year basis between April and June, according to the report from real estate data provider Cotality. The fall into the negative comes after full-year equity gains per household of $25,000 in 2023 and $4,500 in 2024. The decline represented a fall of 0.8%, or $141.5 billion, to $17.5 trillion, the report said. Even with the latest quarterly pullback, homeowners are still seeing equity accrual near historic highs."The average borrower equity is approximately $307,000, representing the third-highest figure in recorded history and an increase of $124,000 compared to the first quarter of 2020 at the start of the pandemic," said Cotality Chief Economist Selma Hepp in a press release. At the same time, though, market conditions paint a mixed picture of the near-term road ahead, Hepp noted. "Home prices this year have experienced the slowest rate of growth since the Great Financial Crisis of 2008," she said, noting that not only does appreciation remain modest overall but depreciation exists in some markets.Typical seasonal fluctuations will apply downward pressure on home equity value for the rest of 2025, but the second-quarter contraction also indicates households are leveraging available financing to draw on their gains, Cotality said. Underwater mortgages on the riseCaution signs emerged in the growth of homeowners falling into negative equity positions, or underwater, when their total outstanding mortgage balance exceeds the value of the property.Compared to the second quarter of 2024 when the share of underwater mortgages hit an all-time low, that metric increased from 1.7% to 2%, with the addition of 175,000 more homes in the category. Competition during the spring homebuying season that led to higher housing prices drove the underwater rate down 3.3% on a quarterly basis. Underwater mortgage trends coincide with higher delinquencies in some parts of the market this year, according to several research sources. Household economic concerns as well as the end of payment relief policies governing student loans contribute to recent stress. A fall in home price values of 5% over the next year would push another 242,000 borrowers underwater, but the same-sized increase could lead 144,000 homeowners back into positive equity territory, Cotality said.  Wide regional variations appearDespite the overall decline, mixed trends emerged regionally, with pronounced growth observed in the Northeast and Midwest, while most of the rest of the country saw decreased values. Thirty-two states experienced equity loss on a year-over-year basis.Connecticut, New Jersey and Rhode Island posted the largest surges in home equity, gaining between $31,000 and $37,500. Meanwhile, several states in the West and South saw declines in the five-figure range. The nation's capital saw the largest loss of over $34,000, followed by Florida and Montana at $32,100 and $26,900.

Property insurance costs have gotten so high in Miami, that more than one-in-every-five homes do not have coverage, a study from Valuepenguin found.Nationwide, in the nation's 50 largest metro areas, homeowners spend an average of 7% of their expenses on property insurance.But in Miami, 13.1% of monthly homeownership costs go toward coverage, followed closely by Oklahoma City at 13% and Tampa at 11.6%.Meanwhile three-quarters of recent and potential future homebuyers are concerned that homeowners' insurance will become unaffordable, a Realtor.com survey found. Nearly half have or expect to have difficulty in getting or renewing coverage.Valuepenguin, a personal finance site owned by Lendingtree, used the Integrated Public Use Microdata Series for its study. The series is a subset of the U.S. Census Bureau's data.What does property insurance entailProperty insurance includes homeowner, fire, hazard and flood coverage in the total expense, while the total cost adds in mortgage payments, property taxes, utilities, and if applicable, condo fees and mobile home outlays.Based on national averages, monthly homeownership costs $2,077.58, including $145.66 in property insurance. This insurance cost is approximately 2% of the $7,205.21 average monthly household income.The insurance amount seems like a reasonable average cost, said Rob Bhatt, Valuepenguin's home insurance expert and licensed agent, in the report.However, the average fails to reflect the price volatility between markets."Several parts of the country have seen the cost of home insurance — a type of property insurance — go up by a significantly higher amount than income growth," Bhatt said. "In these areas, the rising cost is putting strains on families' budgets."A recent study from ICE Mortgage Technology put the property insurance cost component of the monthly mortgage payment at almost 10%.The role of natural disasters in rising insurance costsWhile Miami, Tampa and other parts of Florida are subject to hurricanes like last year's Helene and Milton which left billions of dollars of destruction, Oklahoma City had multiple tornadoes strike the area on the same day four times in 2024."We've seen an uptick in the number and severity of these extreme weather events," said Bhatt, which means "insurance companies have had to pay to rebuild more homes than normal. Meanwhile, inflation has made the cost of rebuilding each home more expensive."As part of the spiral, as claim amounts rise, so do premiums.An earlier study from Guardian Service, an insurance brokerage, noted 71% of homeowners it surveyed were postponing renovations or repairs in order to keep costs down, as several reduce coverage or take a higher deductible.This report noted Gen Z was the group most impacted by these rising expenses.Why insurance costs make up a lower share in CaliforniaOn the other hand, the high cost of living in California also has reduced the percentage share which property insurance makes up: San Jose is at 3.5%, neighboring San Francisco was at 4.3%, while Los Angeles was at 4.6%. Even with the wildfires, these high prices likely kept the proportion between insurance cost and homeownership cost lower, Valuepenguin said.Of those largest metro areas with the highest rate of uninsured homes, four of the top 6 are in Florida. Miami leads the way with a 20.8% rate, followed by Tampa at 18.1%. Birmingham, Alabama is third at 17.3% with San Antonio, Texas next at 15.8%.Jacksonville is fifth at 15.2% while Orlando is tied for sixth with Houston at 14.9%.In the Realtor.com study, just under nine-in-10, 88% believe they will pay more for homeowners' insurance in the future, with 42% saying they have already experienced an increase in costs.At the same time 58% said they would or are likely to forego homeowners' insurance, if the costs become too high.However, for Gen Z homebuyers, three-quarters of them said they would not get this coverage, even as it is a requirement for having a mortgage, Realtor.com found.Both Fannie Mae and Freddie Mac require replacement cost value homeowners insurance for the mortgages they purchase, rather than the cheaper actual cost value."Homeowners are looking for strategies to lower costs including adjusting their home searches and potentially short-charging or forgoing coverage altogether," Danielle Hale, chief economist at Realtor.com, said in a press release.

