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When a mortgage originations shop acquires a competitor, a single misstep, like choosing not to retain a well-liked IT manager from the onboarding firm, can turn a smooth integration into a total flop. Seemingly smaller misalignments, like mismatched compensation structures, approaches to marketing spend and executive personality clashes can add up to make a costly strategic endeavor going sour not long after the paperwork has been signed. What differentiates these outcomes often comes down to transparency and communication from both parties among themselves and with employees. "Never say nothing's changing," warned Julia Brown, founder of Telescope, an M&A advisory firm. "You lose your credibility, and people start to feel like they can't trust you when things do."As the mortgage industry continues to consolidate, numerous examples have surfaced of acquisitions that have gone smoothly, and those that have not been as fruitful as expected.In the past few years a flurry of these deal have taken place ranging from Rocket Mortgage's acquisition of Redfin and Mr. Cooper to Guild Mortgage acquiring close to half a dozen firms. The industry consolidation has been a reaction to a volatile housing market, with business sellers wanting to get out of the origination space all together, while acquirers have been looking to grow market share and volume. Guild Mortgage and CrossCountry Mortgage have been touted as having the know how in effectively integrating new branches and other organizations.Paul Hindman, industry consultant, pointed out that if "operations, marketing spend or  pricing breaks it will negatively impact everything" and that CrossCountry, specifically, prioritizes replicating the same conditions for originators that they had previously. Those acquiring a competitor must take the time to understand what exactly they're purchasing and the people that make the firm operate, and the company selling must be open with its employees about the pending changes, consultants that advise in M&A transactions said.But transparency must be carefully timed. Oversharing too early can spook staff, especially originators who may start fielding offers from competitors. "In a deal I was working on, the CEO of the acquired company felt an irrational need to be honest with his employees," said Brian Hale, founder of Mortgage Advisory Partners. "After that, a bunch of people left: before close, at close, and after close."Ingredients for a successful M&A transactionIroning out an M&A strategy and successfully integrating the company acquired is not simple, said Hale, who has been involved in high profile M&A transactions, including selling parts of Stearns Lending to Blackstone Group in 2015. It can take months to years before a transaction agreement satisfies both parties.And even when a mortgage company sends out a press release that they've acquired another lender, the work done afterwards such as onboarding new employees and consolidating two companies into one can be riddled with pitfalls."No transaction ever integrates perfectly smoothly, no matter how well you plan it," said Brett Ludden, managing director at Milliman Strategic Advisory. The real key to success is focusing on culture, and it's not the "we're having happy hour or pizza on Friday night" type of culture, added Brown, who prior to running her own firm worked as a senior vice president of M&A at Lower."When we talk about mortgage culture it means how do we show appreciation to our operations staff, do we have the same paid holidays?," added Brown. "If I'm a loan officer, do I have to ask permission right now for a pricing concession?"Mortgage lenders that have succeeded at integrating firms often compromise with acquired employees by giving them tools or compensation packages similar to what they previously had, while highlighting exactly what will be changing.Additionally, having senior management from both organizations be "visible and available as soon as the deal is announced, and literally for the first couple of weeks after the deal has closed" is very important, said Ludden."You've got to know that you're going to have some problems with people learning new technology, people getting onboarded to that new technology," Ludden said. "In my experience, people are going to get frustrated with those things, but it's how they are treated at that transitionary time that matters more to them and cements whether they're going to stay."Where things go off the railsSome employee turnover is expected when a merger occurs, stakeholders say. But there's a threshold to what's perceived as a "normal" amount and exceeding it may be a signal of deeper problems. A number of factors can push an abnormal amount of acquired employees out, including not being prioritized, said Hindman."There's real people involved," he stressed. "Failure is not understanding the people and that's why originators and others leave. Deal makers typically feel the love, not the people."Brown echoed that idea, highlighting that deal makers sometimes "take for granted the human element.""A lot of time, the people involved on the deal team are working so hard to get to a yes that works for both the buyer and the seller, that once it's done, they're mentally fried, and they're like, yep, we did it," she said. "We're both mortgage companies. They both sell FHA, VA, USDA, conventional like, how different can it be?"Noting that originating a mortgage is very complex, Brown noted that "everyone has a different trigger of what's going to upset them when it comes to the way that loans are done."Different technology, how an underwriter handles a file or how the size of the marketing budget fluctuates could trigger dissatisfaction that leads to an exit.  Not having an open ear to concerns of new employees makes the likelihood that they will leave significantly higher. Other common factors that push new employees out include changed compensation structures and new technology, M&A consultants interviewed said. "Companies that are not successful in keeping new employees are those that don't do the diligence of understanding the social, economic compensation pricing dynamic that keeps sales people at your company," said Hale.Taking time to explain the differences between new technology platforms and old are key to reducing friction too, he stated. "The average originator in the US is north of 50 years old," Hale said. "Changing technology systems is a big problem, so many originators think 'If i have to do that, I might as well talk to five other companies and see if they have a better deal for me.'"

