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Bloomberg News President Donald Trump fired Federal Reserve Gov. Lisa Cook from her post in a Monday night social media post, the first time a Federal Reserve Governor has ever been removed by a president.In a move that is all but certain to ignite an unprecedented legal fight over the Fed's independence, Trump posted a letter around 8 p.m. EST addressed to Cook stating: "... you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately." The letter adds that under the Federal Reserve Act, board governors may be removed "for cause" and that "I have determined that there is sufficient cause to remove you from your position." Trump goes on to say that last week's criminal referral from Federal Housing Finance Agency Director Bill Pulte, alleging that Cook claimed two homes as primary residences on separate mortgage applications, is the basis for her termination."It is inconceivable that you were not aware of your first commitment when making the second," Trump said. "It is impossible that you intended to honor both."Congressional Democrats quickly decried Trump's move, calling it illegal and an attempt to exert maximum control over the central bank.Senate Banking Committee ranking member Elizabeth Warren, D-Mass., said in a statement that Trump's move was "the latest example of a desperate President searching for a scapegoat to cover for his own failure to lower costs for Americans.""It's an authoritarian power grab that blatantly violates the Federal Reserve Act, and must be overturned in court," Warren's statement continued.Pulte posted a criminal referral for Cook to the Justice Department last Wednesday, alleging that she had taken out a pair of mortgages for homes in Michigan and Georgia in 2021 while claiming both properties as a primary residence. Cook was confirmed as the first Black woman to sit on the Fed Board of Governors in May 2022, nominated by then-President Joe Biden.Cook said in a statement following the news of the referral that she had "no intention of being bullied to step down from my position because of some questions raised in a tweet," adding that she would "take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts." A Federal Reserve spokesperson declined to comment late Monday following the news.Trump said in a press gaggle on Friday that he would fire her if she didn't resign, adding "what she did was bad."In his letter Monday, Trump said that the Federal Reserve has a "tremendous responsibility for setting interest rates and regulating reserve and member banks," and that in light of Cook's "deceitful and potentially criminal conduct in a financial matter, [the American people] cannot and I do not have such confidence in your integrity."At a minimum, the conduct at issue exhibits the sort of gross negligence in financial transactions that calls into question your competence and trustworthiness as a financial regulator," Trump continued. "The executive power of the United States is vested in me as President and, as President, I have a solemn duty to ensure that the laws of the United States are faithfully executed. I determined that faithfully executing the law requires your immediate removal from office."Jaret Seiberg, an analyst with TD Cowen, said in an analyst note Monday night that he expects Cook to challenge her removal in court because it is unclear if improprieties that occurred before she took office, even if proven, would constitute grounds for dismissal. He also said there are likely to be questions about how the FHFA became aware of Cook's alleged improprieties. "Our expectation is that there also will be a fight over how the paperwork violation was uncovered," Seiberg said in the note. "We believe Cook is likely to argue that FHFA singled out her mortgage paperwork in order to provide the pretext for the President to more quickly take control over the Federal Reserve Board. We believe this could lead to discovery and court proceedings centered on whether FHFA is only focusing on the mortgage paperwork of high-profile Democrats rather than on all borrowers. At a minimum, this will become highly political." Sen. Mark Warner, D-Va., who sits on the Senate Banking Committee, said the Fed is designed specifically to insulate itself and its members from political whims, and that Trump's "attempt to fire" Cook flies in the face of that tradition."This outrageous and unprecedented attempt to fire a member of the independent Federal Reserve on the flimsiest of unproven pretexts is clearly the latest scheme from a president determined to subvert the institutions that have kept our democracy strong and our economy the envy of the world," Warner said."From impulsive trade wars and erratic tariffs to deficit-exploding tax cuts and now this attack on Fed independence, Donald Trump has shown time and again that he's more interested in political theater and absolving himself of blame than in helping the American people. The result is higher costs for families, uncertainty for businesses, and diminished confidence in our economic leadership around the world."Graham Steele, a professor at Stanford and former Treasury Assistant Secretary for Financial Institutions under Biden, said in a statement that Trump's move is "reckless, baseless, and illegal.""The White House and its allies have concocted a set of as-yet unproven accusations in a brazen effort to seize control of the U.S. central bank, subject it to his political whims, and ignore economic data and the Fed's statutory mandates," Steele said. "The irony is that making the Fed a political football will only backfire by undermining confidence in the safety and stability of the U.S. economy."Trump has stepped up his efforts to exert greater control over the central bank, particularly with respect to its interest rate-setting powers, since his second inauguration in January. The source of his ire Trump's has long been Fed Chair Jerome Powell, whom he has ridiculed, urged to resign and considered firing in social media posts for months.Trump and his lieutenants raised the pressure by launching inquiries into cost overruns related to a renovation project at the Fed headquarters, suggesting those overruns could serve as a basis for removing Powell. After a tense visit to the Fed headquarters in July, Trump backed off his pressure on Powell.This is a developing story.

