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The Mortgage Bankers Association was pleased the Senate version of the reconciliation bill keeps many of its priorities in place, while taking out the so-called revenge tax.However, the bill does differ from the House of Representatives version and the two need to conform before it can go to President Trump for signature.Furthermore, because three Republican senators — Thom Tillis, Susan Collins and Rand Paul — along with all of the Democrats voted against the package, it needed Vice President J.D. Vance to cast the tie-breaking vote.The bond market's early reaction to the vote was mixed. The 10-year Treasury yield closed Monday at 4.23% and opened at 4.21% on Tuesday. Just before 11 a.m. it was at 4.28%, but by 1 p.m., it retreated to 4.26%.How the mortgage industry reacted to the Senate bill"MBA is pleased that the Senate's version of the bill maintains, and in several cases enhances, numerous pro-housing and economic development tax provisions that our Board-level Tax Task Force, representing both our single-family and commercial/multifamily members, advocated for," Bob Broeksmit, president and CEO, said in a statement."Importantly, the bill makes permanent the mortgage interest deduction, permanently reinstates the deductibility of mortgage insurance premiums, maintains the 20% deduction for Qualified Business Income under a permanent Section 199A, makes permanent the deductibility of business interest for real property transactions, keeps current law treatment of Section 1031 like-kind exchanges and the tax code's 'gain on sale' rollover provision, and raises the federal debt ceiling by $5 trillion," he continued.Private MI premiums were deductible from 2007 through 2021. During that period, $64.7 billion of these deductions were claimed, the U.S. Mortgage Insurers pointed out."Restoring and making permanent the MI premium deduction will deliver meaningful tax relief directly to low down payment homeowners and homebuyers without increasing risk in the housing finance system," said Seth Appleton, USMI president, in a statement. "By restoring this deduction and making it permanent, Congress is standing up for American homeowners, homebuyers, and taxpayers. We encourage the House to include this deduction in the bill that is sent to President Trump to be signed into law."What it kept out, following lobbying by MBA, the CRE Finance Council and others, was Section 899, the so-called revenge tax and restrictions to a pass-through entity's ability to deduct state and local tax expenses.Why are consumer advocates upset about the Senate billConsumer advocates, obviously, were disappointed."Today, the Senate majority rammed through legislation that gives tax breaks to billionaires, cuts programs people rely on to meet their families' crucial needs, and guts agencies, like the Consumer Financial Protection Bureau, that protect people from abusive corporate practices," said Ericka Taylor, co-executive director of Americans for Financial Reform, in a statement."Paying for tax breaks for the ultra-wealthy with savage cuts to nutrition, healthcare, and other programs is the most regressive giveaway to Wall Street tycoons that Congress has ever considered," she said.The bill cuts the CFPB budget by 70% or more, said a statement from the National Consumer Law Center."The Senate's bill will drastically slash the Consumer Financial Protection Bureau, ending its critical work to protect ordinary people across the country," said Lauren Saunders, NCLC associate director. "There is nothing 'beautiful' about allowing big banks, fintechs, and other financial service providers to break the law and exploit consumers — including servicemembers, veterans, and their families."Somewhat quixotically, AFR's Taylor asked the House to "stand up for the people and reject the one big, brutal bill, a legislative monstrosity that fuels financial abuse and racial and economic inequality."Do deficit-hawks support the Senate measure?An organization of deficit-hawks, the Committee for a Responsible Federal Budget, said the tax cuts in the bill would add over $4 trillion to the national debt through 2034. This is $1 trillion more than the House bill."The Senate took a bill that already borrowed way too much, and took it from bad to worse," a statement from Maya MacGuineas, its president, said. "The Senate expanded the House's tax breaks, watered down its offsets, introduced new special interest giveaways, and added another trillion dollars onto the price tag."The Committee said the Senate bill did not comply with House instructions which require $2 trillion of spending cuts to unlock $4.5 trillion of tax reductions, missing the mark by $600 billion.Albeit for different reasons, the group agreed with the consumer advocates that the House should reject the Senate measure."Instead of worrying about arbitrary deadlines or sparing the Senate another vote-a-rama, fiscal conservatives should stand up for what's right and reject the Senate plan to explode our debt," MacGuineas said.