Two large government-related investors saw their annual nonperforming-loan sales reverse course and resume an upward trend for the first time since 2021, adding to signs that more distressed mortgages are slowly making their way to market as pandemic restrictions get lifted.The number of NPLs Fannie Mae and Freddie Mac sold in 2024 rose to 5,207 from 5,067, marking the highest level since 2022's 8,325, according to their regulator, the Federal Housing Finance Agency. NPL sales have been falling since they peaked at 24,164 in 2021. NPLs are typically one year or more delinquent.Getting nonperforming loans off the books help position the government-sponsored enterprises' favorably at a time when the Trump administration is considering a public offering for some of their shares with potential rebranding as The Great American Mortgage Corporation. (FHFA Director Bill Pulte also has rebranded his agency as U.S. Federal Housing.)A drop in the number of NPLs on the two government-sponsored enterprises' books to 36,169 from 42,667 as the volume of sales rose also suggests that they were quicker to bring NPLs to market in the past year.This marked the lowest number of NPLs on Fannie and Freddie's books since at least 2015.Making headway in removing older NPLs from the booksBreakdowns by loan age show that the enterprises also had fewer older distressed loans on their books last year. In 2024, the bulk, or 25,368 of the loans on the GSEs' books, were less than two years old. Another 8,051 were older but still had less than five years of seasoning. The balance, 2,750 of these loans, were five-plus years old.The previous year, Fannie and Freddie had 42,667 NPLs on their books, 25,191 of which were less than two years old. Another 13,931 were more than two years old but less than five. The balance or 3,545 of these loans were five years old or more.Older loans in the delinquent inventory tend to have higher foreclosure rates.The latest report from the FHFA shows NPLs in arrears for less than two years have a foreclosure rate of 31.6% compared to 44.6% for those in the 2 to nearly 5-year range. Loans that have been distressed for 5-plus years had a 58.1% foreclosure rate.How resolutions differed by occupancy statusDifferences in resolutions based on verified occupancy status also were notable because the topic has been at the center of the Trump administration's legal battle with Federal Reserve Governor Lisa Cook and a growing number of other related fraud allegations.Borrower-occupied properties experienced fewer foreclosures at a rate of 28.9% compared to 32% for those that may have residents living in them that are not the mortgagor. Vacant properties had the highest foreclosure rate at 75.8%.A year earlier the foreclosure rate for borrower-occupied properties was 29.1% compared to 31.9% for properties with non-mortgagor residents. Vacant properties had a 76% foreclosure rate.LTVs dip, concentration in three states persistsThe average loan-to-value ratio dipped, with Fannie's at 79% and Freddie's clocking in at 87%. The previous year's average LTVs were 80% and 88%, respectively. Historical patterns suggest lower LTV loans will be less susceptible to loss in areas where home price drops deplete equity.Since the enterprises began programmatic NPL sales back in 2015, three states have represented more than 39% of the volume: New York, 13.6%; Florida, 13%; and New Jersey, 12.8%. The next largest state concentration in Illinois was just 5.2%.

Angel Garcia/Bloomberg The Trump administration has made efforts during its first eight months back in office to legitimize cryptocurrency in the U.S. economy, and Linkhome Holdings is getting ahead of the curve. The AI-powered real estate company launched a platform that allows buyers to purchase property with cryptocurrency, it announced in a press release Monday.The platform is one of the first to link crypto to real-world assets.Investors and homebuyers can now use popular cryptocurrencies, such as Bitcoin, Ethereum and USD Coin, for property transactions in the United States with the platform. This new feature is a significant milestone in combining real estate, fintech and blockchain technology to make property transactions more efficient, the California-based company said."Real estate is the largest industry in the United States, and housing is at the heart of American family life. Linkhome is committed to transforming this industry through AI technology and financial innovation, making living in America simpler and more efficient," Founder and CEO of Linkhome Bill Qin said in the release. "By introducing cryptocurrency payments into U.S. property purchases, we are creating new opportunities for homebuyers, enhancing transaction efficiency and redefining how people invest in real estate."How crypto intersects with real estateCrypto has often been used as collateral to apply for a mortgage, but the company supports direct real estate purchases with virtual currency, connecting digital with real-world assets.Linkhome, with more than $185 million in transactions facilitated, is now primed to be a beneficiary of the Trump administration's push toward digital assets. In June, U.S. Federal Housing ordered Fannie Mae and Freddie Mac to formally consider crypto as an asset in single-family mortgage loan risk assessments without requiring conversion, despite some consumer groups pointing out potential risks.Traditional banks have been reluctant to do the same, but some private lenders, such as Miami-based Vaster, consider crypto as a liquid asset that can strengthen a borrower's value when qualifying for loans.Both Linkhome and Vaster see adopting crypto as a way to attract investors seeking alternative asset diversification as well. Linkhome, which leverages AI and fintech to make homeownership simpler, faster and more accessible, also expects crypto payments to reduce cross-boarder payment delays.Linkhome's service is currently available for select transactions and will expand nationwide in phases, the company said.