Vitalii Vodolazskyi - stock.adob Banks are coming out in support of the Trump administration's move to repeal Community Reinvestment Act regulations finalized in 2023, despite known flaws with the decades-old status quo. They argue that a flawed but manageable rule is preferable to a flawed and unmanageable one.In a recent comment letter submitted to the agency, the Bank Policy Institute said it supports the rescission and the administration's move to reinstate the 1995 framework, saying it would remain true to the goals of the CRA while restoring regulatory certainty for firms. BPI argues that because the 2023 rule is subject to legal challenges and has not taken effect, banks continue to be examined under the 1995 rules."Reaffirming that the 1995 CRA regulations would continue to apply to banks would provide certainty that they may continue to serve their communities pursuant to those programs as they have for many years," BPI general counsel Paige Pidano Paridon wrote in the letter. "Furthermore, clarifying that banks need not allocate resources to comply with the 2023 rule may allow banks to deploy those resources toward meeting the credit needs of their communities, thereby furthering the goals of the CRA."Alongside banks, community groups, housing agency advocates and CRA experts weighed in on federal banking agencies' plan during the public comment period over the last month. The Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation announced in March that they would work to repeal the final rule and invited public comment on their proposal to rescind the rule and replace it with the prior implementation rules, which were first finalized in 1995.Congress passed the CRA in 1977 as a way to address de facto lending discrimination against communities of color. The act requires that banks be graded on how equitably they are lending to low- and moderate-income customers and neighborhoods in their service areas, typically determined by where they have branches and deposit-taking automated teller machines. Banks need to receive a satisfactory mark in order to complete M&A transactions.The federal banking regulators have at times updated their implementation rules for the CRA, most recently in 1995. But since that time both banks and community development advocates have raised concerns with the way the rules were written. Community groups argued that the rules are ineffective in driving investment and services into marginalized communities, and further that the CRA assessment areas are needlessly tied to a bank's branch network at a time when most banking activity happens online. Banks, meanwhile, have long held that there is an insufficient framework for them to know whether an investment will or will not obtain CRA credit toward their examinations.Former Comptroller of the Currency Joseph Otting sought to revise the 1995 CRA rules during the first Trump administration, ultimately issuing a proposal in May 2020 without the support of the Fed or FDIC. That proposal included a list of pre-approved lending activities that banks could engage in and obtain CRA credit, a major concession to the banking industry. But the proposal lacked broad support from community advocates, and regulators under the Biden administration started over.The 2023 overhaul developed under the prior administration included expanding assessment areas to account for digital deposits and loans, clarifying eligible community development activities and introducing more rigorous evaluations for large banks. The rule was scheduled to go into effect next year.But soon after the 2023 rule was passed, a cohort of trade groups — including the American Bankers Association, Independent Community Bankers of America, the U.S. Chamber of Commerce, the Texas Bankers Association and the Independent Bankers Association of Texas — filed a lawsuit to block the final rules on the grounds that the inclusion of digital deposits in banks' assessment areas is unsupported by the CRA statute.In a comment letter submitted to the agencies, longtime CRA expert Ken Thomas argued against what he says were divisive policy approaches that both the Biden and first Trump administrations took toward CRA enforcement and reform.Thomas said that while the 1995 CRA rules "worked fine," the Trump administration unnecessarily pushed forward a reform package without sufficient political consensus to establish an enduring reform — driven, according to Thomas, by Otting's experience as CEO of defunct bank OneWest during the 2008 financial crisis. That reform effort, Thomas said, opened a Pandora's box that ultimately spurred the Biden administration to issue what he says was an overly complex and burdensome revised rule."President Trump … brought in bankers to run the Treasury Department and its OCC," Thomas said, referring to Otting and former Treasury Secretary Steven Mnuchin, who founded OneWest. "Instead of addressing [money laundering], the number one costliest compliance regulation, they decided to overhaul CRA, far down the list at number six, because their previous bank, One West, had serious community group CRA problems," Thomas said. "Everyone agreed CRA should be updated to address the increasing impact of branchless banks."While there was widespread agreement about the need to update the anti-redlining statute's implementing regulations to account for online banking, Thomas says the Biden Fed went too far in the other direction, imposing needlessly burdensome and complex standards without solving the real problem with outdated CRA rules: branchless banks extracting deposits online but not reinvesting in those same communities"Modernization of the … CRA simply meant updating or tuning it up to reflect the fact that credit card, fintech, internet and other branchless banks are weblining our big cities by at least $40 billion annually," Thomas said. "Both the Trump CRA and especially the Biden CRA abandoned the clarity and fairness of the 1995 [rules], injecting unnecessary complexity and political ideology into what had been a nonpartisan practical compliance framework to prevent redlining."With the prospect of another CRA revitalization effort uncertain, advocates for communities called on the agencies to reject the reverting to the 1995-era rule, saying the proposal would preserve a branch-based model that no