Bloomberg News WASHINGTON — The White House's proposed budget pitches eliminating Community Development Financial Institution Fund's discretionary awards. In President Donald Trump's proposed budget, the White House said that past awards have "made race a determinant of access to loan programs to 'advance racial equity,' funded products and services that built so-called climate resiliency,' and framed American society as inherently oppressive rather than fostering unity." "The CDFI industry has matured beyond the need for 'seed' money and should at this point be financially self-sustaining," the White House said. "Remaining funding supports oversight and closeout of prior awards, maintaining CDFI certification, and support for New Markets Tax Credit administration and the zero-cost Bond Guarantee Program." At the same time, the White House budget would create a new $100 million award program to "spur economic development in rural America." The program would require 60% of CDFI loans and investments to go to rural areas.Industry groups immediately decried the cut."We are not aligned with the suggestion to eliminate the Community Development Financial Institutions (CDFI) Fund's discretionary awards," said Jim Nussle, America's Credit Unions president and CEO. "We do share the President's commitment to revitalizing rural communities — with credit unions currently operating roughly 900 branches that are the sole financial institutions in their census tracts, credit unions remain dedicated to serving all underserved communities, regardless of geography."The proposed budget comes after an executive order from the White House that would, among other measures, eliminate the CDFI fund to the extent allowed by law, given that the programs are set up by Congress. The order has sparked some confusion among Democratic lawmakers and within the industry, as CDFIs look ahead to recertification and the allocation of funds amid uncertainty about the future of the program.While the Treasury Department, which administers the CDFI Fund, has said that all 11 programs that it runs are statutorily mandated, the White House has suggested that it still expects cuts. Congress, meanwhile, is pursuing various versions of a spending bill that will extend the Trump tax cuts while lowering spending. The House Financial Services Committee earlier this week passed a bill that eliminates the Public Company Accounting Oversight Board and caps the Consumer Financial Protection Bureau's budget at roughly $249 million, a drastic reduction from its recent budgets. Sen. Tim Scott, R-S.C., chairman of the Senate Banking Committee, has also said that he would target the CFPB when looking for cuts by capping the budget. Trump's budget would also cut roughly $33 billion in funding for the Housing and Urban Development Department, including slashing more than $26 billion in funding for rental assistance programs. 