The Federal Housing Finance Agency director should spend less time on partisan attacks and social media posting, and more on trying to resolve the housing crisis, writes Antonio White, of 480 Advisors.Andrew Harrer/Bloomberg Federal Housing Finance Agency Director William Pulte's pursuit of activities usually reserved for the inspector general — including his focus on Federal Reserve Governor Lisa Cook and Treasury Secretary Scott Bessent — is outside the scope of his role as head of the world's largest housing finance regulator. It distracts from the real work of ensuring affordable housing access for millions of Americans.At a time when the median age to purchase a home has climbed a decade to 36, according to the National Association of Realtors, America cannot afford theatrics from the very regulator tasked with protecting their future.Instead of organizing press conferences or weighing in on issues that fall to other oversight bodies or agency heads, the FHFA director should focus on the FHFA's independent, statutory mission and finish the fight his predecessors began to increase the affordable housing supply through levers already available to the FHFA director today.The FHFA was created by the Housing and Economic Recovery Act of 2008, or HERA, with a clear mission: to ensure the safety and soundness of Fannie Mae, Freddie Mac and the Federal Home Loan Bank System; to maintain liquidity and stability in the secondary mortgage market; and to support affordable housing and community investment. Congress deliberately designed FHFA as an independent regulator to insulate housing finance from the very kind of partisanship now distracting its leadership.When I served under retired FHFA Director Sandra Thompson as head of congressional affairs and communications and a member of her senior staff, our priorities were clear: maintain access to liquidity, avoid market panic, strengthen investor confidence and engage stakeholders on solutions to the housing supply crisis. I was in the room when we met with borrowers, tenants, lenders and elected officials, gathering insights to strengthen the agency's effectiveness and the housing system at large. Having now served four government agency heads directly, I know they do not spend their time frivolously on social media. They're simply just too busy. Moreover, roughly a dozen legal, communications and front-office advisors usually weigh in on posts to avoid inadvertent signals to markets. So why is the FHFA's chief diverting the agency's legal, communications, and government relations staff into areas best left to inspectors general and oversight committees? If the FHFA director wants to strengthen housing supply, he should look to activating bipartisan-supported recommendations that he already has control over.First, finish Federal Home Loan Bank System reform. Created in 1932 under Republican President Herbert Hoover to stabilize housing finance during the Great Depression, the system today provides privileged access to liquidity and generous returns to shareholders. FHFA's own FHLBank System at 100 report, completed after 18 months of formal research, stakeholder engagement, and review, found that increasing Affordable Housing Program contributions from 10% to 20% could generate billions in new affordable housing investments. Lawmakers from both chambers of Congress have long supported FHFA's recommendations for reforming one of America's key reservoirs of affordable housing capital. It is actionable, supported by Congress and overdue.Second, get out of Washington and listen to real people. During my tenure, I traveled with Director Thompson to Atlanta, where housing leaders and local officials pioneered manufactured home solutions that reduced costs while preserving quality. We also visited Navarre Village, Ohio, to hear from seniors struggling with rising rents on fixed incomes. We had difficult conversations with tenants in Kansas City, Missouri, living in substandard conditions who wanted nothing more than decent and safe accommodations to raise their families. These conversations highlighted real needs and opportunity and strengthened the agency's policy effectiveness.Third, don't forget congressional accountability. Under HERA, the FHFA director is typically required to testify annually before both House and Senate financial services and oversight committees. Those hearings are lengthy, under oath and often accompanied by document requests — emails, calendars and communications made public. A prudent regulator leads with mission, not controversy, because everything is eventually scrutinized. I trust FHFA's seasoned advisors have warned senior officials of this reality — or at least I hope they have.America is facing a housing affordability crisis. Blurring the line between FHFA's statutory mission and activities more suited for inspectors general or partisan actors risks undermining confidence in a system whose failure once triggered the Great Recession. The agency should be a bulwark against instability, ensuring that lenders remain strong, liquidity flows where it's needed, and that today's students and young professionals can look forward to buying a home before middle age. The current FHFA director's approach makes the system more fragile and threatens confidence in an institution that helped shield the nation from another subprime mortgage collapse.It's time for FHFA to return to its statutory, independent mission and focus on expanding access to safe, decent and affordable housing — not distractions better left to oversight bodies. That is the independence Congress intended. That is the leadership Americans deserve.