longer reflects modern banking, leaving major blind spots in oversight.Jesse Van Tol, president and CEO of the National Community Reinvestment Coalition, said in his comments that the 2023 rule created retail lending-based assessment areas for large banks that do more than 20% of their lending outside of branch networks, as well as a nationwide evaluation outside of assessment areas for all large and midsized banks that did the majority of loans outside of local branch networks."For the CRA to stay relevant it must account for how banks offer loans and services, which for an increasing number of institutions is outside of branch networks," NCRC's comment letter states. "This expansion of assessment areas would likely result in more lending to borrowers with [low-and-moderate income] and in LMI communities."In the NCRC letter — in which the group is joined by 113 other community-oriented groups, including the NAACP, Rise Economy and Beneficial State Bank — the groups stress that the 1995 rules fail to capture how banks operate today, lack transparency in ratings and deprive regulators and the public of critical data. In their view, rescinding the 2023 rule would worsen systemic inequality, as lending can be a major driver of homeownership, key for generational wealth in the U.S."The 1995 framework 'relies on examiner discretion to draw a conclusion about a bank's level of lending' to determine whether a bank's lending is satisfactory or outstanding, and which show need for improvement or substantial noncompliance with the CRA's requirements that institutions meet the credit needs of the entire community," NCRC writes. "This discretionary approach has resulted in 98% of banks receiving at least satisfactory ratings since the 1995 framework began … [and] has not been affected by [banks'] significant decline in mortgage lending to borrowers with LMI and LMI communities."Other groups' comments called for updates, even as they supported repealing the 2023 rule. Both the Mortgage Bankers Association and the National Council of State Housing Agencies said maintaining one narrow aspect of the 2023 rule — a pre-approved list of activities eligible for CRA credit — would be beneficial to lenders."While we strongly support reestablishing the 1995 CRA framework, we ask the agencies to consider including in the final rule language from the 2023 CRA rule that provides more details on which affordable housing activities would be eligible for CRA credit," NCSHA wrote. "This language gives clarity to banks without adding to their regulatory burden and offers a strong incentive for banks to engage in affordable housing financing and investments at a time when the nation faces an affordable housing crisis."MBA, like other bank groups, said the 2023 rule and later litigation had created too much uncertainty, confusing stakeholders as to what requirements apply. MBA says it supports the move to revert to the old standards, but asked for some clarity on which activities are eligible for CRA credit."MBA agrees with the Agencies that a rescission of the 2023 Final Rule is appropriate, and we support the included provisions that provide much-needed clarity for banks," MBA wrote. "One such provision is the requirement that the Agencies periodically publish an illustrative list of CRA-qualifying Community Development activities and provide a process for banks to obtain pre-approval for Community Development activities that are not on the list."

Sales of new US homes exceeded forecasts in July after an upward revision to the prior month, as prices eased and heavy incentives enticed more buyers off the fence.Contract signings on new single-family homes ticked down to a 652,000 annualized rate, with the strongest demand in the West, according to a government report issued Monday. The median estimate in a Bloomberg survey of economists was a 630,000 pace.READ MORE: Homebuilders encounter credit, supply cost headwindsWhile sales topped projections, the new-home market has grown dependent on price cuts and incentives to entice customers amid high mortgage rates. The share of builders who reported using sales incentives reached a post-pandemic high of 66% this month as they seek to unload an inventory of completed homes at the highest level since 2009.That glut will continue to give builders reason to hold back on future groundbreaking, said Stephen Stanley, chief economist at Santander Capital Markets.READ MORE: NAHB's top economist weighs tariffs, immigration, economics"The slowdown in construction activity is starting to help at the margin, as the number of new homes for sale that are under construction dropped," Stanley said in a note. "So, this is hopeful but until it translates to a drop in the number of completed new homes for sale, builders are still likely to regard cutting construction as an urgent priority."Entry-level builder DR Horton Inc. reported on its latest earnings call that it was offering heavy subsidies to bring down some customers' mortgage rates to 3.99% as more buyers opt for loans backed by the Federal Housing Administration, which often accepts customers with lower credit scores.More generally, overall housing demand may start to stabilize as potential homebuyers find a little more relief on financing costs. Mortgage rates in the week ended Aug. 15 were near the lowest level since April.The government's report showed the median sales price of a new home decreased nearly 6% in July from a year earlier to $403,800, the lowest for July since 2021. Prices have fallen on an annual basis every month this year except one.For a fourth straight month, the median selling price of a new home was less than that of an existing property.Even with lower prices, it's still taking some time for builders to clear through inventory. The supply of new homes for sale, including those not yet started or under construction, decreased slightly to 499,000 units, still near the highest since 2007.By region, sales in the West increased 11.7%, while they dropped in the South and Midwest.New-home sales are seen as a more timely measurement than purchases of existing homes, which are calculated when contracts close. However, the data are volatile on a monthly basis. The government report showed 90% confidence that the change in new-home sales ranged from a 16.1% decline to a 14.9% gain.