The Department of Veterans Affairs has technically ended some temporary mortgage relief. But there's a phase-out process that could sustain loan buyout activity in Ginnie Mae securitizations another couple of months.The Veterans Affairs Servicing Purchase program ended May 1, but the VA has allowed trial payment plans (TPPs) in process to proceed through Aug. 31, according to Bank of America. Payment for successful TPPs might be possible through September if funds don't run out."Despite VASP's termination on May 1, VA buyouts remain elevated for June print (May speeds), which we believe is mainly a result of the permissible VASP timeline," Bank of America researchers said in a report published Monday. "Although direct data disclosure on VASP is not available, the evidence is solid that the recent pickup in VA buyout is VASP-driven," they added.That means some nonbank mortgage companies may want to ensure they have the capital available to handle relatively higher buyouts from securitized pools through the summer. Ginnie guarantees securitizations of mortgages that other public entities back at the loan level."Discount VA speeds did pick up for a handful of servicers (led by Village, The Money Source, NewRez, Planet Home, Crosscountry) indicating heavier usage of VASP," the Bank of America researchers said in their report.Why VASP posed challenges as a long-term programSome Democrats and consumer groups have called for the reintroduction of VASP as a permanent program. But one industry executive who works with the Mortgage Bankers Association said it had an unnecessarily high price tag that made that difficult."The VASP program was giving a permanent lower interest rate to solve what may be a short term problem (e.g. job loss)," said David Battany, executive vice president, capital markets, at Guild Mortgage, and chair of the MBA's Residential Board of Governors."This was not great for taxpayers or veterans, because one of them would be having to pay the bill for the 20+ point loss on each loan that was modified," he said, referring to the fact that the 20 cents lost on the dollar could detract from funds available to other VA programs.A potential VASP successor and where it standsThe VA department, which still has other forms of relief available beyond VASP, could also still go back to offering a partial claim program if a bill aimed at providing a less expensive way to offer one moves forward. So far, it has passed the House but still needs Senate approval."It is much better to have a servicer offer a loss mitigation that better fits a veteran's situation, that gives them more help now when they need it, such as forbearance where the veteran is making zero monthly payment if they lost their job, and then when they get a new job, the servicer can do a partial claim for the amount of the missed payments," Battany said."If a veteran loses their job and gets temporary forbearance of a zero mortgage payment for 6-18 months, adds the amount of their unpaid loan payments to the back end of their mortgage, the total cost to the system is way less than the 20+ point loss to taxpayers on every loan that goes through the VASP process," he added.The VA offered a temporary partial claim during the pandemic but it also had financial burdens associated with it. Those prompted the department to discontinue it back the temp partial claim in 2022. The department created VASP last year to succeed the pandemic partial claim.

Rocket Companies announced Tuesday it has officially closed its $1.75 billion acquisition of Redfin.Rocket is launching a product called Rocket Preferred Pricing to encourage consumers to use both its mortgage and real estate services.Borrowers who purchase a home with a Redfin agent and finance it through Rocket Mortgage can qualify for a one-percentage-point reduction in their interest rate for the first year of the loan, or receive up to $6,000 in lender credits at closing, according to a news release.The offer applies to retail loans only, but Rocket said additional promotions for "homebuyers, real estate agents and mortgage brokers [will be released] in the coming months."Rocket, in announcing plans to buy Redfin in March, predicted that after the brokerage is fully integrated it will generate over $60 million in revenue by combining its financing services with Redfin's real estate business.READ MORE: Rocket's deals for Redfin, Mr. Cooper bring new growth and challengesThe real estate brokerage's grasp on the consumer home shopping experience is notable with nearly 50 million monthly users checking out the platform, creating ample opportunity for Rocket to cross-sell services.The brokerage now features the branding "Redfin Powered by Rocket," and loan officers acquired through Redfin's 2022 acquisition of Bay Equity Home Loans have transitioned to Rocket Mortgage.Glenn Kelman, CEO of Redfin, said the two united firms will help connect "the gulf between the American Dream of homeownership and reality.""The reason Rocket and Redfin came together was to bridge that gap, so that the people who spend their days dreaming on Redfin.com can easily use Rocket financing to own their dream," Kelman said in a statement Tuesday.Rocket's purchase of Redfin has sparked mortgage industry wide discussions around the changing landscape of lending, while also raising concerns from lawmakers. In June, lawmakers, including Sens. Elizabeth Warren, D-Mass, and Cory Booker, D-N.J., sent a letter to the Justice Department's Antitrust Division and the Federal Trade Commission demanding to know why the agencies did not review the Rocket-Redfin merger during the pre-merger review period.The addition of Redfin and Mr. Cooper will turn Rocket into a "massive housing company that threatens to reduce choice and raise prices for American families in the housing market," the lawmakers warned in their letter dated June 4.Attempts were also made via litigation pegged by a stockholder to postpone a Redfin shareholder meeting on June 4, to vote on the acquisition, but the vote went ahead as planned.