United Wholesale Mortgage is asking a Michigan federal court to toss out a countersuit filed by brokerage Atlantic Trust Mortgage Corp. The move comes shortly after the court declined the Florida-based brokerage's ask to dismiss UWM's original litigation, which accuses Atlantic Trust of breaching its All-In mandate. The wholesale lender called Atlantic Trust's fraud allegations "vague and unviable" in a court filing submitted April 30.In its motion to dismiss the case, UWM argued that Atlantic Trust's fraud claims are based on "a future promise reserved for a contract claim," lack any allegations of bad faith, and rely on an "unreasonable" interpretation that contradicts the parties' written agreement. UWM also said Atlantic Trust failed to show it suffered any damages as a result of the alleged fraud.Atlantic Trust's countercomplaint claims that in late 2022, as the brokerage was preparing to end its partnership with UWM, the lender offered a 60-day trial period during which the firm would not be bound by the terms of the All-In Addendum. Atlantic Trust accepted the offer but was later sued by UWM for violating the mandate.UWM argues, however, that the ultimatum, which Atlantic Trust was aware of, supersedes any alleged promises made.The wholesale lender in its filing, also included in the fact that America's Moneyline filed a similar countersuit against it and those allegations were tossed."The court held the promises cannot serve as the basis for a separate and independent tort claim. . . . And [America's Moneyline] has not identified any duties that UWM violated that are separate. The court accordingly dismissed the fraud claim," UWM wrote in its filing, stating that the same should be done to Atlantic Trust's countersuit.Atlantic Trust did not immediately respond to a request for comment Friday.Thus far, UWM has fared well in litigating against brokerages that allegedly violated its mandate. The controversial rule prevented brokers working with UWM from doing business with Rocket Mortgage or Fairway Independent Mortgage. In February 2024, Fairway exited the wholesale channel.Earlier this year, two federal judges in Michigan declined to dismiss UWM's All-In lawsuits against Atlantic Trust and District Lending. Both brokerages, sued by UWM for violating its ultimatum, had their motions to dismiss denied in the U.S. District Court for the Eastern District of Michigan, Southern Division, less than a week apart.The judges overseeing the two lawsuits ruled that Atlantic Trust and District Lending were bound by the wholesale broker agreement with UWM, despite not signing the ultimatum, because they continued doing business with the Pontiac, Michigan-based company.Other brokerages — including the previously mentioned America's Moneyline and The Okavage Group, which were also sued for violating UWM's All-In ultimatum and later countersued — face an uphill legal battle against the mortgage giant.A Michigan federal judge tossed AML's countersuit for fraud in March 2024, citing another court's decision where a judge earlier that year was unconvinced by The Okavage Group's similar arguments. The Okavage Group is currently appealing the court's decision.Another mortgage broker, Mid Valley Funding, agreed to settle and pay UWM $40,000 in June 2023.

The Trump administration wants to cut the Department of Housing and Urban Development's budget by 43.6%, a reduction that would require eliminating some programs. The recommendations for discretionary funding for fiscal year 2026 released Friday propose slashing HUD's budget from $77 billion in FY25, to $43.5 billion in FY26. The potential $33.6 billion reduction is part of a push to pass responsibility to state and local governments, and to eliminate spending that's "contrary to the needs of working Americans," wrote Russell Vought, director of the Office of Management and Budget and current acting director of the Consumer Financial Protection Bureau.HUD Secretary Scott Turner in a statement Friday afternoon said the recommended budget cuts will thoughtfully consolidate and streamline existing programs. "Importantly, it furthers our mission-minded approach at HUD of taking inventory of our programs and processes to address the size and scope of the federal government, which has become too bloated and bureaucratic to efficiently function," he said. The budget suggestions follow moves by President Trump's cost-cutting task force to eliminate over 100 vendor contracts at HUD for a stated savings of at least $130 million. The department has repeatedly touted $260 million in savings and the recovery of $1.9 billion in "misplaced" funds, which have since been revealed to be master subservicing line items. HUD in a separate statement Friday touted its work with the Department of Government Efficiency to cut fraud, waste and abuse. That acknowledgement came in response to an inquiry regarding a Wired report alleging that a college student was using artificial intelligence to propose rewrites of HUD regulations. A spokesperson said HUD doesn't comment on individual personnel. See the full list proposed housing changes in the table at the