About five years ago, Chase Bank got rid of its home equity line of credit (HELOC) due to market conditions.Blame it on the pandemic, or perhaps a combination of that and the fact that first mortgage rates were so low.There wasn’t really a need for the product because you could get a cash-out refinance instead at a dirt-cheap rate.But that was then, and this is now. Today, most existing homeowners already have the ultra-low rate first mortgage.So if and when they need cash, they won’t want to disrupt that loan, meaning the second mortgage comeback makes perfect sense.Not All HELOCs Are the SameNow let’s talk about how HELOCs work.First off, not all HELOCs are created equal. They come with different rules and different rates, though they’re all typically tied to the prime rate.The prime rate moves in lockstep with the federal funds rate, so whenever the Fed adjusts its own rate, the HELOC rate responds in kind.Because the Fed hiked 11 times beginning in 2022, and has only begun to unwind that via some cuts, HELOC rates aren’t all that low.But they often beat other options when you’re in need of cash, certainly sky-high credit card APRs and personal loans.To come up with a HELOC rate, you add a fixed margin (set by the bank) and the prime rate, which is currently a lofty 7.50%.In other words, you’re likely looking at a rate of 8% and higher, depending on how low the margin is.The good news is the Fed is expected to cut about 100 basis points by early next year, so HEOC rates will also fall by 1% if that happens.So you might eventually wind up with something in the 7% range depending on the margin, which isn’t terrible for a second mortgage.Anyway, rates aside, a key consideration when choosing a HELOC is the rule regarding the draw.Chase Requires You to Pull Out 85% or More of the HELOC at ClosingHow much do you need to take out upon opening the account? Well, with Chase it’s apparently 85% of the total line.In other words, if you’re approved for a $100,000 HELOC, you’d have to pull out at least $85,000 of that at closing.This is fine if you need that money right away, but sometimes homeowners just want a line of credit for emergency use.In that case, you wouldn’t want to pull out money unnecessarily, while also paying interest on it straight away.This is something to think about when choosing a HELOC. Some banks and credit unions don’t have a minimum draw at all, or a very small one.That could save you on interest while allowing you to set up a line if and when needed.Speaking of the draw, you get three years to make additional draws on the line, so if you want more money later, you can do so, though only for the remaining 15% with regard to Chase.Their HELOC comes with a 10-year interest-only period, followed by a fully-amortized 20-year repayment period, making it a 30-year loan (probably like your first mortgage).Chase is offering loan amounts from $25,000 all the way up to $400,000, with a maximum combined loan-to-value ratio (CLTV) of 80%.That means if your property is appraised for $500,000, the most you can borrow is up to $400,000, including your first mortgage.For example, if you have an existing $350,000 first mortgage, the most you’d be able to borrow would be $50,000 for the HELOC.Chase HELOC Comes with an Origination FeeOn top of this, Chase says “the product requires you to pay an origination fee at closing which will not exceed 4.99% of your total credit limit.”If we pretend the HELOC is $50,000 and the origination fee is say 2%, that’s $1,000. And it could be as high as 4.99%. Again, not all banks, credit unions, or lenders charge this fee.So you need to shop around and compare not just the HELOC rate, but also any closing costs.But it doesn’t appear to have an annual fee, which is a plus.Note that Chase’s HELOC is not available in the state of Texas, nor can it be used to purchase the property being used as collateral.All in all, I’m personally not a fan of the origination fee or the fact that you have to pull a minimum of 85% of the credit line right away.There are other lenders out there, typically credit unions, with no minimum draw and no origination fee.Put in the time to shop around to avoid these possible costs and secure a better deal.Read on: How to compare HELOCs from one lender to the next. 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)

Over 40% of millennial and Gen Z homeowners claim they struggle to afford their regular housing payments, a substantial number but less than the 70% who are saying the same about their rent, a Redfin survey found.In May, a survey conducted by Ipsos for the real estate company had over 4,000 homeowners and renter responses. This latest report looks at the nearly 2,000 people who said they have issues with being able to pay their housing costs.Among the issues plaguing homeowners in particular are the rising costs of property taxes and insurance. But renters do not pay property taxes and if they have the coverage, renter insurance premiums are lower than owner policies.Survey respondents were considered to have an issue if they made one of the following selections in the survey: "I struggle greatly to afford them;" "I regularly struggle, but sometimes okay;" or "I sometimes struggle, but generally okay." Why homeowners are more able to afford housingAcross