Federal Reserve Chair Jerome Powell.Bloomberg News Some Federal Reserve officials are starting to beat the drum for an interest rate cut, but not Chair Jerome Powell.During an onstage panel event in Portugal, Powell said he is not putting a rate cut on the table for this month's Federal Open Market Committee. But he also is not taking it off, either. "I really can't say. It's going to depend on the data and we are going meeting by meeting," Powell said during the European Central Bank's Forum on Central Banking. "I wouldn't take any meeting off the table or put it directly on the table. It's going to depend on how the data evolve."Powell's remarks come after two other members of the FOMC — Fed Vice Chair for Supervision Michelle Bowman and Gov. Christopher Waller — said that they could support a rate cut as soon as this month. The next meeting is set for July 29 and 30. President Trump — who has made a habit of criticizing the Fed in general and chair Powell specifically for the central bank's interest rate path — also has ramped up his critiques of Powell in recent days, sending a handwritten note to Powell Monday urging him to cut rates dramatically.Powell noted that a "solid majority" of the FOMC believe it will be appropriate to ease monetary policy at some point during the four remaining meetings in 2025. According to the group's quarterly economic projections, 12 out of 19 participants expect at least one cut this year, including eight calling for a half percentage point of rate reduction. During the event — which also featured European Central Bank President Christine Lagarde, Bank of England Gov. Andrew Bailey, Bank of Japan Gov. Kazou Ueda and Bank of Korea Gov. Rhee Chang-yong — Powell acknowledged that the Fed likely would have reduced interest rates this year already had it not been for the ultra-high tariff policies rolled out by President Donald Trump in April."We went on hold when we saw the size of the tariffs and when essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs," he said. "So we didn't overreact. In fact, we didn't react at all. We're simply taking some time, as long as the U.S. economy is in solid shape, we think the prudent thing to do is to wait and learn more and see what those effects might be."For now, Powell said the Fed's current target range of between 4.25% and 4.5% for the federal funds rate is "modestly restrictive" but not enough to prevent the economy from growing or to diminish the labor market.Policy scenariosAlong with current economic conditions, Powell also discussed the Fed's ongoing review of its monetary policy framework and communications practices. Specifically, he weighed in on the possibility of incorporating scenario analysis into the FOMC's public engagement strategy.Powell said the committee generally discusses six or seven economic scenarios at each meeting. He said that practice is "very useful" in his own policy considerations and has "a lot of appeal" in terms of enhancing public communications. Yet, even if the Fed determines that it would like to share more forecasts with the public, it would do so carefully."If we're going to do something in that area, it's going to be putting a toe in the water and not just throwing ourselves in, you know, over Niagara Falls on it," he said. "So I can imagine the situation where we would try that in a particular circumstance, but for us, we're just going to do the work and understand it, as many other central banks are doing."'100%' focused on the task at handDuring the panel, Powell was asked how he is dealing with the increasing pressure the Trump administration is putting on him and the rest of the Fed to lower interest rates. He said he is not letting the outside noise distract him from doing his job."The things that matter are using our tools to achieve the goals that Congress has given us" maximum employment, price stability, financial stability," he said. "That's what we focus on 100%."The response drew applause from the audience and an endorsement from Lagarde, who said that she and the other central bankers on the stage would all respond in the same way, should they face political pressure to change rates prematurely. Powell added that it is his goal to hand over the reins to the next Fed chair after his term expires next May with a strong U.S. economy firmly in place."I want to hand over to my successor an economy in good shape, and so do all of my colleagues. That's all we ever want," he said. "That's what keeps you awake at night. Are we on a path to do that? And how do we get that done?"Asked if he planned to step down from the Fed Board at the end of his chairmanship or finish out the remainder of his term as governor — which runs until 2028 — Powell declined to say what his intentions are."I have nothing for you on that today," he said.