end of this story.Proposed changes at HUDThe largest cut suggested in the Trump budget proposal is a $26.7 billion reduction to HUD's "State Rental Assistance Block Grant," which provides funding for rental assistance, public housing, elderly and disability housing. The proposed budget would use a state-based formula grant in lieu of a "dysfunctional" federal system. The budget would also place a new 2-year cap on rental assistance for able-bodied adults. HUD is also looking to eliminate its $3.3 billion Community Development Block Grant, suggesting funds have been poorly targeted. The budget cites improper funding for improvement projects for a brewery, a concert plaza and skatepark. The government is also proposing to eliminate the HOME Investment Partnerships Program, another formula grant to fund the expansion of housing supply. Other nine-figure cuts include slashes to Native American Programs and a cost-cutting consolidation of Homeless Assistance Programs. A $100 million Pathways to Removing Obstacles program is on the chopping block for advancing "'equity' under the guise of an affordable housing development program."HUD emphasized that it is maintaining support for its Fair Housing Assistance Program, which funds state and local agencies responsible for processing 80% of the nation's fair housing complaints. At the onset of the Trump administration, HUD's fair housing enforcement operations were reportedly considered for layoffs. CDFI Fund changesThe Trump administration is also calling for changes to the Community Development Financial Institutions Fund, a collection of federally mandated programs that aid underserved borrowers. The budget calls for a $100 million increase for a new Rural Financial Award Program, which would require 60% of CDFI Fund loans and investment to go to rural areas. At the same time, the Trump administration calls for a $291 million reduction to CDFI Fund discretionary awards, citing past awards' focus on racial equity and climate resiliency. "The CDFI industry has matured beyond the need for "seed" money and should at this point be financially self-sustaining," the budget said.

Remax Holdings lost $2 million in the first quarter, with the mortgage brokerage franchise business playing a role in a near 5% year-over-year decline in organic revenue creation.The first quarter loss compares with net income of $5.8 million in the fourth quarter but was an improvement on the $3.4 million loss one year prior.Operating earnings, a non-GAAP measurement, of 24 cents a share beat Keefe, Bruyette & Woods' expectations of 19 cents and the consensus estimate of 18 cents.Other factors besides the lower mortgage segment revenue responsible for that 5% decline included lower agent counts and revenue from previous Remax acquisitions.The "challenging mortgage environment" is affecting that segment, which means it will take "a few more quarters" for the business to return to consistent revenue growth, pointing to positive signs popping up, said Karri Callahan, Remax chief financial officer, on the earnings call."In [fiscal year] 2024 network-wide transactions and volume increased compared to 2023," Callahan said. "Recently, we also experienced a flurry of franchise renewals with long-term Motto owners recommitting for another seven years."Even so, the number of open Motto Mortgage franchises fell to 224 as of March 31, down from 225 at the end of 2024 and 243 for the first quarter last year; the year-over-year drop was nearly 8%.Much of the revenue issues at both Motto, as well as the Wemlo processing business are "macro driven," with the biggest driver being the reduced office count compared with one year ago, Callahan said.But Remax has seen some stabilization on a sequential quarter basis, as well as good engagement at a Motto event in April, she added."So people still see the importance in the field in terms of ancillary services and mortgage," Callahan said. "It's something that we think is still a tremendous growth opportunity for us."Remax's U.S. real estate agent count fell 7.5% from a year ago, and by 2.8% from the fourth quarter. A seasonal decline is normal, but this was above KBW's 2.5% expected drop and the consensus model of 2%, said analyst Tommy McJoynt in a flash note."Home sale volumes have yet to show signs of a sustained rebound as we head into the spring season," McJoynt added. "This presents a challenging backdrop for Remax to curtail its agent rank decline, though it is taking proactive steps to further improve its value proposition to agents (e.g., sourcing lead referrals from digital marketing)."In March, Remax announced Ward Morrison, president of Motto Mortgage, along with the Wemlo business, will be retiring on June 15."We have a great team in place at Motto and Wemlo, and so that team is doing great things right now," CEO Erik Carlson said in response to a question about who might be stepping in those roles."First off Ward is just irreplaceable, I'll say that, but we do have an active search, both internally and externally," he continued. "Obviously, with the mortgage market, there's a lot of great candidates out there."