all three demographic groupings, homeowners are in a much better position than their renter counterparts when it comes to being able to afford housing, but the degree varies.Just under 80% of baby boomers who own homes said they can easily afford their payments, followed by 63% of the Gen Xers and 59% of the combined millennial/Gen Z sample. The survey report did not mention structures like house hacking that younger generations use to afford their payments.But 32% of millennials/Gen Zers admitted they sometimes struggle, while 30% of Gen X and 18% of baby boomers gave that response.However, less than half of boomer renters can easily afford their costs, followed by 33% of Gen X and 30% of millennial/Gen Z.How they look to manage their budget varies based on age demographic and whether they own or rent.What sacrifices do struggling families make for housingStruggling millennials and Gen Zers homeowners are more likely than those who rent to sacrifice what Redfin considers to be luxuries, like eating out at restaurants (43%) and taking vacations (36%).On the other hand, 11% claimed they skipped meals completely to make their mortgage payment, while 13% have delayed medical treatments.For renters in this age group, 40% eat out less often, one-third said they took fewer vacations, 27% borrowed from friends or family, one-quarter said they took an extra shift at work, 22% reportedly missed a meal, 22% sold belongings and 19% delayed medical treatments.Among the older demographics, 45% of both baby boomer and Gen X homeowners ate out at restaurants less often to afford their mortgage, and roughly two-in-five of both groups took no or fewer vacations.Those younger generations are "making real sacrifices" in order to afford their housing payments, Darryl Fairweather, Redfin chief economist, said in a press release. But members of that age group who can successfully make their payments have an advantage: The Bank of Mom and Dad.Why some younger families can afford to buy a house"At the same time, a lot of the young people who can easily afford housing can do so because they have major financial support from their parents, with roughly one-quarter of the young Americans who recently bought a home using family money for their down payments," Fairweather said. "With the cost of buying a home rising much faster than wages, people without access to family money are much more likely to struggle to pay for housing — which could widen the gap between the haves and the have-nots in the future."A sign that certain groups do have money set aside, even if not being used for the intended purpose, 26% of struggling boomer homeowners will dip into their retirement savings, while 17% of their cohort renters will do the same thing, the most of either group.For Gen X, it is 16% owner and 13% renter, and among millennial/Gen Z, it is 13% and 8%, respectively.

In June, the Consumer Financial Protection Bureau took notable steps that could significantly reshape the regulatory framework governing loan officer compensation. Among the most consequential developments was the submission of a proposed rulemaking to the Office of Information and Regulatory Affairs (OIRA), which appears to contemplate rescinding or significantly amending the current Loan Originator Compensation rule under Regulation Z of the Truth in Lending Act.If enacted, this rulemaking could remove long-standing restrictions on LO compensation, including the prohibition on payments based on loan terms and the ban on dual compensation. This would give lenders more latitude in designing compensation structures, potentially allowing for alternative models tied to retention, digital adoption, or customer satisfaction, instead of being limited to new loan origination volume.Currently, the LO Comp rule prohibits compensation that varies based on the terms of a single transaction or multiple transactions. It also bars reductions in LO compensation to offset pricing concessions and bans dual compensation — meaning that a loan originator cannot receive compensation from both the consumer and another party (e.g., lender or broker) in the same transaction.While these rules were originally designed to prevent steering and promote transparency, industry leaders — including the National Association of Mortgage Brokers — have expressed support for revisiting or rolling back portions of the regulation. They argue that the rule has evolved beyond its initial aim of eliminating yield spread premiums (YSPs) and may now hinder fair competition and innovation in compensation structures.At the same time, broader industry forces are influencing the conversation. The re-proposal of the Basel III Endgame by federal regulators could impact capital requirements, particularly for mortgage assets held by large banks, which may in turn affect mortgage pricing and product availability. Meanwhile, compensation trends are shifting away from traditional volume-based bonuses and toward innovation-driven models, including performance metrics like customer satisfaction, technology adoption and retention. Some firms are even embracing 100% commission structures, supported by advanced technology platforms that enable originators to operate with greater independence and efficiency.In this evolving regulatory environment, one