Mortgage lenders welcomed the rescissions the Department of Housing and Urban Development made to 12 Federal Housing Administration policies, noting they would make the program more attractive for participants.They could even be a starting point for bringing banks back as originators in this government-insured program.These revisions might affect other segments of the housing finance ecosphere including appraisals and possibly even private mortgage insurance, which competes with the FHA for providing credit enhancement to low down payment borrowers.The general consensus among those National Mortgage News spoke with is that these are at least a step in the right direction for improvements to the FHA insurance program.Why is HUD making these changes?"None of these shifts are seismic, but at first blush they are all thoughtful, measured, and positive for the mortgage ecosystem," said Isaac Boltansky, head of public policy at Pennymac, in a comment. HUD Secretary Scott Turner called the changes "bold, necessary and long overdue," as the Trump administration is slashing bureaucratic red tape which drives up costs."Every hardworking American deserves a fair shot at owning a home — the American Dream should never be buried under a pile of regulations," Turner said in a press release. "These changes open doors for families and lenders, unlocking opportunities nationwide."While the changes make the FHA program more attractive, the biggest competitive advantage that PMI has remains, which is the life of loan premium. But the amount of overlap in terms of customers has declined in recent years, and this is not likely to cause a large shift between products.What policies were rescinded in the mortgagee letters?The 12 retractions were made in a series of five mortgagee letters.A pair of the letters affected the work of appraisers, and among other things, removed the requirement for underwriters to use an appraiser's opinion of remaining economic life, reduced photograph requirements and a "redundant requirement" involving the use of additional comparable sales in certain markets.Earlier this year, Turner cancelled a Biden-era policy on reconsideration of value as well as other appraisal requirements.The effect on appraisals from these changesThe Appraisal Institute commended HUD for modernizing the FHA appraisal policy in Mortgagee Letter 2025-18."By rescinding outdated and duplicative requirements, FHA has brought its protocols into closer alignment with prevailing appraisal standards and practices," a statement from the organization said. "These reforms enhance clarity for appraisers, reduce unnecessary burdens, and support the delivery of credible valuations — benefiting consumers, lenders, and the broader housing market alike."But its support for the change did have a caveat, urging regulators to proceed with caution on "overreliance" in the use of internal collateral valuation tools and analytics."These systems must be continuously refreshed with reliable, field-verified appraisal data to avoid the spread of 'data cancer' — systemic flaws that compromise the integrity of outputs and the soundness of collateral risk management," the Appraisal Institute said. "Efforts to reduce costs should not come at the expense of prudent risk oversight or the elimination of safeguards that ensure long-term program stability."How lending in declared natural disaster areas is impactedA separate letter, 2025-19, removed "mandatory pre-endorsement inspection requirements for properties located in presidentially declared major disaster areas." Those inspections required the use of an FHA-approved appraiser and reportedly led in some instances to a "lengthy waiting period."This gives mortgage lenders "greater discretion for inspections in those presidentially declared disaster areas," said Darnell Peterson, manager of residential policy and strategic industry engagement at the Mortgage Bankers Association. "Oftentimes a full county can be cited in the presidential declared disaster area, but the full county wasn't impacted by the disaster," he said, using the Southern California wildfires as an example.The change allows lenders to have a "more responsive approach to disaster recovery" he said.Those disaster area declarations were not "super specifically tailored," added Jay Wright, a partner at Bradley who advises mortgage lenders and financial institutions on changes in the regulatory environment.The rule change allows borrowers to avoid the "laborious process" of getting an FHA roster appraiser.But this specific revision doesn't let the lender off the hook, Wright said, noting the mortgagee letter points to other HUD regulations that shows if the property is damaged, it's going to be surchargable to the lender. The effect on FHA's safety and soundnessStill for all of these revisions, "I've got every confidence that HUD was looking at this through the lens of what is the net impact to the [Mutual Mortgage Insurance Fund], and if they concluded that it was that it was marginal at best, but it's going to allow people to buy houses more quickly and more easily," Wright said. The MMIF has a capital ratio of 11.47% as of the end of federal fiscal year 2024, well above its statutorily mandated 2%. Some have pointed to that strength to make changes to the FHA program, including ending the life of loan policy."Overall these give lenders a lot more flexibility to help borrowers by cutting a lot of the red tape and making them more efficient," said Peterson.No longer will FHA direct endorsement underwriters have to be full-time employees of the