Not all mortgage rates are created equal.Why? Because lenders don’t price them the same for any number of reasons, whether it’s cost to originate or desire to make more profit.Just like when you buy a new TV or a car, the price might vary depending on the company or salesperson you deal with.The thing with a mortgage though is what you pay today could stick with you for the next 360 months.So putting in the time to get it right is more important than those other purchases.Home Buyers Will Overpay Their Mortgages by $11 Billion This YearA new study from mortgage lender Tomo argued that home buyers will overpay by a whopping $11 billion in 2025.Or put differently, seven out of 10 home buyers will pay an extra $4,500 (split between a higher rate and more fees) simply because they chose the more expensive lender.This is due in large part to rate disparity, an issue I’ve talked about in the past. Essentially, mortgage rates vary by lender, despite home loans mostly being a commodity.Even though two or three lenders can offer the same exact 30-year fixed product, its interest rate might differ tremendously, as can the loan origination fee.The only real difference is the service you receive during the 30 to 45 days it takes to close the loan.After that, there is no difference assuming it’s the same exact product. So you need to choose wisely, and most importantly, compare options.Problem is, most borrowers typically only speak to one lender, gather one quote, and proceed with that lender.In the process, they leave a lot of money on the table, as suggested by Tomo.Lately, this phenomenon has gotten worse, with mortgage rate disparity widening among lenders (it often does in volatile periods).For example, choosing the high-priced lender could cost you nearly $300 extra per month ($287) for the same exact loan.Back in 2018, making this mistake would only cost you about $80, so it’s more important than ever to get it right.How Efficient Is Your Mortgage Lender?Part of this might have to do with how efficient a lender is, with costs to originate often passed along to consumers.Despite new technologies designed to make mortgage lending quicker and easier, somehow the cost to originate has gone up 35% over the past few years.Find a lender that spends less to make loans and you can benefit by receiving a lower rate and/or be subject to fewer lender fees.The chart above from Freddie Mac’s 2024 Cost to Originate Study reveals that costs to make a loan can vary by $10,000 between lenders.If you work with an efficient one you’ll probably be able to save some money because the margins will be better.For its part, Tomo Mortgage gives its loan officers flat-fee commissions to ensure there isn’t any steering or different treatment based on loan amount size.In the past, Better Mortgage didn’t have commissioned loan officers at all, or lender fees, but has since shifted to a more traditional commission-based model.The Many Ways Mortgage Lenders Sell Higher Mortgage RatesTomo laid out four ways mortgage lenders are able to “sell” higher mortgage rates.One is via point traps, where the advertised rate might be much lower than the competition, but requires a ton of discount points to buy down the rate.When you pay points at closing, you are essentially paying prepaid interest for a lower monthly payment over time.But you have to keep the loan long enough to realize the savings, which could take years. And you could miss out on a refinance opportunity in the process if you’re inclined to hang onto the existing rate.With mortgage rates so volatile, sometimes it’s better not to pay a ton in points as you might be able to snag an even better rate in the near-future.Be sure to keep a close eye on any points required for the advertised rate to get an apples-to-apples comparison.Another issue is the “free refi” pitch, which I’ve written about in the past. Use the lender today and you’ll get a refinance without fees when rates drop.Problem with this is their rate might be higher than competitors, and rates may not actually come down. So you could pay more to that lender today for a deal that never materializes.Then there is undercounting the cash to close, which can be accomplished by not including the cost of title insurance, or discounting how many months of taxes and insurance you must pay at closing.It directs the borrower’s eyeballs to a different part of the Loan Estimate to make it appear that they’re the better deal.Lastly, they call out “standard” fees that perhaps shouldn’t even be charged, whether