truth remains clear: Regardless of how LO compensation rules may change, lenders with the most advanced technology stack will be best positioned to attract and retain top-producing talent.What the top performers sayTo better understand what motivates LOs, and where lenders can improve, Floify commissioned a study of 150 top-producing originators across the country. The findings underscore one central theme: LOs know what drives their performance and want the tools to make it happen.Consider these key stats:89% said they would consider switching employers if they didn't have access to digital mortgage tools.95% ranked tech flexibility and customization as the top factor in their success.Only 38% reported being "definitely happy" with their document collection process.In other words, digital empowerment isn't a nice-to-have. It's the deciding factor for where top producers work — and stay.RELATED: Loan officers rank technology high among reasons to stay or goTechnology-first mindsetYou can learn a lot about any industry by asking its top earners what energizes them toward peak performance. In mortgage lending, LOs we surveyed made it clear: they value tools that allow them to work faster, communicate better, and eliminate bottlenecks. This becomes even more crucial in light of another worrying trend: 31% of mortgage borrowers abandon their loan applications, and only 18% return to the same LO for a future transaction.These numbers suggest a serious "stickiness" problem. How can an industry built around helping consumers achieve one of the most significant financial decisions of their lives struggle so much with loyalty?The answer lies in experience. Top-performing LOs concentrate almost entirely on the front end of the transaction — sourcing leads, qualifying buyers, and moving deals into the pipeline. When asked what aspects they prioritize to close deals, LOs overwhelmingly emphasized communication and integration, each cited by 69% of respondents, followed closely by automation at 67%. Meanwhile, customer experience came in dead last at 31%. That's not because LOs don't care about clients, but because their system doesn't reward long-term engagement.Compensation vs. customer loyaltyLenders tend to incentivize new business rather than client retention, and LOs have adapted accordingly. In our study, 79% of top LOs acknowledged their focus is on acquiring new customers, not keeping existing ones (21%). Post-close engagement is minimal, with follow-up messages (44%), promotional offers (40%), and birthday cards (38%) being the most common retention tactics. These aren't bad strategies, but they highlight an imbalance. Without compensation models prioritizing relationship-building, LOs don't have the time or resources to make client loyalty a core part of their workflow.This transactional focus creates significant challenges. One is vulnerability to churn, since only 18% of borrowers return to their original LO, lenders are forced to continually replenish their pipeline, which is both costly and inefficient. Another is the growing credibility gap when lead generation becomes the primary growth strategy. In such cases, lenders may resort to aggressive, consumer-unfriendly tactics like trigger leads, which can undermine trust and damage long-term relationships.Technology as a talent magnetIn an industry with thin margins and intense competition, retaining top talent is one of the most cost-effective ways to grow. The study shows that the best LOs are already gravitating toward tech-forward lenders. This is why your tech stack matters more than ever. A robust digital mortgage platform isn't just about faster processing or prettier interfaces — it's a recruiting asset. It signals to top performers that your organization understands their needs, invests in their efficiency, and helps them deliver a better borrower experience.Technology also levels the playing field. Whether a lender is local, regional or national, a modern platform allows them to compete with the big names by offering streamlined workflows, real-time updates, and personalized borrower journeys.The path forward: Where trust meets techRight now, the mortgage industry stands at a crossroads. Compensation rules may shift, and compliance standards may tighten, but the underlying mission remains: to guide people through the most important financial decisions of their lives. To do that well, lenders must go beyond transactional thinking. They must empower LOs with the tools to deliver consistent, personalized experiences and consider compensation models that reward not just production but retention.Top producers rely on automation that removes pain points and accelerates turn times and communication tools that keep borrowers actively engaged and informed throughout the process. Just as importantly, their success is driven by data insights that enable them to follow up in meaningful, personalized ways — not just through routine, manual outreach.Although we can't predict precisely how LO compensation rules will evolve, we are confident the lenders with the best tech stack will win. They'll win talent, borrower trust, and repeat business. The next era of mortgage lending belongs to those who combine compliance with innovation and performance with personalization. 