lender. That does not remove the employment requirement. "Mortgagees must continue to ensure their DE underwriters are permanent employees of a single mortgagee and underwriting functions are not contracted out," this letter said.Why was the SCIF form eliminated?FHA will no longer require the Supplement Consumer Information Form be filed. In the mortgagee letter covering this change, HUD said just 1.2% of FHA borrowers completed the form in a manner which provided any potential benefit.Turner also cancelled a November 2024 mortgagee letter implementing flood elevation standards for new construction in special flood hazard areas.These changes could be a move in the right direction to bring banks back into the FHA program, Peterson said. Several depositories, like JPMorgan Chase, reduced doing FHA after the Obama administration emphasized False Claims Act enforcement for what many felt were minor program guideline infractions.How the mortgage industry views the new FHA policiesThe Community Home Lenders of America has been vocal in embracing reform to FHA (along with Ginnie Mae), including in an op-ed earlier this year. These are a step in the right direction, the organization commented."CHLA appreciates these very constructive changes the Administration is making to streamline the FHA loan origination process," Scott Olson, executive director, said in a statement. "They will make it easier for lenders to reach qualified borrowers that need an FHA loan to buy their first home."The rescissions "are technical and administrative tweaks that should reduce regulatory burden without impacting borrowers, credit access, or the FHA's mission," Pennymac's Boltansky said.Atlantic Bay Mortgage Group also expressed appreciation for Turner "making real, practical updates through the latest Mortgagee Letters," said Chrissy Brown, chief operating officer, in a statement. "Rolling back outdated appraisal rules, removing unnecessary paperwork like the SCIF, and easing flood zone construction standards — these are smart moves that create efficiencies in the home loan process, making it easier for our borrowers to move forward with confidence."The move is consistent with the Trump administration's directive to eliminate regulatory burdens largely imposed on borrowers, as well as lenders in certain instances, Wright said."The idea is to get as many people into the nation's existing housing stock as they can," Wright said. "These are not changes that are fundamentally overhauling creditworthiness of borrowers but they do eliminate some of the paperwork and some of the difficulties that an FHA borrower was going to have to go through in order to obtain the kind of loan that is geared primarily for first-time home buyers."

While President Trump and FHFA Director Pulte continue to call for lower rates, mortgage rates have quietly marched down to their 2025 lows.It’s kind of funny to see it play out because they’ve been barking up the wrong tree, yet still seeing desired results.That wrong tree is Fed Chair Powell, who along with the other Fed members does not set consumer mortgage rates.Despite that, it seems that almost daily he’s lambasted for waiting to cut rates, which makes you wonder if it’s a more elaborate move to cast blame if things go sideways.In any event, the 30-year fixed is now near its best levels of 2025, and could get even better.The 30-Year Fixed Mortgage Is Inching Back Toward 6.50%Sure, 6.50% didn’t sound too hot back in 2022 when the 30-year fixed was still in the 3-4% range, but what a difference a few years make.This is the beauty of the human mind, which makes adjustments after being exposed to changing conditions.With regard to mortgage rates, once you see 8%, 6-something doesn’t sound half bad anymore.You might forget (to be fair, not completely) where mortgage rates used to be, and just be happy they aren’t as bad as they were.For reference, the 30-year fixed ascended past 8% in October 2023, before beginning to enter a falling rate trajectory. Albeit one with ups and downs along the way.Now mortgage rates are just about at their lows for the year, 6.67% at last glance, the only exception being a couple days in early April when the trade war had rates dipping to 6.60%.But that was very short-lived, and most probably missed it anyway. So for all intents and purposes, this is pretty much the bottom for rates in 2025 thus far, at least per MND’s daily rate.In fact, we’re kind of back to October 2024, and if we keep moving in the right direction, we could get back to September 2024 when rates neared 6%.That seemed to get things cooking again, so you have to wonder if it’ll recharge the flagging housing market if we get there once more.Watch Out for the Jobs Report on Thursday!While there’s hope mortgage rates could continue to inch lower this week, we’ll need a cool jobs report on Thursday to keep the momentum going.The jobs report tends to be the most important data point when it comes to mortgage rates, especially today with all eyes now on labor instead of inflation.Sure, inflation is still a concern, especially with all the unknowns related to tariffs, but jobs have taken center stage as bond traders fret about the health of the economy.Forecasts are calling for a pretty weak jobs report as is, with just 110,000 new jobs created in June, down from 139,000 a month earlier.The unemployment rate is also expected to climb to 4.3% from 4.2%, while wage growth is expected to slow.Assuming that all happens, mortgage rates could break even lower, though if jobs data is unexpectedly hot, the opposite could happen. So