it’s a admin fee, processing or underwriting fee, doc prep fee, along with a loan origination fee.Not all lenders charge some or any of these fees, while also offering a competitive or lower rate.The Solution Is Typically Just to Shop MoreI’ve talked about this before, on countless occasions. If you want to outsmart the lenders who try to charge you more, simply shop around.Several studies, including one from Freddie Mac, revealed that simply gathering an extra quote could save you $600 annually. And even more with three quotes, four quotes, and so on.This benefit of shopping has increased over time as rate dispersion has widened, with lenders today offering a larger range of mortgage rates.In addition, when you do put in the time to shop, you’ll also get the benefit of learning the mortgage lingo, seeing more Loan Estimates, fee breakdowns, etc.And you should grow more comfortable dealing with loan officers and mortgage brokers.This should give you the confidence to negotiate your mortgage rate, which is another key piece of the equation.Tomo points out that anything in Section A of the Loan Estimate is fair game. This section covers origination charges, which can vary widely by bank or lender.Of course, sometimes these fees can offset by a lender credit, and still result in a low mortgage rate for you.So you have to look at how much cash is actually coming out of your pocket at closing and what interest rate you wind up with.A combo that results in the lowest interest rate and out-of-pocket fees is the most desirable. Just make sure the lender doesn’t tack on the fees to your loan amount in the process! 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)

Mortgage servicing platform Sagent rolled out a dedicated portal for attorneys working on foreclosure proceedings and other legal cases revolving around borrower distress for the company's business customers..The technology firm added the attorney portal to its Dara default and loss mitigation tool, which will allow law firms and servicers to track foreclosure and default processes and documents in a shared technology space. The feature is expected to reduce costs and improve the customer experience."The Dara attorney portal's intuitive interface and real-time data is a true game-changer for law firms because it was built with their feedback," Sagent General Counsel Cynthia Treadwell said in a press release. "We're continually enhancing the platform as our default servicing law firm partners tell us what they need," she added. In addition to up-to-the-minute data that comes directly from the loan servicing system, the portal is designed to simplify document uploads and integrate quickly with other systems already in use."By providing attorneys with a centralized platform for case management, Dara delivers faster solutions for servicers, attorneys and homeowners," said Perry Hilzendeger, Sagent's executive vice president of strategic growth.Sagent joins fellow servicing tech provider Intercontinental Exchange in creating a portal designed specifically for attorneys, with tool offered on the ICE platform for several years. Along with streamlining correspondence between parties and document collection, ICE Mortgage Technology's portal integrates with the bankruptcy and foreclosure applications found on the platform, according to the company. The new Sagent launch comes as various sources report a consistent rise in serious delinquencies — defined as past due by 90 days or more — in some lending segments. The uptick, combined with the recent expiration of a relief program offered by the Department of Veterans Affairs aimed at preventing property loss, lifted foreclosure inventory and sales higher in March compared to a year ago, ICE said.Similarly, Auction.com reported the number of completed public sales of foreclosed properties growing by the fastest pace in almost two years in the first quarter. Activity is still running behind the pace of pre-pandemic early 2020, however.The country's leading mortgage servicer, Mr. Cooper, owns a 20% stake in Sagent and is currently actively involved in testing Dara's functions as they are introduced. With the recent acquisition of Mr. Cooper by Rocket Cos., servicing for the latter business' originations is expected to move to Sagent. In their most recent earnings call, executives at Intercontinental Exchange noted, though, that Rocket is currently operating under a multiyear servicing contract with the company, and a complete transfer of loans to Sagent was still a ways off. 