As homebuyers demand faster, easier lending experiences, mortgage professionals are under pressure to deliver speed, compliance, and consistency across every stage of the loan lifecycle. According to Fannie Mae, 75 percent of recent homebuyers cited process acceleration as the top benefit of a digital mortgage process, while 71 percent pointed to ease of use. With this shift in expectations, lenders must evaluate their current position, or they could be left behind. Here's what's driving this shift and why these five trends driving digital mortgage solutions in 2025 deserve immediate attention.1. Higher borrower expectationsToday's borrowers expect intuitive, digital-first experiences. Many want to complete most of the process online, from initial application to document upload, without relying on in-person visits or manual paperwork. They also expect immediate updates and secure portals that allow them to track progress without constant outreach to loan officers.In response, lenders are adopting digital point-of-sale platforms that streamline intake and increase transparency. This improvement will enhance customer satisfaction and reduce loan abandonment rates. 2. Pressure to scale during demand spikesSudden increases in mortgage volume can expose inefficiencies in traditional processes. Many institutions are still catching up after recent surges, especially as mortgage applications are at a two-year high. These spikes overwhelm manual workflows, slow down processing, and frustrate both staff and borrowers.Digital tools enable lenders to scale up without compromising accuracy. Automated underwriting, rule-based decision engines, and AI-powered verifications allow teams to manage a higher volume without adding headcount. 3. Diversification of loan productsLenders are expanding into niche markets to stay competitive. One area seeing growth is short-term investment lending. Understanding the pros and cons of fix-and-flip loans for investors is critical, especially when adapting underwriting models to support faster turnaround and different risk profiles.Mortgage platforms that accommodate various loan types can expedite approvals and eliminate bottlenecks. From DSCR loans to bridge financing, technology is enabling lenders to offer more products without overcomplicating their processes.4. Compliance and audit demandsDigital transformation is about precision. Regulators now expect end-to-end digital trails for disclosures, document custody, and eClosing processes. State-by-state compliance laws around notarization and eVault storage add complexity.Tech-forward lenders use digital solutions to automate timestamping, track document versions, and maintain airtight audit trails. These tools minimize risk and reduce the burden on compliance teams, saving dozens of hours each month on manual checks.5. Integration across the loan lifecycleDisconnected systems slow everything down. When the POS doesn't sync with the LOS - or when servicing systems can't access origination data - delays and errors are inevitable. Such a fragmented approach often adds days to the loan process.Lenders adopting fully integrated digital ecosystems from initial application to servicing see gains in speed, accuracy, and borrower satisfaction. Seamless data handoffs mean fewer redundancies and less back-and-forth between teams.Don't wait to be replacedThese five 2025 trends driving digital mortgage solutions are not optional; they're actively reshaping what borrowers expect and what lenders must deliver. Waiting for a perfect system isn't a strategy. In today's climate, lenders who act first will lead, while others may find themselves working twice as hard to catch up.

Jerome Powell sent the US bond market up on Friday by telegraphing his Federal Reserve will resume reducing interest rates as soon as next month. Beyond September, it's up to the economy how much further he cuts — and how much more Treasuries can rally.READ MORE: Powell opens the door to interest rate cuts in SeptemberThe central bank chief on Friday delivered his strongest signal yet that he's ready to end an eight-month pause, saying the downside risks to the labor market may "warrant adjusting our policy stance." Treasury bonds jumped, widening the gap between short- and long-term yields to the most in almost four years — a typical reaction to a more dovish Fed.Yet for all the sense of the relief, there are some lingering doubts about how much rates will come down. Futures traders don't see a quarter-point cut at its Sept. 17 interest-rate decision as a sure thing, pricing in the odds at around 80%. And even with Friday's gains, bond yields still haven't pushed below lows from earlier this month as investors wait for employment and inflation data that come in before the next meeting.The restrained response reflects the vexing cross-currents that are facing the Fed, which is balancing a softening labor market against the risk that inflation will rise from still elevated levels as President Donald Trump's tariffs ripple through the economy. READ MORE: Mortgage rates remain flat as markets wait for Powell speechA case in point: This week, the Fed's favored inflation gauge may show price pressures remain strong. The auctions of two-，five- and seven-year notes will test investors' demand. And even with Powell's pivot, there's the possibility of a repeat of last year, when the Fed started easing policy, only to stop in January when the economy kept exhibiting surprising strength.Powell "solidifies market expectations of a cut in September," but "it's less about whether the move comes in September or October," said Gregory Peters, co-chief investment officer at PGIM Fixed Income. "We don't know what the next six months will look like. It's still going to be an environment of mixed data, keeping the bond market on edge."The policy-sensitive two-year yield rose one basis point to 3.71% on Monday after tumbling 10 basis points Friday to approach its early August low – which was set after the employment report showed job growth was far weaker than expected. Interest-rate swaps showed traders started pricing in two quarter-point reductions by year-end, with a small chance given to a third such move.The market expectation of easing "is the appropriate reaction," said John Briggs, head of US rates strategy at Natixis North America. But, he added, "anything further than two-and-a-half cuts being priced before we get to payrolls is too aggressive."Powell's pivot has given momentum to the so-called curve steepening trade, a position that wagers short-term rates will fall the fastest as easier monetary policy promises to increase the pace of growth. On Monday, the yield difference between the five- and 30-year bonds reached the highest since 2021. Bond investors remain comfortable owning shorter maturities that have scope to rally once the Fed resumes easing. But they've largely been less willing to hold longer-dated Treasuries, which are susceptible to future inflation and the risks posed by the swelling government deficit.The trade has also been seen as a hedge against the unprecedented pressure that Trump has put on the central bank to lower borrowing costs. He has repeatedly criticized Powell and on Friday threatened to fire Governor Lisa Cook over allegations of mortgage fraud. Cook said she won't be bullied into resigning.The president's attacks on the Fed's independence have raised concerns in markets, given that excessive rate cuts could fan inflation and erode the long-term value of fixed-income securities."The front end now has Chair Powell on its side, and yields there should stay down," said Padhraic Garvey, head of research for the Americas at ING. "The long end is not loving this," adding it "likely reflects a suspicion that the Fed could be taking risks with inflation here."The market movements also reflect the possibility that cutting rates while inflation is sticky — and may rise further — threatens to limit how much yields will fall on bonds due in 10 years or longer. There's also the chance of a repeat of late 2024, when longer yields rose even as the Fed cut rates by a full percentage point. On Friday, market measures of inflation expectations edged up. "If we do have a Fed that's cutting in this environment where inflation is still a far cry from their target, we think the market should show more signs of this inflation target moving higher and becoming unanchored," said Meghan Swiber, an interest rate strategist at Bank of America Corp. on Bloomberg Television.The bottom line for bullish bond investors is that they remain at the mercy of another potential selloff if the economic or inflation data is surprisingly strong. "There's a long way between now and September 17th," said Michael Arone, chief investment strategist at State Street Investment Management.