watch out!Either way, I expect a lot of rhetoric from Trump and perhaps Pulte on mortgage rates being too high, and for the Fed to keep cutting.Three Fed Rate Cuts in 2025 Back on the Table?Interestingly, the odds of the Fed cutting are rising by the day, and we somehow might be back to three cuts for 2025, assuming the CME forecast pans out.Just remember that the Fed cuts don’t translate to mortgage rate cuts. The two are loosely correlated.But if the Fed is cutting, chances are the 10-year bond yield will also be dropping beforehand and so too will mortgage rates.And we might even see some of those more aggressive 2025 mortgage rate forecasts (including my own) come to fruition.I’ve been saying for a while that there was still plenty of year left, despite many others throwing in the towel on mortgage rates for 2025.So hang in there and perhaps things will turn out better than expected.Read on: Is the Magic Number for Mortgage Rates Now Anything Close to 6%? Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.Latest posts by Colin Robertson (see all)

Bill Pulte, the head of an oversight agency for mortgage giants Fannie Mae and Freddie Mac, is planning "a full scale review" of the credit bureaus.The director of the entity formerly known as the Federal Housing Finance Agency posted the statement on X Friday afternoon, and subsequently indicated on early Monday he also wants to change the wording around another factor in the secondary market that can affect mortgage rates lenders offer consumers."We are looking into changing the name of 'LLPA' to just 'pricing," said Pulte, who now calls FHFA U.S. Federal Housing, in a separate social media post. The acronym refers to loan-level price adjustments Fannie and Freddie make for mortgage characteristics that could be negative, such as a low credit score.Pulte also reaffirmed past statements indicating he's "not happy with" with industry's main score provider, has heard the industry's concern about higher credit cost and plans to take near-term action, in another recent post.Score provider FICO has downplayed its role in higher credit costs, saying the credit bureaus charge a larger amount. FICO and Vantagescore plans have been on track to implement legislatively-mandated advanced score models for Fannie and Freddie, which Pulte said could proceed if it proved efficient.How multiple entities and reports impact mortgage credit costsEfficiency has been a central concern in the mortgage industry's push to implement advanced credit scores and reporting, which could improve the use of alternative indicators to assess borrowers' ability to repay and expand access to safe financing.There has been debate over whether the mortgage industry's traditional use of a tri-merge credit report, combining data from Equifax, Experian, and TransUnion, is truly necessary.  A Standard & Poor's study found there wasn't a significant difference in using two credit reports rather than three in line with an FHFA proposed in a Biden era, but separate Transunion research indicated it could cost some borrowers thousands of dollars over the life of their loan.Some legislators have backed the retention of the trimerge for the time being, saying the research into what ending it would mean to date hasn't been sufficient.Mortgage Bankers Association President and CEO Bob Broeksmit said in a blog post that his organization is looking into the viability of using a single score. He noted that other industries do this.One counterargument to using only one score is that mortgages are far larger than other consumer loans and require more careful vetting. "The tri-merge credit report reflects the most accurate picture of a consumer's creditworthiness and is an essential driver of safety and soundness in the mortgage ecosystem," Transunion said in a previous statement.How credit and closing costs in home lending compareFICO scores have been rising in recent years, markedly increasing from 60 cents to $2.75 in 2023, according to a past company blog by CEO Will Lansing. After it eliminated tiered pricing in 2024, the cost increased to $3.50, or around 15% of a $70 tri-merge report. This year it increased to $4.95.Anecdotal evidence suggests hard-pull tri-merged reports used in origination (as opposed to a soft pull for qualification purposes) have cost from $50 to $110, according to the CFPB's call for closing-cost feedback last year"Our profit margin for this product has remained materially unchanged for decades. The only substantial increase in our profit margin occurred in 2016," Transunion said in a response to the closing cost inquiry. Transunion said margin adjustments are made to account for inflation.FICO does have some influence over the credit reporting agencies' pricing, according to the Community Home Lenders of America."While FICO does not set specific prices to the end-use (lender and their customers), their market power allows them to unilaterally raise boundaried wholesale prices to the national CRAs," the trade group noted in a 2024 white paper, adding that the increase gets passed on to resellers.It's also important to note that credit reporting, scoring, and reselling costs are not the biggest drivers of ancillary mortgage expenses, according to the Consumer Data Industry Association and the CFPB."The largest disclosed closing costs are origination fees paid to the lender (including discount points). Title fees (including title insurance, title search, and settlement fees) are the next largest category of closing costs (and loan costs)," the CFPB noted in its request for feedback last year.