The net positive gains to U.S. employment persisted to a surprising degree in the latest Bureau of Labor Statistics numbers, maintaining a neutral mortgage rate outlook.Industry hiring wavered in a tepid homebuying season in which the addition of 177,000 jobs to total employment in April was better than expected given federal cuts. Consensus expectations had been that the U.S. would add 135,000 jobs, down from 228,000 last month."These data will be enough to keep the Federal Reserve on the sidelines for now, as they assess whether the threat to economic growth or inflation is the bigger concern," said Mike Fratantoni, chief economist at the Mortgage Bankers Association"Mortgage rates are likely to stay within their current range," he added. (The Fed has power to move short-term rates that can influence the industry's long-term ones.) Estimates for nonbank mortgage payrolls, which are reported with more of a lag, inched down to 264,400 from a downwardly revised 264,700 the previous month. The declines were driven largely due to a drop in lending positions and despite a small increase in mortgage broker hiring.While the overall unemployment rate has remained unchanged at 4.2% and wage growth also remained stable at 3.8% in the latest number, there are some shifts in the data that suggest a slow creep up in economic weakness that could affect the industry's future rates and prospects."Federal government employment decreased by 9,000 in April and is down 26,000 so far this year," Fratatoni said in emailed commentary. "Given the plans for further reductions, it is likely that this category will also shrink in the months ahead."Fratantoni also noted that gains were limited to a few sectors in the market: heath care, transportation and warehousing. They also could be transitory, he added."We expect that transportation and warehousing jobs are at risk as the tariff effects kick in," he added.A recent survey on jobs openings and labor turnover shows "a steady weakening in demand for labor, with fewer vacancies and the lowest hiring rate in roughly a decade (outside the pandemic)," according to First American Senior Economist Sam Williamson.Williamson also foresees the Fed waiting to act on rates."The Federal Reserve will likely extend its 'wait-and-see' approach to further interest rate cuts as it assesses the impact of tariffs," he said.Job prospects in some parts of the property market outside the single-family sector show signs of improving, according to Lawrence Yun, chief economist at the National Association of Realtors."Overall job gains indicate increased occupancy demand for apartment and commercial buildings. Therefore, nearly 10,000 jobs were added to the real estate sector, primarily related to rental or leasing activity," he said in an emailed comment.Also, while the Department of Government Efficiency has been cutting federal payrolls, other public sector entities have been active when it comes to hiring, adding 13,000 positions in education, the National Association of Realtors economist said."The economy is progressing despite all the trade and tariff disruptions," Yun concluded.

Uncertainty around federal policy and tariffs has rocked the capital markets this year, and that has added to challenges for the mortgage industry, but there's a silver lining for larger nonbank players.Companies like United Wholesale Mortgage, Pennymac, Rocket, Mr. Cooper, Loandepot, Provident, Freedom and Planet Financial are in a good position to weather the market's volatility and gain market share through accelerated consolidation, according to Fitch Ratings.That's because mortgage rate volatility has intensified challenging conditions for originations that have put less efficient smaller players at a disadvantage in the last few years."While they're not recording the record profits that they did in 2020 and 2021, they are still — for the most part — profitable, and able to achieve enough volume where they can continue to invest in the business, improve their product offerings, and make acquisitions," said Eric Orenstein, senior director at Fitch and sector lead for nonbank mortgage companies.Those acquisitions range from deals like the Rocket-Mr. Cooper combination to MSR purchases aimed at growing the servicing book, he added.Reductions in near-term debt maturitiesThe majority of large mortgage companies have recently demonstrated an ability to contend with one of the risks Fitch had previously called out: near-term maturities for some of their unsecured debt.Fitch's analysis of the aforementioned companies' unsecured maturities initially found only United Wholesale Mortgage, Pennymac and Loandepot had unsecured debt due in 2025. All three have since taken measures to address the risk, Orenstein said. Most of the unsecured debt nonbank mortgage companies currently have will mature after 2028, according to Fitch's report.Pennymac is issuing $650 million in new unsecured notes with an expected high-end speculative grade rating of BB to repay a portion of the older debt of this type, which it noted in a recent earnings call, is due in October.UWM raised funds through a new debt issuance in December aimed at ensuring funds would be available to redeem $800 million in notes when they come due later this year. The older notes have rates lower than what's currently available so it was advantageous to leave them outstanding, Orenstein said.Fitch doesn't rate Loandepot, but Orenstein said he was aware based on reports the publicly traded company issues that it had exchanged the bulk of its near-term unsecured debt for secured notes earlier and only $20 million from the original amount is left.Nonbank mortgage companies have leaned into unsecured debt in the past year or so, with some executives noting that it has the advantage of not being subject to margin calls if there's an abrupt interest rate shift the way some secured financing can be.Fitch has generally encouraged unsecured debt use recently for that reason, but had warned that companies with large volumes of notes immediately maturing still could be forced into replacing their borrowing at a time market conditions aren't optimal.Differentiation in the level of riskThe ability of nonbank mortgage companies to take steps to address risk around near-term unsecured debt maturities and the recent restoration of calm in the broader markets have allayed many concerns, but some players still may struggle with it more than others."Some of the lower rated or unrated issuers might not have as much liquidity on hand so if they can't access the markets, they're going to face a real problem," Orenstein said.Finance of America, a reverse mortgage lender, no longer has any near-term unsecured debt, but it did previously and found itself forced to exchange some it had coming due near-term to avoid a likely event of default because it faced challenges issuing new notes, he said.Fitch initially downgraded the company to RD or restricted default prior to that debt exchange. The rating agency later upgraded the company to a low-end speculative grade rating of CCC to reflect the post-exchange capital structure, Orenstein said.