President Trump's One Big Beautiful Bill is a milestone on the path of America's Golden Age. It will help restore prosperity and stability to millions of households by providing crucial tax relief—including bringing back an impactful tax deduction for mortgage insurance premiums (MIPs).From 2007-2021, four million homeowners used the MIP deduction annually. In the years that the deduction was active, homeowners claimed it for a total of 44 million times, and the average amount saved was $1,454 per person.READ MORE: What's in the 'big, beautiful' Trump tax bill for lenders?The total amount of money saved by the American taxpayer in those years was $65 billion, which would be enough to buy almost 150,000 homes today.The Biden administration, unfortunately, allowed this important deduction to expire, costing the American taxpayer thousands of dollars each year.Thankfully, President Trump's One Big Beautiful Bill is not just restoring this deduction, it's making it permanent. Mortgage insurance lowers risk to lenders and opens paths to homeownership for Americans who would otherwise be priced out of the housing market by the need to make large down payments. The return of the MIP deduction means fuller wallets for middle-class families and first-time homebuyers who pay MIPs to HUD's Federal Housing Administration, other government agencies, or private insurers. Homeownership is the jewel in the crown of the American Dream, and with the revival of the MIP deduction, homeowners can now keep more of their hard-earned dollars while continuing to pursue that dream.

Mortgage performance improved in July, signaling overall strength for the typical U.S. homeowner, but pockets of troubled borrowers are evident in the latest data, according to an Intercontinental Exchange report.The national delinquency rate came in at 3.27% in July, equivalent to 1.79 million loans, and fell 8 basis points from the previous month, ICE Mortgage Technology said. On a year-over-year basis, the share of mortgage past due dropped 9 basis points. "If you are looking for signs of a faltering economy, you won't find them in July's mortgage performance data," said Andy Walden, head of mortgage and housing market research at ICE, in a press release. With new delinquencies down, the national rate improved on an annual basis for the second consecutive month, breaking what had been a 13-month streak of deteriorating performance, Walden added. As data has shown throughout much of this year, Federal Housing Administration-backed loans are behind much of 2025's distress rate. While the FHA-delinquency share pulled back 5 basis points from June, it remained 15 basis points higher compared to July 2024. FHA-backed mortgages now account for over half of serious delinquencies, loans 90 days or more late on payments, ICE also determined.Late-stage stress and foreclosures tick upICE's findings appear to signify a continuation of March-to-June trends recently reported by the Mortgage Bankers Association, which found delinquencies declining across the country. At the same time most mortgage holders appear to be on solid footing, rising late-stage distress and foreclosures took some of the luster away from the data, MBA said.ICE's numbers similarly saw a marginal uptick in late-stage defaults of more than 90 days, which grew by 30,000 year-over-year to approximately 466,000, but was flat compared to June.Flatlining growth reflected the dissipating impact of early-year wildfires and 2024 hurricanes on mortgage performance, with the annual pace of increase the smallest since November, the company said. Foreclosure filings in July, though, climbed to 207,000 units, 10% higher compared to year-ago levels, but still 35% below pre-pandemic rates. New starts have risen for eight months in a row, while foreclosure sales increased for the fifth consecutive month. The recent upward trend in foreclosures comes as consumers express greater worries about their ability to make on-time payments on all types of debt. Calls for legal advice specifically pertaining to foreclosures also saw a sharp spike earlier this year. States with the best mortgage-borrower performance were clustered in the West, led by Idaho and Washington, where non-current loans only accounted for 1.95% and 1.99% of total outstanding volume, respectively. The three states rounding out the top five were Colorado, Montana and California with delinquency shares of 2.06%, 2.11% and 2.16%. On the other end of the spectrum, Mississippi and Louisiana led the country with the highest default rate, both clocking in with a 7.55% share.