Even as some factors causing current affordability challenges show signs of easing, a new study points to how high a barrier many aspiring buyers still have to get over to achieve homeownership. To afford a typical U.S. home currently priced at $367,969, households earning today's median salary would need an additional $17,670 in annual income to meet monthly payments, even with 20% down. With only a 10% down payment, those same buyers would require a raise of $36,287, according to a new report from Zillow. The median priced home now demands a near six-figure salary, the report said. In 2023, the median U.S. household income was $82,168, according to U.S. Bureau of Labor Statistics data.Today's housing affordability data contrasts sharply with the U.S. market of five years ago, when a median salary still offered consumers an opportunity to purchase the median-priced U.S. home. "Affordability remains a steep hill to climb, especially for first-time buyers," said Kara Ng, senior economist at Zillow, in a press release. Elevated cost pressures remain even as the housing market shows consistent signs of thawing this year. Housing indicators show regular softening of home-price growth with small dips occurring in some regions, as reports from several research groups suggest the market is shifting in favor of buyers. Properties sitting unsold for longer, as well as a higher rate of canceled agreements, are both driving a recent bump in supply that applied downward affordability pressure.    "While the financial bar has gotten higher, we're also in the middle of the most buyer-friendly spring since before the pandemic for those who can make the finances work," Ng said."To make homeownership more broadly accessible, though, we need lasting solutions, starting with policies that allow more homes to be built in the right places," she also added. Where are the most affordable markets?Although affordability challenges are widespread, several urban markets still have an ample supply of homes meeting median incomes, Zillow reported. Located primarily in the Midwest and Northeast, the number of markets with affordable median prices decreased to just 11 from 39 five years ago, though. Cleveland came in as the most affordable market where the median income earner could buy a typical $244,000 home and still have over $11,500 left at the end of the year. Pittsburgh, St. Louis and Cincinnati followed as the next three markets where housing costs were low enough to still allow home buyers to keep some earnings, with leftover income of $11,244, $4,897 and $4,396 available.On the other end of the scale, California markets had the lowest levels of affordability with four cities requiring six-figure raises for median earners to achieve homeownership. Buyers in San Jose would need $250,000 more in annual income to afford a typical home. In San Francisco, median income would need to increase by over $165,000. Los Angeles and San Diego followed, with approximately $149,000 and $129,000 required each year on median salaries.  How high home prices have changed the rental marketThe difficulty in buying an affordable home in desirable markets also led to shifts in the rental housing market. Single-family rental homes now go for 41% more than they did five years ago, Zillow noted. The surge outpaced rent increases in multifamily properties, which rose by 30% over the same period.Over half the rental population was over the age of 40 in 2024, with the median at 42. One-third of rental households include children under the age of 18, Zillow reported last year.