Senate Democrats say they'll continue to press Federal Housing Finance Agency Director Bill Pulte after the regulator's watchdog demurred on their investigative demands. According to letters obtained by Politico, the FHFA's Office of Inspector General last week deferred Democrats' questions about the FHFA to the agency itself. Senators on the Committee on Banking, Housing and Urban Affairs asked the OIG last month to probe the legality of Pulte's reshuffling of the boards of directors of Fannie Mae and Freddie Mac, and for further details of a mass firing. FHFA IG Brian Tomney, a Biden appointee, wrote to lawmakers that the FHFA had already offered continuing dialogue on five of senators' six questions. Regarding terminations and staff placed on administrative leave, the FHFA said it was monitoring "workforce planning efforts" including the government's Deferred Resignation Program. "FHFA also appears to be best situated to provide information regarding its involvement in the termination of employees," wrote Tomney. The OIG meanwhile said it's working on its annual reports addressing the FHFA's performance challenges and information security practices. In a statement shared Thursday with National Mortgage News, Committee Ranking Member Sen. Elizabeth Warren, D-Mass., said Committee Dems will continue to speak with the FHFA and its IG regarding accountability. "FHFA Director Pulte needs to answer for the chaos he has created that could undermine the stability of American mortgages," said Warren in a statement. Tomney's letter also didn't address senators' question whether President Trump's cost-cutting task force was involved in any FHFA action. Pulte, in a past social media post and a recent interview, suggested the Department of Government Efficiency was involved in cutting 25% of the FHFA's workforce. The recent letters didn't indicate if the OIG was refusing to open a probe. The OIG in response to a media inquiry Thursday said it doesn't comment on the existence, or non-existence, of investigations. Pulte speaksThe FHFA director, in a recent interview with cryptocurrency influencer Anthony Pompliano, shared his view on the letter from Senate Democrats, and asked lawmakers to give the FHFA "the benefit of the doubt." "It seemed to me it was almost accusatory in nature," said Pulte. "We should all be working together to fight fraud, no matter where it comes from. I like to work with people no matter what side of the aisle they're on."Pulte also spoke about his changes at the Fannie and Freddie boards, suggesting leadership were handcuffed by bureaucracy in the past four years. He blamed inflation and housing unaffordability on the previous Biden administration. His interview was posted between Fannie Mae and Freddie Mac's first quarter earnings. Pulte, chairman of both government-sponsored enterprises, spoke briefly during Fannie's earnings but not Freddie's. The director also said Wednesday he's signed between 50 to 80 orders, although he's only made a dozen of those actions public via posts on X. A spokesperson for the FHFA didn't respond Thursday to a question about the number of orders, or where further information could be found. The FHFA head also downplayed concerns over tariffs, stating that he didn't believe they were as impactful on the housing and home building markets as some had feared, and that people know what President Trump's strategy is. "I think that, the punchline is, you have somebody in President Trump who's going to get this economy roaring again, but we've got to reverse what's happened with these last four years," he said. "And these nations have been ripping the country off, and the president is going to take care of it."