President Trump’s latest salvo against Fed Chair Jerome Powell called for 1% interest rates.And he added that he’d “love him to resign if he wanted to, he’s done a lousy job.”Thing is, if the Fed were to cut its own fed funds rate to 1%, how would that actually affect mortgage rates?There’s not a clear correlation between the short-term FFR and the long-term 30-year fixed.So there’s no guarantee Powell’s replacement, if he/she were to lower rates aggressively, would lead to lower mortgage rates too.Trump Wants 1% Interest Rates and a Powell ResignationThe President told reporters that “I think we should be paying 1% right now, and we’re paying more because we have a guy who suffers from, I think, Trump Derangement Syndrome.”He also posted this image on his Truth Social account saying rates should be in the 1% or less range.This isn’t the first time Trump has called on Powell to lower rates, nor will it be the last, but I found it interesting he explicitly asked for 1% rates this time around.To put that in perspective, the FFR is currently at a range of 4.25% to 4.50%.It was effectively set at zero from 2009 to 2015, and again during the pandemic, before rising above 5% to combat out-of-control inflation.Last year, the Fed cut its key policy rate 100 basis points (bps) via four rate cuts, but has since taken their foot off the pedal.Trump and FHFA President Pulte have both been pressing Powell to keep cutting, with their critique of his job as Fed boss growing louder and louder.Thing is, the Fed doesn’t control mortgage rates. You could lower the FFR without seeing a meaningful change in mortgage rates.Any cuts need to be a warranted in order for bond yields to come down. And it is the 10-year bond yield that correlates with long-term mortgage rates.So while the Fed could start aggressively cutting again with a Powell replacement, the bond market might not respond as Trump and Pulte expect.Really, the only way to forcibly bring back record low mortgage rates, or at least markedly lower mortgage rates, would be via direct Fed intervention.This means another round of QE, where the Fed buys mortgage-backed securities (MBS) to increase prices and bring down associated yields (interest rates).But the chance of that remains slim, at least at this juncture. Though you can’t rule anything out if the housing market continues to stall as it has.Interest Rates at 1% Would Lower HELOC Rates SignificantlyWhen it comes down to it, the only guarantee you get from a Fed rate cut is a lower prime rate, because they move in lockstep.The prime rate is historically priced around 300 bps (3%) above the fed funds rate. This spread is constant, so if the FFR goes down by 25 bps, the prime rate goes down by 25 bps too.It’s currently at 7.50%, while the FFR is 4.25% to 4.50%, so if the Fed somehow agreed to cut their rate to 1%, you’d have prime at 4%.That’d be great news for homeowners with HELOCs, which are priced based on the prime rate.Whenever prime goes down, so too do HELOC rates. So that would result in big savings for those with HELOCs.They’d see their interest rates drop about 350 basis points (3.5%), which would obviously result in a massive decrease in monthly payment in the process.But the 30-year fixed could be a different story entirely. If the bond market doesn’t like the Fed rate cuts, perhaps because they feel forced, they might not react as expected.Same with MBS investors. So any great plan to lower mortgage rates and give the housing market a boost might not come to fruition.However, if the economy does continue to show signs of slowing, with falling inflation and rising unemployment, bond yields should theoretically come down as well.In that case, you’d get a lower 30-year fixed mortgage as well, but that wouldn’t really be due to the Fed.It’d be driven by the economic data, which ironically is what drives Fed policy decisions in the first place. Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.Latest posts by Colin Robertson (see all)

A HUD employee has pleaded guilty to making false claims about her remote work activity, costing the government over $200,000. Crissy Monique Baker, 45, of Fairfax, Virginia, will be sentenced in September to a single charge of fraud that allegedly occurred while she was employed by the Department of Housing and Urban Development between 2021 and this May. Prosecutors on Monday said the ex-management and program analyst worked in human resources roles for other federal agencies without permission from HUD.The former HUD staffer was a human resources assistant contractor for AmeriCorps between 2021 and 2023, and in 2022 worked for seven months in a similar role for a National Institutes of Health contractor. The HUD Office of Inspector General claims Baker billed the government more than 24 hours of work per day between the roles, all of which were remote."Baker submitted timesheets to HUD certifying that she worked hours for the government agency that she never actually did," the press release said.In June 2022, Baker allegedly submitted timesheets indicating 26 hours worked per day on 13 of 21 workdays that month. Her actions cost the government approximately $226,886.Eleven federal agencies took part in the investigation. The false claims charge carries a maximum sentence of 6 years imprisonment, a maximum fine of $250,000, and mandatory restitution. Counsel for Baker didn't return a request for comment Monday morning. The criminal prosecution filed in early June was signed by interim Washington D.C. U.S. Attorney General Jeanine Pirro, a former judge, prosecutor and Fox News host who President Trump appointed in May. The administration has pledged to prioritize eliminating fraud, waste and abuse, and fellow regulator Bill Pulte has also emphasized rooting out mortgage fraud. HUD itself has also come under scrutiny by the nonpartisan Government Accountability Office, which in April agreed to probe purported cuts to the department's Office of Fair Housing and Equal Opportunity.